Pick-and-Place Automation: An Expert's Guide to Getting Started

Pick-and-place automation is transforming modern warehouse operations

For years, warehouses have relied on manual processes for tasks like case loading, tote picking, and heavy bag handling - tasks that are time-consuming, prone to errors, and heavily influenced by worker fatigue and variability.

Now, automation is changing the game.

Robotic arms, AI-driven systems, and digital twins are enabling warehouses to streamline operations, enhance accuracy, and scale more effectively.

But for many operators, getting started with automation can feel overwhelming, with questions around technology options, ROI, and operational complexity often creating roadblocks. 

To demystify the process, I spoke with Parth Pethani, Director of Warehouse Design and Innovation at Prologis and host of the Robot Forward Warehousing Podcast. Parth brings a wealth of experience and a deep passion for the intersection of robotics and warehousing.

Whether you’re just starting to explore automation or looking to refine your strategy, Parth provides actionable insights to help you navigate the journey.

Table of Contents

1. Applications and ROI of Pick and Place Automation

   • Common Applications

   • High-ROI Scenarios

2. Assessing Automation Readiness

   • The Five Levels of Warehouse Maturity

   • When to Automate

3. Building Teams for Automation Success

   • Role of the Chief Automation Officer

   • Key Team Members for Implementation

4. Navigating Challenges in Adoption

   • Ground-Level Receptiveness to Automation

   • Ensuring Business Continuity

5. Technological Innovations Shaping Automation

   • Hardware & Software Developments

   • Optimizing WMS for Automation Success

6. Final Thoughts

PS: Connect with Parth on his LinkedIn if you are trying to put more robots in your warehouse.

This conversation has been edited for length and clarity. If you're short on time, skip to the TL;DR section for the key takeaways.

1. Applications and ROI of Pick and Place Automation

What are the most common pick and place automation applications in warehousing?  

Parth Pethani: Pick and place automation finds applications in several areas within warehousing, depending on the specific tasks and operational needs. Here are some of the most common:  

1. Case loading and unloading: Robots are often used for palletizing (building pallets from cases) or depalletizing (removing cases from pallets). For instance, an automated system might unload cases from a truck, place them onto a conveyor, and then move them to a receiver inside the warehouse. If there’s consistency in the size and type of cases, automation is an excellent fit. Variability is a key factor—automation thrives in environments where variability is minimal.  

2. Picking from totes: This involves a robotic arm retrieving items from totes brought in by an ASRS system. The robot scans the tote, identifies the item, and either picks and places it elsewhere or drops it into another container for further processing.  

3. Sorter induction: Many warehouses use manual labor to induct items into unit sorters due to the variety of SKUs being processed. However, robotic arms can handle this task, though the technology is still gaining traction. This is more complex because it requires high dexterity to handle diverse item types.  

4. Label application: Robots can also be used to apply labels to cartons or cases. While technically possible, this use case often lacks a strong business case because alternative solutions can achieve similar results faster and at lower costs.  

5. Heavy bag handling: An interesting application is the handling of large, heavy bags such as 25-pound pet food or sugar bags. Companies like Boston Dynamics are developing mobile robotic arms that can pick and move these bags efficiently.  

These applications are versatile and span different parts of the warehouse, but their adoption depends on factors like ROI, operational needs, and the level of variability in processes.  

Where do you see the highest ROI for pick and place automation?  

Parth Pethani: The return on investment (ROI) for automation is influenced by two key factors: the cost of implementation and the business impact it delivers. High-ROI scenarios typically include:  

• Pharmaceutical warehouses: Automation is particularly valuable here because these facilities require barcode scanning for every item to ensure order accuracy and regulatory compliance. The controlled environment further simplifies automation implementation. The elimination of manual errors adds significant value, justifying the investment.  

• Truck unloading in extreme climates: For example, in regions like Dallas, summer heat can create unsafe working conditions in trucks. Using robotic arms for unloading improves worker safety and ergonomics, addressing labor retention challenges.  

Typically, investments in pick and place systems start around $500,000, although there are lower cost options. This includes robotic arms, installation, software, and any ancillary systems required. Industrial-grade robotic arms from manufacturers like Fanuc, ABB, and Yaskawa are popular. Companies like RightHand Robotics and Berkshire Grey specialize in adding software layers tailored to specific use cases.  

It’s also important to think beyond the upfront cost and consider the broader impact of automation. For instance, reducing employee injuries or fatigue, improving throughput during peak seasons, or creating a more consistent workflow can significantly enhance ROI.  

2. Assessing Automation Readiness

What should operators consider when deciding if automation is the right solution?  

Parth Pethani: Deciding on automation depends on several factors, and the maturity of the warehouse plays a critical role. Warehouses evolve through different stages of readiness:  

• Level 1: These warehouses have minimal systems, relying on manual, paper-based processes for receiving and shipping.  

• Level 2: At this stage, basic systems like inventory management are introduced to streamline workflows.  

• Level 3: Warehouses at this level adopt a robust WMS (Warehouse Management System), enabling efficient operations. This is the stage where companies typically begin exploring automation.  

• Level 4: Advanced automation systems come into play here, including conveyors, AMRs (Autonomous Mobile Robots), and robotic picking solutions.  

• Level 5: This stage represents the future of warehousing, with capabilities like digital twins and AI-driven decision-making.  

I would say 20% are at Level 2, 60% are at Level 3, and the remaining 20% are at Level 4. This is my estimation. For example, Amazon is at Level 4 and progressing toward Level 5, using advanced tools like predictive maintenance to monitor equipment performance.  

When deciding on automation, operators need to consider their current maturity level, the scalability of their systems, and the specific challenges they face.  

How can operators pick the right vendor for pick and place automation? 

Parth Pethani: Choosing the right vendor is a complex process that requires careful evaluation and preparation. Here’s how operators can approach it:  

1. Understand your needs: Clearly define your business challenges and long-term growth plans. This will help you identify the specific problems automation should solve.  

2. Educate yourself: Learn about the technologies available, their limitations, and their benefits. This knowledge will empower you to ask the right questions and evaluate vendor proposals critically.  

3. Consider external support: If internal expertise is limited, engaging an independent consultant or integration expert can help bridge the gap. However, even with external help, a baseline understanding of automation is essential for making informed decisions.  

4. Evaluate vendors thoroughly: Look beyond ROI figures to understand the assumptions behind them. For instance, a vendor might project an ROI based on processing 240 units per hour, but if your operations can’t realistically achieve that rate, the projected benefits won’t materialize.  

5. Plan for integration: Consider the compatibility of the robotic solution with your WMS and other systems. For simpler tasks like truck unloading, minimal integration might suffice, making deployment faster. For more complex tasks, integration efforts could significantly impact timelines and costs.  

Ultimately, the goal is to align the solution with your business problems, not the other way around. Automation should be a tool to achieve operational goals, and thorough preparation is crucial for its success.  

3. Building Teams for Automation Success

How are teams evolving to manage automation projects effectively?  

Parth Pethani: Teams are evolving significantly as automation becomes more integral to warehousing operations. I believe every company adopting automation should consider appointing a Chief Automation Officer (CAO) or an equivalent senior leader (Parth was one of the first to predict this role!). Without buy-in at the C-level, automation efforts often face hurdles due to conflicting priorities and lack of alignment.  

For example, GXO has a CAO, who leads their automation and robotics strategies. This role ensures there’s a strategic vision at the highest level, aligning operational goals with automation initiatives.  

When building teams for automation, the process typically involves two phases:  

1. Identifying and Implementing Solutions:

   • Engineering Teams: They handle data analysis, assess the problem, and evaluate possible solutions.

   • Operations Leaders: They articulate business challenges and rally warehouse teams to embrace change.

   • IT and WMS Specialists: These experts ensure seamless integration of automation systems with existing software, like the WMS.

   • Maintenance Teams: Their input is critical to assess readiness for maintaining advanced systems like robotic arms.  

2. Sustaining and Optimizing Operations: 

   • Post-implementation, project managers oversee continuous improvement. Maintenance teams, engineers, and operations leaders collaborate to ensure the system delivers expected results, and optimization specialists monitor long-term performance.  

Cross-functional collaboration is vital, but so is having a clear leader who can navigate competing priorities. A CAO or equivalent leader can align all stakeholders around shared goals, ensuring automation projects succeed.  

4. Navigating Challenges in Adoption

How receptive are ground-level staff and other teams to automation?  

Parth Pethani: Surprisingly, I haven’t encountered outright pushback from ground-level staff. Instead, the challenges arise from misalignment within leadership teams. For instance, an operations leader might fully commit to finding the right automation solution, only to discover IT teams are tied up with other priorities, such as an ERP migration.  

These situations highlight the need for proactive collaboration. Before investing resources in exploring automation, leaders should engage key stakeholders—operations, IT, finance, and maintenance—to confirm feasibility. This avoids frustration later when conflicting priorities emerge.  

At the ground level, the priority for most operational leaders remains business continuity. Their primary concern is ensuring orders ship on time, regardless of new technology. Automation initiatives must not disrupt this continuity. Ensuring smooth implementation while maintaining daily operations is crucial for success.  

Do operators hesitate to adopt automation, given how fast technology evolves?  

Parth Pethani: It’s not so much about the fear of technology evolving, but rather concerns about startups failing. Operators need assurance that the vendor they choose will survive long-term.  

For example, when walking the floor at an event like MODEX, many operators gravitate toward established players because they can’t afford disruptions if a startup folds. The priority is ensuring that automation investments don’t jeopardize order fulfillment.  

That said, operators do consider cost trends. Robotics and AI technologies are becoming more affordable, but that doesn’t necessarily delay adoption. Instead, operators focus on whether the technology can deliver immediate, measurable benefits.

5. Technologies Shaping Automation

What technologies are shaping the future of pick and place automation?  

Parth Pethani: Technology in automation is advancing rapidly, driven by both hardware and software innovations.  

1. Hardware Developments:

   • Robotic arms and AMRs continue to evolve, with many companies focusing on vertical automation to maximize space efficiency.

   • Humanoid robots are gaining attention, but they currently face challenges in speed, battery life, and maintenance complexity. While promising, they aren’t yet viable for widespread warehousing applications.  

2. Software Innovations:

   • AI agents and large language models (LLMs) are transforming warehouse operations. For example, future WMS systems could allow users to query data conversationally rather than relying on database queries. Imagine asking, “What’s the status of order #123?” and receiving instant insights without technical expertise.

   • Digital twins represent another leap, enabling real-time simulations to optimize workflows.  

While these advancements are exciting, companies must balance technological ambition with practical needs. Fully optimizing existing systems, such as WMS, often delivers more immediate benefits than adopting cutting-edge tools prematurely.  

How do you see humanoid robots fitting into warehousing? 

Parth Pethani: Humanoid robots have potential, but they’re not yet practical for most warehouses. The warehousing world prioritizes speed and cost-efficiency, and humanoids currently fall short in these areas.  

Key challenges include:  

• Speed: Humanoids are slower than traditional automation systems.  

• Battery Life: Limited battery life restricts operational hours.  

• Maintenance: Maintaining humanoids requires advanced skills, which most warehouse maintenance teams lack.  

For top-tier companies with the resources to experiment, humanoids might offer value. For broader adoption, though, the technology needs to address these limitations and demonstrate clear ROI.

6. Final Thoughts

What technologies are shaping the future of pick and place automation?  

Parth Pethani: Automation is transformative, but it must align with operational realities. My advice:  

1. Focus on Business Continuity: Automation should enhance operations without disrupting the core mission of shipping orders.  

2. Engage All Stakeholders Early: Ensure operations, IT, finance, and maintenance teams are aligned before committing to a project.  

3. Educate Yourself: Invest time in understanding the landscape, whether through consultants or independent research.  

4. Prioritize ROI and Scalability: Evaluate not just the cost but the broader impact on efficiency and growth.  

Above all, remember that automation is a tool to solve business problems—it’s not a one-size-fits-all solution. With the right approach, it can unlock incredible value. 

TL;DR - Key Takeaways from Parth Pethani

1. Pick and Place Applications: Pick and place automation has diverse applications, including case loading, tote picking, sorter induction, and heavy bag handling. Each application’s feasibility depends on variability and operational needs.

2. High-ROI Use Cases: High-ROI use cases include pharmaceuticals, where accuracy and compliance are critical, and truck unloading in extreme climates, where ergonomics and safety play a major role.

3. Automation Readiness Framework: Warehouse readiness for automation typically aligns with a maturity curve, ranging from basic manual processes (Level 1) to advanced automation with digital twins and AI-driven decisions (Level 5). Most companies today operate between Levels 3 and 4.

4. Building the Right Team: Building cross-functional teams is essential for automation success. Key roles include operations leaders, IT specialists, engineers, maintenance teams, and potentially a Chief Automation Officer to align priorities and drive strategy.

5. Continuity is a Priority: Business continuity is the top priority when implementing automation. Automation should enhance efficiency without disrupting order fulfillment or daily operations.

6. Technology Advances: Technological innovations are advancing on two fronts: hardware (robotic arms, AMRs, humanoids) and software (AI agents, digital twins, enhanced WMS). Balancing these technologies with practical needs is crucial.

7. Limitations of Humanoids: Humanoid robots face limitations like speed, battery life, and maintenance complexity, making them less viable for widespread warehousing adoption at present.

8. Startup Concerns: Operators often hesitate to adopt technology from startups due to concerns about long-term vendor viability, rather than fears about rapidly evolving technology.

PS: Do you have any questions for Parth? Reach out to me at [email protected] and I can pass it on.