If you run a mostly manual warehouse, it is easy to feel like automation belongs in other warehouses.
In your head, you might picture fleets of autonomous robots roaming the floors, massive software projects, or high-volume distribution centers with budgets and headcounts far beyond your own.
If your team is still relying on shelving, paper-based workarounds, and institutional knowledge to keep things moving, you’re not alone.
In our recent survey of warehouse leaders, 63% described their warehouse operation as fully manual.
Some of those warehouses were small, sure. But some were enterprise-level businesses that still rely on the giant whiteboard by the office to keep track of critical inventory.
No matter your size, the first step into automation can feel daunting.
The important thing to remember?
There isn't a need to transform the entire warehouse at once. Instead, try to solve one key operational problem in a smarter way. That might mean improving your inventory visibility, tightening up your storage, reducing wasted walking, or creating a more consistent picking process.
In this guide, we’ll outline several practical, easy, ready-to-implement strategies for warehouses who are looking to get started with small-scale automation.
Jeff Peters is a Regional Business Director at Kardex Remstar with nearly 30 years of experience in automated storage, material handling, and custom automation design. Throughout his career, he has helped manufacturers, distributors, and service organizations evaluate, design, and implement large-scale storage and retrieval systems, including Vertical Lift Modules (VLMs). Jeff specializes in guiding customers through complex ROI decisions, from space utilization and ergonomics to throughput and lifecycle cost. He works closely with channel partners and end users to ensure each solution is engineered for long-term performance and reliability.
Jeff hears it all the time on the floor:
“We think we might be ready to automate, but it feels like a really big change.”
And that hesitation shows up clearly in our research.
According to our integrated warehouse survey, among companies still running manual operations, 38% said they felt too small for automation, 30% said they were considering it but had not started yet, 26% cited ROI concerns, and 19% said they did not know where to start.
But automation doesn’t have to look like a massive integrator coming in to completely uproot the processes and people that have been working on your floor for the past 15-30 years.
There’s an enormous benefit to evaluating a single, solution-based, standalone automation technology to address specific pain points.
But how do you get started?
Jeff has some advice: start by identifying your biggest pain point. And that’s your first move.
A practical first move should answer these four key questions:
Start with the constraint your people are feeling the most every day.
This will be different for every warehouse.
For you, that could look like: floor space, search time, inaccuracies, excessive overtime pay, ergonomics and safety, or inconsistent access to inventory.
For some context, here's how more than 100 warehouse leaders rated their top challenges.
Jeff’s framework for small-scale automation is clear here: pick your primary headache first.
Once you’ve decided what your biggest pain point is, you can move on to the next question.
If your operation is struggling to trust its own inventory, start with visibility and control.
If the bigger issue is too much walking, too much shelving, and too much wasted time retrieving parts, then storage and picking should move up the list.
The best first investments usually do.
A warehouse may start a small-scale automation project because it is out of space, then discover that a better storage method also improves pick speed, inventory accuracy, and ergonomics.
That pattern shows up in the Kardex Impact survey, where customers reported 78% better space utilization, 56% increased picking speed, and 41.5% improved inventory accuracy after implementing automation. A focused first move can create secondary benefits across your operation.
A good first step does not need to be heavily integrated and using all the available bells-and-whistles on day one. It should work ‘right out of the box’ - so to speak.
BUT -- it should not close off your future options.
You’ll want to choose a standalone technology that is designed to work well on day one. And also plays well with other systems, solutions, and integrative options down the road.
One of the worst mistakes a warehouse can make is building an automation technology silo that breaks down as other areas of your warehouse grow to meet it.
While you don’t need to have a solid roadmap for your warehouse 15 years from today, knowing that your technology can adapt to that blurry future is critical.
Now that you’re armed with your biggest headache (or headaches) at the forefront, you can start to analyze the best small-scale automation technologies for your operation.
Here are some of the best options.
Using insights from our Warehouse Integration survey, as well as the anecdotal expertise of several of our key automation specialists, we identified the following list of easy, small-scale automation technologies that warehouses like to get started with.
These technologies are not about transforming your entire warehouse overnight.
They are about creating more control, consistency, and efficiency in one part of your operation, so you can build confidently from there.
If your team is still relying on spreadsheets, handwritten notes, or tribal knowledge to track inventory, basic inventory management software is usually the most practical place to start.
Inventory Management Software (IMS) helps you to create a single source of truth for what you have, where it is stored, and how it moves.
For a manual warehouse relying on spreadsheets, team knowledge, and whiteboards, this can be a major step forward.
Instead of chasing down inventory questions across paperwork, inboxes, and employee memory, your managers can start building a more reliable process for receiving, putaway, picking, and counting.
As a first-step automation solution, basic inventory management software makes the most sense when the biggest pain point is inventory visibility and management. It is especially useful for warehouses dealing with inaccurate stock counts, poor visibility, or too much time spent searching for items that should be easy to find.
Barcoding and RFID are an industry-wide favorite as an approachable automation technology for manual warehouses because they add immediate structure without adding too much complexity.
A barcode or RFID-based process gives every item, bin, or location a scannable identity.
This makes it infinitely easier to record how your inventory moves, reduce manual-entry errors, and improve traceability throughout the operation.
For warehouse managers, the value is simple: barcoding usually means less guessing, fewer missed updates, and more confidence that the system reflects what is actually happening on the floor.
As a small-scale automation solution, barcoding or RFID is a strong fit for warehouses that know manual tracking is holding them back but are not ready for a larger equipment investment just yet. It is often one of the clearest first steps because it improves visibility and discipline across the entire operation.
Mobile scanning builds on barcoding or RFID by giving employees a fast, simple way to update inventory activity as it happens.
Instead of writing things down and entering them later, workers can scan inventory during receiving, putaway, picking, replenishment, and cycle counting.
That helps close the gap between physical activity and system updates, which is a common problem in manual warehouses. It also makes inventory records more timely and more trustworthy.
For a warehouse manager evaluating first-step automation, mobile scanning is a strong choice when delayed updates, missed transactions, and manual paperwork are creating confusion. It is relatively easy to adopt, improves daily discipline, and can support future automation later.
Ready to solve several headaches with one simple, scalable, easy-to-implement automation solution?
For warehouse managers looking to make an immediate impact on operations without throwing a wrench in your current day-to-day, automated vertical storage is the ideal technology.
ASRS can help small operations:
They are the perfect starting point for operations of any size.
A single Vertical Lift Module or Vertical Carousel Module can replace up to 84 modular drawer cabinets or up to 100 sections of traditional racks and shelves.
Not super familiar with this kind of technology? Let’s take a look at each:
A Vertical Lift Module (VLM) is the perfect fit for warehouses that store lots of different parts in a limited footprint.
Here’s how it works: The VLM acts like a giant tray vending machine. Your operator walks up to the machine, selects the part they need, and the machine delivers it directly to them in just a few seconds.
A VLM makes the most sense when you’re struggling with a mix of space constraints, disorganized small-parts storage, and too much time spent walking or searching.
Got super bulky or very heavy equipment on site? Need to build an automated tool crib for on-site maintenance? Want better control over your high-value inventory? Want to make the workplace safer for your team? Need to consolidate your racks and shelves and make better use of your vertical space? With a VLM, this is all standard.
It is also the ideal first step because it can be used simply at first, then expanded with inventory management processes, barcoding, or pick-assist tools later.
A Vertical Lift Module can be as simple or as complex as you want. You can use it right out of the box by calling shelves through the intuitive interface. You can utilize easy IMS software to keep track of your inventory. You can integrate your IMS with your existing barcoding for seamless batch picking. And, eventually, you can easily plug your VLM into your WMS for more advanced automation efforts. But for warehouses looking to automate on a small scale, the VLM truly is the perfect technology solution.
A Vertical Carousel Module (VCM) is usually a better fit if your inventory is more uniform in size and the goal is quick, repeated access.
On a VCM, the carriers move in a single, continuous loop (think: Ferris Wheel), and travel the shortest path to the access opening.
A VCM is going to be ideal for products with similar heights. They’re perfect for tools, spare parts, files, medical storage, and more. With customizable carriers, you can fit a variety of inventory into the VCM.
VCMs are also ideal for warehouses with a smaller ceiling clearance.
A VCM is right for you if you need fast access, better organization, and a smaller footprint without overcomplicating your current picking processes. Simply push a button, and the carriers spin to the part you need.
Like a VLM, VCMs can help improve accuracy, ergonomics, and storage density while still providing your team an approachable entry point into automation.
Still not sure which is right for you? Check out our buyer’s guide to compare them side-by-side.
If picking errors are becoming a problem, pick-assist tools can be one of the most direct ways to improve performance.
These tools add guidance to the picking process so operators can identify the right item, location, or quantity more consistently.
Depending on the application, that may include scan verification, visual prompts, or light-based guidance. Sometimes, but not always, these technologies are used in tandem with automated vertical storage systems.
For manual warehouses with high SKU counts, similar-looking items, or frequent order changes, that extra support can make a meaningful difference. And best of all? They feel advanced but are incredibly easy to implement and use.
For a warehouse manager evaluating small-scale automation, pick-assist tools are a strong option when the core pain point is accuracy AND storage constraints. They offer a way to improve consistency in a manual picking process without needing to automate your entire operation.
>>> Keep reading: Here are 10 practical warehouse improvement tips you can start tomorrow.
If you’re still weighing the benefits of the best automation technology for your small scale project, fear not. There are several best practice steps you can take in the interim to streamline your processes and make your automation work better.
Here are just a few of the actionable steps you can start working on tomorrow to improve warehouse efficiency and your material handling performance:
Not every automation investment needs to start with physical technology. Sometimes the best first step is digitizing the process itself.
Simple digital workflows can help replace paper-based receiving logs, pick sheets, replenishment requests, or stock adjustment forms with more structured digital steps.
That makes work easier to track, easier to repeat, and less dependent on individual habits. It can also help managers identify where delays, missed handoffs, or workarounds are happening.
For a fully manual warehouse, this is a useful first-step automation solution when the biggest issue is inconsistency. If different people follow different processes, or if too much work is happening outside the system, digital workflows can bring more control to the operation without requiring a large capital project.
Slotting optimization is one of the most practical small-scale automation strategies because it improves performance without requiring a major equipment change.
At its core, slotting is about storing the right items in the right locations based on how often they are picked, how large they are, and how they move through the operation. Fast-moving items should be easy to access. Slow-moving or bulky items should not take up prime space. When done well, slotting reduces walking, shortens pick paths, and improves labor efficiency.
For warehouse managers in manual operations, slotting optimization is a strong first move when the problem is not “we do not know what we have,” but “it takes too long to get to it.” It is especially useful in warehouses where inventory has grown over time without a clear storage strategy.
Manual warehouses often lose time because pick locations run empty at the wrong moment.
Replenishment logic helps solve that by creating a more consistent process for when and how inventory is moved into primary pick faces. That can be simple at first. For example, setting minimum quantities, assigning replenishment triggers, or building a standard schedule for restocking key items. Even basic replenishment rules can reduce stockouts in active pick areas and help teams avoid unnecessary interruptions.
As a first-step automation solution, replenishment logic makes sense for warehouses where the picking process is slowing down because inventory is not where it needs to be when it is needed. It helps create smoother flow without requiring a complete systems overhaul.
Looking for more tips and advice? Download our free PDF to see how you can implement 22 practical material handling tips in your warehouse.
Did you know that Kardex offers 100% free on-site evaluations?
A warehouse automation expert will come out to you to tour your floor, learn more about your problems, and help you select the entry technology that’s best for your operation.
Our goal is to help you solve headaches, not create more of them. We understand the value of a small scale automation project. You don’t have to overwhelm your teams with flashy technology or even fully get rid of your paper-based flows.
See how ASRS can help you make that first step into automation, solve a bunch of headaches for your team and management, and see incredibly fast ROI.
Schedule your on-site visit and get a fast quote today.