Sunil David, Digital Technology Consultant.

What is the current status of automation in material handling and intralogistics operations in the industry today?

Material handing and intralogistics operations are crucial subsets of the broader automation and robotics sector and predominantly focuses on optimising internal logistics across warehouses, distribution centres, and factories. The increasing demand for operational efficiency, rapid order fulfillment, and accurate inventory management is fuelling the adoption of advanced automated solutions globally and India is no exception.

Automation technologies such as Automated guided vehicles (AGVs), robotic arms, conveyor systems, and automated storage and retrieval systems (AS&RS) are key drivers propelling the growth of intralogistics operations. This is helping reduce dependency on people, streamline internal operations, and ensure higher accuracy, which are critical needs that were exacerbated by Covid-19  induced labour shortages and supply chain disruptions.

From mere storage points meant for stowage and handling of bags, cartons, barrels or reels limited in variety; the function of warehouse has evolved over time. Today in many industries, warehouses are akin to mini-factories supporting a wide range of activities – receiving from hundreds of suppliers, QC, Kitting, Order fulfilment involving hundreds of thousand stock keeping units, fulfilling tens of thousands of orders daily over multiple shifts.

With growing complexity and volume, the need for densification in storage and automation in warehouse operations has grown. The business case for automation in low wage countries has been weak; however in certain industries (E-Commerce, Retail) the adoption is growing at a healthy rate.

In India specifically, structural shifts are also  driving the requirement for larger parcels of warehousing space and  faster adoption of dense storage systems. Faster order processing and high throughput requirement in industries like e-com, retail have accentuated the adoption of technology in warehouse operations. High piece picking, high order throughput, faster order turnaround, manpower availability/cost issues, headcount reduction initiatives (accelerated by events like Covid) have also been growth drivers. Companies are investing in eco-friendly automation solutions, such as electric-powered equipment and recyclable materials, to meet environmental regulations and consumer expectations.

What are the key challenges companies are currently facing in warehousing and logistics?

The key challenges are summarised in the following paragraphs:

1. Laboor shortages and increasing labour costs

Talent Crunch: There's a significant shortage of skilled warehouse workers and forklift operators, especially in developed markets.

High Attrition: Tedious and monotonous  work, poor ergonomics, and seasonal fluctuations lead to high employee turnover.

Wage Pressure: Inflation and increased demand for warehouse staff are driving up labour costs.

2. Limited space and poor warehouse utilisation

Warehouse Saturation: Urban warehouses are running out of space due to significant e-commerce growth and inventory stockpiling.

Inefficient Layouts: Many legacy warehouses are not optimised for modern automation or faster SKU movement.

Pressure for Faster Fulfilment: Next-Day/Same-Day Delivery Expectations – Consumers expect Amazon-like speed, putting immense pressure on supply chains.

Last-Mile Complexity: Cost, congestion, and delivery failures make last-mile logistics one of the most difficult links.

3. Inventory management challenges

Demand Volatility: Unpredictable consumer behaviour especially by the Gen Z segments  and market disruptions make inventory forecasting difficult.

Stockouts & Overstocks: Poor visibility into real-time stock levels leads to inefficiencies and lost revenue.

4. Lack of digital integration & data silos

Disjointed Systems: ERP, WMS, TMS, and supply chain platforms often don’t integrate with each other

Data Silos: Limited access to real-time, actionable insights across the supply chain weakens decision-making.

5. Cybersecurity and IT risks

Connected Risks: Increased proliferation of IoT devices and cloud-based WMS solutions are increasing exposure to cyber threats.

Ransomware Attacks: Increasingly AI powered sophisticated cyber attacks on logistics companies can impact operations and expose critical and sensitive data.

6. Sustainability and regulatory pressure

Carbon Emission Targets: Logistics providers are under tremendous pressure to reduce carbon emissions from transportation and packaging.

Circular Logistics: Returns management and reverse logistics are becoming increasingly  complex and critical to sustainability.

Green Compliance: Regulations around eco-friendly packaging, energy use, and waste management are increasing.

7.  Supply chain disruptions and global volatility

Geopolitical Tensions: Events like trade wars, port closures, and conflict zones cause shipping delays. A good example being the attacks by the Houthi militant groups on the Suez Canal resulting in containers having to be re-routed by the Cape of Good hope thereby increasing costs and higher delivery timelines.

Climate Events: Floods, wildfires, and storms disrupt logistics infrastructure and transport routes.

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.

Realistically speaking, what are the technologies widely adopted by the industry that have matured and provide a good RoI?

The warehousing and logistics industry has seen a consolidation of technology investments, with several solutions maturing to the point where they now deliver very  strong, measurable return on investment (RoI). Companies are increasingly strategic, favouring scalable and interoperable technologies that balance performance, reliability, and cost efficiency.

Here’s a breakdown of widely adopted and RoI-positive technologies:

1. Warehouse Management Systems (WMS)

✔ Maturity: High | ✔ Adoption: Very High | ✔ RoI: Strong

Capabilities: Near real-time inventory tracking, order management, labour planning, and space optimisation.

RoI Drivers: Reduces picking errors, increases inventory accuracy (>99%), improves throughput and customer satisfaction.

2. Autonomous Mobile Robots (AMRs)

✔ Maturity: High | ✔ Adoption: High | ✔ RoI: Strong to Moderate

Use Cases: Goods-to-person delivery, inventory movement, pallet transport.

RoI Drivers: Labour cost reduction , improved picking productivity and  24/7 operation with very minimal human intervention.

3. Automated Storage and Retrieval Systems (AS/RS)

✔ Maturity: High | ✔ Adoption: Moderate to High | ✔ RoI: Strong in High-Volume Environments

Use Cases: High-density storage, rapid order fulfilment.

RoI Drivers: Saves significant amount of  space, reduces labour needs, cuts fulfilment times significantly.

Best Fit: High-throughput industries like e-commerce, pharma, and auto components.

4. Predictive and Prescriptive Analytics

✔ Maturity: High | ✔ Adoption: Widespread | ✔ RoI: Strong

Use Cases: Demand forecasting, route optimisation, inventory planning.

RoI Drivers: Inventory cost reduction, reduced stockouts, increased planning accuracy.

5. RFID and IoT Sensors

✔ Maturity: High | ✔ Adoption: Moderate to High | ✔ RoI: Strong

Use Cases: Real-time asset tracking, cold chain monitoring, theft reduction.

RoI Drivers: Reduces shrinkage, enhances visibility, enables preventive maintenance.

 6. Robotic Process Automation (RPA)

✔ Maturity: High | ✔ Adoption: Growing | ✔ RoI: High for Repetitive Tasks

Use Cases: Order processing, shipment scheduling, billing and invoicing.

RoI Drivers: Cost savings via automation of admin processes, improved accuracy and faster cycle times.

7. Transportation Management Systems (TMS)

✔ Maturity: High | ✔ Adoption: High | ✔ RoI: Strong

Capabilities: Carrier selection, freight audit, route optimisation, and real-

time shipment visibility.

RoI Drivers: Reduces freight costs significantly , increases OTIF (On Time In Full) rates.

SaaS-based TMS solutions now offer better affordability for even mid-sized logistics players.

8. Computer Vision (CV) for Enhanced Quality and Safety

✔ Maturity: Medium to High | ✔ Adoption: Emerging but impactful | ✔ RoI: Strong in Focused Use

Use Cases: Damage detection, barcode scanning, safety monitoring.

RoI Drivers: Reduces inspection times, improves accuracy, enhances workplace safety.

 9. Digital Twins

✔ Maturity: Medium | ✔ Adoption: Growing | ✔ RoI: Strong in Complex Ops

Use Cases: Warehouse simulation, process optimisation, what if scenario

testing.

RoI Drivers: Reduces downtime, supports planning and layout redesign without physical changes.

How has the post-pandemic era changed customer expectations around warehousing and last-mile logistics?

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. 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.

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?

The future of material handling and warehousing is being profoundly shaped by emerging technologies that focus on Intelligence, Hyper-Automation, Flexibility, and Sustainability. As we move deeper into the AI-first and data-driven era, warehouses are evolving from static storage hubs into intelligent, real-time decision-making environments.

Top emerging technologies shaping the future

1. Autonomous Mobile Manipulators (AMMs)

What: Fusion of AMRs (movement) and robotic arms (manipulation).

Impact: Fully automates pick-and-place operations even in extremely dynamic environments.

Future Use: Unstructured environments like mixed SKU picking or warehouse bin replenishment.

2. Computer Vision + AI for Quality & Safety

What: Real-time visual processing for object recognition, damage detection, and worker safety.

Impact: Enables autonomous inspections, quality control, and compliance monitoring.

Trend: Deep learning models trained for logistics-specific visual tasks.

3. Edge Computing + High speed 5G Connectivity

What: High-speed, local data processing on the warehouse floor with ultra-low latency.

Impact: Enables real-time decision-making by robots, wearables, and IoT systems.

Example: Real-time alerts for forklift proximity, AMR traffic management.

4. Swarm Robotics and Fleet Intelligence

What: Decentralised coordination of multiple AMRs that operate collectively.

Impact: Dynamically adapts to traffic, workload, and storage configurations.

Benefit: More efficient use of space and faster route adaptations during peak loads.

5. Voice + Vision-Directed Warehousing

What: Combines voice instructions with AR smart glasses to guide workers visually.

Impact: Speeds up training, boosts pick accuracy , and reduces fatigue.

Adoption: Growing in retail, pharma, and food warehousing.

What progress can one expect towards fully autonomouswarehouses or ‘dark warehouses’?

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.

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.

(The views expressed in interviews are personal, not necessarily of the organisations represented.)

Sunil David is an Independent Digital Technology Consultant with 30 years of experience in the IT and Telecom Industry. He is currently empanelled as an Independent Consultant in the Manufacturing and Process Control Practice Area with Frost and Sullivan India, one of the top Global 10 Research, Consulting and Strategy firms. He also consults an IoT and AI based Technology solutions firm, Flamenco Technologies in their Go to Market strategy, Branding initiatives and building of their partner ecosystem. Flamenco solutions address use cases around Connected Manufacturing, Digital Supply Chain and Technology Enabled Sustainability solutions. Sunil is also a Mentor to T-Hub (Telangana Hub), one of the largest startup Incubators in India supporting some of the most innovative startups.

Sunil, an alumnus of Symbiosis Institute of Management Studies, Pune (Post Graduate Diploma in Business Administration with specialisation in Marketing) spent almost 20 years with AT&T India. In his last stint with AT&T, Sunil was the Regional Director – IoT (India and ASEAN). Sunil has had extensive experience in Business Strategy, Sales, Business Development and Alliance & Partnership building during his AT&T stints.

He is a very frequent speaker having spoken at more than 300 Industry forums both in India and abroad (organised CII, NASSCOM, ASSOCHAM, IET, PHD Chamber of Commerce, The Economic Times, etc), and leading Educational Institutions (IIT Madras, IIT Delhi, IIM Shillong, IIT Jammu, Symbiosis Institute of Telecom Management, ISB Hyderabad, etc., to name a few) on topics related to IoT, AI, 5G, Digital Transformation, Industry 4.0, Gen AI, Metaverse, Future of

Work, Cybersecurity, etc. Sunil also has been invited by leading business TV channels ET NOW and CNBC TV 18 to comment on topics related to India’s 5G rollout and adoption, the Telecom Act 2023, etc. He has been a recipient of a number of Awards and Recognitions (17 in total) from various Industry bodies and Media conglomerates in recognition for his work in Digital Technology Advocacy, Digital Skilling initiatives for Women and Startup Corporate connect (notable among them being – AsiaOne, one of Asia’s largest media conglomerates – India’s Fastest Growing Leader given in Bangkok in 2020, India’s Fastest Growing Digital Evangelist in 2021 and India's Fastest Growing Technology for Change Champion Award in 2023. Some of the other notable awards won being Top 50 Most Influential Digital Marketing Leaders in 2017 and India’s Most Influential Digital Marketing Leaders in 2022 conferred by World Marketing Congress and India’s Most Dynamic Leader given by Global Triumph Foundation in 2023.

NASSCOM Foundation and IBM India have planted trees in Sunil’s name for his contribution towards Digital skilling of women and efforts to advocate AI importance in India. He has also written a number of articles on topics related to Cybersecurity, Digital Transformation, Metaverse, IoT, 5G, etc., for leading business publications and technology focused websites.

Sunil is also affiliated with a number of Industry bodies and is a key member of the CII CTO Forum, CII National AI Forum, CII Northern Region Digital Transformation Committee, CII Southern Region Taskforce for Technology and Digital Transformation, CII Inst of Logistics, NASSCOM Foundation, IET Digital Communications Working group, Indo American Chamber of Commerce, etc., working on a number of National initiatives around Digital Skilling, Digital Technology awareness and advocacy, MSME Digital Transformation, Sustainability and ESG, Startup – Corporate Connect, etc.