How innovation, technology and sustainability is driving modern warehousing and intralogistics.

Material handling directly impacts productivity and worker safety, ensuring safe and efficient movement of goods within the factory premises or in warehouses. The humble storage shelves, trolleys and forklifts are now joined by Automated Storage and Retrieval Systems (AS/RS), Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), among other equipment. Together, these provide the most efficient and seamless movement automating internal logistics, and facilitating organised storage and movement of sub assemblies and finished products and raw materials such as metals, chemicals, plastic or paper, within industrial establishments. With all these recent entrants, what is the current status of automation in material handling and intralogistics operations in the industry today?

“Material handling and intralogistics operations are among the crucial elements for businesses in this expeditious and competitive business environment. With the rising demands in e-commerce and B2B, anticipation of upsurge in efficiency and accuracy in automation is fundamental for companies to achieve operational competence,” says Bir Singh, Co-Founder, Addverb. “Businesses are embracing automation technologies and advanced robotics to resolve the adversities of growing order volumes and meeting delivery deadlines with order correctness. For smart warehouses, Addverb equips the companies with Enterprise Software Solution and Warehouse Execution Systems with the goal to ensure the best execution of factory and warehouse activities,” he adds.

For Asim Behera, CEO, Daifuku Intralogistics India Pvt Ltd, automation is a broad term and what it encompasses should be clearly defined. Speaking specifically in the context of what Daifuku offers, he shares a high-level timeline of how the landscape has evolved, which may well be the story for the industry as a whole:

1995-2010: This period marked the early adoption of AS/RS in India, primarily within the pharmaceutical and automotive sectors. These initial systems were relatively small—typically under 5,000 pallet positions and with low throughputs, often less than 120 pallets per hour.

2011-2020: Adoption of automation grew significantly during this phase. Industries such as F&B, Paints, Petrochemicals, and Tyres began embracing AS/RS technology. The throughput in some cases now exceeded 500 pallets per hour, and some systems reached over 40 metres in height.

2021 onwards: Covid was a huge deterrent to many businesses and our way of life. Because of the restrictions such as social distancing, limiting the number of workers and their availability, automation suddenly became the knight in silver armor. Anyone who questioned the RoI for automation earlier, now found the answer.

“From 2022 onwards we see a growing appetite for intralogistics automation, however it remains a very cost sensitive value proposition. We at Daifuku have a long-term vision on this and in 2025 we launched India's largest AS/RS factory. Our vision is to 'Make everything in India, for India.' We want to be the enabler for Make in India,” he elaborates.

R Prahalad, Chief Business Officer, Virya Autonomous Technologies, believes that from smart warehouses to autonomous mobile robots, technology has played a pivotal role in driving efficiency and reliability. “In industries like automotive, e-commerce, and pharmaceuticals, technological products like AGVs, AMRs, and AS/RS are becoming standard. Sectors such as FMCG and apparel are gradually transitioning, often starting with semi-automated setups due to cost and integration challenges. Mobile robotics, particularly AMRs, are gaining popularity for their flexibility and ease of deployment. Many companies are integrating AI, IoT, and analytics to enhance real-time decision-making and operational efficiency. Instead of building new facilities, retrofitting existing warehouses with modular automation is a growing trend,” he explains, and also draws attention to the fact that most operations today follow a hybrid model, combining automated systems with human labour for scalability and adaptability.

Regardless of the technological progress and availability of solutions, one often hears about problems end users typically face. What are the key challenges companies are currently facing in warehousing and logistics?

“While there have been significant developments and advancements in the warehousing and logistics sector in terms of technology, infrastructure and policy reforms, certain bottlenecks that the stakeholders are still working towards resolving include inadequate infrastructure of charging stations for electric vehicles along with the high cost of such assets, poor connectivity in rural areas, and shortage of skilled labour that can harness tech advanced solutions to their full potential,” observes Neeraj Bajaj, Head – Warehousing & Distribution, CJ Darcl Logistics Limited.

According to Ravi Khule, Vice President – Operations, ATS Conveyors India Pvt Ltd, today, many small and mid-sized industries are increasingly focusing on integrating automation into their operations at various levels. In the Indian context, a significant number of facilities continue to operate with partial automation, complemented by human involvement. This balanced approach is likely to continue, driven by socio-economic considerations and the imperative to sustain employment opportunities. “Yet it is not smooth sailing. The availability of skilled labour and the high capital investment required for automation remain key challenges in the warehousing sector,” he points out.

“The challenges are from multiple fronts. Companies must balance customer demands with operational efficiency, while navigating digital transformation, labour and environmental challenges, and macro uncertainties. Strategic investments in automation, integrated systems, AI/ML, and sustainability-focused logistics are key to overcoming these obstacles,” says Sunil David, Digital Technology Consultant. He has summarised the key challenges as:

• Labour shortages and increasing labour costs: caused by talent crunch, high attrition and wage pressure.
• Limited space and poor warehouse utilisation: urban warehouses running out of space, inefficient layouts, pressure for faster fulfilment and last-mile complexity.
• Inventory management challenges: demand volatility and stockouts & overstocks.
• Lack of digital integration & data silos: disjointed systems and data silos.
• Cybersecurity and IT risks: risks caused by connected systems and ransomware attacks.
• Sustainability and regulatory pressure: carbon emission targets, circular logistics and green compliance.
• Supply chain disruptions and global volatility: geopolitical tensions and climate events.

Challenges are not new, especially when it comes to implementation of any new concept or a project execution. The industry on its part looks for tried and tested solutions to avoid pitfalls. So realistically speaking, what are the technologies widely adopted by the industry that have matured and provide a good RoI?

“We have seen an upsurge in the adoption of AS/RS systems for high-density storage, AMRs for faster material handling and streamlining order fulfilment, WMS & WES for optimising operational efficiency and accuracy,” says Bir Singh. Addverb’s technologies showcase latest advancements in robotics and automation which assists enterprises in streamlined operations and improved productivity. “These solutions effectively manage resources and balance workloads to maximise outcomes. These kinds of developed solutions are increasingly being scaled across sectors like FMCG, retail, pharma, and e-commerce,” he emphasises.

Speaking from experience, Asim Behera says manual racking, multi-tier shelving, AS/RS, Warehouse Management System (WMS), etc., have all found niches among warehouses in various segments. “We have seen that when there are constraints of space, environment (such as high heat over 50 degrees or cold storage below zero degrees), labour availability and dependability, together with the need for high throughputs—say, more than 250 pallets/hour—AS/RS, when designed right, gives a good RoI. In the e-commerce sector, case conveying, sorters, spirals, etc., have matured and have met the RoI threshold,” he notes.

“Technologies that are being adopted across the industry, and I believe have actually contributed to the betterment of business, include Warehouse Management Software (WMS), blockchain and IoT enabled devices,” opines Neeraj Bajaj. “While WMS has mostly taken over the entire process of a warehouse management from manual processes of receiving, stocking, packing, shipping, and billing of orders, blockchain and IoT enabled devices have provided the customers with visibility into these operations. Together, these technologies have empowered logistics players to serve their customers better,” he asserts.

Once too often it has been observed that human beings try to take the easy way out and avoid making difficult choices. The idea that a disaster is necessary for ‘better sense’ to prevail is a common theme, suggesting that extreme circumstances can force people to reconsider their actions, priorities, or beliefs. This can lead to positive changes or a new understanding of things that were previously taken for granted. In the present context, it is now commonly believed Covid provided the trigger. How has the post-pandemic era changed customer expectations around warehousing and last-mile logistics?

“The Covid-19 pandemic dramatically reshaped consumer behaviours and expectations. There is now a heightened demand for automation. In the e-commerce sector – faster deliveries, real-time order tracking, error-free fulfilment, flexible returns and timely customer issue resolutions are becoming the drivers. Backend data analytics to springboard the business is emerging as a very strong requirement,” says R Prahalad. “In the in-factory material movement space, there is a vision to reduce/repurpose people  deployed on mundane tasks. For example, all manual material ‘push-pull’ activities both inside and outside the shopfloor are being automated through AMRs. In India, established platforms like those from the Maini Group are known for their reliability and seamless integration with factory ecosystems,” he elaborates.

“Today, many small and mid-sized industries are increasingly focusing on integrating automation into their operations at various levels. In the Indian context, a significant number of facilities continue to operate with partial automation, complemented by human involvement. This balanced approach is likely to continue, driven by socio-economic considerations and the imperative to sustain employment opportunities,” says Ravi Khule. “Post-pandemic, customers have come to expect faster deliveries along with real-time tracking and end-to-end visibility throughout the order fulfillment process,” he says.

“The post-pandemic era has dramatically reshaped customer expectations in warehousing and last-mile logistics. The shift, driven by the explosive growth of e-commerce, heightened digital savviness, and supply chain disruptions, has made speed, flexibility, transparency, and sustainability non-negotiable. We are seeing a demand for ultra fast delivery where Next-day, Same-day, and even Less than 1 hour delivery are now baseline expectations, especially in urban centres,” says Sunil David. Companies like Amazon and Flipkart have set the standard with micro-fulfilment and dark stores. With the advent of Quick Commerce, service providers like Zepto, Blinkit, Instamart, etc., are disrupting the e-commerce market with delivery being offered to consumers within 10 to 15  minutes. “The post-Covid digital consumer is far more demanding, impatient, eco-conscious, and experience-driven. Businesses that adapt their warehousing and logistics operations to deliver speed, transparency, and sustainability – while keeping costs in check – will emerge as winners in this new normal,” he explains.

From manually operated equipment and smoke belching forklifts to swanky, automated and autonomous machines gliding effortlessly, the material handling and warehousing industry has evolved rapidly during the last few years. What are the top emerging technologies or innovations that will shape the future of material handling and warehousing? How is the role of AI and data analytics evolving in this space?

For Bir Singh, the emerging innovations that will shape the future of material handling & warehousing include vision-enabled collaborative robots, edge computing for real-time warehouse operations and 5G-enabled mobile robotics. “Addverb is leveraging AI and ML across its automation suite for smarter navigation, predictive maintenance, and resource optimisation. Our hybrid carton shuttles (Veloce) demonstrate Addverb’s smarter and intelligent robotics solutions to handle real-time complexity. AI has been fundamental in learning from warehouse data to continuously improve workflows, inventory accuracy, and operational planning,” he says.

“A lot is happening in this space. The adoption of AS/RS is on the rise, particularly with new cold storage facilities being built around this technology. The e-commerce segment is demanding more advanced sortation solutions, and some players are already experimenting with AMRs (Autonomous Mobile Robots),” says Asim Behera. As seen earlier, post pandemic, most decision makers have realised the importance of planning for the future and scalability now figures prominently at the planning stage as any ambiguity on the estimated future expansion can lead to escalating expenses later besides causing other inconveniences in terms of operational needs. “We are now also seeing inquiries for facilities with pallet storage capacities reaching as high as 100,000 pallets. In our own experience, we're now deploying projects where the total automation value exceeds ₹100 crore,” he explains.

R Prahalad agrees that future innovations will build on today’s foundations to further improve efficiency and reduce manual intervention. According to him, the trends that will shape the future of material handling and warehousing include:

• Digital twins for simulating and optimising workflows

• 5G for low-latency connectivity

• Blockchain for traceability and trust in supply chains

• AI-driven predictive maintenance to reduce downtime, and

• Low-cost sensors to improve affordability and coverage.

“Data analytics and AI will become central to forecasting, optimisation, and autonomous decision-making – playing a strategic role across all operational layers,” says Prahalad.

With automation now dominating the discourse, what progress can one expect towards fully autonomous warehouses or ‘dark warehouses’?

“As mentioned earlier, the journey towards fully autonomous warehouses would be driven by larger adoption of technologies like AI, blockchain, IoT enabled devices, sensors, and smart robots that can efficiently manage operations that are still led by humans. Talking about dark warehouses, the one factor that makes them stand apart is the speed of order fulfilment and in India, we are progressing on that front by investing in technologies for enhancement in efficiency in terms of time and cost,” says Neeraj Bajaj. “At CJ Darcl, we are equipped with state-of-the-art technologies patented by CJ Logistics Korea that possess the abilities to digitise a multitude of operations in warehouses from robot guided picking system to unmanned forklifts,” he adds.

Ravi Khule is of the view that in order to achieve labour savings and enhance throughput, technologies such as Warehouse Management Systems (WMS) for inventory control and order tracking, along with pick-to-light and put-to-light systems, are widely already adopted across the industry. “While the near future will likely see semi-autonomous warehouses where human oversight continues to play a critical role alongside automation, notable progress toward fully automated 'dark warehouses' is being made by leading players such as Amazon,” he opines.

“The journey toward fully autonomous or ‘dark’ warehouses – facilities that operate with little to no human intervention – has significantly accelerated as of 2025. Fuelled by advancements in AI, Robotics, IoT, and cloud integration, dark warehousing is no longer a futuristic concept. Several organisations, particularly in e-commerce, retail, and high-volume logistics, are either piloting or operating partially autonomous warehouses today. A dark warehouse is a highly automated facility that operates without human workers. All processes right from inbound receiving and storage to order picking, packing, and shipping are completely handled by autonomous systems and robotic solutions, guided by real-time AI and data powered by low latency and high speed and highly available 5G networks,” says Sunil David.

To conclude, Sunil has listed the important points that according to him are the current barriers to full autonomy:

1. SKU Complexity: Handling irregular, fragile, or soft goods (like apparel or produce) still requires human dexterity. Robotic picking arms are improving but not universally reliable across all items.

2. Exception Handling: Damaged goods, missing barcodes, or packaging errors often still require manual intervention. Returns processing and re-shelving are only partially automated in most warehouses.

3. High Capital Investment: Full automation demands significant upfront cost – suitable primarily for high-volume, high-margin operations. RoI in smaller or less stable businesses is still under scrutiny.

4. Integration Complexity: Orchestrating dozens of machines, software platforms, and sensors remains a challenge. Fully autonomous warehouses are no longer science fiction – they’re becoming strategic assets for businesses that demand scalability, speed, and precision. While full-scale dark warehouses are still rare and expensive, hybrid models combining humans + automation are rapidly becoming the norm. The next few years will see increasing standardisation, cost reduction, and AI-driven breakthroughs that will push us closer to 100% autonomy in intralogistics.

Note: The responses of various experts featured in this story are their personal views and not necessarily of the companies or organisations they represent. The full interviews are hosted online at https://www.iedcommunications.com/interviews)