Gino Stone, VP Sales, Honeywell Intelligrated
Kevin Graebel, Chief Product Officer, Honeywell Intelligrated
What you will learn in this article:
- The primary operational challenges facing modern warehouses, including skyrocketing costs and persistent labor shortages.
- Why a holistic, hybrid approach to automation, orchestrated by a Warehouse Execution System (WES), is more effective than isolated technology upgrades.
- The critical role of an experienced systems integrator in de-risking your investment and ensuring a faster return on your automation projects.
The pressures facing modern warehouse and distribution center operators have converged into a perfect storm. Soaring operating costs, persistent labor shortages, and unprecedented customer demands for speed and accuracy are straining legacy systems to their breaking point. In this environment, a staggering 80% of warehouses are still operating manually1, putting them at significant risk.
Many leaders believe the answer lies in adding technology, but a piecemeal approach - a robot here, a new software there - often creates new bottlenecks and fails to deliver true value. The key isn't just adding automation; it's about mastering complexity with a unified strategy.
This article will explore how an integrated, hybrid approach to warehouse automation can solve your most pressing challenges. We will delve into the critical role of intelligent software and the value of a true systems integration partner, setting the stage for you to build a more resilient and efficient operation.
The New Reality for Warehouse Operations
To build a better future, we must first understand the present challenges. The landscape has fundamentally shifted, and facilities are grappling with intense, multi-faceted pressures that impact everything from budget adherence to daily throughput.
Soaring Operating Costs
The cost of simply keeping the doors open is climbing. The average asking rent for industrial space has hit a record high of $9.59 per square foot, making every inch of your facility’s footprint more valuable than ever.2 This is compounded by a significant 38% increase in warehouse worker wages over a five-year period,3 directly impacting operational budgets and demanding new levels of efficiency.
The Labor Conundrum
Finding and retaining skilled labor remains one of the industry's greatest hurdles. High turnover rates and a shrinking labor pool for physically demanding roles mean that the average cost to replace a single employee is approximately $8,500.4 This instability doesn't just inflate costs; it directly hinders your ability to process and ship orders, creating a direct threat to revenue.
Beyond Piecemeal Fixes: The Power of a Hybrid Automation Approach
The most effective way to combat these pressures is with a holistic strategy that treats your facility as a single, cohesive ecosystem. A hybrid approach to warehouse automation strategically blends the strengths of advanced robotics, intelligent software, and your skilled human workforce.
Instead of creating islands of automation that don't communicate, a hybrid system ensures that every component works in concert. This integrated model is designed to optimize your existing brownfield environments, allowing you to enhance throughput and efficiency without the need for new construction.
The Intelligence Engine: Why Your Software Is Critical
Your automation hardware is only as effective as the software orchestrating it. Simply connecting a new robot to your Warehouse Management System (WMS) often provides limited value and can't coordinate complex, dynamic workflows.
This is where a modern Warehouse Execution System (WES) becomes the central nervous system for your entire operation. A powerful WES, such as Honeywell’s cloud-based Momentum™ WES, moves beyond basic control to manage the flow of work across all assets, automated and manual. It simplifies crucial decisions, optimizes task assignments between mobile robots, conveyors, and people, and provides real-time visibility that enables you to unlock the full potential of your facility. By creating a seamless flow of data and materials, you can eliminate bottlenecks and drive significantly better overall throughput.
De-Risking Your Investment: The Indispensable Role of an Integrator
Embarking on a comprehensive automation journey can be daunting. A "do-it-yourself" approach, attempting to stitch together solutions from multiple vendors, can lead to sub-optimal performance, integration conflicts, and significant risks related to cybersecurity and long-term support.
Partnering with an experienced systems integrator like Honeywell is crucial to de-risking your investment. An integrator with deep, end-to-end expertise in hardware, software, and implementation ensures your solution is designed and deployed correctly from day one. Whether integrating advanced palletizing solutions or deploying complex robotic systems, a true partner provides proven methodologies for faster ROI and comprehensive lifecycle services to maximize system uptime for years to come.
Ready to Build Your Future-Ready Warehouse?
The insights in this article are just the beginning. Our comprehensive eBook, "Mastering Warehouse Complexity," provides the complete roadmap to transform your operations.
Inside the eBook, you’ll find:
- A deeper dive into building a business case for hybrid automation.
- Detailed analysis of WCS vs. cloud-based WES.
- A framework for calculating ROI and avoiding common integration pitfalls.
What next?
The challenges of the modern warehouse are undeniable, but they are not insurmountable. The path to a more productive and resilient future lies in moving beyond isolated fixes and embracing a holistic, integrated automation strategy. By combining the power of robotics with the intelligence of a comprehensive Warehouse Execution System and the guidance of an experienced partner, you can turn your greatest operational pressures into your most significant competitive advantages.
At Honeywell Intelligrated, we provide the advanced automation solutions and systems integration expertise to help you master complexity. Our end-to-end portfolio of hardware, software, and lifecycle services is designed to give you a competitive edge today while future-proofing your business for tomorrow.
References:
1 Material Handling & Logistics, Combating Labor Shortages with Automated Warehouse Solutions, Thomas H. Evans, Sep 13, 2021 [Accessed Mar 19, 2025]
2 Supply Chain Dive, Warehouse rents poised to keep climbing after record 2023, Max Garland, Feb 15, 2024 [Accessed Mar 19, 2025]
3 Zippia, Job outlook for warehouse workers in the United States, 2025 [Accessed Mar 19, 2025]
4 Ducker Carlisle, Industry Collaboration – Addressing the Warehouse Employee Shortage, Meredith Collins, 2022 [Accessed Mar 19, 2025]
