Discover the Latest in Intralogistics & Packaging Automation – December Issue Out Now!  Click Here to Read.

Discover the Latest in Intralogistics & Packaging Automation – December Issue Out Now!  Click Here to Read.

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Automation in intralogistics and packaging is a powerful enabler of supply chain resilience

Sunil David, a renowned Digital Technology Consultant, shares insights on the transformative trends shaping the intralogistics and automation landscape. With expertise in AI, IoT, and robotics, Sunil examines how emerging technologies are advancing operational efficiency, predictive maintenance, and real-time decision-making, both in India and globally.

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Sunil David, Digital Technology Consultant.

What are the most significant trends seen shaping the intralogistics and automation sector?

The intralogistics automation sector is witnessing rapid transformation globally, and several key trends are shaping the industry driven by significant technological advancements. Both globally and in India we are seeing shifts in consumer behaviour, and the increasing need for efficiency and sustainability in supply chains.

Some of the key significant trends shaping the sector are as follows:

 IoT and Real-Time Data extraction

• IoT (Internet of Things) is enabling real-time monitoring of assets, including tracking equipment performance and product movement. Sensors and IoT devices integrated into warehouses are helping companies improve visibility and control over their operations. In India, smart logistics platforms are being developed to provide real-time insights on the movement of goods, helping reduce inefficiencies and improve inventory management.

Increasing use of AI and ML

• AI is playing a crucial role in optimising intralogistics operations through advanced data analytics and predictive maintenance. AI-powered warehouse management systems (WMS) are helping to forecast demand accurately, manage inventory, and optimise routes for AGVs and AMRs, ensuring that tasks are completed in the most efficient manner. Many large Indian Enterprises are also beginning to embrace AI in supply chain management, especially in smart warehousing and demand forecasting.

Significant adoption of Robotics and Automation

• Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs) are becoming increasingly necessary for automating material handling processes in factories, warehouses and distribution centres. Globally, companies like Amazon and Ocado are leading the way in deploying fleets of robots for picking, sorting, and transporting goods. In India, e-commerce giants like Flipkart, Amazon India are investing heavily in robotic automation to manage massive volumes of orders more efficiently.

Warehouse Automation Systems

• Automated Storage and Retrieval Systems (ASRS) and conveyor systems are being adopted widely to improve space utilisation and reduce manual labour. These systems allow for automated storing, picking, and transporting of goods. India’s logistics providers have adopted these systems as they expand their operations to meet the demands of the growing e-commerce sector.

Omnichannel Fulfillment

With the rise of e-commerce and direct-to-consumer (D2C) models, businesses are focusing on integrating their supply chains across online and offline channels. Automation in intralogistics is helping companies ensure faster delivery times, streamlined returns management, and inventory accuracy. Indian retailers and manufacturers are increasingly investing in automated solutions to meet customer expectations for quick delivery and seamless returns, especially in the post-pandemic era.

Sustainability and Green Logistics

Given the challenges that the world is confronted today as it relates to Climate change globally, there’s a significant push toward sustainability in logistics. Companies are investing in energy-efficient automation systems, using renewable energy sources to power intralogistics operations, and adopting eco-friendly packaging solutions. In India, sustainability is becoming a priority, with companies focusing on reducing their carbon footprint through automation and optimising warehouse layouts to minimise energy consumption.

Micro-Fulfillment Centres

Globally, companies are adopting micro-fulfillment centres (MFCs) to bring warehouses closer to consumers, enabling faster last-mile delivery. In India, urbanisation and the rise of online shopping are driving the demand for micro-fulfillment solutions and especially with the quick growth of Quick commerce, where automation plays a vital role in improving efficiency within smaller spaces.

How are emerging technologies like AI, IoT, and robotics enhancing efficiency, predictive maintenance, and real-time decision-making in intralogistics automation?

Technologies like AI, IoT, and robotics are transforming intralogistics by enabling higher efficiency, predictive maintenance, and real-time decision-making in several impactful ways, both globally and in India.

Some of the areas of impact are below:

1. Efficiency in Operations

• AI-Driven Optimisation: AI algorithms can analyse large sets of data, including order volume, stock levels, and shipping schedules, to streamline warehouse management and optimise picking, packing, and sorting processes. Globally, companies are using AI to predict demand surges and dynamically allocate resources, while in India, logistics players increasingly rely on AI for cost-effective operations in high-density regions.

• Robotic Automation: Robotics brings speed and precision to labour-intensive tasks like order picking, reducing human error and labour costs. Collaborative robots (cobots) can work alongside humans to increase productivity. In India, robotics in intralogistics is still nascent but rapidly growing, particularly in e-commerce and automotive sectors, where speed and accuracy are crucial.

• AGVs and AMRs: These are essential for handling goods movement in warehouses. They can navigate complex layouts, avoid obstacles, and transport goods efficiently, allowing for flexible and scalable logistics solutions. Large warehouses in India, especially in metro cities, are starting to deploy AMRs to optimise space utilisation.

2. Predictive Maintenance

• IoT-Enabled Monitoring: IoT devices continuously monitor equipment performance and environmental conditions, collecting data in real-time. AI can analyse this data to predict potential failures, reducing downtime by scheduling maintenance before breakdowns occur. Globally, this is standard practice in advanced warehouses, while in India, IoT adoption is accelerating as logistics companies seek to reduce costly equipment failures.

Machine Learning for Failure Prediction: Machine learning algorithms detect patterns in historical maintenance data, allowing companies to anticipate issues based on wear and tear, usage frequency, and operational conditions. Many Indian logistics companies are exploring these solutions to extend equipment life and reduce unplanned downtimes.

3. Real-Time Decision-Making

• Data-Driven Insights: AI models analyse real-time data across the supply chain, enabling instant decision-making. This is invaluable in situations requiring adjustments to inventory levels, re-routing, or meeting urgent delivery timelines. Globally, real-time tracking and inventory updates are widespread, while Indian firms, especially in urban areas, are deploying AI analytics for faster order processing.

• Edge Computing: For applications that require immediate data processing, edge computing enables real-time decision-making without relying on cloud connectivity. It is especially useful in environments with poor connectivity or large data volumes. Edge computing adoption is on the rise in India, particularly in smart manufacturing logistics.

• Digital Twins: Digital twins create virtual replicas of warehouse operations to simulate scenarios and optimise layouts, workflows, and resource utilisation. Globally, companies use digital twins to improve agility and resilience, while in India, it’s emerging as a way for logistics firms to test efficiency strategies without interrupting operations.

4. Enhanced Customer Experience

• AI-Driven Customer Insights: AI can offer insights into customer preferences, enabling companies to align their inventory with demand more accurately. This allows logistics providers to maintain high service levels with minimal delays. In India, customer-centric intralogistics powered by AI is gaining ground as companies try to compete in the digital-first landscape.

• Blockchain for Transparency: Blockchain technology ensures data security and transparency in supply chains, especially for tracking goods from origin to delivery. While still emerging in India, global firms use blockchain to increase trust among stakeholders.

In what ways is the integration between intralogistics and packaging automation evolving? How are these two sectors creating synergies?

The integration of intralogistics and packaging automation is evolving to create highly efficient, adaptable, and sustainable supply chain operations. These sectors are increasingly working together to streamline processes, improve product handling, reduce waste, and optimise space and resources.

Let’s look at some of the key areas of impact.

1. Streamlined Material Flow and Enhanced Efficiency

• Automated Conveying and Sorting: Intralogistics automation, such as conveyor systems and AGVs, is increasingly synchronised with packaging equipment, enabling seamless movement of products through warehouses and distribution centres. Automated sorting and conveying systems now integrate with packaging machines to ensure that goods flow continuously and efficiently from picking to packing to shipping, reducing bottlenecks and manual intervention.

• Integrated Robotic Solutions: Robotics systems that handle material movement also assist in packaging processes. For instance, robots used for picking items can directly place them into appropriate packaging, minimising hand-offs. This close integration helps to reduce handling time and labour costs. These solutions are particularly beneficial in industries with high packaging requirements, such as e-commerce, FMCG, and pharmaceuticals.

Customisable and Flexible Packaging Options

• Dynamic Packaging Solutions: Advances in AI and machine learning make it possible to dynamically adjust packaging size and materials based on the product’s weight, dimensions, and fragility. This aligns with intralogistics systems that manage products of varying sizes, reducing empty space in packages and optimising warehouse space.

• Automated Packaging Adjustments: Customisable packaging options, such as automated box resizing, integrate well with sorting systems that manage diverse SKUs. Automated packaging machines can now adjust box sizes or use protective fillers based on product dimensions, ensuring a secure fit and optimising shipment volume.

Enhanced Product Tracking and Inventory Control

• RFID and Barcode Integration: Integrating RFID and barcode scanning technologies in both packaging and logistics systems improves product traceability. These systems allow for continuous tracking, from packaging to delivery, reducing lost or misplaced items and enhancing accuracy in inventory management.

• Automated Labeling and Quality Control: Automated labeling systems integrated with warehouse management systems (WMS) provide real-time information on the status and location of each item. These labels can be scanned at each stage, providing instant updates on stock levels, order fulfillment, and tracking, creating a seamless flow between packaging and logistics.

India’s logistics and packaging sectors, while still maturing, are embracing automation to cater to the fast-growing e-commerce and manufacturing demands. Driven by the National Logistics Policy and initiatives like Make in India, PLI schemes, businesses are increasingly investing in automation and technology integration to improve end-to-end efficiency.

In summary, the close integration of intralogistics and packaging automation is a key enabler of a more resilient, efficient, and sustainable supply chain ecosystem. This synergy allows companies to respond dynamically to demand, minimise waste, and reduce operational costs, ultimately delivering superior customer experiences while preparing for future logistics challenges.

How can automation solutions in packaging and intralogistics drive operational efficiency, support sustainability goals, and help businesses meet evolving regulatory requirements on sustainability?

Here are some ways in which regulatory requirements on sustainability are met

• Compliance with Packaging Standards: Regulatory bodies worldwide are introducing stricter packaging waste laws that mandate reduced use of non-recyclable materials. Automation systems that adjust packaging to the optimal size and weight help businesses meet such requirements by using minimal, recyclable materials.

• Traceability for Sustainable Sourcing: With advanced automation solutions, companies can track packaging materials' origins and confirm that they meet sustainability certifications (e.g., FSC-certified or recyclable materials). This capability helps meet regulatory requirements for sustainable sourcing, which is increasingly mandated in markets globally.

• Automated Reporting for Regulatory Compliance: Many automation solutions integrate with data management systems that can produce reports tracking material use, energy consumption, and waste generation. Automated reporting helps businesses comply with environmental regulations and enables accurate reporting for sustainability initiatives.

• Facilitating Circular Economy Practices: Automation makes it easier to implement and manage circular economy practices, such as recycling and reusing materials within the packaging lifecycle. By tracking materials from packaging to retrieval, companies can reclaim packaging materials effectively, reducing reliance on new materials and meeting government mandates.

As regulations around sustainability become more stringent, companies will increasingly rely on automation to stay compliant while enhancing efficiency. The push toward sustainable packaging practices, combined with advances in machine learning and IoT, will likely drive further innovation, positioning intralogistics and packaging as key contributors to sustainable, resilient, and efficient supply chain. Automation solutions create a vital link between operational efficiency, sustainability, and regulatory compliance, empowering companies to meet modern demands while making measurable progress towards their environmental goals.

How are companies approaching the need for flexibility and customisation in automated packaging and intralogistics systems, especially in the context of varying consumer demands?

To address the growing need for flexibility and customisation in automated packaging and intralogistics systems, companies are leveraging modular technologies, AI-driven systems, and adaptive robotics to meet fluctuating consumer demands effectively. Here’s how companies are approaching these needs:

Modular and Scalable Automation Systems

• Plug-and-Play Components: Many companies are investing in modular automation solutions that allow them to add or reconfigure components, such as conveyor systems, robotic arms, and sorting systems, based on demand changes. This modularity enables warehouses to quickly adapt to peak seasons, product changes, or special promotional events without overhauling the entire system.

• Scalable Robotic Solutions: Scalable robotics, such as autonomous mobile robots (AMRs) and automated guided vehicles (AGVs), offer flexibility by easily adapting to different warehouse layouts and tasks. These robots can be deployed or removed based on workload, enabling facilities to adjust their level of automation as needed.

Focus on Sustainable and Cost-Effective Customisation

• On-Demand Customisation to Reduce Waste: Automated systems that produce packaging on demand prevent the waste associated with mass-produced, generic packaging. By customising packaging size and material, companies reduce excess usage and make their packaging operations more sustainable while saving on material costs.

• Alignment with Consumer Sustainability Preferences: Consumer demand for sustainable packaging options is driving companies to offer eco-friendly alternatives. Automated systems can incorporate recyclable or compostable materials based on product and consumer specifications, which help companies align with evolving consumer expectations and sustainability standards.

The combined use of modular automation, AI-driven forecasting, flexible robotics, and IoT-enabled adaptability has transformed packaging and intralogistics systems to become highly responsive to varying consumer demands. These systems not only meet current demand but also allow businesses to anticipate and adapt to future consumer preferences, enhancing operational efficiency, sustainability, and customer satisfaction in a highly competitive market.

How is automation in intralogistics and packaging contributing to supply chain resilience in the face of global disruptions?

Automation in intralogistics and packaging significantly enhances supply chain resilience by enabling faster response times, real-time visibility, and greater adaptability to global disruptions. Here’s how automation is helping companies weather uncertainties:

Enhanced Real-Time Visibility and Data-Driven Decision-Making

• Real-Time Tracking: Automated systems equipped with IoT sensors and RFID tags offer real-time tracking of goods, providing a clear picture of inventory levels, shipment status, and packaging materials. This immediate visibility allows companies to identify and address potential bottlenecks before they escalate.

• Predictive Analytics for Proactive Adjustments: Machine learning algorithms analyse patterns in real-time data, predicting demand spikes or disruptions based on past events, seasonal trends, or market signals. By anticipating potential disruptions, companies can adjust inventory, packaging resources, and logistics flows to maintain smooth operations.

Labour Optimisation Amid Workforce Shortages

• Automated Picking and Sorting Systems: Automated picking, sorting, and packaging systems reduce dependency on human labour, which can be difficult to secure or retain during global disruptions like pandemics. By automating these functions, companies maintain operational consistency even with a reduced workforce.

• Cobots (Collaborative Robots) for Flexible Support: Cobots can assist human workers with repetitive and labour-intensive tasks, reducing physical strain and increasing productivity. This collaboration allows a smaller workforce to handle higher volumes, ensuring resilience when labour resources are constrained.

Streamlined Last-Mile Delivery and Reverse Logistics

• Dynamic Route Optimisation: Automation enables dynamic route adjustments in response to real-time data, which is crucial for last-mile delivery resilience. If a particular delivery route is affected by delays, automated systems can adjust delivery schedules or routes instantly to ensure minimal disruption.

• Efficient Returns Management: Automated reverse logistics supported by scanning and tracking technologies, enables quick and accurate handling of returned goods, particularly beneficial during disruptions when returns may increase. Efficient handling of returns helps companies reduce waste and restock usable items promptly.

As automation in intralogistics and packaging advances, companies can expect even greater resilience through AI-driven predictive capabilities, more modular robotic solutions, and seamless data integration across the supply chain. This adaptability will be essential as companies navigate a world of increasing uncertainty, where resilience is a competitive advantage. Automation in intralogistics and packaging is a powerful enabler of supply chain resilience, allowing companies to adapt rapidly to global disruptions due to wars and geo political tensions, optimise resource use, and maintain operational continuity in volatile environments.

How do automation solutions in intralogistics and packaging differ across various industries, and what industry-specific trends are driving their adoption?

Automation solutions in intralogistics and packaging vary widely across industries, tailored to meet unique operational requirements, regulatory standards, and consumer expectations. Here’s a look at how these solutions differ and the industry-specific trends driving their adoption:

1. E-commerce and Retail

• Automation Solutions: E-commerce and retail heavily invest in automated picking, sorting, and packing systems to handle high order volumes and SKU diversity. Autonomous mobile robots (AMRs), automated storage and retrieval systems (AS/RS), and automated packaging machines streamline order fulfillment and last-mile delivery.

2. Food and Beverage

• Automation Solutions: Automation in this sector focuses on precision and quality control, often using automated sorters, conveyors, and robotic arms with advanced sensors for tasks like sorting, packaging, and labelling. Food packaging is increasingly automated with solutions that support portioning, sealing, and temperature control.

3. Pharmaceuticals and Healthcare

• Automation Solutions: In pharmaceuticals, automation includes precise picking systems, robotic arms for assembly, automated labelling, and packaging systems with temperature and contamination controls. For distribution, robotic systems ensure secure and accurate inventory management, given the high value and regulatory scrutiny of products.

4. Automotive and Heavy Manufacturing

• Automation Solutions: Automation in the automotive industry often involves the use of robotic arms for material handling, assembly, and automated guided vehicles (AGVs) for transporting parts within factories. Packaging automation includes bulk and customised packaging solutions that accommodate large, heavy parts and components.

Automation solutions in intralogistics and packaging vary according to industry-specific needs, driven by distinct trends like demand for customisation in CPG, regulatory compliance in pharmaceuticals, speed in e-commerce, and sustainability across sectors. These tailored solutions enable companies to stay competitive, responsive, and compliant in a rapidly evolving market.

(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. 

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