The rapid evolution of automation technology is revolutionising warehouse operations, making them more efficient, scalable, and future-proof. At DELIVER 2024, Mark Richardson, CEO of Ocado Intelligent Automation, took the stage to discuss the role of automation in logistics and how businesses can leverage it to stay ahead in an increasingly competitive landscape.

The Power of Robotics in Warehousing

Richardson kicked off his presentation by showcasing a warehouse near London, equipped with a vast grid of 3,000 robots operating in a cubic storage and retrieval system (SRS). This facility is capable of processing an astonishing 1.7 million individually picked and packed items daily. Another, smaller warehouse with 600 robots sees 25% of its output picked robotically, with that percentage increasing every day.

This level of automation is not just about scale; it’s about future-proofing logistics operations. “In the future, your logistics operation will likely be run by robots,” Richardson emphasised. Ocado’s journey, from tackling the complexities of grocery e-commerce to becoming a global leader in warehouse technology, provides valuable insights into how automation can reshape supply chain management.

Lessons from Ocado’s Journey

Ocado’s origins in grocery e-commerce meant dealing with unique logistical challenges—ensuring bread wasn’t crushed, eggs weren’t broken, and milk didn’t spoil. These challenges drove the company to innovate, resulting in systems that now pick over two billion individual items annually for partners worldwide.

Richardson highlighted a key observation: traditional automation vendors were not using their own equipment in complex logistics operations. This disconnect meant they lacked firsthand experience in tackling real-world challenges. Ocado, by contrast, operates its own facilities and continuously refines its technology based on practical experience.

The Birth of a Game-Changing System

After years of trial and error, Ocado developed the Ocado Storage and Retrieval System (OSRS). This innovation offers several advantages:

• Modularity – The system can be deployed at any scale and expanded as needed.
• High-Density Storage – Essential for maximising warehouse capacity and minimising real estate costs.
• Speed and Productivity – Designed for high-speed operations, OSRS supports rapid order fulfilment.
• Fire Safety – The introduction of steel storage bins significantly enhances fire protection.

Beyond OSRS, Ocado’s investment in R&D extends to upstream and downstream automation, further enhancing efficiency and reducing dependency on human labour.

Key Considerations for Warehouse Automation

For businesses considering automation, Richardson outlined several critical questions:

• Is your storage as dense as it could be? Dense storage reduces land and infrastructure costs, providing long-term benefits.

• Are you prepared for growing labour shortages? Labour availability is declining, and costs are rising. Automation mitigates these risks while improving efficiency.

• Does your automation partner operate its own warehouses? Choosing a provider that uses its own technology ensures continuous improvement and real-world-tested solutions.

• Is your warehouse built for flexibility? Traditional automation can be rigid. Modular solutions like OSRS allow incremental scaling and adaptation.

• Are you building towards a ‘lights-out’ operation? Fully automated, ‘lights-out’ warehouses reduce human intervention, increasing efficiency and consistency.

The Future of Automated Warehousing

Ocado’s commitment to automation extends beyond efficiency—it’s about resilience and adaptability. The company is working towards fully automated warehouses, removing humans from challenging environments such as deep-freeze storage.

“Who wants to work at -25°C?” Richardson asked. Ocado’s solution: automation that eliminates the need for human labour in extreme conditions.

Conclusion: A New Era of Logistics

Automation is no longer a luxury—it’s a necessity for future-proofing logistics. As Richardson concluded, businesses must evaluate their automation strategies today to remain competitive tomorrow. Ocado’s journey demonstrates that when automation is approached strategically, it leads to scalable, efficient, and resilient operations.

For logistics leaders, the message is clear: The future is automated, and those who embrace it now will be best positioned for success in the years ahead.