Why warehouse automation is no longer optional in 2026

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warehouse_automation_ffor_2026_blo_header_image

Automation: the only way forward.

Warehouse and distribution center operators are under more pressure in 2026 than at any point in recent times. Volumes continue to climb, labor remains unpredictable, and viable space is both expensive and  limited to come by. At the same time, customer expectations for speed, accuracy, and consistency haven’t softened.

As a result, more companies are making a strategic shift toward material handling automation, not as a future initiative, but as a near-term necessity.

With how tariffs and geopolitical winds shift so drastically in recent years, automation is a constant foundational system that can adjust accordingly to any low/high demand forecasts and unseen barriers

Below are the top reasons automation is accelerating across warehouses and DCs, backed by real operational data and what we’re seeing in the field.

What is driving warehouse operators to automate?

Too Much Labor Is Spent Moving, Not Working

One of the most eye-opening statistics for warehouse operators is how labor time is actually used day to day.

On average, 40–60% of warehouse labor time is spent walking or transporting product, not picking, packing, or performing value-added tasks (TGW).

That inefficiency compounds quickly:

  • More headcount is required to move the same volume
  • Travel paths grow longer as operations scale
  • Productivity gains hit a ceiling, even with good labor management and a large team
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 Conveyor systems, accumulation, and automated transport remove unnecessary travel from the equation. Instead of workers chasing product, product flows to workers, freeing labor to focus on accuracy, throughput, and exceptions.

Labor Availability Remains a Persistent Constraint

Despite wage increases and recruitment efforts, more than half of warehouse operators still report difficulty hiring and retaining quality labor (SDCEXEC).  This has been an ongoing issue since COVID, and warehouses can’t seem to shake it.

  • 42% of operators plan to increase use of flexible workers this year
  • Certain warehouses report close to a 200% turnover rate (InboundLogistics)
  • 52% cite finding reliable, quality labor as their top challenge
  • Entry-level warehouse workers now earn between $19-$22 an hour in nearly half of facilities.
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Automation doesn’t eliminate labor, it empowers workers to focus on more meaningful tasks while forgoing repetitive, monotonous work. Fewer workers are needed to move the same volume, training time is reduced, and productivity becomes less dependent on individual experience levels.

For many operators, automation is seen as the one true solution to removing significant staffing issues. If your company is growing, more employees will be required, which will only make hiring more difficult – unless automation can fill those gaps

Demand Is Growing Faster Than Available Space

A Prologis study finds that U.S. warehouse utilization is climbing toward expansionary levels, meaning companies are using up existing space and leasing more (Prologis). This often pushes operators to adopt automation to extract more productivity from existing facilities before expanding physical footprint.

With space at a premium both within facilities and in the market, operators are:

  • Expanding into new building or investing in additions
  • Overhauling a current setup to one that’s focused on maximizing space
  • Increasing throughput density inside current facilities
  • Re-evaluate warehouse network and consolidate facilities to a more automated site
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Material handling automation allows facilities to do more within the same footprint. Conveyors, sortation, optimal storage setups and vertical accumulation maximize cubic space, compress travel distances, and support higher order volumes without adding square footage. Second level mezzanines, ceiling-supported racking, and hanging conveyor lines can make use of vertical space while keeping warehouse floors clear

There exist many solutions focused on saving space, the hard part is selecting the best one for your facility and operational needs (This is something Century specializes in)

In short: automation enables growth when real estate cannot.

The Automation Market Continues to Grow

Just a few years ago, conveyor systems, robotics, sorters, and other automated equipment were considered “advanced” solutions reserved for large warehouse network operators (Amazon, Walmart, Home Depot).

That’s no longer the case.

The warehouse automation market size is estimated at $29.91 billion in 2025 and is projected to advance to  $63.36 billion by 2030, reflecting a robust 16.20% CAGR. Growth rides on three converging currents: sustained e-commerce volume, persistent labor scarcity, and subscription-based robotics services that lower capital barriers. Hardware, particularly AS/RS installations and conveyor infrastructure, still accounts for most spending, yet software layers that synchronize people, robots, and inventory are scaling faster as fulfillment centers move toward data-driven orchestration. (Mordor Intelligence)

  • By component, hardware captured 58% of the warehouse automation market share in 2024, whereas software is set to post the highest 17% CAGR through 2030.
  • By technology, AS/RS led with 30.5% of warehouse automation market share in 2024; mobile robots are forecast to expand at a 20.5% CAGR to 2030.
  • By end-user industry, retail & e-commerce held 28% revenue share in 2024, while e-grocery is projected to grow at 18.3% CAGR through 2030.
  • By warehouse size, medium facilities (50–200 k sq ft) commanded 37% of the warehouse automation market size in 2024; mega sites (>500 k sq ft) are advancing at a 17.2% CAGR to 2030.
  • By ownership, company-owned sites represented 52% of the 2024 warehouse automation market size, but 3PL facilities are expected to record a 16.4% CAGR to 2030.
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This shift reflects:

  • Lower barriers to entry
  • Modular, scalable system designs
  • Proven performance across industries
  • Faster and more flexible implementation timelines
  • The constant need to automate to capture increased demand

Automation is no longer a differentiator, it’s the baseline for competitive distribution operations.

ROI Timelines Are Shorter Than Many Expect

One of the most common misconceptions about automation is that it requires long, uncertain payback periods. The initial cost of a conveyor system might be eyewatering to some since the cost-effectiveness of the solution pays itself back in efficiency and time saved through other operational tasks rather than a direct correlated metric to total revenue.

In reality, the ROI on a conveyor system typically hovers around the 2-year mark, driven by:

  • Reduced labor requirements
  • Higher throughput with existing staff
  • Lower error rates and rework
  • Improved uptime and consistency
  • The ability to serve more clients and take on more orders
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For operations facing rising labor costs and capacity constraints, automation often pays for itself faster than incremental staffing or facility expansion.

Automation Supports Long-Term Flexibility

Modern material handling systems are designed with change in mind. Scalable layouts, zoned control, and adaptable software allow systems to evolve alongside:

  • SKU growth
  • New order profiles
  • Channel expansion
  • Facility consolidation
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Century sometimes proposes a phased approach to integration for certain clients. Whether it’s because of budget, space, or a future process that requires additional planning – splitting a project into distinct phases can turn a large integration into manageable chunks.

For a facility that already has an older system, but would like to upgrade, retrofits and modernization are two more methods Century has in the toolbox to breathe new life into an outdated setup.

Rather than solving only today’s problem, automation creates a foundation that supports future growth, without forcing constant redesigns.

Automation as a Strategic Advantage

The decision to automate is no longer driven solely by growth, it’s driven by resilience.

Companies investing in material handling automation are positioning themselves to:

  • Do more with fewer resources
  • Manage inventory in a visible and efficient manner
  • Absorb demand spikes without disruption
  • Enable data-collection for accurate system and order reporting
  • Maintain service levels despite labor volatility
  • Scale intelligently as business evolves

As 2026 unfolds, the question many operators are asking has shifted from “Should we automate?” to “How soon can we?”

How can Century automate my food distribution operation?

  • Industry-specific expertise: Our specialization lies in high-speed fulfillment and distribution systems.
  • End-to-end solution: Mechanical design, controls, integration, software and installation and service support under one roof. Selecting a turnkey A-to-Z integrator like Century can avoid an overly-complicated system implementation in which equipment doesn’t work in tandem, but in a silo (a Frankenstein, we like to call them).
  • Scalable & modular design: We build for your current throughput and product handled but engineer dynamic variances for SKU growth, product type & size, seasonal peaks or future lines.
  • ROI-driven: Given tight margins in distribution, our focus is on labor reduction, error minimization, space optimization, waste elimination and equipment selection that fits your budget and goals.

    Century focuses on building the most optimal system, not the most expensive.

 Contact Century

Will 2026 be the year you enable automation in your warehouse or DC?

If your facility is encountering any of the above issues, a proper material handling system can solve your top painpoints.

Century’s team of automation experts, engineers, and project managers will lend their extensive knowledge and skillset to help you and your organization in paving the way to a truly optimal automated distribution facility.

Ideal material handling systems for food distributors & wholesalers

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food_distribution_material_handling_automation_blog_header

Fast food: the winning recipe for distribution automation

In the food product distribution world, precision, timing, and freshness are everything. The difference between an optimized operation and a costly bottleneck often comes down to how product flows through the facility.

Automation and properly engineered material-handling systems for this segment are no longer a suggestion – it’s the only way to continue growth.

Food distributors contend with a variety of challenges: tight margins, high SKU counts (including fresh, frozen, ambient, seasonal, private-label, and multiple product counts/sizes), multiple temperature zones, complex fulfillment patterns, labor constraints, and regulatory traceability and food-safety demands.

Century Conveyor integrates turnkey systems to address exactly these conditions.

The state of food distribution for 2026

Food processing and distribution face a series of unique challenges, and as global trade and economic headwinds impact every sub-category of the food supply chain – operators are searching for solutions to the top pressing issues.

  • Labor shortages and rising costs: Hiring, training, and retaining affordable and reliable labor is a significant challenge for the food industry. Proper operating and safety procedures are paramount for a warehouse associate to learn to avoid damages, errors, or unsanitary situations.
    • This can affect certain food segments more than others. Specific types of seasoning and spices cannot be grown commercially in the US.  Vanilla, for example, is primarily grown in Madagascar and requires controlled temperature ranges and hand-pollination techniques (Supply Chain Dive).
  • SKU proliferation & mixed-temperature flows: Food distributors are carrying more product lines now than ever. More SKUs – mixing ambient, chilled, frozen, varied sizes and counts, private-label, promotional items, and organic/specialized products.
  • Regulation, traceability & perishability: The need and ability to track lot codes, monitor temperature zones, ensure first-expiring first-out (FEFO) and detailed order documentation for each shipment.
  • Customer expectations: Restaurants, grocers and convenience chains expect faster turnaround, tighter route accuracy and highly customizable orders. Margins can be very thin for these segments, so the ability to shift to alternative ingredients/products for cost-effectiveness is a must for a distributor’s client.
  • Network optimization: Many distributors are consolidating towards a regional automated warehouse method. Instead of operating 2 or 3 sites that are mainly manual processing, a larger greenfield site designed automation-first can make up the difference operationally.
    • As an example: Walmart’s fresh food segment invested into an automated DC sized at over 700,000 sq ft, utilizing storage/retrieval and robotics to manage high-volume fresh product flows (Supply Chain Brain).

Automation equipment that food distributors are integrating

Here’s how Century orchestrates the optimal solution equipment, automation strategy, product handled, facility constraints, and real-world processing flows – all in an effort to achieve and surpass key performance indicators.

Case & Tote Conveyor

barnes and noble conveyor system 2

Use case: Cooler, freezer and ambient sections receiving bulk pallets, moving totes/cases across zones, staging for picking. Standard conveyor belting/rollers can be utilized for movement of ship-ready packages, but items in their shelf-ready packaging (or anything prior) must use stainless steel or washdown units.

Usage

  • Bulk inbound movement of cases/totes from dock into storage or picking zones.
  • Transfer across temperature zones (ambient → chilled → frozen) with appropriate conveyance.
  • Stainless steel and washdown may be required for products not already in a shipping-ready container (shrink-wrapped styrofoam tray meat products, produce bags or plastic containers, totes that hold raw product, etc.). These operations take place upstream before material-handling packaging/storage/shipping EOL processes.

Benefit

  • Mitigates labor-intensive manual movement in complex, regulated (and often proprietary) operations.
  • Minimizes product handling by reducing damage and exposure to temperature variation.
  • Seamlessly connects food processing operations to packaging/shipping processes.

Zero-Pressure Accumulation & Buffering Conveyors

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Use case: Outbound staging for mixed-temperature loads, wave processing, picking and fulfillment operations. Zero-pressure and buffering conveyors focus on creating a space between items to minimize damage and 

Usage

  • Staggering cases/totes avoids product touching during conveyance.
  • Accumulation can be based on route or customer needs (mixed-SKU orders, palletizing, etc.).

Benefit

  • On-the-fly adjustment for seasonal spikes or demand fluctuations.
  • Reduces damage/case crush and jams.
  • Prepares sequence for outbound ops, improving dock consistency and load times.

Automated Sortation

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Use case: Consolidating mixed SKUs, directing cases by customer, route, temperature zone. Sorter units utilize different divert methods based on throughput and type of product handled. These can take the form of sliding shoes, belts, trays, chutes, sweeping arms, skatewheels, and more.

 Usage

  • High-speed diverting of individual cases or totes into correct outbound lanes (for ambient, chilled, frozen).
  • Enables sequencing for ease of load or pallet-building

 Benefit

  • Enhances order accuracy and trailer-build reliability.
  • Enables faster loading with reduced manual sorting.
  • Supports multi-temperature loads with minimal error.

Pick Modules & Goods-to-Person Systems

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Use case: High-mix picking environments (specialty items, private-label SKUs, promotional packs, various sizes) and omni-channel flows for distribution.

 Usage

  • Pick modules can come in the form of picking shelves, flow rack, cobots, robotic arm cells, or AS/RS.
  • Pickers select the order items from the manifest and outfeed cases/totes onto conveyors, robots, or GTP units.
  • GTP workstations enable order fulfillment, but most food distributors may use pallet building automation (such as a layer-building gantry unit) as items are bought in bulk rather than singular quantities.
  • Typical GTP operations in a large food distribution facility has associates stage items so pallets can be built.

 Benefit:

  • Improves picks per hour, especially for complex orders.
  • Lowers labor burden and error rates.
  • Scales consistently when SKU counts rise.
  • The level of automation deployed can be engineered to current processing rates. A smaller food distributor might not have the CPM to justify the cost of an AS/RS.

Palletizers & ASRS

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Use case: High-density storage (especially chilled/frozen), inbound bulk pallet breaking, outbound pallet build by route.

Usage

Benefit:

  • Dramatically increases storage density (critical when floor space is expensive).
  • Removes labor from the coldest, most injury-prone tasks.
  • Speeds build of outbound pallets in sequence for trailers.
    For example: A distributor extended the life of an existing DC by 10+ years using an AS/RS and layer-pick build solution. (MMH)

Temperature-Zone Transfer & Traceability Systems

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Use case: Cold chain integrity, tracking lot codes, expiration priority enforcement.

Usage

  • Conveyors and systems designed for temperature-zones (ambient, refrigerated, frozen, minimal door-open time).
  • Seamless storage and retrieval that avoids gaps between zones.
  • WCS/WMS integrated scanning of lot/expiration info and real-time monitoring of product in zone.

Benefit:

  • Protects product quality and shelf life (critical for perishables).
  • Supports compliance, traceability and recall ability.
  • Enables more accurate planning and lowers waste.

Real-world results: What’s working for food distributors

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  • Conveyors, AS/RS, robotics and automated labeling are critical to seamlessly connect operations from reception and sorting of goods all the way through palletizing and staging for chilled product flows. The longer a product sits, the more cost it accrues.
  • The largest sources of inefficiency for food distributors typically take the form of damaged or past-expiration foods. Automation can store and process orders quickly to avoid perishable waste, while providing stable movement that avoids damage that could occur with manual touchpoints.
  • Automated storage and retrieval systems (AS/RS) proves highly effective for food distribution operations. Large distributors have thousands of product types that require fast, yet gentle processing. Mixed-SKU orders can further complicate picking and fulfillment – and if a facility running multiple dock door lines handling a variety of transport options (LTL, local box truck, couriers, etc), it’s easy to see why many are deploying AS/RS solutions.
  • On traceability/data and operational integration: Many food-distribution companies face legacy systems, disparate or unattributable data and lack of automation. Automation connects the physical to the digital by integrating reception, tracking, lot inventory management and outbound flow.

How can Century automate my food distribution operation?

  • Industry-specific expertise: Our systems are designed for food distribution realities – SKU mix, temperature zones, variable pack types, perishables.
  • End-to-end solution: Mechanical design, controls, integration, software and installation and service support under one roof. Selecting a turnkey A-to-Z integrator like Century can avoid an overly-complicated system implementation in which equipment doesn’t work in tandem, but in a silo (a Frankenstein, we like to call them).
  • Scalable & modular design: We build for your current throughput and product handled but engineer dynamic variances for SKU growth, product type & size, seasonal peaks or future lines.
  • ROI-driven: Given tight margins in distribution, our focus is on labor reduction, error minimization, space optimization, waste elimination and equipment selection that fits your budget and goals. Century focuses on building the most optimal system, not the most expensive.

 Contact Century

Ready to engineer your next-generation food distribution system?

If your food distribution or wholesale operation is wrestling with escalating SKU counts, labor shortages, trade and tariff headwinds or delivery-accuracy demands – Century Conveyor should be your next consideration

Our team of automation experts, engineers, and project managers will lend their extensive knowledge and skillset to help you and your organization in paving the way to a truly optimal automated food distribution facility.

Navigating New Tax Codes To Expense Automation Equipment

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Take advantage of new OBBBA tax codes to enable automation.

The One Big Beautiful Bill (OBBBA) reshapes how businesses can expense automation and material handling equipment. The law permanently restores 100% bonus depreciation, increases Section 179 expensing limits, and introduces a new category for Qualified Production Property (QPP -139 STAT. 198)

For warehouse operators, integrators, and distributors — this means you can immediately deduct most automation investments if the requirements are met.

Under Sections 179 and 168(k), eligible equipment is defined as:

  • Tangible personal property used in an active trade or business.
  • Qualified improvement property (non-structural interior upgrades).
  • Machinery and equipment with a useful life over one year.
  • Sec. 70301: Full expensing for “qualified business property”
  • Sec. 70306: Raises expensing cap to $2.5 M with a $4 M phase-out
  • Sec. 168(k): Permanently reinstates 100% bonus depreciation
  • Sec. 168(n): Creates a new category for “qualified production property” used in U.S. manufacturing or production.

These provisions apply to property acquired and placed in service after Dec 31, 2024 (for QPP, construction beginning after Jan 19, 2025).

What Equipment Is Eligible?

Equipment Type
Eligible for Deduction?
Overhead conveyors, belt conveyors, roller conveyors (bolted or mobile)
High probability of qualifying as sec. 179 or sec. 168(k) property (movable, not structural)
AGVs, AMRs, sorters, robotic arms
Typically qualifies as machinery, assuming they are not permanently integrated into walls/structure
Palletizers, pallet conveyors, depalletizers
Typically qualifies as machinery, assuming they are not permanently integrated into walls/structure
Picking/GTP systems, order fulfillment equipment
If considered interior improvements/nonstructural, may qualify under sec.179 or sec.168(k)
Mezzanine floor add-ons for sortation / conveyor access
If considered interior improvements/nonstructural, may qualify under sec.179 or sec.168(k)
Racking systems
If considered interior improvements/nonstructural, may qualify under sec.179 or sec.168(k). Ceiling supporting racking may not be eligible
Embedded track systems or conveyors within floors
May be considered structural – eligibility assessment would be required
Elevators and lifts built into building structure
Usually considered structural and excluded from eligibility
Electrical distribution, wiring, controls, compression, safety systems
Eligible to the extent they are deployed for qualifying machinery (and are not for the general facility structure)

Because the line between “machinery” and “structural” can be difficult to define, the utility of the equipment, method of integration, and whether the system can be moved or reconfigured will all factor into the evaluation

Qualified Production Property (QPP)

This new category allows 100% expensing for equipment directly tied to production activities, such as conveyors or MHE systems.

Key criteria:

  • Construction must begin Jan 19, 2025 – Jan 1, 2029
  • Must be placed in service by Jan 1, 2031
  • “Original use” starts with the taxpayer
  • Must elect this treatment on your tax return

QPP property used for non-production (like offices or parking) does not qualify.

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Why Should I Act Now?

  • Sec. 179 enhancements and bonus depreciation under OBBBA apply only to property placed in service after December 31, 2024.
  • The law also raises the caps but those limits might evolve or be tightened in the future if funds or political winds shift.
  • QPP’s window for construction start is January 19, 2025 to January 1, 2029, and service by January 1, 2031
  • Because these rules are new, IRS guidance or auditing practices may take a conservative view in early years. Early adopters who document to current regulation may get a proactive benefit.
  • Although Sec.168(k) bonus depreciation is now permanent under OBBBA, that doesn’t guarantee there won’t be future legislative changes that peel back current code.
  • The No. 1 risk is delaying: if you push a capital project into a later year, you may lose certainty, or face stricter scrutiny or regulatory adjustments.

In short: the sooner you plan and execute qualifying automation or material handling investments, the more likely you can lock in favorable treatment under current law.

 Contact Century

How Century Can Help

Century specializes in engineering automation systems that meet budget and efficiency goals. We can evaluate your facility for qualifying improvements – the majority of equipment we integrate would be eligible for the new deductions. 

Our proposals include detailed equipment and materials documentation for deduction filing and if a project is started now (estimate a year on average for a system integration) the tax stipulations can be met quickly before any future rollbacks or adjustments are made.

If you are planning your next system, there hasn’t been a more favorable time to make the automation leap.

Ideal Automation for 3PL, Fulfillment & Distribution Centers

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Automation equipment solutions that drastically optimize 3PL and FC/DC shipping operations.

Third-party logistics providers (3PLs), distribution centers, and shippers face a highly demanding operational environment: rapidly changing customer needs, SKU proliferation, same-day/next-day expectations, variable case dimensions/types, and cost pressures on labor, transport, and real estate. The need to deliver fast, accurate, and flexible fulfillment amid a large and complex inventory offer significant opportunities for MHE automation integration.

  • Remove slow manual ops and reduce reliance related to staffing
  • Improve accuracy and reduce returns or costly shipping errors
  • Support omnichannel fulfillment (B2B, B2C, eCommerce)
  • Ability to handle pallets, polybags, cases, totes, and other package types
  • Achieve better facility space utilization and continuous flow
  • Provide real-time visibility, diagnostics, and agility
  • Boost profits with quick system ROI, fast order throughput, and reduced labor overhead
Contact Century

The current struggles of the 3PL, distribution & fulfillment industry

Challenge
Impact
Automation Solution
Labor constraints & turnover
High costs of recruiting, training, and managing staff
Automates repetitive or strenuous tasks, removes need for manual labor
SKU proliferation & variable order types
Increased complexity in picking, sorting, and staging
Dynamic routing, sortation, and handling solutions adapt to changing SKUs
Mixed-mode order fulfillment (parcel, case, pallet)
Manual movement and bottlenecks increase error rates
Integrated systems can route items across modes seamlessly
Congestion & bottlenecks at docks / staging areas
Delays, inefficiencies and processing confusion
Conveyor lines, AGVs/AMRs, sortation automation streamline flow and reduce waste
Inaccurate or delayed order processing
Customer dissatisfaction, returns, chargebacks
Integrated WCS/WMS, accurate order fullfillment/GTP, and proper scan/print/apply operations
Underused vertical space or a cluttered warehouse floor
Underutilized space resulting in slow ops or a need to spend on additional warehouse space
AS/RS, mezzanines, hanging conveyors, vertical shuttles and more help maximize cubic space

These challenges are especially acute when serving multiple clients with varying product types and processing needs. The ideal conveyor or automation system setup must be modular, scalable, and adaptable, so changes in order patterns or clients can be adjusted without significant disruption to daily ops.

Conveyor & Sortation Equipment

Conveyors remain fundamental in 3PL ops, moving items efficiently through pick, sort, and shipping zones. Sorters typically are the core of the automation system, rapidly scanning and directing parcels to outbound lanes. Many automation systems can be dropped into an existing system, or engineered into an overall conveyor network (as opposed to a standalone and disparate unit).

Zero-pressure accumulation, diverters, buffer zones, and scanning stations optimize routing and prevent jams. For small parcels, modular belt and roller systems work alongside tilt trays or cross-belt sorters to direct items to zones or outbound lanes.

Crossdocking is a common method of immediately receiving, distributing, processing, and then shipping incoming orders without storing inventory.

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Pallet Handling Equipment

Pallet roller and chain conveyors, pallet transfer cars, turntables, and build/break/singulate automation keep pallets flowing between docks, staging, and storage, reducing reliance on forklifts and manual handling.

Robotic arms (with grippers or vacuum tooling) can handle cases or cartons for order building. For full or mixed pallets, robotic palletizers arrange layers based on order specs or destination. Depalletizers automate inbound pallet breakdown, inducting cases onto conveyor flows.

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Autonomous Mobile Robots (AMRs) & AGVs

AMRs/AGVs transport totes, carts, or pallets autonomously among receiving, storage, pick zones, and shipping docks. They reduce labor burden and improve flow flexibility. They are ideal in facilities with complex routing, varied GTP operations, non-conveyables, or slow-moving slotting operations.

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Automated Storage Retrieval Systems (AS/RS)

In high-density, high-throughput operations, AS/RS systems (shuttle, mini-load, unit-load) store and retrieve pallets or totes with minimal human intervention. Integration with conveyors allows seamless storage and retrieval operations to continue flowing with processing operations.

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Goods-to-Person (GTP) Systems

Goods-to-Person systems eliminate walking and searching by bringing stored inventory directly to the operator. Totes or trays are automatically retrieved and delivered to ergonomic pick stations via shuttles, lifts, or conveyors. This setup shortens pick paths, increases throughput, and improves accuracy. GTP systems are ideal for high-SKU 3PLs that manage diverse client inventories with rapid order turnaround.

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Picking Systems

Picking automation improves speed and accuracy across order fulfillment processes. Technologies such as pick-to-light, voice-directed picking, and robotic piece-picking arms guide operators or perform picks autonomously. Integrated scanning and verification reduce errors, while conveyor or AMR-assisted movement ensures efficient replenishment. These systems help 3PLs handle fluctuating order volumes and SKU variety with consistency and reduced labor dependency.

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Order Fulfillment Automation

Order fulfillment systems coordinate picked goods into complete, labeled, and ready-to-ship orders. Automated or manned sortation, packing, and labeling stations streamline the final stages of processing. Integration with WMS/WCS software provides real-time visibility into order status, inventory, and carrier routing. For 3PLs, this ensures fast, accurate shipments across multiple clients, improving SLA performance and reducing handling time per order.

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See a Century 3PL system in action

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Making it All Come Together

Investing in automation is not a plug-and-play undertaking. Century completes significant planning to understand your facility, the product handled, goals and objectives, ROI, budget, demand forecasting, future installations, barriers or sources of waste, and many more factors before engineering begins.

Once those key insights are captured, Century engineers will design preliminary system layout drawings with automation equipment recommendations that best fit.

  • Initial Connection & System Criteria
  • Site Visits, Measurements, & Documentation
  • Initial Layout Drawings & Solution Recommendations
  • Automation System Proposal & Approvals
  • Equipment Manufacturing & Delivery
  • Permits, Approvals, & Preparation for Install
  • On-site Mechanical & Electrical Equipment Install
  • Controls & Logic Wiring, Testing, & Validation
  • Training & System Go-Live
  • System Support, Fine-Tuning, & Equipment Maintenance Service

 Contact Century

Let’s Talk Automation for Your Distribution Operation

3PL, distribution centers and fulfillment centers are under constant pressure to adapt faster, deliver better, and expand profitability. Strategic automation can offer that competitive edge. Century engineers assemble the puzzle that is your automation system in a cost-minded yet efficiency-guided manner. Our goal is to provide the most optimal system for you, not sell the most expensive or overperforming one.

Contact us to explore how we can transform your operation with automation

Wine, Spirits, & Beer Distributor Automation Solutions

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Cheers! The ideal automation solutions for distribution facilities that handle and process a variety of beverages.

Wine, spirits, and beer distributors operate in a uniquely complex environment where high product variety, strict handling requirements, and time-sensitive deliveries converge on a daily basis.

Distribution facilities must manage a varied and ever-changing inventory that includes fragile glass bottles, bulky kegs, and diverse packaging formats, each requiring specialized storage and handling. Seasonal demand spikes, SKU proliferation from new brands and product lines, and mixed-case or mixed-layer orders add further levels of operational difficulty.

At the same time, distributors face constant pressure to maintain accuracy, protect product integrity, and meet tight delivery schedules, all while contending with labor shortages, rising operational costs, and the need to maximize throughput in often space-constrained facilities.

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The current struggles of the WS&B distribution industry

  • Distribution facilities are often challenged by labor shortages, high turnover, and the physical demands of repetitive manual tasks. This makes it difficult to acquire and keep reliable labor while ensuring workers are trained sufficiently on their tasks to maintain processing rates and avoid breakage
  • Product loss from improper handling can cut into already thin margins, particularly with fragile glass packaging and liquid cargo that is susceptible to breakage, seepage, or spoiling. If defects go by undetected, the client will end up with damaged product which could incur a loss of business if it’s a repeat situation.
  • As new products and SKU variations continue to proliferate driven by consumer demand for specialty brands, seasonal offerings, and diverse packaging formats - managing inventory complexity becomes increasingly difficult. Currently, younger markets are not consuming “traditional” beverages at the same rate as other consumers, but rather more specialized products like mocktails, energy drinks, mini serving sizes, zero-alcohol items, CBD seltzers, and more.
  • Mixed-layer order fulfillment (rainbow pallet), a common requirement for retail and hospitality customers, is time-consuming and error-prone when handled manually, while traditional pallet building and singulation processes limit throughput and consistency. Storage and retrieval workflows can also bottleneck when relying solely on forklifts or manual pallet movement. The flexibility of products clients want in their orders add a significant layer of complexity, but properly engineered automation can streamline these ever-popular order requests and make sense of even the most specialized load.
  • Bridging the gap between production and material handing operations can be a significant pain point for WS&B businesses that run manufacturing or filling operations. Typically, manual processing in this stage is time-consuming and inefficient since it’s difficult to time all parts of the operation without cohesive automation. Many facilities opt to keep each area siloed for control and management purposes, only processing production in a separate line or shift. Automation can connect disparate systems in a continuous, optimized, and visible solution to avoid overcomplication.

By integrating material handling automation into post-production and distribution operations, beverage companies can overcome these pain points – reducing labor dependency, protecting product integrity, efficiently managing growing SKU counts, automating complex order building, and streamlining storage and retrieval for faster, more reliable fulfillment.

Conveyor Equipment

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Case conveyors are ideal for picking and sortation zones, transporting cartons of wine, beer, or spirits from depalletizing stations or replenishment zones through WMS-directed routes to fulfillment lanes. The layout would support both zone-based and batch picking strategies, with diverters, labelers, and barcode scanners integrated along the line for accurate routing and tracking.

Zero-pressure accumulation zones can be used to protect fragile products from impact, while elevation changes and spiral conveyors would connect case flow to mezzanine levels or sorting chutes for outbound staging, ensuring fast, controlled movement of individual cases throughout the order cycle.

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Motorized pallet conveyors form the backbone of the facility’s heavy-load transport system, linking dock doors, staging areas, palletizers, mixed-layer pallet building terminals, wrappers, and storage lanes in a continuous loop.

Pallet conveyors are the typical entry choice for a beverage distributor looking to begin automating their facility, as the system can replace costly lift-truck operations while increasing constant movement, stability, and flexibility.

Designed with chain-driven or roller-driven modules depending on pallet weight and size, these conveyors can be engineered to support both uni-directional and bi-directional flow, enabling the smooth transfer of full or mixed-product pallets across the warehouse. Strategically placed transfer cars or turntables would allow for layout flexibility and efficient movement between perpendicular lines or multi-zone operations without requiring manual processes.

Pallet Handling Equipment

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Robotic palletizers can be deployed near the end of the case conveyor picking lines to automatically build mixed or full-SKU pallets based on dynamic customer orders, using layer-forming tables and programmable patterns suited for cases of bottles or cans.

Depalletizers can be installed at the receiving side of the warehouse or near sortation zones, where they would unload inbound pallets and singulate cases directly onto conveyors for putaway or replenishment.

These robotic arms are usually outfitted with vacuum suction cups to handle a variety of case dimensions common in beverage distribution. End-of-arm tooling can expand it’s ability to handle single bottles (for packaging), kegs, or specialized non-conveyables (mini-kegs, bagged liquids, oversized promotional items, etc.)

For mixed-layer orders the ideal solution can be an automated layer picking system using flow rack, a central pallet conveyor line, and an overhead gantry palletizer. This setup automates highly-technical mixed SKU orders that are difficult to process manually without error.

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In a high-throughput wine, spirits, or beer distribution center, ASRS units would be engineered into the facility’s racking layout to enable automated vertical and horizontal storage of full pallet loads, typically segmented by product type, SKU velocity, or expiration date. An ASRS unit automatically retrieves and stores pallets, transporting the load on a large shuttle and inducting it to an outfeeding pallet conveyor source.

Integrated AGVs (automated guided vehicles) or AMRs (autonomous mobile robots) would be programmed to transport pallets between receiving, storage, picking, and outbound staging zones without requiring human-operated forklifts. These mobile units would follow predefined paths or dynamically update routes based on real-time WMS instructions, supporting both full pallet movement and partial pallet replenishment, and eliminating congestion in high-traffic dock or pick areas. This is ideal for slower moving operations

Ancillary Automation

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Pallet lifts would be installed to vertically move full or empty pallets between ground-level conveyors and upper-level storage or mezzanines, particularly in multi-tiered facilities where vertical space optimization is key. This eliminates the requirement for a forklift and removes the vertical retrieval limitations associated with running lift equipment. Pallets can be stacked much higher with upper-level equipment or structural racking and processing these orders can be achieved with lifts and proper conveyor routing.

Stackers would be located at inbound and outbound docks or near robotic palletizers to automatically handle empty pallets for reuse or staging, maintaining a consistent supply of pallets without manual stacking. Stackers can be integrated into a pallet conveyor line that can automatically induct itself when an empty pallet is called for processing.

Automatic stretch wrappers (or strappers in some situations) would be positioned near the end of the fulfillment line, integrated with pallet conveyors, to automatically rotate and wrap completed loads using stretch film. Certain wrapper units can be equipped with scales for outbound weight checks and WMS verification.

These systems can be deployed as stand-alone units or integrated within a line to maximize automation while decreasing reliance on manual labor.

See a Century wine and spirits distribution system in action

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Wine, spirit and beer distributors have a fair share of operational challenges within their industry. Coupled with the current shift to specialized drinks with less demand for traditional beverage offerings, operators are looking for solutions to remove barriers and costs while pivoting their inventory to what’s selling.

Century Conveyor can design, build, and provide post-launch support for an automation system engineered precisely to your needs. Our extensive experience in the WS&B distribution industry guides us in engineering solutions that directly solve your top issues while providing efficiency, performance, and ROI.

Troubleshooting Tariffs for Supply Chain & Logistics

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tariffs_supply_chain_automation_century_blog

 

With U.S. tariffs on Chinese imports reaching up to 145%, supply chain disruptions have once again taken center stage for American businesses. Rising costs, extended lead times, and increased uncertainty have prompted many companies to reevaluate their operations and seek sustainable solutions. 

Across industries, firms are responding with bold investments in domestic infrastructure, automation upgrades, and new logistics strategies. Here’s how major players are adapting—and how you can too.

Logistics Industry Response to Tariffs: Movements by Key Players

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Temu recently reversed planned price hikes by adopting a “local fulfillment model,” partnering with U.S.-based sellers to absorb tariff-related costs. This approach mirrors a broader trend: the desire to localize supply chains to preserve pricing power and delivery speed.

Kimberly-Clark is investing over $2 billion into U.S. operations, including an $800M facility in Ohio and a $200M automated distribution center in South Carolina. This expansion is projected to create over 900 jobs and reinforce their supply chain resilience through automation and innovation.

Roche is committing $50 billion over five years to expand drug and diagnostic manufacturing in the U.S., reducing dependence on imports and aligning with a national movement toward domestic production.

Prologis reports that customers are proactively increasing inventory levels to mitigate risks associated with potential tariffs. This strategy involves seeking additional warehouse space and short-term storage solutions, particularly through third-party logistics providers. Notably, some 3PLs have experienced a rise in space utilization from 83% to over 90%. The company has observed a 20% decline in its typical leasing activity, signing approximately 80 leases totaling over 6 million square feet in the past two weeks

Hershey, Amazon, Hasbro, and PVH Corp. are also actively reengineering operations:

  • Hershey launched a new 250,000 sq. ft. processing plant to enhance U.S. capacity.

  • Amazon is building a 930,000 sq. ft. cross-dock facility in Mississippi to streamline regional distribution.

  • Hasbro is cutting Chinese reliance to a single factory.

  • PVH is consolidating warehouse operations to boost efficiency by up to 90%.

Supply Chain Automation as a Tariff-Proofing Strategy

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Rather than pause modernization efforts due to uncertainty, many companies are doubling down on automation—recognizing that it’s a hedge against both labor shortages and tariff turbulence.

Why Automation Now?

  • Certain automation OEMs will soon raise prices if they rely on imported raw materials
  • Companies that nearshore will require more labor; automation reduces workforce dependency
  • In-house services limit exposure to tariff-influenced vendor pricing
  • Uncertaintly prevails in this current market - but automation is a constant growth goal
  • Customer buying behavior is expected to decline, consolidatation of capital and inventory may be in order

In a recent survey by C.H. Robinson, shippers said the top risk to their supply chains in 2025 is changes in tariffs and trade policy.

Nearly 50% said the uncertainty around tariffs and trade policy is a pain point for them today.

 

Survey results also show shippers are actively preparing for changes in tariffs and trade policy, including analyzing their existing customs data, identifying alternative suppliers, and re-evaluating their cross-border strategies.

Century’s Approach: Modular Automation for a Flexible Future

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When optimizations are require to grow, but the cost of a complete overhaul is too big a bite to chew –  phasing, retrofits, modernizations, and preventative maintenance are solutions Century often recommends to our clients.

In the current turmoil of trade policy, shifting supply chains, and not knowing what fees could be implemented in the future – it makes sense to minimize cost while gradually moving logistics in-house. This usually takes the form of automation, which can also be used to pivot to new product lines, services, or to take advantage of growing demand.

Century has had success integrating client systems with this method, since our focus is on maximizing your efficiency while maintaining cost-effectiveness and innovative engineering.

Best Use Cases:

  • Proactively avoid rising costs related to current trade uncertainty
  • Automate in a meaningful, yet budget-friendly project approach
  • Remove inefficent operations and waste by identify areas that are prime candidates for automation
  • Eliminate headaches and cost related to finding reliable warehouse staffing
  • Move costly outsourced partners to an in-house model with automation

Phasing

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Splitting a distribution facility project into phases that incrementally automate specific sections of your ops is a viable “two-birds-one-stone” solution.

When optimizations are require to grow, but the cost of a complete overhaul is too big a bite to chew – phasing the project into distinct segments that allow daily ops to be completed in tandem is a solution Century often recommends to our clients.

Benefits

  • Budget minded - break a large capex project into cost-digestible phases
  • This makes executive buy-in and allocations easier to acquire
  • Implement new automation technology where it counts
  • Open new lines, maximize space, eliminate manual ops, and grow business quicker
  • A phased approach gives more time to train, test, and capture results for each new installation

Phasing may be the solution to getting your automation plans off the ground.

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Retrofit

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Unfortunately, conveyors don’t age as gracefully as a classic car or a vintage bottle of wine. Running equipment that exceeds 25 years of constant operation most likely means you’re not operating optimally.

Older conveyor systems come with the usual gamut of maintenance issues. Excessive downtime, hard-to-find parts, and a general decrease in mechanical functionality due to age and wear. But, the greatest negative of all is the lack of technology. Retrofitting modern and advanced equipment can inject new life into an operation.

Benefits

  • Keep your system layout, simply remove and update the obsolete or worn equipment with new units
  • Achieve higher order fulfillment and throughput rates
  • Re-sell your old equipment
  • Avoid failures and inefficiencies related to running old equipment
  • Certain solutions - like a large sorter, can completely revolutionize operations

Retrofits are a future-proofing and cost-effective method to implement new automation tech.

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Modernization

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If the equipment in your distribution facility are operating as expected, the key to squeezing every last drop of efficiency out of your system is proper modernization. The goal of this method is to update the ancillary components of your equipment.

Think photoeyes, scanners, sensors, controls, WMS, WCS, and other readily deployable systems. The mechanical foundation of your conveyors stay the same, but the information capturing parts are updated to modern standards.

Benefits:

  • Upgrade to latest photoeye, sensor, and controls generation
  • Gather valuable data and insights about your system to guide future decisions and investments
  • Enable powerful WCS and WMS platforms for warehouse management, visibility, and inventory data
  • Re-use your equipment - most cost effective option when compared to phasing and retrofits

Make the most of your current setup with proper modernization 

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Preventative Maintenance

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If phasing, retrofits, and modernization don’t fit the bill for your system, the absolute bottom line for optimization is ensuring your equipment doesn’t break down.
 

Downtime can destroy profits and leave operations halted until a conveyor tech can be dispatched on-site or a specific part is received. A Century PM contract offers routine servicing and part replacement on a frequency you decide. Having a PM in place brings peace-of-mind knowing your equipment won’t break down and is mechanically cared for on a regular basis.

 

Benefits:

  • Avoid costly system failure situations and halted operations
  • Extend the life of your conveyor system
  • Peace of mind that your conveyors are always being routinely serviced
  • Site visits can be custom built to your needs, and the same tech can service your equipment each time
  • Catch when parts need to be replaced before they fail - allows time for component shipping
  • Eliminate unsafe situations or band-aid solutions in your system

 Century’s PM Program is flexible enough to meet your needs and budget.

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Trade Policy

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Certain policies and programs can help shippers, manufacturers, and distributors avoid tariff fees. While not applicable to all businesses – spending time evaluating your current supply chain with these trade options can save thousands if it’s approved.

 

Free Trade Zones (FTZ)

General Purpose FTZs are typically large warehouses or industrial parks, and are ideal for companies that need to store finished products, equipment, parts, or other goods. Space is leased according to a company’s individual storage needs, and can be used continuously or on an as-needed basis.
 

  • No duties on imported goods that are later re-exported

  • Delayed payment of duties on goods entering the US market

  • No duties on waste, scrap, or defective parts

  • More efficient supply chains

  • Inverted Tariff – gives companies the option of paying duty on a finished product or on the individual components—whichever is lower.

Special Trade Programs

Businesses should explore various special trade programs that can offer tariff relief under specific circumstances. Chapter 98 of the Harmonized Tariff Schedule, for instance, includes provisions that allow for tariff mitigation in certain scenarios, such as:
 

  • Temporary Importation Under Bond (TIB): This program allows for duty-free importation of goods intended for export within a specified period.

  • American Goods Returned Declaration: This program allows some U.S.-origin goods to be returned to the country duty-free as long as there was no substantial transformation abroad.

  • Generalized System of Preferences (GSP): Under this program, certain products can be imported from designated beneficiary countries in the developing world duty-free.

 Quick Summary

 

Future-proofing and enabling an adaptable and tech-focused supply chain is the best way to prepare for fluctuating trade policies. Understand the current landscape of your businesses’ industry and the impact of tariffs on the supply chain and adjust accordingly.

 

Streamlining and cutting the fat from your supply chain process by evaluating services and technology to transition to a more controllable internal model can avoid surcharges from 3rd-party suppliers.

  • Nearshoring and reshoring: Companies should evaluate the feasibility of moving production closer to end markets to reduce transportation costs and tariff exposure.
  • Strategic partnerships: Companies should forge alliances with suppliers, logistics providers, and even competitors to share best practices and navigate tariff challenges collectively.
  • Technology integration: Companies should invest in automation and artificial intelligence to optimize supply chain decisions in real-time and enhance visibility across the entire network. This can take the form of gradual modernization and retrofitting, or a phased system overhaul.
  • System maintenance – Optimizing your automation equipment from a sweeping project standpoint may not be financially feasible, but retrofitting, modernization, and completing maintenance can offer a viable alternative.

Ready to future-proof your distribution operations?

Let Century help you plan, phase, and implement an automation strategy built for success —even in the face of tariffs.

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Pallet Conveyors: Equipment types & when to use them

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pallet_conveyor_equipment_types_century_conveyor_systems_blog_hero_image

In modern warehousing, distribution, and manufacturing, pallet conveyors play a critical role in optimizing material handling. These large format conveyors are designed to move heavy, bulk goods quickly (but stable) across a warehouse or distribution facility, reducing manual labor and improving throughput. However, selecting the right type of pallet conveyor depends on the specific needs of an operation, such as load capacity, space constraints, product to be handled, and level of automation.

In this blog, Century will explore the different types of pallet conveyors, how they work, and when to use them in your facility for maximum efficiency.

Pallet Conveyor Equipment Types

Roller Pallet Conveyors

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Roller pallet conveyors use a series of metal rollers to transport pallets. They can be either gravity-driven (where pallets move due to incline) or motorized (driven by chains or belts). This solution is the most commonly-integrated pallet conveyor equipment.

Key Features:

  • Designed for handling heavy loads.
  • Available in powered and non-powered variations.
  • Can be customized for pallet size and load weight.

Best Use Cases:

  • Accumulation: Ideal for buffering and staging pallets before loading or storage.
  • Sorting & Distribution: Can integrate with scanning and sorting systems.
  • Warehouse & Manufacturing Lines: Used for transporting pallets between different processing stations.

Use powered roller conveyors when you need controlled movement, and gravity rollers when cost-efficiency is a priority. Gravity works well for slower-moving ops and staging, powered should be used for continuous movement

Chain-Driven Pallet Conveyors

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Chain pallet conveyors use chains to move pallets along a fixed path. These conveyors are highly durable and are built for heavy-duty applications. Simplicity in design make maintenance easy and supports slower, more stable operations.

Key Features:

  • Suitable for handling non-standard or bottom-boarded pallets.
  • Can handle heavier loads than roller conveyors.
  • Offers precise pallet control, making them ideal for automated storage and retrieval systems (AS/RS).

Best Use Cases:

  • Heavy Manufacturing: Great for industries like automotive, steel, and heavy equipment.
  • Cold Storage: Operates well in extreme temperature conditions.
  • High-Traffic Areas: Works well in high-volume facilities with heavy palletized loads.

Choose chain-driven conveyors when handling uneven, non-standard, or extra-heavy pallets.

Belt-Driven Pallet Conveyors

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Belt-driven pallet conveyors use a continuous belt to transport pallets. These are often used in applications where smooth, gentle movement is required.  Often seen as a seldom-integrated alternative to slow-moving gravity applications.

Key Features:

  • Less vibration compared to roller conveyors.
  • Can handle a variety of pallet sizes without modification.
  • Suitable for delicate or sensitive loads.

Best Use Cases:

  • Fragile Product Handling: Used in food, pharmaceuticals, and electronics industries.
  • Incline/Decline Conveyance: Works well when moving pallets between floors or height levels.
  • Light-to-Medium Loads: Best for applications that don’t require heavy-duty transportation.

Use belt-driven conveyors for products that require gentle handling and precise movement.

Drag Chain Pallet Conveyors

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 Drag chain conveyors use multiple segments of chain to pull pallets along a track. They are designed for applications where pallets need to be moved smoothly and at a consistent pace.

Key Features:

  • Excellent for transferring pallets between different conveyor sections.
  • Works with wooden, plastic, and metal pallets.
  • Often used for 90-degree transfers in automated systems.

Best Use Cases:

  • Pallet Transfer Systems: When integrating with robotic picking or AS/RS.
  • Cross-Docking: Moving pallets quickly in a high-speed distribution center.
  • Heavy Industrial Environments: Common in automotive and manufacturing sectors.

Use drag chain conveyors when handling diverse pallet types or when changing direction in a conveyor system.

Turntable Pallet Conveyors

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Turntable pallet conveyors allow pallets to change direction while staying on the same conveyor path. These are often integrated with roller or chain conveyors. Other methods of diverting a pallet can come in the form of roller attachments on AGVs/AMRs or stacker systems that transport full pallets to a higher level (or stack empty pallets).

Key Features:

  • Provides flexibility in warehouse layouts.
  • Rotates pallets 90° or 180° to match different conveyor lines.
  • Reduces the need for manual handling or forklift usage.

Best Use Cases:

  • Space-Constrained Warehouses: Helps redirect pallets in small layouts.
  • Multi-Directional Conveyor Systems: Used in complex sorting and fulfillment setups.
  • Pallet Orientation Needs: When pallets need to be positioned before scanning, wrapping, or unloading.

Use turntable conveyors to improve flow efficiency in confined warehouse spaces.

Transfer Cars & Shuttle Conveyors

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Transfer cars and shuttle conveyors allow pallets to be transported across different conveyor lines or multiple warehouse zones. These can come in the form of a simple gravity line, or a complex ASRS or mobile pallet robot system setup.

Key Features:

  • Offers high-speed transportation across large distances.
  • Works well in automated and high-throughput facilities.
  • Can handle multiple pallet sizes simultaneously.

Best Use Cases:

  • Large Warehouses & Distribution Centers: When moving pallets between different fulfillment zones.
  • Automated Warehousing: Works in combination with robotic picking and AS/RS.
  • Multi-Level Operations: Ideal for facilities with vertical storage systems.

 Use transfer cars for high-volume, multi-zone material handling in large-scale logistics centers.

What Pallet Conveyor Equipment Type Fits My Needs?

Handling Specification
Recommended Pallet Conveyor Unit
Heavy-Duty Loads
Chain-Driven, Drag Chain
Light-to-Medium Loads
Roller, Belt-Driven
Gentle Handling
Belt-Driven
Cold Storage
Chain-Driven, Drag Chain
High-Speed Transfer
Transfer Cars, Roller
Limited Space
Turntable, Drag Chain
Multi-Directional Flow
Turntable, Shuttle

Pallet conveyors are essential for improving warehouse efficiency, reducing labor costs, and enhancing order fulfillment speed. By understanding the different types of pallet conveyors and their ideal use cases, businesses can design material handling systems that align with their operational needs.

Century Conveyor has completed a variety of pallet conveyor system projects spanning across the wide range of equipment types. Interested in a system? Contact a Century Automation Expert to start planning yours, or explore the range of solutions we can implement in your facility.

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Distribution Center & Automation Trends in 2025

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distribution_center_automation_trends_2025_blog_header_image

With incredible advancements in technology, consumer behavior, and supply chain methodology – 2025 paints a picture of a diverse logistics ecosystem for DCs of all shapes and sizes.

Artificial Intelligence in the Warehouse

To no one’s surprise, AI is top of mind for many operators this year. Mostly focused on how to implement it correctly, 8 in 10 of the respondents said their organizations need a better understanding of how AI can be used in the DC.* AI lends itself to repetitive tasks such as data collection, entry, and inventory management, to name a few.

A few early AI supply chain offerings include:

Managing SKUs and slot positions can be optimized by AI to reduce time spent picking and errors related to manual ops. Implementing AI can expand tracking of items, while providing the best method of processing said items based on warehouse activity data.

Many DCs have achieved 2x productivity gains in piece picking applications using AI-based travel reduction, and even case pick to pallet operations have demonstrated 20-30% productivity gains.*

The sky is the limit when it comes to what AI can do with the warehouse and equipment data it’s provided with. For example, an AI algorithm can process the data related to order fulfillment times, collate all instances, and process a report indicating the slowest fill rates and why that might be (I.E. a conveyor unit jammed at a certain time or a worker is underperforming at a GTP station.)

For 2025- AI in warehouses may only be feasible for the largest companies, but it’ll soon become more accessible and trickle down to mid to small sized operators.

3PL & 4PL Growth

Third-party logistics (3PL) providers’ share of bulk industrial leasing activity (leases of 100,000 sq. ft. or more) rose to 34.1% through Q3 of this year from 30.6% through Q3 last year. 3PLs have accounted for 498 bulk leases so far this year, up by 9% from the 457 at this time last year.

On a quarterly basis, bulk leasing by 3PLs has steadily increased this year, reversing the steadily decreasing trend of 2023.**

The rapid growth of large warehouse operators from the pandemic is essentially finished, as companies like Amazon, Home Depot, and Walmart pull back on lease renewals and warehouse construction. Instead, many are opting to subsidize operations and process orders with 3PLs and 4PLs.

With recent fee structures and bulk rates changing across the board for parcel delivery companies, retailers are looking to axe costs by contracting with a 3PL or last-mile delivery.

3PLs can also offer a specific operational setup that make attractive use cases for retailers and shippers looking to take advantage of automation, but aren’t capable of implementing that system setup in their owned space. For example, crossdocking is a popular in-and-out processing method that companies can use to fulfill regional orders in areas that it wouldn’t make economic sense to operate an owned DC.

Consumer behavior, incoming tariffs, and the always increasing prevalence of eCommerce are other factors that could make 3PLs/4PLs the right choice for companies looking to expand and serve their customers – without breaking the bank on a warehouse.

Always Advancing Automation

Automation is constantly evolving – but it does reach a certain point where manufacturers must innovate somehow to keep up. This leads to companies investing heavily in R&D to continue producing highly optimized automation systems or by creating new specialized equipment. With the adaption of AI, this only fuels both the creation of these systems, and it’s capabilities.

It’s yet another year closer to automatic truck loading becoming a reality. Automation systems like the Picklebot and Mujin Truckbot were showcased at Modex ‘24, with some systems already installed at client facilities. These robots automatically load and unload trailers with a conveyor boom and mechanical “fingers” or vacuum cups that grab the item.

Electric delivery vehicles have been making the rounds for the last few years, but in 2024 Amazon made waves by deploying Rivian EDVs to replace their aging ICE delivery van vehicles. Amazon typically leads the charge in the logistics industry, so their adaptation of delivery EVs will prove to accelerate others to make the switch.

Automation sometimes comes in the form of aiding humans, rather than replacing them. Case in point is the usage of remote-controlled forklifts, rather than a fully automated one. As odd as it sounds, a forklift operator could work remotely via a joystick assembly and a live multi-angle camera feed. The technology is there, but the remains are to be seen if it will see widespread usage.

Secondary automation manufacturers are digging deeper and are engineering drop-in solutions that can drastically modify existing equipment. Are the diverts on your conveyor not keeping up with throughput? A secondary supplier might offer a faster solution that can be retrofitted, rather than replacing an entire unit.

Political Landscape Affecting the Supply Chain

High tariff rates can drastically alter trade between the US and international companies, raising the price of raw materials and goods transported from overseas. This may have companies raising prices to make up the difference, or searching for alternate sources for materials closer to home. China has been a target for high-tariff rates, but other countries have been identified by the administration as potential candidates for tariffs.

A key Trump policy is the need to bring back manufacturing and energy sources to the US. While nearshoring has been a trend in the supply chain due to past overseas delays and geopolitical strains, a concentrated congressional effort should be expected in 2025.

Many unskilled or low-level entry jobs within the supply chain utilize immigrants and temp staffing agencies to complete manual or repetitive tasks. The Trump administration has made it clear that it’ll curb the influx of migrants, decreasing the talent pool operators can hire from. Many facilities have seen the writing on the wall and have invested in gradual automation to eliminate those manual labor tasks altogether.

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Sources: 

*Supply Chain Dive (www.supplychaindive.com/spons/5-applications-for-artificial-intelligence-in-the-warehouse-and-distributio/605942/)

**CBRE (www.cbre.com/insights/briefs/three-trends-driving-resurgent-3pl-industrial-demand-this-year)

Crossdocking: The supply chain method enabling rapid package distribution

crossdocking sortation and distribution system supply chain method blog post explanation
crossdocking sortation and distribution system supply chain method blog post explanation

Crossdocking (ˈkrȯs-däk-eng)

Crossdocking is a logistical operational method of immediately processing, distributing, and shipping received orders. This practice avoids the excess time, cost, and space related to storing inventory – while greatly increasing order throughput. Crossdocking is a method largely used in hub-and-spoke networks and among third-party and final mile distribution centers. The main operation completed at these facilities is rapid sortation to destination routes.

Key Steps in Crossdocking Operations

Receiving and Unloading

The first step in the crossdocking process is receiving goods at a designated distribution facility. Once the shipment arrives, the products are quickly unloaded from the inbound trucks or containers. The goal here is speed—unloading happens rapidly to ensure that goods spend as little time as possible in the facility.

Stable and rapid automation is key at this stage so downstream operations don’t lag. If pallets are being received, forklifts can induct to a depalletizer (or a pallet conveyor line that leads to depalletization ops) to be broken down for distribution. A singulation unit using a modular belt design can be integrated to automatically position boxes into single file for operations that require packages be processed in a specific direction.

If cartons or parcels are being received, trailer extendables can be used to speed up unloading by reducing manual movement. Depending on the type of parcel, a polybag for example, may need to unload only from certain docks – as those lines may lead to a sorter that can handle the package type. It is not uncommon for a crossdock system to have more than one type of sorter.

Product Handling

After unloading, products are immediately moved to their next destination. This step is crucial, as it ensures that products flow seamlessly through the system. Depending on the type of product and the final destination, goods may either be prepared for outbound shipping or temporarily held in a staging area.

In a crossdocking setup, good-to-person and storage operations are typically not present, as product comes in – sorted – and goes right out. Integrators design crossdock systems to minimize manual labor touchpoints, but since the name of the game is speed, some operations are still aided by associates.

For example, in a recent crossdocking system Century integrated,  a Eurosort split-tray sorter was used to handle polybags and crushable soft packages. As the polybags transition from the receiving conveyor line into the sorter, a chute drops the parcels to a short gravity conveyor adjacent to the sorter. An associate takes the parcels and places each one completely flat with no overlaps into its respective tray. 

The bomb-bay tray style allowed for 2 small polybags, or 1 large one. Once on the tray, the sorter conveys over chutes, opening the tray down and dropping parcels into the correct destination box.

crossdocking blog eurosort distribution center sorter operation video

Sortation

In this phase, goods are sorted according to their end destination. This sorting can be based on criteria such as product type, customer order, or shipping destination. Efficient sortation ensures that the right products are matched with the right outbound orders, reducing the chance of errors and delays.

The type of sortation equipment should be driven by the size of the carton and throughput required to make rate. Small or thin parcels should consider a belt-driven sorter, with rollerball or modular diverts to destination lines. The belt ensures that smaller parcels can’t slip or get jammed in between rollers (which could happen with a gravity solution). Cross-belt and tray sorters are ideal too, as the platform moves rather than the package itself, effectively eliminating jam points.

crossdocking blog hytrol prosort conveyor equipment video

Midsize to larger packages benefit the most from a roller gravity or slat sorter, as it provides greater speed without concern of stuck packages (like smaller or larger parcels could). Skatewheel, roller transfer, push bars, and plastic shoes are ideal divert methods, and the angle of the divert can be as sharp as 90 degrees. This product size is the best use-case scenario for a crossdock system, as high throughputs can be reached while maintaining stability.

The system used in the video is a Hytrol ProSort – a popular choice for shoe sorters.

Large and bordering on non-conveyable items may need extra care when selecting sortation equipment. Singulation equipment or associate interaction may be required to carefully place large cartons on conveyors inducting to sorters, as improperly placed items can easily snag on transfers, edges, and diverts. Narrow-belts work well at a certain speed, as do push bar and modular diverts. The transition after the diverts should be at a gradual curve – 30 degrees is a common recommendation.

Shipping & Loading

Once sorted, the goods are loaded onto outbound trucks, ready to be shipped to their final destination. Again, speed is key. By minimizing storage time and keeping products moving, companies can dramatically reduce shipping times, improving customer satisfaction and slashing operational costs.

Much like receiving; end-of-line extendables (an Adjustoveyor for example) telescope into an empty trailer to aid workers with loading. If sorted cartons are being palletized, a robotic arm palletizer and an automatic stretch-wrapper can be deployed to quickly build pallets.

There does exist autonomous trailer loading, in the form of large AMRs that can load and unload multiple pallets, and with conveyor-robot arm hybrids (such as Mujin’s TruckBot). This technology is still in its infancy, and prices reflect this, but fully automated trailer loading is no longer a far-off thought of science fiction.

 

The Benefits of Crossdocking

  • Reduced Storage Costs: Since goods don’t sit in a warehouse, companies save on storage fees and the overhead associated with managing large inventories.
  • Increased Efficiency: By streamlining the flow of goods, crossdocking eliminates unnecessary handling steps, speeding up the process.
  • Improved Throughput: Faster processing times mean that more orders can be fulfilled in less time, increasing the overall capacity of the logistics network.
  • Lower Risk of Damage: With less manual handling and storage, there is less opportunity for products to be damaged or misplaced.
  • Enhanced Customer Satisfaction: Faster shipping and fewer delays lead to happier customers, which is crucial for maintaining a competitive edge in today’s market.
  • Maximize Automation: The nature of crossdocking lends itself perfectly for integration with automation systems. Once a case is received, it typically doesn’t need to be touched by an employee until trailer loading. The upfront investment can be a large pill to swallow, but that investment will quickly return based on the increase  of orders and the speed of processing.
  • Eliminate Manual Labor Roles: With proper automaton integration, the woes of finding and successfully hiring associates is drastically decreased. Certain roles may be completely eliminated – saving money allocated towards payroll, hiring, and training. In the event of the obsolescence of forklifts (or several of them) because of automation deployment, the equipment can be sold or used at another facility in the network.

Should I Implement Crossdocking?

While crossdocking offers numerous advantages, it may not be the best fit for every operator. Since order fulfillment, goods-to-person, and storage are mostly absent from crossdocking operations, any facility that manages those processes may not benefit from a crossdocking setup   

It works particularly well for companies that:

  • Handle perishable goods that need to move quickly through the supply chain (e.g., food, pharmaceuticals)
  • Distribute high-demand products with predictable order patterns
  • Have a strong logistics infrastructure that supports quick turnover and high throughput

Industries like 3PLs, last-mile, extensive eCommerce operators, and large retailers with multiple locations are ideal candidates for crossdocking.

Century Conveyor has significant experience in developing, engineering, installing, and validating crossdocking systems. Interested in a system? Contact a Century Automation Expert to start planning yours, or explore the range of solutions we can implement in your facility.

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Common Conveyor Issues & Routine Repairs

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Conveyors are often viewed as durable, reliable, and low-impact automation equipment – and for good reason. Constant operation and rapid start and stop movements are just a few of the requirements for the daily life of a conveyor. Distribution center and warehouse operators rely on the mechanical ability of their processing equipment to fulfill orders – while conveyors rely on its owners to properly service and repair units when needed. Even with a reputation of being fiercely reliable – routine maintenance and repairs require proper inspection and remedy by a certified conveyor technician.

Century has seen it all, from jerry-rigged repairs, safety violations, and inefficiencies – all in an effort to avoid spending on conveyor maintenance.  Usually, it’s not until something goes wrong that we receive that emergency service call, in which case – it’s already too late for avoid downtime losses.

Never fear!  Identifying these issues visually, early, and with the help of a conveyor technician isn’t necessarily an overtly difficult or expensive task. For example, rather than letting a conveyor shred belts over and over because it isn’t tracked correctly is a source of waste. Belt tracking is one of the first repairs our technicians learn and any respectable conveyor repair company should be able to track with zero hangups. This sentiment is the same with many conveyor maintenance items – simple and straightforward repairs that require the proper knowledge so that it doesn’t occur in the future.

Excessive Dirt and Debris

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The Issue
Conveyors that handle loose materials or are located in areas of increased dust and debris particles are prime contenders for issues. Dirt can attach easily to motors, rollers, side channels, and electrical components due to its proximity to the source of the debris – typically the product being handled.

Example
Companies that operate trash conveyors that take away corrugate refuse encounter this problem repeatedly, due to the constant creation of cardboard fibers and small pieces of adhesive. Transfer and curve sections can also be a hotspot for debris, as the cartons make dropping or turning movements, releasing corrugate debris or having labels get stuck in pinch points. Gear oil, liquids from the product handled, or spillage can also build up and attract additional particles. While post-production material handling isn’t supposed to be a cleanroom operation, years of filth can certainly have a negative effect on your conveyor system by adding strain and shorting it’s lifespan.

Ripped, Torn, or Frayed Belting

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The Issue
Belts are very common component of many conveyor systems, so when it starts to show signs of wear like rips, tears, or frays, it can quickly escalate into a serious problem. Damaged belting can lead to material spillage, reduced efficiency, and even complete system failure if not addressed promptly. Regular inspection is essential to catch these issues early. Small tears can often be stitched or vulcanized before they worsen, but severely damaged belts typically require replacement to avoid costly downtime and potential damage to other parts of the conveyor. Proper tracking is always required whenever a belt is modified so that that belt can move in the direction it’s supposed to without snagging or grinding against any guards or surfaces.

Example
In an eCommerce distribution center, a conveyor belt used to transport packaged goods from one area to another began to show signs of fraying near the edges. This damage was caused by the belt’s repeated contact with sharp edges on the conveyor frame because of uneven tracking. As the fraying worsened, the belt eventually tore completely during peak operating hours, leading to significant downtime while the belt was replaced. The company not only lost production time but also incurred high costs in expedited repairs and lost product.

Loose or Worn Chains, Bearings, Gears, and Other Lubricated Parts

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The Issue
Chains, bearings, gears, and other moving parts are critical to the smooth operation of a conveyor system. Over time, these components can become loose or wear down, leading to inefficiencies, excessive noise, and even breakdowns. Lubrication is key to preventing wear, but if parts are already worn or loose, lubrication alone won’t solve the problem. Regular maintenance, including tightening, replacing worn parts, and ensuring the part IS receiving the right amount of lubrication, is essential to keep the system running smoothly.

Example
At an automotive parts distribution facility, the conveyor system responsible for moving brake assemblies between palletizing operations started to make excessive noise and operate at reduced efficiency. Upon inspection, it was discovered that it’s chain was loose, and several bearings were worn due to inadequate lubrication over time. These worn parts caused the conveyor to operate with increased friction, which not only slowed down the production process but also led to a higher energy consumption rate. The company had to shut down the line for several hours to replace the worn components and properly lubricate the system.

Sections or Transfers with Constant Jams

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The Issue
Sections or transfer points in a conveyor system are prone to jamming, especially in systems that handle irregularly shaped or sized items. Jams can occur due to misalignment, improper spacing, or debris buildup, and they can cause significant disruptions to the flow of materials. Frequent jamming not only slows down operations but can also lead to increased wear on the conveyor and potential damage to products. Ensuring proper alignment, regular cleaning, and appropriate spacing can help minimize these occurrences.

Example
A third-party logistics company faced frequent jamming at a section where smaller packages were transferred from one conveyor belt to another. The problem stemmed from irregular spacing between the transfer points and debris that had accumulated on the belts. These jams caused significant delays during peak shipping times, requiring workers to manually clear the jams and restart the system multiple times a day. The recurring problem highlighted the need for better conveyor alignment and regular cleaning procedures.

Bent Supports, Guards, and Railings

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The Issue
Supports, guards, and railings are crucial for maintaining the stability and safety of a conveyor system. However, these components can become bent or damaged due to collisions, improper handling, or the weight of heavy loads. Bent supports can lead to misalignment, while damaged guards and railings compromise safety. Regular inspections and prompt repairs or replacements are necessary to prevent accidents and maintain the structural integrity of the conveyor system.

Example
In a warehouse handling totes of small product, a forklift accidentally collided with one of the conveyor supports, bending the support frame and several guards. The bent support caused the conveyor to tilt slightly, leading to misalignment of the belt and an increased risk of spillage. The damaged guards no longer provided adequate protection, creating a safety hazard for nearby workers. The compromised structure eventually led to a shutdown until the damaged parts could be repaired, resulting in unplanned downtime and additional repair costs.

Malfunctioning, Dislodged, or Faulty Photoeyes, VFDs and Sensors

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The Issue
Photoeyes, VFDs, and sensors are vital for the automated control and monitoring of conveyor systems. If these components malfunction, become dislodged, or are faulty, it can lead to operational inefficiencies, such as incorrect sorting, missed detections, and constant recircs. Regular calibration, cleaning, and testing of sensors are essential to ensure they function correctly and reliably. Replacing faulty sensors promptly can prevent minor issues from escalating into major disruptions. It’s imperative that any sensors are properly attached to their respective brackets per manufacturer or integrator specifications so that it captures the correct scan points.

Example
A retail distribution center utilized photoeyes to detect the presence of packages on the conveyor belts to trigger a downstream sorter. After a period of heavy use, one of the photoeyes became dislodged and stopped functioning correctly. As a result, packages were not being sorted into the correct lanes, leading to a bottleneck in the system and delayed shipments. The faulty sensor went unnoticed for several hours, causing a backlog of unsorted packages. The issue was only resolved after maintenance technicians realigned and recalibrated the photoeye, restoring proper operation.

Unsafe or Dangerous Components

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The Issue
Safety should always be a top priority in any material handling operation. Components that are unsafe or pose a danger to operators, such as exposed moving parts, sharp edges, or faulty emergency stop mechanisms, need to be addressed immediately. Exposed electrical connections and questionable band-aid fixes also pose as a hazard. Regular safety audits and maintaining compliance with industry safety standards are vital to preventing accidents and ensuring a safe working environment. Unsafe components should be repaired or replaced promptly to protect workers and maintain a safe operational space.

Example
In a high-speed crossdock operation, one worker suffered a severe injury when their clothing got caught in a transfer section of the conveyor. The employee was hurt because an e-stop button near him was out-of-commission, causing prolonged contact with the equipment. The incident prompted an immediate safety audit, which revealed multiple unsafe components throughout the facility. The facility had to make significant investments in safety upgrades, including the installation of new guards, profiled transfers and the replacement of outdated emergency stop systems, to prevent further accidents. On top of those replacements and lost time, the company had to settle a negligence lawsuit with the injured employee.

What is the condition of your conveyor system?

Century’s core recommendation when it comes to if you should do that repair or stave it off –  DOWNTIME IS NOT AN OPTION.

Forgoing repairs or running damaged machinery inevitably leads to a conveyor unit failure and a complete halt on daily ops. That equals lost profits, lost time, inventory issues, and unhappy clients – a much harder pill to swallow rather than fixing the equipment in the first place.

Conveyor service shouldn’t be seen as a necessary evil, but as a rejuvenation of the abilities of your equipment. Performance is a key indicator of efficiency directly relating to profits and that starts at the foundation with the mechanical care of all systems.

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