Fragmented Automation is Holding Your Warehouse Back

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This article is part of our SME Corner, offering insights from our subject matter experts to guide you on your warehouse automation journey.

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We all recognize that automation is key to boosting warehouse performance and efficiency. But how we implement it makes all the difference.

Traditionally, businesses have used automation to tackle the most labor-intensive and costly warehouse tasks. Systems like an Automated Storage and Retrieval System (ASRS) have long been the core technology—handling inventory decanting, storage, and order picking, three of the most critical processes to automate. According to the most recent Goods-to-Person Market Report from STIQ these three processes account for roughly half of the warehouse costs in a manual warehouse:

Beyond that, additional workflows such as packing, buffering, sorting, and sequencing are also prime for automation. But here’s the catch: when these processes are handled by separate systems, connected by miles of conveyor and complex controls, it creates fragmentation—and with it, a new set of challenges.

• Throughput Bottlenecks: If one system lags, your entire operation slows down.
• Sprawling System Footprint: Multiple systems require more space and floor area.
• Reduced Order Accuracy: More handoffs and process steps increase the chance of errors.
• Lack of Flexibility: It’s hard to scale fragmented systems without costly interruptions.
• Complex Integration: Connecting multiple systems often requires complex middleware, custom code, and ongoing maintenance.

The bottom line is your automation should solve problems—not create new ones.

The Exotec^® Skypod^® system solves this by centralizing key warehouse processes within a single ASRS. It doesn’t just store and retrieve—it also enables picking, packing, buffering, sorting, and sequencing—all in one system.

This eliminates the need for multiple standalone machines and the complex conveyance systems required to connect them. The result? An elegant, reliable system that boosts performance, while simplifying material flow through your warehouse.

At the core of the Skypod system are robots that retrieve bins from high-density storage racks and deliver them directly to ergonomic workstations. These robots are fully connected to both inbound and outbound flows—enabling seamless movement of goods from receiving to shipping. They can handle multiple container types—including bins, cartons, parcels, and even your custom shipping boxes—making them ideal for efficient retail replenishment, e-commerce, wholesale, and omnichannel operations.

Smarter Picking & Packing

The Skypod system eliminates the need for separate picking and packing zones. Operators pick items directly from one robot carrying inventory bins and pack them into another robot that’s already holding the shipping carton. This robot-to-robot handoff streamlines the process, reduces walking and handling, and allows orders to be packed and ready for shipment in a single, efficient workflow.

Integrated Buffering, No Extra Space Required

In traditional systems, buffering often requires dedicated staging areas and putwalls outside the ASRS, taking up valuable floor space and adding extra handling steps. With the Skypod system, buffered orders are staged directly within the system’s racks. This built-in buffering gives you the flexibility to manage cut-off times, consolidate multi-line orders, or align with carrier schedules—without needing separate zones or additional equipment.

It also enables semi-finished picking, allowing you to decouple consolidation requirements by pre-picking fast-moving items—such as those from pallet pick locations—and staging them in the system. These early-picked items remain stored until the rest of the order lines are retrieved and ready for processing, streamlining operations and reducing floor congestion. 

Sorting & Sequencing Without the Spaghetti Conveyors

Traditional systems often rely on complex conveyor networks and PLC programming to sort and sequence items before shipping. The Skypod system removes that complexity. Robots handle sorting and sequencing dynamically within the ASRS—organizing items in the exact order needed for packing, shipping routes, or delivery priorities. This reduces reliance on fixed infrastructure, minimizes integration challenges, and keeps your operations agile, accurate, and efficient.

Understanding the benefits is one thing—seeing them is another. Take a virtual warehouse tour of a live operation using the Skypod system and discover how it manages key fulfillment processes within a single, unified solution.