Warehouse margins these days are tighter than ever. Inventory costs continue to rise as do wages—if you can find qualified workers to staff your facility.  Utility bills are increasing as well. All of these factors make it essential that you work as efficiently as possible to drive down costs and improve productivity.

It’s no small feat.

Industrial automation and control systems to power warehouse automation are no longer a luxury. Warehouses today must modernize to remain competitive, and companies are doing just that. In the 2025 Automation Solutions Study by Peerless Research and Modern Materials Handling, companies report plans to spend an average of $1.5 million on material handling equipment and automation solutions in 2025. More than half of warehouses and distribution centers still rely on mostly or all manual processes.

Industrial Automation and Control Systems

Industrial automation is the use of control systems such as computers, robots, material handling equipment, and software to handle various processes and control machinery. The goal is to create a more efficient process, eliminate many manual tasks, and reduce reliance on human labor.

Control systems manage the operation of warehouse automation, ensuring that machines and processes work together and perform in an optimal manner.

These systems are crucial for industries that require precise control over large-scale operations, like manufacturing plants, logistics hubs, and warehouses. Industrial automation systems in warehouses improve throughput and help you maximize your resource allocation. Automation is producing significant improvements in inventory management, order fulfillment, and product distribution, which ultimately leads to faster, more accurate deliveries. For example, McKinsey research shows that automated picking systems can improve cycle time and fulfillment speed by up to 300%. That’s just one of the reasons why 77% of warehouses today are using some form of integration industrial automation systems to improve operations.

Types of Automation Systems: Fixed, Programmable, and Flexible

What is warehouse automation? There are three primary types:

Fixed Automation

This type is used for high-volume, repetitive processes where tasks do not change. It’s often used in mass-production environments and warehouses with consistent processes. Examples include:

• Conveyor belt systems that move products along a predetermined path
• Automated storage and retrieval systems (AS/RS) with fixed routes for picking and storing items
• Robotic palletizers that consistently stack products in the same predetermined pattern
• Automated sorting systems that route items to specific locations without variation

Programmable Automation

Programmable automation provides more flexibility, enabling operators to control equipment based on needs. For example:

• Robotic picking systems that can be programmed to handle different product sizes or types
• Automated guided vehicles (AGVs) that can be configured to follow new routes or perform different tasks
• Warehouse management systems (WMS) that can be updated to change inventory tracking or order processing protocols
• Modular robotic systems that can be reprogrammed for different packaging or sorting requirements

Flexible Automation

For warehouses with changing inventory or order patterns, flexible automation can adapt even more quickly to changing conditions. Examples include:

• Adaptive robotic picking systems that can quickly adjust to different product shapes and sizes
• Modular conveyor systems that can be rapidly reconfigured to handle different product flows
• AI-powered sorting systems that can dynamically optimize routing based on real-time inventory and order demands
• Multi-function robotic arms that can switch between picking, packing, and sorting tasks with minimal downtime

Key Components of Industrial Automation and Control Systems

Taking a closer look at automated warehouse systems requires an understanding of the components that make up these systems.

Sensors and Actuators

Sensors play a critical role in monitoring warehouse conditions and tracking inventory movement. Use cases include:

• RFID and barcode sensors identify and track products throughout the facility
• Environmental sensors monitor factors like temperature and humidity, ensuring sensitive goods are stored properly
• Proximity and motion sensors detect the position of automated guided vehicles (AGVs) or robotic arms, preventing collisions, and optimizing navigation

Actuators, on the other hand, perform physical actions based on sensor data. In automated warehouses, actuators can be used to adjust conveyor belt speed or direction based on item flow, operate AS/RS efficiently, and control robotic arms to pick, place, or sort products.

Programmable Logic Controllers (PLCs)

PLCs provide efficient, real-time control in automated warehouses. They can directly control machinery such as conveyors, sorters, and robotic systems. Processing sensor data, they can also trigger immediate actions when required, such as stopping a conveyor when an obstacle is detected or diverting packages based on barcode scans.

PLCs are highly customizable, making them valuable for a variety of functions, and adapting to different needs through software changes.

Warehouse Control Systems (WCS) and Warehouse Execution Systems (WES)

Control systems act as the brains of automated warehouse operations, managing and coordinating various devices and processes. The two most common systems include:

• Warehouse Control Systems (WCS): These systems directly control material-handling equipment (MHE), such as conveyors, sorters, and AS/RS. They optimize task execution in real time.
• Warehouse Execution Systems (WES): A WES bridges the gap between the WCS and the overarching Warehouse Management System (WMS). It optimizes workflows, prioritizes tasks, and allocates resources dynamically, ensuring smooth and efficient operations.

Both systems rely on real-time data, often from PLCs, to make split-second decisions, enhancing throughput and minimizing errors.

Human-Machine Interfaces (HMIs)

Human-machine interfaces (HMIs) enable warehouse operators to monitor and control automated systems. Through user-friendly dashboards, operators can track critical data including inventory levels, system performance, and equipment status.

Intuitive HMIs empower warehouse team members to make smarter decisions and respond quickly to operational issues.

Communication Networks

Reliable communication networks are key for real-time data exchange in automated warehouses. These networks connect sensors, actuators, PLCs, and control systems, ensuring seamless coordination. By enabling real-time data flow, these networks ensure all of your components work seamlessly within your automated warehouse system, boosting operational efficiency and accuracy.

What Is Warehouse Automation?

Warehouse automation can manage many operations involved in storing, organizing, and distributing goods. Warehouse automation systems have become a necessity for operators to meet the growing demand for faster and more accurate order fulfillment.

While there are nearly endless applications, some of the most common ones include:

• Robotics: Robots are used for picking, packing, and sorting Their use reduces the need for manual labor and improves speed and accuracy.
• Conveyors: Automated conveyors move goods from one point to another within the warehouse, eliminating the need for manual lifting and transport.
• Automated Guided Vehicles (AGVs): These self-driving robots are used for transporting materials around the warehouse, reducing congestion and optimizing workflow.
• Automated Storage and Retrieval Systems (AS/RS): Warehouse automated storage retrieval systems automatically place and retrieve goods from storage, significantly improving storage density and retrieval times.

Leveraging sensors and IoT, automation also provides data for analytics to continuously monitor and improve operations. Rockwell Automation reports that 95% of manufacturers and warehouse operators are evaluating the use of smart technology. By 2030, it’s forecast that 90% of warehouses will adopt Industry 4.0 strategies to manage supply chains and throughput more efficiently.  

While 80% of the investment goes into hardware, you need an automated warehouse system that powers and controls your equipment.

What Is an Automated Warehouse System?

An automated warehouse system integrates both hardware and software. The hardware consists of machines like robots, AGVs, and conveyors, while the software controls operations and inventory.

Automated warehouse systems offer several significant benefits, including:

• Speed: Tasks like picking, packing, and sorting are completed much faster with automated systems.
• Accuracy: Automation reduces the chance of human error, ensuring that orders are fulfilled correctly.
• Scalability: Automated systems can be scaled up easily to accommodate growing business needs.
• Cost Savings: Automation helps businesses save on labor costs, reduce waste, and improve operational efficiency.

How Does Automation Impact the Order Fulfillment Process?

Warehouse automation systems play a significant role in order fulfillment.

Faster Picking and Packing

Automated picking systems use robots or conveyors to quickly pick and pack items, improving the speed and accuracy of order fulfillment.

Inventory Management and Accuracy

Automated systems track inventory levels in real time, ensuring that stock is replenished as needed and reducing the risk of stockouts. This improves the accuracy of order fulfillment.

It also helps avoid lost or dead stock, which can tie up capital.

Shipping and Delivery

Automation aids in sorting, labeling, and dispatching products quickly. Integration with delivery networks ensures that products are shipped accurately and on time.

Customer Satisfaction

Customers today have plenty of choices when it comes to purchasing products, so providing an exceptional customer experience has become even more crucial. Call it the Amazon effect, but eCommerce customers in particular expect fast shipments. Three-quarters of consumers say customer experience alone impacts their buying decisions.

One study showed that 92% of consumers said any delay in fulfillment impacts their next purchasing decision. Faster and more accurate order fulfillment leads to improved customer satisfaction.

Advanced Industrial Automation and Process Control

Artificial intelligence (AI) and machine learning (ML) are playing increasingly important roles in warehouse operations by introducing predictive capabilities and adaptive process control. AI-powered warehouse management systems (WMS) can forecast demand patterns, optimizing inventory stocking levels to prevent overstocking or stockouts. Machine learning algorithms analyze historical order data to optimize picking routes, reducing travel time, and increasing efficiency.

Predictive Maintenance

Predictive maintenance is also enhancing warehouse operations. By continuously monitoring equipment performance, AI models detect early signs of wear or malfunction, enabling proactive maintenance to prevent unexpected breakdowns and extending the lifespan of expensive automation equipment.

Cobots

Collaborative robots (cobots) are also gaining popularity in warehouse automation as they work alongside human operators. Unlike traditional robots, cobots are designed to share workspaces with employees safely, improving productivity without replacing the human workforce. For example, cobots can assist with heavy lifting and picking or packing tasks, reducing physical strain on employees while enhancing output.

Quality Control

Advanced industrial automation systems are also enhancing quality control in warehouse operations. Machine vision technology uses high-resolution cameras and AI-powered analysis to detect defects, verify product labels, and ensure packaging accuracy. This reduces human error in inspection processes and ensures consistent product quality.

Dynamic Routing

Sophisticated warehouse control systems (WCS) and warehouse execution systems (WES) dynamically adjust material flow based on real-time conditions. For example, if a conveyor experiences a bottleneck, the system can automatically reroute products through an alternate path, preventing delays. AI-powered WES platforms prioritize orders based on delivery deadlines, optimizing the entire fulfillment process.

Digital Twins

Some warehouses are using digital twins, a virtual representation of warehouse layouts and processes that mirror actual performance. Digital twins can test various processes and changes to find more efficient ways to manage your warehouse. For example, a McKinsey study shows that one warehouse operator using this strategy was able to increase warehouse capacity by 10% without expanding its footprint.

How Can Pacific Blue Engineering Help You Build and Optimize Your Automated Warehouse System?

Many warehouse operators have found it challenging to implement material handling equipment, automation, and controls. Even after purchasing hardware, ensuring integration and compatibility with existing equipment is complex.

Pacific Blue Engineering specializes in designing and implementing custom automation and machine control solutions. With decades of experience in controls engineering, we can tailor solutions to meet your specific needs.

Contact Pacific Blue Engineering for a consultation to explore how we can help you implement the perfect automated warehouse system for your business.

FAQs — Frequently Asked Questions About Warehouse Automation

What types of warehouse tasks benefit the most from automation?

Tasks involving repetitive actions, such as picking, packing, sorting, and inventory management, benefit the most from automation. Automated systems reduce human error and accelerate these processes.

Is warehouse automation suitable for small or medium-sized businesses?

Yes, modern automation solutions are scalable and adaptable. Even small and mid-sized warehouses can benefit from targeted automation, such as robotic picking arms or automated inventory tracking systems.

Can automated warehouse systems save money?

Warehouse automation reduces labor costs, minimizes errors, and optimizes space utilization. Companies implementing automation often experience operational cost reductions of 20–30%, along with improved order accuracy and faster fulfillment times.

How do industrial automation systems impact safety?

Warehouse safety is a priority, and industrial automation and control systems can improve safety. By automating physically demanding or hazardous jobs, automation protects workers.  Collision detection systems and automated warnings can also minimize human-machine accidents.