With supply chains struggling under the pressures of a shrinking workforce, perceptions are shifting around the use of automation and robotics. Wincanton chief executive James Wroath makes the case for more technology in the warehouse

Last week, I had the pleasure of attending the CBI Annual Conference in Birmingham. It is always an important moment in the calendar for British business – and this year felt more important than ever as the country faces myriad economic challenges. 

Following his keynote speech, prime minister Rishi Sunak took questions from the floor, and I took the opportunity to ask him about productivity and innovation. 

I explained that we, in common with many other businesses in the UK, have a productivity issue exacerbated by labour shortages and spiralling labour costs. One of the main solutions is to automate more, but when we look for partners to develop these solutions we are generally forced to look overseas, particularly for hardware. 

My challenge to him was: how can we partner better with the government to develop that sector onshore?

At Wincanton, we manage the supply chains of some of the biggest retailers in the country. In our warehouses right across the UK, we are experiencing the pressures of managing a shrinking workforce and the strain this has created on the supply chain.

“In our warehouses right across the UK, we are experiencing the pressures of managing a shrinking workforce and the strain this has created on the supply chain” 

While we know there is no silver bullet, we do believe there is one area our industry should address as a priority: we need to dramatically increase the automation and robotics we use in our supply chains to support the people we currently have at work. 

The manufacturing industry has shown us the way here. We have long been used to images of highly automated production lines, supported by skilled people, churning out everything from cars to smartphones to food products.

There is good reason why logistics has lagged behind manufacturing in this regard. Supply chains can be unpredictable, fulfilment often has elements that require a customised response and this places a premium on agility. 

Traditionally, this has not lent itself to automation, with the exception of high-bay warehouses, with people far more effective at carrying out more bespoke tasks. 

This is changing fast. As technology improves and costs come down, we are reaching the point where the investment case for businesses becomes more compelling. This is particularly the case in robotics, where the affordability of autonomous mobile robots (AMRs) has led to a steady increase in their deployment. 

Significant commitment

Developing larger-scale, fixed automation in warehouses remains a larger investment and so a more significant commitment for companies. 

Operationally, using automation and robots alongside people can increase productivity dramatically. At one of our automated sites, we can service an increase in order volumes for one of our customers by 10 times around Black Friday by deploying robots to work with people. 

Perceptions of automation are also shifting, with a greater awareness of the benefits that automation in the workplace brings to colleagues through skill development and improved safety and working conditions. 

“Operationally, using automation and robots alongside people can increase productivity dramatically”

As well as the investments required, there is also a problem of access. Regardless of whether we are seeking to source the robots or the software that controls them, we must look abroad for the know-how.

There is an enormous opportunity to develop these products and solutions in the UK, so our economy can benefit from the wave of investment that is incoming. 

The prime minister made it clear that he recognises the benefits of more automation, not just to productivity, but also to the quality of output and the safety of workers. 

He wants to see a push to spread the skills required to develop and manage these technologies more widely across the economy, and he showed a willingness to work with businesses to achieve this.  

Transformative tech

We are enthusiastic about the opportunities here and we have been investing in our own capabilities and working with customers committing their own capital to automating their supply chain infrastructure. 

I cannot overstate how transformative this technology will be for retailers. However, the industry remains in the foothills. We have a long way to go, and a huge amount of investment is needed. 

“I cannot overstate how transformative this technology will be for retailers. However, we have a long way to go, and a huge amount of investment is needed”

We understand our role and responsibility. We must up our investments and foster the skills needed to support these new technologies. The government must also create the right environment for the British robotics industry to grow. 

The R&D relief for SMEs announced in the Autumn Statement is encouraging, but more can be done to help foster innovation. 

Businesses and the government must work together in this crucial area to ensure the UK’s logistics operations remain resilient enough to cope with the changing ways we shop and do business.