Why Automation Falls Short for Most Organizations — DHL Insights

This expanded analysis draws on findings from DHL’s Insight 2030: Opportunities and Challenges for the Supply Chain of the Future report. The survey provides a comprehensive look at why automation, robotics, and supply chain systems frequently fall short of expectations — even as organizations continue to invest heavily.

Below is a structured, analytical breakdown that captures the full scope of DHL’s findings and what they mean for modern supply chain leaders.

1. The Strategic Value of the Supply Chain Has Never Been Higher

Nearly all executives surveyed — 99% — say the supply chain is important or extremely important to business success. Yet 89% believe their supply chain is above average, an improbability that signals a perception gap across the industry. Many leaders may be overestimating their maturity or underestimating competitors.

This overconfidence becomes a critical factor when evaluating automation performance: leaders may assume their foundations are stronger than they actually are.

2. Technology Adoption Is Widespread — but Satisfaction Is Not

The survey shows modern supply chain systems are widely installed:

• 72% use a WMS

• 69% use a TMS

• 55% use an LMS

• 63% use predictive analytics or AI

• 71% use business intelligence tools

Yet despite this adoption, technology dissatisfaction is high, particularly with warehouse robotics:

• Only 44% of companies have deployed robots.

• Just 34% of VP/Director-level leaders are fully satisfied with robotics performance.

This is one of the clearest indicators that companies struggle to extract value from automation — either due to poor integration, poor workflow design, or unrealistic expectations.

3. A Significant Perception Gap Exists Between the C‑Suite and Operations

C-level executives consistently rate their supply chain capabilities far higher than those who run operations daily:

• 40% more confident in visibility and resilience

• 28% more satisfied with WMS performance

• 32% more satisfied with robotics

This disconnect directly impacts automation outcomes. When leadership believes systems are performing better than they are, crucial problems go unnoticed, project timelines slip, and ROI remains elusive.

4. Operational Concerns Are Broad — and Deeply Interconnected

Executives identified a long list of operational risks:

• 56% are concerned about cybersecurity — the top concern

• 50% cite the impact of demand changes on service

• 49% cite inadequate technology solutions

• 47% worry about outdated systems

• 47% cite inability to respond quickly to new needs

• 46% cite poor adaptability to disruptions

• 45% cite labor scarcity

These concerns highlight a recurring theme: organizations depend on technology but lack confidence in its ability to keep pace with operational demands.

5. Barriers to Optimization Hold Back Automation ROI

DHL identifies three dominant barriers preventing companies from improving operations:

• 57% fear production disruption

• 56% lack internal expertise or don’t know where to begin

• 41% cite financial constraints

The top barrier — fear of operational disruption — is especially notable. Many companies avoid upgrading automation or adding robotics because they fear downtime more than inefficiency. This leads to stagnation and missed performance gains.

6. External Pressures Add Complexity and Risk

Leaders expect increasing disruption through 2030:

• 70% anticipate a major impact from cybersecurity threats

• 69% expect increased labor costs

• 66% expect labor shortages

• 63% expect natural disasters to affect networks

• 62% expect geopolitical tensions to disrupt supply chains

These pressures make automation even more important — but also amplify the cost of getting it wrong.

7. Technology Dependence Will Surge by 2030

Executives expect significant increases in reliance on:

• AI and machine learning (78%)

• Robotics (68%)

• Orchestration systems (63%)

• IoT and real‑time tracking (73%)

This reflects a shift toward fully connected, predictive, and orchestrated environments — but achieving this vision requires solving today’s integration and data challenges first.

8. Leaders Do Not Expect Automation to Reduce Labor Anytime Soon

Despite advances in robotics and AI, only:

• 29% expect a reduction in labor requirements

• 22% expect a reduction in fulfillment times

This directly reflects dissatisfaction with automation outcomes. Leaders see value in robotics for consistency and throughput — but not for reducing headcount or speeding core processes.

9. Why Automation Falls Short: The Core Reasons

Bringing together DHL’s findings, automation underperforms for five major reasons:

1. Integration gaps across systems and vendors

Automation cannot deliver ROI if WMS, robotics, and orchestration layers do not work together.

2. Lack of transparency and real-world benchmarking

Companies cannot compare vendor claims, making it almost impossible to evaluate true performance.

3. Insufficient internal expertise

Many organizations lack the talent to scope, deploy, and scale automation effectively.

4. Fear of disruptions and weak change management

Companies postpone needed system upgrades due to fear of downtime.

5. Misalignment between leadership and operations

When the C-suite misunderstands operational reality, automation strategies miss the mark.

Warehouse Automation’s Take: The Industry Still Lacks Benchmarking

One of the biggest issues today is that end users have no standardized, independent way to compare automation solutions. There is no common benchmarking framework for:

• Real-world UPH

• Downtime and reliability

• Productivity across industries

• Performance across customer deployments

This leaves companies relying on marketing claims, selective case studies, or staged demos.

A benchmarking layer — independent from vendors — is essential for the next decade of automation.

Call to Action

If your automation or robotics systems are not delivering the results you expected, our team can help you assess performance, benchmark against industry standards, and design solutions that avoid vendor lock-in.

Contact us to evaluate and improve your automation strategy based on real-world data and proven industry best practices.

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