Most warehouses are still mostly manual, but the pressure to automate and integrate systems is only getting louder. The challenge is not knowing that you need automation, it is knowing where to start and how to build toward an integrated warehouse system without overreaching.
This guide gives you a practical roadmap for 2026: how to clean up your data, choose your first automation moves, and phase your way from manual processes to integrated operations. We will show you where technologies like Vertical Lift Modules (VLMs), Vertical Carousel Modules (VCMs), conveyors, scanning, and pack/ship tools fit in the journey, and how to connect storage, picking, packing, shipping, and returns into a system that actually works in the real world.
Before we talk about roadmaps and first steps, it helps to define a couple of terms that get used a lot and mean slightly different things to different people.
Warehouse automation is any use of technology to reduce manual work and make processes more consistent. That can be as simple as barcode scanning and label printing or as advanced as Autonomous Mobile Robots (AMRs) and fully automated storage and retrieval systems (ASRS). If it helps you pick, pack, move, or manage goods with less walking, typing, or guessing, it lives under the automation umbrella.
Integrated warehouse systems go a step further than warehouse automation. Integration is what happens when your core systems talk to each other, so material and data move together instead of in separate silos. In a typical integrated environment, you might see:
You can have automation without integration.
For example, a standalone VLM running off a local controller.
You can also have “integrated” software without much automation hardware. The long-term goal for most teams is to combine the two: automation that is integrated into a wider warehouse system, not just islands of technology.
There are four main types of warehouse automation: storage and picking automation, movement and material flow automation, picking aid automation, and shipping, packing, and returns automation.
Let's dive into each of these in more detail
Vertical Lift Modules (VLMs) - Best for high-SKU, small or medium-sized items, tight footprints, and lean teams. Typical timing is as a first or second automation move. A Vertical Lift Module can start standalone and later be integrated with WMS, ERP, and other equipment.
Vertical Carousel Modules (VCMs) - Vertical Carousel Modules are best for lower ceiling heights, heavier items, and operations that want a simple, proven goods-to-person solution. Typically used alongside or as an alternative to VLMs in early projects.
Other ASRS (e.g., shuttle systems, mini-loads, AutoStore grids) - Best for higher volumes, dense storage, high throughput application or multi-zone networks where automation will play a central role. Usually a second-phase investment once the organization is comfortable with automation and has a clearer integration strategy.
Cart-based batch picking and pick carts with scanners - Best for manual operations that want quick productivity gains without major equipment installs. Often an easy early win in a largely manual environment.
Simple conveyors - Best for moving totes or cartons between picking, packing, and shipping without constant cart pushing. Frequently a first or second move, especially when paired with VLMs or VCMs.
Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs) - Best for larger facilities or multi-zone environments where travel time between areas is a major bottleneck. Typically considered in later phases once basic processes and systems are in good shape.
Pick-to-light and put-to-light systems - Best for high order volumes, multi-line orders, or areas with a lot of manual picking. Commonly added once you have a stable storage layout and want to boost speed and accuracy.
Barcode scanning and mobile devices - Best for almost every operation. They improve accuracy and traceability with minimal disruption and are an ideal first step even before equipment automation.
Voice picking - Best for high-volume picking environments with repetitive, structured paths. Often introduced after basic scanning and location control are in place.
Scan-to-pack stations and integrated scales - Best for reducing shipping errors and automatically capturing weights and contents. A straightforward early step that works in both manual and automated storage environments.
Shipping software integrated with ERP or WMS - Best for any facility tired of retyping addresses into carrier portals. Typically an early to mid-phase integration move that delivers fast payback.
Structured returns workstations - Best for operations with a meaningful volume of returns or repairs. Can be implemented very early and later enhanced with VLM or VCM storage for high-value returned items.
Wondering how you stack up? In our warehouse automation survey, we asked participants what advanced warehouse automation technology they're using. Here's how they responded:
Now, let's define “manual” in the way that most warehouses identify.
A typical manual or low-automation operation looks something like this:
There might be software in the mix, but systems are rarely talking to each other. Data is retyped, exported, or copied between tools. A lot of the real “system” lives in people’s heads.
A recent survey of 127 warehouse leaders shows that 63% of respondents are still in this fully manual bucket. Many of them are working in small or mid-size buildings, often under 100,000 square feet, with lean teams and tight budgets.
Among manual operations, 38% say they feel “too small” for automation, yet roughly half still plan to integrate systems in the future.
So, if you have been thinking, “We are probably too small to automate, but we cannot keep working like this forever,” you are exactly who this roadmap is for.
Quick self-check
Before we talk about solutions, take a minute to ground yourself in where you are:
Your answers will shape where you should start.
If you are mostly manual today, the mission to “automate the warehouse” is simply too vague to be useful.
A better approach?
Automate a specific problem.
A simple way to choose your first project is to self-score the main parts of your operation on two things: pain and potential impact.
Look at these five areas:
For each area, ask:
Evaluate the two scores. The highest numbers are usually the best candidates for your first automation project.
If storage scores highest: You are out of space, walking around overloaded shelves, and considering an expansion or off-site storage. A Vertical Lift Module (VLM) or Vertical Carousel Module (VCM) is a natural first move to consolidate storage and free floor space.
The point is not to chase the trendiest technology. It is to choose a starting point where you can solve a real problem, prove value, and build internal support for the next phase.
No matter what your pain point is, there is a step-by-step roadmap you can adapt and customize for your specific warehouse.
Here is how you can get started with warehouse automation in 2026.
Before you buy any automation technology, you need to know what you have, where it lives, and how it moves.
Integrated warehouse systems can only do their job if the data underneath is halfway clean. Now, remember, that does not mean your data has to be perfect. It means that it should be consistent enough that you can trust your location, quantity, and order information.
No matter what your biggest pain point is, your warehouse will benefit from having an inventory audit.
Focus on three simple foundations:
If you do not have a Warehouse Management System (WMS), this might be a good time to look at either a lighter-weight Inventory Management Software (IMS) solution or tightening up how you use the inventory module in your ERP.
Data and visibility are not just about what sits on your shelves. They also include what happens at:
Even simple changes like scanning at pack-out, capturing weights automatically, or logging return reasons give you a better foundation for any future automation or integration.
If this feels overwhelming, you’re not alone. Especially if you have a small team. Remember, you don’t need to do everything all at once. Instead, aim to check off at least a few of these in 2026:
Once these basics are in place, you are much better positioned to introduce automation without chaos.
Did you know? You can work with a Kardex specialist to completely analyze, categorize, and organize your inventory into your Vertical Lift Module? This lets your team focus on what really matters and can help you get up and running weeks – or even months – faster. Read More
With better data and visibility, you are ready to look at your first automation steps.
This does not mean you need a fully automated warehouse. It means you introduce one or two pieces of focused automation technology that help to tackle your biggest pain points and can grow alongside you.
For many operations, the most approachable starting points are:
A Vertical Lift Module (VLM), like the Kardex Shuttle, is essentially an automated storage cabinet that allows you to utilize your vertical height. Trays of inventory are stored in two columns, and a central extractor brings the right tray to an ergonomic access opening when requested.
For small and mid-size operations, VLMs are often the first serious step into automation because they:
If your biggest headaches are space constraints, long walking distances, and small parts going missing, a VLM is a strong candidate for your first automation project.
>> Learn more about the benefits of VLMs for small warehouses here.
A Vertical Carousel Module (VCM), such as the Kardex Megamat, is another compact way to bring items to the operator. Instead of trays moving up and down on a central extractor, the carriers rotate in a loop, like a Ferris wheel.
VCMs are especially useful when:
Like VLMs, VCMs can start as standalone units and then be integrated with WMS, ERP, or other automation later.
If your primary bottleneck is at the packing bench or dock, your first automation steps may live there instead of in storage. Here are a few low-barrier moves to consider:
These are all forms of automation, even if they do not look dramatic. They reduce touches, cut typing, and structure the workflow.
Returns are where many manual operations quietly bleed time and sanity. You do not need robots to start automating returns. You need structure.
Consider:
Again, the goal is not “flashy automation.” It is turning a chaotic process into a repeatable one, with the help of tools.
Once you have some basic automation in place, integration becomes the next logical step.
Our survey shows that only 23% of respondents have fully integrated warehouse systems, while 62% say their systems are partially integrated and 15% are not integrated at all.
The good news is that you do not have to make a giant leap from “nothing integrated” to “everything integrated.” You can build in phases.
Start by making sure your primary business systems can talk to each other:
This alone reduces a lot of manual data entry.
Once core systems are talking, start connecting your first pieces of automation:
At this stage, you are turning your first VLM, VCM, or conveyor into a true node in an integrated warehouse system instead of a smart island.
Finally, look downstream and up a level:
This is where you start getting the “control tower” view that many people imagine when they think about integrated warehouse systems.
A roadmap is nice. A short list of actions is better.
Here is how you can turn all of this into a realistic plan for 2026.
1. Pick one area to focus on first
Ask:
For example:
If you are out of space and walking miles, start with a VLM or VCM project.
2. Choose one low-complexity automation move
From that focus area, pick one tangible project that fits your size:
The right first step is something you can install, learn, and scale, not something that takes two years to design.
3. Plan for integration, even if you don't do it yet
As you choose equipment or software, ask vendors:
Designing for “standalone now, integrated later” keeps your options open. Technologies like VLMs and VCMs are particularly good at this, because they already play nicely with both manual workflows and integrated environments.
4. Give IT a seat at the table early
Even for a single VLM or simple packing upgrade, loop in IT early. Share:
This helps you avoid surprise roadblocks and makes integration smoother when you are ready.
5. Use survey benchmarks to stay grounded
The Integrated Warehouse Systems Survey can help you avoid unrealistic expectations. Remember:
Your goal for 2026 might simply be:
That is meaningful progress.
Automation changes work. It does not make people irrelevant; it changes what you need them to be good at.
If you are moving from manual processes into a world with VLMs, VCMs, scanning, and integrated systems, plan for:
If you get the people side right, each step in your automation roadmap gets easier. If you ignore it, even the best-designed system will underperform.
Not to mention, warehouse automation delivers ROI:
A few things that tend to derail warehouse automation and integration projects.
Teams spend months or years designing the ideal end-to-end system and never actually start. It is far better to sketch a long-term vision, then execute a small, contained first project that proves value and teaches you what to do next.
If you buy the hardware but do not rethink your processes or data, you end up with expensive islands of automation. Each step into automation should be treated as a process redesign opportunity, not just a purchase order.
Equipment arrives, and only then does everyone realize it does not talk to your existing systems. Bringing IT into vendor conversations and design sessions from day one prevents ugly surprises and makes integration much smoother.
When people are not properly trained, they keep doing things the old way in parallel with the new system. Investing in training, clear SOPs, and follow-up in the first three to six months ensures the new tools are actually used the way they were designed. If you plan for these roadblocks up front, your chances of getting real, lasting value go way up.
If you plan for these up front, your chances of getting real, lasting value go way up.
We asked warehouse managers to share advice on their automation and integration projects. Here’s what they said:
Even the best Vertical Lift Module, Vertical Carousel Module, or conveyor line cannot fix a broken process on its own. The teams that get the most out of automation layer it on top of solid, low-tech best practices.
Here are a few to focus on as you move along your roadmap:
Review SKU velocity regularly and adjust locations so true fast movers are the easiest to pick. Keep SKUs frequently picked together near each other, or consider kitting them. Group bulky fast movers in more traditional pick zones and reserve automated storage for high-mix, small or medium movers that benefit most from dense, goods-to-person storage.
Loose product on open shelves is hard to manage and even harder to move into automation later. Standardizing on bins, totes, and dividers keeps parts clean and organized and makes it much easier to use the full cube inside a VLM or VCM when you are ready. Think of this as “prepping” your inventory for automation.
Walk your facility from receiving to stocking to picking to packing and shipping. Look for zig-zags, cross-traffic, and dead ends. Simple changes like one-direction flow, defined consolidation zones, and clearer paths will pay off immediately and make it much easier to drop in a VLM, carousel, or short conveyor run without redoing everything later.
Whether you lean toward batch picking, pick-and-pass, or parallel picking, the key is consistency. The more structured your picking strategy is today, the easier it will be to layer in goods-to-person technology, pick-to-light, and scan-to-pack workflows without confusion.
Returns are one of the most overlooked areas in many warehouses. Define how returns are received, inspected, logged, and put away. Even if it is entirely manual today, a clear returns flow makes it much easier to later decide what should go back into automated storage, what should be scrapped, and what data needs to feed back into your systems.
As you make layout and process changes, keep future moves in mind. Avoid locking yourself into a maze of static shelving if you know you may add VLMs, carousels, or conveyors in the next few years. Leave reasonable space where automation is likely to land and keep aisles and workstations flexible enough to shift as volumes change.
No. Many automated operations run in buildings under 50,000 or 100,000 square feet with lean teams. The key is to pick a focused problem to solve, such as a cramped small-parts area or a busy pick zone, and start with a right-sized solution like a Vertical Lift Module or Vertical Carousel Module.
Not necessarily. Many facilities start with a VLM or VCM running on its own controller with inventory management software, then integrate to WMS or ERP later. The important part is to have clean item and location data so you can load the system properly.
Timelines vary, but a typical first VLM project, including design, installation, and go-live, is often measured in weeks or a few months, not years. Most of the time is spent on planning, data preparation, and slotting rather than the physical install.
You may want to start your automation journey in packing and shipping instead of storage. Scan-to-pack workflows, integrated scales, shipping software, and simple conveyors are all valid “first steps” that can later be connected to VLMs, VCMs, or other storage automation.
Start with a clear understanding of your pain points and goals. Use a phased approach: clean data and processes, one or two focused automation projects, then integration. Work with partners who can model different scenarios and show you what happens at different levels of investment before you commit.
Automation often changes where people spend their time. Instead of walking, searching, and lifting, they spend more time on exception handling, quality, and higher-value tasks. Some operations do reduce headcount over time through attrition. Others use automation to grow without hiring at the same rate.
If you have reasonably clean data, a stable process, and at least one piece of automation or core software that is working well on its own, you are ready to start planning integration. Integration does not have to be all or nothing. You can start by connecting just two systems, such as ERP and WMS, or WMS and your first VLM.
If you want more data to support your roadmap, you can:
Most of your peers are somewhere in the messy middle. The advantage will not go to the ones with the loudest buzzwords. It will go to the teams that quietly pick a realistic first step in 2026 and take it.