UK retailers see warehouse automation as key to net zero goals

Research from Inteq indicates that warehouse automation is regarded by UK retail and eCommerce leaders as vital to achieving sustainability and net zero objectives.

According to Inteq's recent survey, almost nine in ten (88%) directors and senior leaders in the sector believe that introducing robotics and automation to warehouses can support sustainability efforts. The perceived benefits include enhanced energy efficiency, reduced material waste, better space optimisation, and lower transportation emissions. Of those surveyed, just under two fifths (39%) somewhat agreed with this assessment, and nearly half (49%) strongly agreed.

Many UK retailers have set net zero targets for 2040, intensifying their focus on lowering emissions throughout their operations and supply chains. However, a recurring operational issue is the ongoing lack of warehouse space, leading businesses to prioritise strategies that maximise the use of existing facilities.

The research also identified a strong consensus on the operational benefits of automation. Nearly nine in ten respondents (87%) agreed that access to robotics and automation would bring improvements to their customer fulfilment operations. At the same time, almost a quarter (24%) highlighted insufficient warehouse space as a key challenge, particularly during periods of market or demand volatility.

Industry perspectives

Scott Merrick, Managing Director at Inteq, said: "The fast-changing world of warehouse automation and robotics offers exciting and innovative new ways to reduce the footprint of warehousing. These don't just improve efficiency, they can also offer cost reductions, productivity gains and additional labour savings."

He went on to add: "But truly nailing efficiency can only be done with the proper collaboration of differing technologies, processes and systems. This is why everything needs to start with integration. Taking a piecemeal or ad hoc approach to warehouse automation integration won't cut it."

Trends in technology

The survey also investigated which emerging technologies in robotics and fixed automation are expected by retailers to have the most significant effects on logistics in the coming five years. Artificial intelligence (AI) and machine learning were identified by 62% of respondents as having the top impact, followed by advanced sensors (40%), blockchain technologies for supply chain purposes (36%), collaborative robots (35%), and drone deliveries (27%).

When responses were broken down by channel type, 73% of those from omnichannel businesses cited AI and machine learning as having the greatest expected influence, compared with 61% of those in retail stores and 57% in businesses operating solely online. Meanwhile, one quarter (25%) of respondents selected magnetic propulsion as the trend they believe will have the largest effect in the next five years.

Further details from the sector

Inteq's report, titled 'Fit for Growth', presents the results of this survey in greater detail and examines ways in which companies can pursue profitability while adopting robotics and automation. The report covers trends and strategies relevant to the evolving logistical landscape.

The research was conducted independently by Censuswide, surveying 250 individuals from UK retail and eCommerce businesses with annual turnover above GBP £10 million. Respondents were at Director level or had influence over supply chain decisions. The survey was carried out in July 2024.