As the e-commerce landscape continues to evolve at breakneck speed, the role of automation and sustainability are increasingly essential to the future of fulfillment.
In a recent conversation on the eCom Logistics podcast, Marv Cunningham, global head of Operations Essentials at Prologis, shared his insights on the transformative landscape of logistics and how businesses can navigate an efficient, optimized e-commerce future with scalable processes and advanced solutions. Following the conversation, Cunningham provided additional insights into some of the key takeaways:
Why is automation becoming essential in modern warehouses?
According to Cunningham, automation is stepping up as a key player in warehouses for a simple reason: It addresses critical operational challenges directly, including labor shortages and the need for greater efficiency in fulfillment processes.
"Automation is not just about labor savings or efficiency. It's about creating a predictable, reliable and scalable environment that meets today's e-commerce demands," Cunningham explains. "From AI learning our layouts to robotics navigating our spaces, we are effectively transforming our human workforce into strategic managers and problem solvers, which elevates the whole operation."
As automation and artificial intelligence redefine roles in the supply chain, they illuminate the value of human insight paired with technological precision, making it possible to optimize tasks—ranging from inventory management to order picking—with minimal human intervention. Businesses are also leveraging autonomous mobile robots (AMRs) and goods-to-person technologies to reduce fatigue, minimize errors and speed up the fulfillment process. It's no longer about having the most employees: It's about having the most innovative tools that empower your team to deliver better results more quickly.
How is warehouse automation becoming more accessible?
Cunningham cites the emergence of robotics as a service (RaaS) models as a game-changer in warehouse automation, drastically lowering the barrier to entry. "In the past, automation was a major capital expense with complex implementation, but that's not the case anymore," he explains. "With robotics as a service models and the lease options Prologis provides, businesses can jump into automation effortlessly, with far less risk and investment. This opens doors for small and large operations alike to harness the benefits of automation and scale up as they grow." These subscription-based services allow businesses to implement cutting-edge robotic solutions without a major upfront investment, transforming a once capital-intensive proposition into an operational expense.
Moreover, vendors now offer systems that require little customization, training and integration time. Today's plug-and-play solutions promise short implementation cycles, quick staff adaptation and rapid returns on investment, making warehouse automation both technologically accessible and economically viable for a growing number of businesses.
How are sustainable practices being integrated into warehouses?
Sustainability in logistics is multifaceted, encompassing energy-efficient building designs, renewable energy adoption, waste reduction and resource conservation. Cunningham reveals how Prologis is pioneering warehouse sustainability with a bold commitment to achieve net-zero emissions by 2040 and a dedication to integrate sustainability as a core element of warehouse operations, with such solutions as rooftop solar as well as front-and-back meter energy innovations.
Today, businesses are taking steps toward future-proofing operations alongside partners, such as Prologis, that help establish roadmaps, overcome common challenges and take a step-by-step approach to reach achievable goals. With transitioning to electric fleets as well as solar and storage options, there is a seismic shift toward efficiency in operations, which helps reduce carbon footprints and slash energy costs.
What are the benefits of cultivating a sustainable supply chain?
Delving deeper into the economic rationale for sustainability, Cunningham shares Prologis' focus on "adding another level to help our customers," which includes sustainable initiatives. A sustainable supply chain translates to corporate responsibility combined with a competitive edge.
“Customers today are increasingly conscious about the environmental footprint of their purchases," Cunningham points out. "They aren’t just looking for products. They want a sustainable purchase experience from start to finish. That's why integrating sustainable practices, like renewable energy, into our warehouses doesn't just reduce operational costs: It resonates with customer values, enhancing overall satisfaction and loyalty to our brand."
From a financial perspective, sustainable practices often lead to long-term cost savings through energy efficiency, optimized resource use and improved supply chain resilience. Additionally, embracing efficient technologies and processes can help companies adhere to regulatory requirements and qualify for tax incentives, grants and carbon credits.
Why should businesses consider automation and sustainability now?
"If you're having a labor problem, start looking at the potential of automation," suggests Cunningham. The pressures of e-commerce growth necessitate a strategic approach to both automation and sustainability. As consumer demand for efficient service heightens, businesses that act swiftly will remain competitive and resilient in a changing marketplace.
Similarly, sustainability is transitioning from a nice-to-have to a must-have feature of logistics operations. Businesses that fail to integrate sustainable practices risk falling behind, both in terms of market expectations and regulatory compliance.
Interested in more? Listen to the conversation with Cunningham on the eCom Logistics podcast, where he discusses warehouse optimization, supply chain transformation and the future of logistics.
