When warehouse robots are no longer “expensive toys”: Where should companies start?

The 2025 technology landscape: AMRs, AS/RS and cobots – who does what?

Once you look past the generic “robot” label, three main solution families emerge inside the warehouse. The first is automated storage and retrieval systems (AS/RS and shuttles), designed to boost storage density and throughput, particularly for tote, case and each picking. McKinsey points out that shuttle systems can significantly increase picking productivity compared with manual operations, especially when combined with conveyors and multi-level storage.

The second family is autonomous mobile robots (AMRs) – from shelf-carrying units to robots moving totes and pallets or supporting put-to-light and sorting workflows. Unlike legacy AGVs that follow fixed tracks or magnetic tape, AMRs rely on LiDAR, cameras and digital maps, dynamically planning and adjusting routes, avoiding obstacles and adapting when the warehouse layout changes. DC Velocity and others report a growing shift toward AMR-based sorting and transport because these systems are flexible and can scale by adding robot “pods” rather than tearing up the floor for fixed conveyor lines.

The third family is collaborative robots (cobots) and robotic arms for picking, packing and palletizing, often combined with advanced computer vision. Studies suggest that cobots are not designed to fully replace humans but to handle repetitive, physically demanding tasks, reducing injuries and freeing workers for higher-value activities. An emerging trend is cobots mounted on AMRs, creating mobile picking stations that can be redeployed across different zones, allowing companies to upgrade legacy infrastructure rather than rebuilding from scratch.

CAPEX vs. Robots-as-a-Service (RaaS): Two very different paths

The biggest barrier for many companies is upfront capital. A full-scale AS/RS or a sizeable AMR fleet can quickly run into the millions of dollars, not including integration, maintenance and training. At the same time, warehouse cash flows are often seasonal and tied to short customer contracts, especially for 3PLs.

This is where Robots-as-a-Service (RaaS) comes in. Instead of purchasing hardware outright, companies pay a recurring fee – per robot per month or per unit of work – much like SaaS in the software world. Recent analyses highlight RaaS as an increasingly popular way to turn a large capital outlay into a predictable operating expense, lowering financial risk and making it easier to pilot and scale automation.

AMR market reports for warehousing describe models where customers pay per pick, per pallet moved or per shift, with pricing linked to the savings compared with legacy operations. For 3PLs, this is especially attractive: customer contracts rarely exceed three years, so sinking huge capital into fixed systems is risky. RaaS allows them to move robots to new sites when new contracts are won – or redeploy them when a contract ends.

From an efficiency standpoint, McKinsey and others estimate that well-designed automation can cut logistics costs by 15–30%, reduce inventory levels by up to 35% and significantly improve service performance. Yet not every problem needs a robot. In many cases, companies can capture most of the benefit simply by redesigning layouts, deploying a WMS and tightening basic processes. Robots should come into play only after those foundational improvements are in place.

From pilot to scale: Five steps to avoid a “robot crash”

A common mistake is treating warehouse robotics as an equipment purchase rather than an operational transformation. Case studies from China, Europe and North America point to at least five essential steps that should be planned before signing any contract.

Step one is to define the problem precisely: Which bottleneck will robots fix – labour shortages, low picking productivity, sorting congestion or excessive travel time? If the answer is “to look modern,” the project is almost guaranteed to disappoint. Step two is to standardize processes and data. Order rules, location codes, carton sizes and traffic patterns need to be mapped and measured before you ask whether robots can help.

Step three is to select partners and a financing model (buy, lease, RaaS) and design a pilot that is big enough to show a credible business case yet small enough to fail safely. Step four is organizational change: redesign roles, train people, document new processes and collect frontline feedback. Step five is to build the KPI framework and roll-out roadmap: when to add more robots, when to extend to new zones and when to stop because marginal gains no longer justify the cost.

As labour costs rise, delivery promises tighten and customer expectations harden, warehouse robots have moved far beyond the “expensive toy” stage. For Vietnamese businesses, the challenge now is to pick the right problems, the right technologies and the right financing models – and to stay the course from standardization through piloting to full-scale deployment. Those who manage this will not only save money but also build a distinctive, hard-to-copy operational capability in the global supply chain.