Leaders Opinion

Digital Tech in Supply Chains: Racks, Robots & Results

March 31, 2025 6 min read

Naveen Kolathur

SRM Technologies, Chief Operating Officer

Digital Transformation

The world of supply chain management is undergoing a seismic shift, driven by digital transformation. Traditional, labor-intensive, and fragmented operations are rapidly being replaced with automated, data-driven, and highly efficient ecosystems. This transformation is evident across four key themes: warehousing, transportation, supplier management, and visibility.

Racks to Robots: The Automation of Warehousing

Global Best-in-Class: Warehouses have long been the backbone of supply chains, but their traditional model—rows of racks managed by manual labor—is being revolutionized by robotics and AI. Automated storage and retrieval systems (AS/RS), robotic picking solutions, and autonomous mobile robots (AMRs) are optimizing warehouse operations, improving efficiency, reducing human error, and cutting costs.

DHL, for example, has invested in highly automated warehouses featuring robotic picking, AI-driven inventory management, and automated guided vehicles (AGVs) to enhance efficiency. Amazon, another global leader, has deployed over 750,000 robots in its fulfillment centers to reduce processing times and improve order accuracy. According to a McKinsey report, automation can increase warehouse productivity by 25-30% while reducing operational costs by 20%.

India’s Aspirational Path: India is rapidly adopting warehouse automation, driven by the growth of e-commerce and demand for efficiency. Companies like DHL India, Flipkart, and Reliance Retail are investing in AI-powered warehousing solutions. DHL’s Smart Warehouse initiative in India integrates robotics and IoT to improve package processing speeds and order accuracy. Flipkart has implemented automated sortation systems, improving package handling efficiency by 50%.

While precise figures on the exact percentage of warehouses in India using WMS systems are difficult to find, it's estimated that around 15% of warehouses are mechanized, with only 5% using sophisticated automation equipment and solutions, including WMS. 

Here's are some interesting data points and trends:

Mechanization Trend: More than 80% of warehouses still have no automation at all.

Increased adoption: Since the last decade, there's been an increase in warehouse mechanization, with around 15% of warehouses being mechanized.

Sophisticated Automation: Only 5% of warehouses are using sophisticated automation equipment and solutions, which would include WMS.

Growing Demand: Digital technologies like WMS are increasingly being adopted by the e-commerce and third-party logistics industries.

Digitalization Impact: The rising trend of online purchasing and the increasing demand for efficient warehousing solutions are driving the adoption of WMS systems.

ControlOne and Smart Warehouse Management: Solutions like ControlOne are redefining warehouse automation by transforming traditional material handling equipment into intelligent, autonomous Physical AI Agents. ControlOne leverages Vision-to-Action Navigation, utilizing Visual Simultaneous Localization and Mapping (VSLAM) and digital twin technology to enable AI-driven warehouse operations. This technology allows machines to perceive, process, and adapt to dynamic environments in real-time.

A notable feature of ControlOne’s system is the 3-brain system, which facilitates seamless human-AI collaboration. Operators can manage AI decisions remotely and address edge cases in real-time, ensuring efficient warehouse operations with minimal disruptions. DHL has integrated similar AI-driven solutions to enhance warehouse productivity, increase safety, and optimize workflows.

Paper to Performance: Digital Transformation in Transportation

Global Best-in-Class: Transportation, once bogged down by paperwork and manual processes, is embracing digitalization. The transition from paper-based tracking to advanced Transportation Management Systems (TMS) has streamlined operations, improved route optimization, and enhanced real-time tracking.

DHL leverages AI-powered dashboards that analyze traffic patterns, weather disruptions, and delivery constraints to dynamically reroute shipments. UPS’s ORION (On-Road Integrated Optimization and Navigation) system has helped save 10 million gallons of fuel annually through AI-driven route optimization. A PwC study found that AI-driven logistics solutions can reduce transportation costs by 15% and delivery times by 20%.

India’s Aspirational Path: DHL India has been at the forefront of digitizing transportation, integrating AI and IoT for fleet optimization. The company’s use of document scanning technologies has helped improve freight forwarding and customs clearance, reducing processing times and improving regulatory compliance. Startups like BlackBuck are also leveraging digital freight matching to reduce empty truck miles and enhance efficiency

Driver Safety Technologies: Safety in transportation is being significantly enhanced through AI-driven solutions such as Netradyne, which uses vision-based technology to monitor driver behavior, detect unsafe driving patterns, and provide real-time coaching. DHL and FedEx have adopted such technologies across their fleets, resulting in a 30% reduction in road accidents and improved driver compliance.

Document Scanning Technologies: Another key innovation in transportation digitization is document scanning technology, which eliminates inefficiencies in logistics. DHL and Maersk use AI-powered Optical Character Recognition (OCR) systems to enable real-time document processing, reducing manual errors and speeding up customs clearance, cutting processing times by 40%.

Risk Management to Resilience: Smarter Supplier Management

Global Best-in-Class: Supplier management is shifting from a reactive, risk-focused approach to a proactive, resilience-driven model. DHL, Unilever, and Toyota use AI and blockchain to gain deeper insights into supplier performance, compliance, and risk exposure. Platforms like SAP Ariba, Beroe, and GEP provide end-to-end supplier visibility, while AI-driven risk analysis tools predict potential disruptions before they occur. Additionally, Everstream Analytics enables real-time risk monitoring by using AI and predictive analytics to identify supply chain vulnerabilities before they escalate. Unilever’s AI-powered supplier management system has helped improve sourcing decisions and reduce procurement risks.

India’s Aspirational Path: Leading businesses in India are working on strengthening supplier resilience by integrating blockchain for supplier traceability and compliance monitoring. The adoption of digital procurement platforms like GeM (Government e-Marketplace) is improving transparency, though AI-driven supplier risk assessment remains a work in progress. Tata Steel has also started using blockchain for better supplier collaboration and fraud prevention.

End-to-End Visibility to Real-Time Visibility: The Power of Data and Transparency

Global Best-in-Class: Traditional supply chain visibility focused on capturing historical data and providing periodic updates. However, businesses now require real-time visibility to make informed decisions on the fly.

DHL has invested in IoT, AI-powered analytics, and control towers that aggregate data across its global network. Maersk’s TradeLens platform, powered by blockchain, provides a transparent and tamper-proof record of shipments, reducing inefficiencies by 40% and improving trust among stakeholders.

India’s Aspirational Path: DHL India is advancing real-time visibility through IoT-enabled fleet tracking and AI-driven supply chain monitoring. Government initiatives such as FASTag and E-Way Bill have improved freight movement efficiency, reducing wait times at toll plazas by 30%. Companies like Delhivery and Locus are leveraging AI to enhance last-mile visibility, though full-scale industry-wide implementation remains a future goal.

The Road Ahead: Embracing Digital Transformation

The digital transformation of supply chains is not just a technological upgrade, it is a fundamental shift in how businesses operate, compete, and deliver value. DHL, Amazon, UPS, Maersk, and other industry leaders are setting the benchmark for digitization, serving as models for both global and Indian logistics players aiming to stay ahead in an increasingly connected world.