Workers also stressed about meeting business goals if warehouse leaders don’t embrace intelligent automation
LINCOLNSHIRE, Ill., February 27, 2025--(BUSINESS WIRE)--Zebra Technologies Corporation (NASDAQ: ZBRA), a global leader in digitizing and automating frontline workflows, today released the findings of its latest Warehousing Vision Study. In the study titled, "Elevating Every Move: The Formula for High-Performance Warehousing," frontline workers clearly communicated the benefits of automating warehouse operations – and the risks of not automating fast enough.
According to the study, 63% of warehouse leaders plan to implement artificial intelligence (AI) software and augmented reality (AR) within five years. In addition, 64% plan to increase spending on warehouse modernization in the next five years, and 63% plan to accelerate their modernization timelines by 2029.
Interact Analysis projects global warehouse square footage will increase by 27% to 42 billion square feet in 2030 from 33 billion square feet in 2023. Warehouse labor spend is also expected to show long-term expansion projected at a compound annual growth rate of 7% through 2030.
As this expansion continues and daily order volumes increase, feedback shared by frontline workers as part of Zebra’s Warehousing Vision Study suggests that warehouse leaders will need to move a bit faster to expand workforce capacity:
- 85% of associates say, "If my employer does not invest in technology to improve warehouse operations, we will not meet business objectives." - 74% of associates are concerned they are spending too much time on tasks that could be automated. - 72% of associates are concerned about safety on the (increasingly busy) warehouse floor with 70% specifically worried about injuries. - 69% of associates reported there is a lack of qualified staff on the warehouse floor and express concerns about fatigue and physical exhaustion.
Even warehouse leaders admit they find it challenging to maintain the fill rates (51%) and prepare orders (47%) outlined in their service level agreements (SLAs), with order accuracy and outbound processes cited as the top two operational challenges in the Zebra study. Increased e-commerce activity is also making "faster delivery to the end-customer" a top challenge for warehouse teams, even as technology use is on the rise.
Given the disparity between customers’ growing expectations and warehouse operators’ limited hiring capacity, warehouse associates say it’s important that collaborative robots (88%), ergonomic mobile devices (88%), communications applications (87%), and task management tools (91%) are used to help solve workplace issues.
Ninety-three percent of associates agree the increased availability of automation and mobile technologies would help attract and retain more warehouse associates, and 89% say they feel more valued by their employers when provided with technology tools and automation designed to help them.
"Warehouse associates are telling us they feel their lives would be better if their employers thoughtfully integrated more automation solutions into their workflows," said Andres Boullosa, Global Warehouse Vertical Strategy Leader, Zebra Technologies. "Automating material movement, data collection, and information management helps make busy warehouses safer. It also makes it easier for teams to meet SLAs and maintain a steady, reliable flow of quality goods to the market, which increases both customer satisfaction and worker engagement."
How (and How Much) Automation is Really Expected to Help Warehouse Workers
Warehouse leaders believe the biggest impact of mobile device-based AI applications will center on worker safety, quality control, and inventory management. While 79% say AI will positively impact their ability to detect potential hazards and issue alerts for prevention, 78% think AI would make an impact on their ability to detect issues or anomalies using AI. In addition, 77% feel AI applications would impact their ability to forecast needs, streamline stock levels, and maximize space using AI applications.
Many warehouse leaders who plan to augment/automate or have already done so say their goal is to mitigate errors (71%) and meet SLAs (70%). They hope automation will increase worker efficiency and productivity (54%) as well as reduce order errors and manual picking (53%). Plus, 82% of warehouse leaders agree giving warehouse workers more technology tools will help them exceed productivity goals while reducing physical strain and preventing injuries. Eighty-one percent of the leaders also admit automation improves morale.
Warehouse Leaders Need More Help, Too
Warehouse leaders say their biggest supply chain network challenges are "innovating with technology and intelligent automation" and "meeting changing customer service expectations." Yet, the latter will not prove possible until warehouse leaders figure out a clear path forward with technology.
"There are so many things that frontline workers are being asked to do in warehouses, including things they don’t enjoy doing, which could and should be automated today," added Boullosa. "It’s good to hear so many warehouse leaders plan to digitize, automate and add intelligence to their frontline operations, and we are here to help."
KEY REGIONAL FINDINGS
Asia-Pacific: Missed SLAs are a tremendous financial burden for 88% of decision-makers, underscoring the need to swiftly address inefficiencies.
Europe: Workplace safety remains a concern, with 73% of associates worried about injuries on the warehouse floor.
Latin America: 70% of decision-makers who plan to augment/automate or have done so already say the biggest driver for automation is the need to mitigate errors.
North America: 88% of decision-makers agree adopting new technology is essential to remain competitive in the fast-paced, on-demand economy.
ABOUT THE STUDY
Zebra Technologies commissioned a global research study to explore the trends and technologies shaping warehouse and distribution center operations. Conducted online by Azure Knowledge Corporation, the study gathered insights from over 1,700 associates and decision-makers across manufacturing, retail, transportation, logistics, and wholesale distribution.
ABOUT ZEBRATECHNOLOGIES
Zebra (NASDAQ: ZBRA) provides the solutions to help businesses grow through increased asset visibility, connected frontline workers and intelligent automation. The company operates in more than 100 countries, and our customers include over 80% of the Fortune 500. Designed for the frontline, Zebra’s award-winning portfolio includes hardware, software, and services, all backed by our 50+ years of innovation and global partner ecosystem. Follow Zebra on our blog and LinkedIn, visit our newsroom and learn more at www.zebra.com.
