The warehouse of the future is already a reality today: Automation as a survival factor in e-commerce and industry.

The end of the forklift? How AI and "dark warehouses" are radically changing logistics.

Those who fail to invest will not only lose margin tomorrow, but also customer access – the automation of warehouse processes is no longer a luxury, but a necessity for competitiveness.

For a long time, the warehouse was considered a mere cost factor in many companies – a necessary but unremarkable hall where goods awaited shipment. But this perception has radically changed. In an era where e-commerce sales are exploding and customers expect next-day delivery as standard, intralogistics has become the beating heart of business success. Those who fail to keep pace risk more than just delays: it's about margins, customer access, and ultimately, competitiveness in a ruthless market.

The challenges are immense: The acute shortage of skilled workers is slowing down processes, while the demands for speed and accuracy are constantly increasing. The solution lies in intelligent automation. But contrary to widespread myths, the use of robotics, AI, and autonomous transport systems is no longer an exclusive privilege for industrial giants with unlimited budgets. Thanks to modular technologies and scalable software solutions, small and medium-sized enterprises (SMEs) can now also revolutionize their warehouse processes – often with payback periods of just a few years.

This article delves deep into the world of modern warehouse automation. We explore the fascinating evolution from the first high-bay warehouses of the 1960s to the AI-driven "dark warehouses" of tomorrow. You'll learn which technologies—from Autonomous Mobile Robots (AMRs) to Smart Slotting—are setting the standard today and how companies like Bergfreunde and the bilstein group have multiplied their efficiency through automation. At the same time, we take a critical look at the risks, investment hurdles, and limitations of the technology.

Learn how to transform your warehouse from a static storage location into a dynamic competitive advantage and why the question today is no longer whether to automate, but how quickly to start.

Suitable for:

• Retrofitting in intralogistics: The underestimated billion-dollar strategy for sustainable competitiveness

No staff, no problem? How automation combats the skilled worker shortage in warehouses

The modern warehouse is no longer just a place for storing goods – it has become a strategic hub for the entire company. The rapid changes of recent years have brought warehouse processes into sharp focus for business operations. While e-commerce sales continue to rise, skilled workers are becoming scarcer, and customer expectations for delivery speed and accuracy are increasing, companies must rethink their intralogistics. Modern warehouse management is no longer a supporting function – it has become a competitive factor that determines success or failure.

Automating warehouse processes directly addresses these challenges. It reduces manual errors, increases throughput, lowers operating costs, and frees up employees to focus on more strategic and valuable tasks. Contrary to a common misconception, automation isn't just for large corporations with virtually unlimited budgets. Modular solutions, digital planning tools, and scalable technologies make automated logistics accessible to small and medium-sized enterprises (SMEs) as well – with manageable effort and measurable results.

This article provides a comprehensive overview of innovations in intralogistics. It illuminates the historical roots of automation, analyzes the key mechanisms of modern warehouse technology, documents the current status quo in practice, and illustrates use cases from various industries. Furthermore, it discusses critical perspectives and offers a well-founded outlook on future developments. The goal is to foster a nuanced understanding of how automation not only increases efficiency but also enables strategic flexibility and robustness in a volatile world.

The emergence of warehouse automation: From manual inventory to intelligent networking

To understand current warehouse automation, it is helpful to look at its history. Logistics and warehousing have undergone a profound transformation over the past seven decades, characterized by phases of mechanization, automation, and now intelligent networking.

In the mid-20th century, during the economic boom, companies focused primarily on production and the utilization of scarce resources. Internal logistics was—if considered at all—a secondary concern, and when it came to storage, thinking revolved around simple shelving units and manual order picking by workers who sometimes spent hours walking through warehouses.

A turning point came in 1962 when Bertelsmann commissioned the first automated high-bay warehouse in Germany in Gütersloh. This step was not a technological gimmick, but a response to growing customer demands regarding delivery service and speed. With this innovation, high-bay warehouse systems began to displace traditional flat storage solutions – not only because they required less floor space, but also because they could be precisely controlled by centralized warehouse management software.

In the 1970s and 1980s, the strategic relevance of intralogistics was gradually recognized. While high-bay warehouse systems continued to be expanded, they were long considered a classic component of overall logistics (comprising transport, handling, and storage). The real conceptual shift only came with globalization and increasing competitive pressure from the 1990s onward. Companies realized that significant cost savings could be achieved by optimizing intralogistics.

The 2000s brought the next leap: Motorized shuttle systems, automated guided vehicles (AGVs), and later autonomous mobile robots (AMRs) opened up new possibilities. At the same time, warehouse management systems (WMS) became increasingly digital and intelligent, while barcode and later RFID technologies enabled tracking.

In the 2010s, development accelerated dramatically. The e-commerce boom and the associated shortage of skilled workers led to a wide range of new automation solutions. Today, in the 2020s, the industry is on the cusp of a new phase: Intelligent systems that combine machine learning, artificial intelligence, and highly networked IoT sensors enable unprecedented optimization capabilities. Data-driven decision-making, rather than mechanical processes, is becoming the core of modern intralogistics.

The key technologies and building blocks of modern storage systems

Modern intralogistics can no longer be viewed as a monolithic system. Rather, it is an ecosystem of diverse technologies that are combined and scaled according to requirements. A deeper understanding requires a breakdown of these building blocks.

Autonomous mobile robots (AMRs) and automated guided vehicles (AGVs) are among the most visible elements of modern infrastructure. AMRs differ from older AGV solutions in that they are equipped with artificial intelligence and sensors to navigate independently in dynamic environments – without predefined routes on the floor. They communicate with each other, avoid collisions in real time, and continuously adapt their routes. This allows for far greater flexibility than rigid AGV systems.

Picking robots and collaborative robots (cobots) represent a different type of robot. These systems are specialized in order picking. Modern picking robots use image processing systems and deep learning to grasp almost any item—regardless of size, shape, or weight—with high accuracy. Cobots, on the other hand, are explicitly designed to work alongside humans. They provide strength and endurance, while humans contribute judgment and flexibility. An MIT study showed that human-cobot collaboration leads to an 85 percent increase in productivity compared to purely manual or purely automated processes.

High-bay warehouses and modern storage systems such as shuttle systems or Vertical Lift Modules (VLMs) form the infrastructure backbone. They utilize space three-dimensionally and can thus increase storage capacity many times over. Shuttle systems, for example, navigate automatically through racks and retrieve containers on demand – a combination of physical infrastructure and digital control.

Warehouse management systems (WMS) and enterprise resource planning (ERP) systems are the nervous system of this automation. They coordinate all processes – from incoming goods inspection and storage space optimization to shipping preparation. Modern WMS solutions operate in the cloud, are scalable, and can be integrated with a wide variety of hardware components.

The digitalization of warehouse processes also includes intelligent Kanban systems, automated quality controls, and digital planning tools such as shelf configurators. These tools enable companies to design, simulate, and optimize their warehouse layouts even before any physical installation takes place.

The Internet of Things (IoT) and sensor technology are playing an increasingly central role. Sensors on pallets, in shelves, and on machines continuously provide data on inventory, movements, temperatures, and status values. This real-time data enables precise inventory management, predictive maintenance, and dynamic adjustment of warehouse strategies.

Artificial intelligence and machine learning orchestrate efficiency. AI systems analyze historical data and current trends to more accurately forecast demand, dynamically assign optimal storage locations (Smart Slotting), and continuously reduce error rates. A practical example: The IGZ Smart Slotting solution at the bilstein group reduced the travel distances of the stacker cranes by approximately 20 percent – ​​equivalent to a saving of around 6,000 kilometers per year.

5G and edge computing are revolutionizing connectivity. 5G networks enable the networking of millions of sensors per square kilometer, while millisecond-level latency allows robots and driverless systems to react in real time. Edge computing – local data processing directly at the warehouse – also reduces dependence on cloud infrastructures and improves data security.

These building blocks form a modular, scalable ecosystem. A company doesn't have to implement all technologies at once. Instead, SMEs can start with basic solutions – such as a WMS and some automated conveyor systems – and gradually expand the system as volume and budget grow.

The status quo: Where automation stands in practice today

The current situation in the warehousing and intralogistics industry is characterized by a remarkable discrepancy: While large corporations already operate highly automated systems, many medium-sized and smaller companies are still in transition phases. At the same time, the spread of new technologies is accelerating rapidly.

The facts are clear: The shortage of skilled workers is no longer a premonition, but an acute reality. Almost 50 percent of all logistics companies in German-speaking countries report a lack of skilled workers – especially in warehousing, dispatching, and driving. In the DACH region (Germany, Austria, and Switzerland), 49 percent of supply chain disruptions are attributable to a lack of personnel. This pressure is one of the main drivers for automation investments.

At the same time, e-commerce continues to grow unabated. The demands on same-day delivery, international shipping, and returns processing have increased. A typical e-commerce warehouse today not only needs to be faster than it was five years ago – it also needs to operate more flexibly and flawlessly. Warehouse rents in metropolitan areas have reached record highs, increasing the pressure for space efficiency.

Modern solutions are delivering impressive results. A recent case study by Jungheinrich Profishop demonstrated that companies optimizing their warehouse processes through a combination of lean management and targeted automation were able to reduce their overall throughput time by 23 percent. The proportion of value-adding activities doubled, and the number of process steps decreased by 38 percent. These figures illustrate that automation is not just a matter of cost, but also improves quality and speed.

Autonomous mobile robots (AMRs) are currently the fastest-growing sector. More than 30 percent of warehouses already use AMRs or cobots, and this number is rising sharply. Such systems are becoming standard, particularly in e-commerce and large-scale distribution centers. Companies like Siemens Mobility, Pietsch, and Martini Sportswear have increased their capacities by 30 to 400 percent through the use of automation systems like AutoStore, while simultaneously reducing order processing times.

The efficiency gains are tangible: Automated order picking systems reduce errors by 67 percent, significantly decreasing returns and error corrections. Highly automated warehouses can double or triple throughput with the same number of employees.

However, a digital divide also exists. While large companies are already using AI-supported systems with edge computing, many SMEs are still in phase 1 or 2 of their digitalization journeys: simple WMS implementation or the introduction of basic automation such as driverless transport systems. The available cloud-based WMS solutions have simplified this access – but still cost thousands to tens of thousands of euros per year, a significant sum for many SMEs.

A second point: Many automation solutions have become modular. This means that the requirement to invest millions directly in complete systems has eased. Shuttle systems and cobot solutions can be expanded gradually, and investments then pay for themselves over several years instead of all at once.

LTW Intralogistics – Engineers of Flow - Image: LTW Intralogistics GmbH

LTW offers its customers not individual components, but integrated complete solutions. Consulting, planning, mechanical and electrotechnical components, control and automation technology, as well as software and service – everything is networked and precisely coordinated.

In-house production of key components is particularly advantageous. This allows for optimal control of quality, supply chains, and interfaces.

LTW stands for reliability, transparency, and collaborative partnership. Loyalty and honesty are firmly anchored in the company's philosophy – a handshake still means something here.

Suitable for:

• LTW Solutions

Real-world case studies: Two concrete examples of successful transformation

Warehouse logistics in transition: Why now is the turning point for reshoring and AI systems

Theoretical concepts only become comprehensible through practical examples. Two cases illustrate how different automation can look and what results it can produce.

The bilstein group in Gelsenkirchen is an automotive supplier and operates an automated high-bay warehouse. The company was dissatisfied with the efficiency of its inventory management – ​​storage and retrieval machines were traveling excessively long distances to store and retrieve goods. In March 2024, bilstein implemented the Smart Slotting system from IGZ, an AI-based solution that dynamically assigns optimal storage locations for goods – not statically, but continuously adapted to turnover rates and current demand. The result: The travel distances of the storage and retrieval machines were reduced by approximately 20 percent – ​​equivalent to a saving of around 6,000 kilometers in the first year. This led to reduced operating costs, less wear and tear, and lower energy consumption. A prime example of how optimization can be achieved not only through radical renovations, but also through intelligent software solutions.

The second example is Bergfreunde, an online retailer of outdoor equipment. The company was facing massive growth challenges: manual warehousing processes couldn't handle the increasing number of orders. Bergfreunde implemented the AutoStore system, a high-density automated storage system where robots navigate three-dimensionally through shelves and retrieve containers on demand. The system was not only compact but also modularly expandable. The results were spectacular: picking efficiency increased by 288 percent, and the system achieved its return on investment after just two years. Moreover, the company's own growth doubled once the logistical bottlenecks were eliminated.

These examples illustrate two things: First, that automation is not solely a phenomenon of large corporations. Bergfreunde is a medium-sized retailer without a billion-dollar budget. Second, that the ROI question is real and can be answered positively. Payback periods of two to four years are not uncommon in practice, and many companies experience further acceleration in growth because they are no longer held back by logistical constraints.

Suitable for:

• High-bay warehouses for heavy goods and pallets: Reshoring transformation in warehouse logistics – a 13 billion euro market in flux.

Critical Perspectives: The Downsides and Unresolved Challenges of Automation

However, despite all the enthusiasm for automation, a critical examination is essential. Real challenges, risks, and unanswered questions exist that only become apparent through a balanced analysis.

Investment costs remain a barrier. A state-of-the-art warehouse system can quickly require investments in the millions. While modular systems have become more affordable, they still require several hundred thousand euros. For a truly small startup with limited capital resources, this can be an insurmountable obstacle. Added to this are ongoing costs: maintenance, upkeep, energy consumption, and staff training. A common finding in practice is that these ongoing costs often negate the initial personnel savings – especially if a system is not operating at optimal capacity.

A second critical issue is inflexibility. Automated systems dictate how a warehouse is structured, which items it can process, and how processes run—often for years. If business models, product ranges, or customer requirements change, adapting these systems can only be done at considerable cost and time. Manual warehouse management with shelves and people is more flexible in this respect. For fast-paced industries or companies with uncertain prospects, this rigidity can be a significant disadvantage.

The technical complexity should not be underestimated. Automated warehouse systems consist of many subsystems – robotics, WMS, ERP, conveyor technology, sensors – that must communicate with each other. In reality, there is rarely a single supplier that provides everything from one source. Interfaces are prone to failure, commissioning takes longer and is more expensive than planned, and the risk of failure is increased. A system failure in a highly automated warehouse can paralyze the entire operation – a manual warehouse can react more flexibly to failures.

Dependence on suppliers is another critical point. Choosing a particular supplier often binds you to that manufacturer for years – for maintenance, repairs, upgrades, and spare parts. This can lead to cost disadvantages, unfavorable contract terms, and a lack of customer focus.

A more subtle but equally important issue is the question of jobs. While it's true that automation transforms jobs rather than destroys them—repetitive, physically demanding tasks are eliminated, and new roles emerge in programming, maintenance, and monitoring—the transition process is painful. Employees who have spent years doing manual picking are not automatically qualified to program robotic systems. Retraining requires time, money, and commitment, and not all workers are willing or able to undergo this.

Energy consumption is also a contradictory issue. Yes, modern storage systems can achieve energy savings – one Australian cube storage system reduced its energy consumption by 85 percent because heated or air-conditioned spaces for human labor were no longer necessary. However, highly automated systems typically consume more electricity than simple, mechanized systems. If this electricity comes from fossil fuels, the overall environmental benefit may be questionable.

One final critical point: Not all processes can be automated. Irregularly shaped items, fragile objects, very large or very small items – some are difficult or impossible for robots to handle. In such cases, automated systems can even become a bottleneck because manually reworked processes reduce overall performance.

Perspectives for the future: Trends and potential upheavals

Intralogistics is facing fundamental transformations that will shape the industry over the next five to ten years.

Artificial intelligence will continue to gain ground – not only in prediction and optimization, but in true autonomy. Warehouses of the near future will feature AI-controlled robots that not only follow commands, but also learn, adapt, and make their own decisions. Deep learning and imitation learning will enable systems to learn from human input and optimize their behavior in real time without needing to be reprogrammed.

Humanoid robots are coming, but are currently overrated. Various forecasts for 2030 indicate that most "game-changers" in logistics will not have humanoid forms, but rather specialized systems: two- or multi-armed robots, autonomous mobile systems, and intelligent sorting machines.

5G and edge computing will enable the infrastructure on which all these systems are based. 5G will allow millions of networked sensors per square kilometer to operate, while edge computing combines local data processing with real-time responsiveness.

Light-filled warehouses are becoming a reality. Automated warehouses, where people are only present for maintenance and monitoring—not for daily order picking—will become the norm. This not only saves on labor costs but also massive energy costs for lighting, heating, and cooling. The trend already exists; Amazon and other logistics giants are experimenting with it.

Sustainability is becoming a competitive factor. Not out of idealism alone, but for economic reasons: Energy-efficient warehouse systems have lower operating costs. AI-based route optimization reduces empty runs. And a small warehouse footprint translates into significant cost savings.

Augmented Reality (AR) and Virtual Reality (VR) will be incorporated into planning and training. AR headsets can assist technicians with maintenance, while VR allows warehouse layouts to be simulated before they are built.

The trend towards decentralization will continue. Large, centralized logistics centers are expensive and complex. Small, distributed micro-fulfillment centers on the outskirts of cities, operated with highly optimized automation, could be the future – faster, more cost-effective, and more customer-friendly.

Cognitive computing and enhanced human-robot collaboration will evolve. Cobots will become more intelligent, better understand human intentions, and work seamlessly alongside humans without the need for elaborate safety barriers.

From cost center to growth engine: Intralogistics as a strategic success factor for the next decade

Intralogistics is undergoing a fundamental transformation comparable only to the major technological shifts in industrial history. Automation is no longer a question of if, but of how and when.

For large corporations, the matter is clear: investments in automation pay off, improve competitiveness, and enable scalability. But for SMEs as well—and this is where the greatest excitement lies—the conditions have changed. Modular systems, scalable investments, and better financing options have made entry possible. Companies that do not begin digitizing and gradually automating their logistics within the next two to three years risk a permanent competitive disadvantage.

The right approaches are hybrid. Complete automation is not always optimal – an intelligent combination of optimized manual processes (lean management), targeted automation (modular systems) and AI-supported optimization is often more effective than the pursuit of 100 percent robotization.

Investment decisions should be data-driven. The ROI question is legitimate, and it can be answered. Payback periods of two to four years are achievable, often even faster. However, the calculation must be holistic: not only direct personnel costs, but also space savings, error reduction, energy consumption, and growth potential must be considered.

Today, the biggest hurdle is no longer technology, but mindset. Management teams must understand that automation doesn't mean the end of jobs, but rather an opportunity for transformation and skill upgrades. Employees freed from repetitive tasks can turn to more strategic, customer-focused, and creative work. This increases job satisfaction and reduces turnover.

Looking ahead, intralogistics has become a key success factor for competitiveness. Companies that manage to continuously optimize their warehouse processes—through gradual automation, data analysis, and a culture of continuous improvement—will be the winners in the next ten years. They will be faster, more accurate, and more flexible than competitors who wait. Automating intralogistics is no longer a luxury; it is a necessity for economic survival in a fast-paced, globally networked world.

☑️ Our business language is English or German

☑️ NEW: Correspondence in your national language!

Konrad Wolfenstein

I would be happy to serve you and my team as a personal advisor.

You can contact me by filling out the contact form or simply call me on +49 89 89 674 804 (Munich) . My email address is: wolfenstein ∂ xpert.digital

I'm looking forward to our joint project.

☑️ SME support in strategy, consulting, planning and implementation

☑️ Creation or realignment of the digital strategy and digitalization

☑️ Expansion and optimization of international sales processes

☑️ Global & Digital B2B trading platforms

☑️ Pioneer Business Development / Marketing / PR / Trade Fairs

Benefit from Xpert.Digital's extensive, fivefold expertise in a comprehensive service package | R&D, XR, PR & Digital Visibility Optimization - Image: Xpert.Digital

Xpert.Digital has in-depth knowledge of various industries. This allows us to develop tailor-made strategies that are tailored precisely to the requirements and challenges of your specific market segment. By continually analyzing market trends and following industry developments, we can act with foresight and offer innovative solutions. Through the combination of experience and knowledge, we generate added value and give our customers a decisive competitive advantage.

More about it here:

• Use the 5x expertise of Xpert.Digital in one package - starting at just €500/month

Our global industry and business expertise in business development, sales and marketing - Image: Xpert.Digital

Industry focus: B2B, digitalization (from AI to XR), mechanical engineering, logistics, renewable energies and industry

More about it here:

• Xpert Business Hub

A topic hub with insights and expertise:

• Knowledge platform on the global and regional economy, innovation and industry-specific trends
• Collection of analyses, impulses and background information from our focus areas
• A place for expertise and information on current developments in business and technology
• Topic hub for companies that want to learn about markets, digitalization and industry innovations