7 Signs It’s Time to Automate

Many teams are facing the same challenge: a shrinking labor pool and increasing pressure to do more with fewer workers. Labor shortages, turnover, and safety concerns are making it harder to maintain efficiency— especially for operations that rely heavily on manual processes.

While automation isn’t about replacing workers, it helps ease workforce constraints by taking on repetitive, physically demanding tasks. This allows employees to focus on higher-value responsibilities while reducing the risks associated with labor shortages and workforce fluctuations.

Speed has become a competitive advantage. Nearly 44% of consumers are willing to wait only two days for their orders, indicating a strong demand for faster delivery times¹—yet many businesses still rely on traditional workflows that weren’t designed for this level of demand.

As fulfillment expectations rise, manual processes often lead to inefficiencies, bottlenecks, and errors. Companies that integrate automation—such as AI-driven fulfillment and intelligent routing—are gaining an edge by improving accuracy, reducing delays, and enhancing overall supply chain performance.

Recent labor data shows warehousing employment reaching a multi-year low—falling to 1.85 million workers, comparable to levels last seen in 2021.² With ongoing labor shortages, traditional scheduling can make it hard to keep up with fluctuating demand. 

Automation provides built-in scalability, allowing businesses to flex operations without relying solely on hiring. Solutions like mobile robotics and AI-driven forecasting help operations adjust to seasonal shifts, improving efficiency while reducing unnecessary labor costs.

Warehouse and logistics costs are rising—from labor and real estate to transportation and fulfillment. Outdated, manual workflows only make it worse, driving up labor costs, slowing order processing, and wasting space.

Automated solutions help cut costs and boost efficiency by streamlining workflows, optimizing space, and balancing labor demand—reducing cost per order and supporting a more sustainable operation.

E-commerce growth has led to a rise in SKU proliferation and non-conveyable shipments, putting added strain on traditional warehouse and fulfillment models. If managing inventory feels more complex than ever, automation can help.

AI-powered inventory tracking and robotic picking systems are designed to handle a growing range of SKUs efficiently. These solutions help improve order accuracy, streamline inventory management, and reduce the operational burden of manual handling.

Across the industry, companies are moving toward more efficient, technology-driven solutions. According to the annual MHI Industry report, 55% of supply chain leaders are increasing their supply chain technology and innovation investments with 60% saying they are planning to spend over $1 million. Nineteen percent plan to spend over $10 million.³ Businesses that take a “wait and see” approach could risk falling behind as competitors gain efficiency, reduce costs, and improve service levels.

Automation isn’t just about keeping up—it’s about creating a more adaptable, resilient operation that can adjust to market changes and evolving customer needs. Companies that integrate smart solutions today can gain a sizeable lead as early adopters. 

Costs have traditionally been measured by labor, storage, and transportation expenses. But today, businesses must factor in additional challenges like geopolitical risks affecting supply chain stability, sustainability and regulatory mandates, and demand volatility in response to global events.

Companies that rely solely on manual processes often struggle to adjust to these shifts. Automation and AI-driven strategies provide real-time visibility, enabling businesses to make proactive, data-driven decisions to maintain efficiency and cost control.

1. NextBillion.ai. (2024, December 20). Top 10 last-mile delivery statistics in 2025.
2. Garland, M. (2024, January 26). Warehouse employment keeps falling — and more layoffs loom. Supply Chain Dive.
3. MHI & Deloitte. (2025). The digital supply chain ecosystem: Orchestrating end-to-end solutions.