Choosing the Right Intralogistics Technology for Your Warehouse Reality

Warehouse automation has become far more diverse over the past decade.

Companies can now choose from stacker crane AS/RS, multi-level shuttle systems, four-way pallet shuttles, autonomous mobile robots, case-handling robots, robotic unloading systems and increasingly intelligent software platforms.

More choice creates more opportunity—but also more complexity.

The key question is no longer simply:

“Should we automate?”

It is becoming:

“Which technology, or combination of technologies, best fits our actual operation?”

There is no universal answer. An e-commerce warehouse handling a large number of SKUs has very different priorities from a cold-storage facility operating at -18°C. Likewise, a brownfield warehouse with limited structural flexibility requires a different approach from a new greenfield distribution centre.

High-SKU operations: system throughput matters more than individual equipment speed

Cross-border e-commerce is a good example.

At Winit’s warehouse in Los Angeles, the operation needed to handle a large number of SKUs while maintaining order accuracy, storage efficiency and scalability.

The automated solution included:

• 8 multi-level shuttle aisles
• 10 levels per aisle
• 76 shuttle robots
• Approximately 150,000 totes
• Around 1,000 metres of conveyor
• A longest aisle length of approximately 150 metres

Rather than focusing only on the speed of individual robots, the system was designed around the complete material flow—from storage and buffering to picking and order processing.

This highlights an important principle:

In high-SKU, high-throughput environments, system design is often more important than the speed of a single machine.

A fast shuttle cannot solve the problem if lifts, conveyors or picking stations become the bottleneck.

Cold storage: reliability can be more important than speed

Cold-chain automation presents a completely different challenge.

In a Lingyun cold-storage project, the automated system operates in an environment of approximately -18°C.

At this temperature, the main question is not simply whether the equipment can deliver higher throughput. It is whether the system can operate reliably over the long term.

Low temperatures affect batteries, lubrication, sensors, cables and mechanical components. The project therefore required technologies and design features specifically adapted for cold environments, including heated batteries, low-temperature servo motors, anti-freezing lubricants, insulated electrical cabinets and cold-resistant cables.

The system combined four-way pallet shuttles, heavy-duty stacker cranes and automated transport equipment.

The project reduced manual workload by approximately 50%.

The lesson is clear:

Automation technology should not be selected only according to standard performance specifications. The operating environment can be just as important as throughput.

Fresh-food logistics: storage density must support inventory turnover

Fresh-food distribution introduces another set of priorities.

Products have shorter shelf lives, inventory turnover is fast, and order frequency can be high.

At Pagoda’s Wuhan distribution centre, the automated solution included 35 shuttle robots, together with WMS/WCS, conveyor systems and intelligent weighing and picking technology.

The system includes approximately 1,680 dynamic storage locations, while different parts of the operation are designed to support high-volume tote handling and rapid product flow.

In fresh-food logistics, simply maximising storage density is not enough.

The system must also support:

storage density + picking speed + inventory turnover + traceability.

If products remain inside the warehouse for too long, high storage utilisation alone does not create business value.

Brownfield projects: sometimes the building determines the technology

Many European automation projects today involve existing warehouses rather than new buildings.

These facilities may have irregular layouts, columns, limited ceiling height or floors that cannot easily be modified. In many cases, operations also need to continue during the automation upgrade.

This changes the technology selection process.

Flexible and modular solutions can often be more suitable than highly fixed automation.

For example, case-handling robots can be deployed without major floor modifications and can adapt to different rack heights. Elevated robotic systems can also make use of overhead space that would otherwise remain underutilised.

In one overseas retail logistics project, more than 50 Spider robots were deployed to support inbound, outbound and returns operations, with overall throughput of approximately 4,000 cases per hour.

The important point is not that one type of robot is better than another.

It is that:

When the physical constraints change, the technology strategy should change as well.

Automation should extend beyond storage and picking

Storage and order picking traditionally receive the most attention, but they represent only part of the warehouse flow.

Receiving, replenishment, internal transport, palletising, unloading and sorting can all become bottlenecks.

In the BY-HEALTH project, the system includes more than 12,800 pallet locations, together with AMRs, automated storage, 5G, digital twin technology and machine vision.

Automation covers multiple processes, including palletising, material transfer, loading and unloading.

The project achieved an overall efficiency improvement of approximately 60%.

This reflects a wider shift from single-process automation toward end-to-end intralogistics automation.

Software is becoming the common layer

As warehouses adopt multiple automation technologies, software becomes increasingly important.

A modern facility may contain shuttles, lifts, conveyors, AMRs, robotic arms and manual workstations—all operating at the same time.

The challenge is no longer only moving goods. It is coordinating resources.

Simulation and digital twin technologies can help companies evaluate equipment utilisation, throughput, congestion and system bottlenecks before installation.

The real value of simulation is not simply creating a 3D visualisation.

It is answering a much more practical question:

“Will the system still perform when the warehouse reaches peak demand?”

The right technology is more valuable than the most advanced technology

Different projects reveal different priorities.

E-commerce may focus on SKU complexity and throughput.

Cold storage prioritises reliability in extreme environments.

Fresh-food logistics depends on speed and inventory turnover.

Brownfield projects require adaptability and minimal disruption.

Large integrated projects depend increasingly on coordination between multiple technologies.

For this reason, warehouse automation should not begin with a product.

A more effective sequence is:

Business requirements → Material flow → Building constraints → Simulation → Technology selection

As logistics operations become more complex, the future of warehouse automation will be defined less by a single robot or system and more by the ability to combine storage, robotics, material handling, software and intelligent algorithms into flexible systems that can evolve with the business.

Author

Dr. Ken Liu
Senior Partner / SVP
BlueSword Intelligent Technology