• AI-powered warehouse modernisation essential: 88% of APAC warehouse workers believe in investment.
• Warehouse safety drive technology adoption. 79% of APAC associates worried about injuries.

The traditional warehouse is becoming more irrelevant with time. As e-commerce volumes surge and customer expectations for rapid delivery intensify AI-powered warehouse modernisation has transformed from a competitive advantage to a fundamental business necessity.

“Without investing in technology to improve warehouse operations, organisations will fail to meet business objectives,” warns Vivien Tay, APAC Vertical Lead for Warehousing, Transport & Logistics at Zebra Technologies, in an exclusive interview with Tech Wire Asia.

The stark assessment is backed by compelling data: 88% of APAC warehouse associates share this concern, according to Zebra’s 2025 Warehousing Vision Study. The study reveals a warehouse sector under immense pressure from multiple directions: e-commerce growth, consumer expectations for faster deliveries, and persistent labour shortages.

The challenges have created an environment where technology adoption is no longer optional but necessary for survival. Speaking to Tech Wire Asia about the report’s deeper implications, Tay explained, “Today’s warehouses face a markedly different landscape compared to five years ago. The surge in e-commerce, rising consumer expectations for faster deliveries, and ongoing labour shortages are placing immense pressures on traditional systems and manual processes, which are increasingly unable to keep up.”

Safety concerns driving AI-powered warehouse modernisation

The pressures of e-commerce growth have significantly transformed warehouse environments, creating new safety challenges that demand technological solutions. According to the study, 79% of APAC warehouse associates report heightened safety concerns as operations become more fast-paced, with 72% specifically expressing fears of injury.

“The factors have also intensified safety risks on the warehouse floor,” Tay told Tech Wire Asia. “To stay ahead, businesses are turning to AI, automation, and real-time analytics to improve operational visibility, enhance safety, and enable better productivity.” The study reveals that AI applications are expected to have the greatest impact on worker safety, with 82% of APAC leaders seeing positive impact potential in this area. Technology solutions that can detect potential hazards and issue preventative alerts are becoming increasingly valuable as warehouse operations accelerate.

The technology investment roadmap

APAC warehouse leaders are planning substantial technology investments to address these challenges, with 63% intending to implement AI software and 65% planning to deploy augmented reality (AR) in the next five years. And, 64% of APAC leaders plan to accelerate their modernisation timelines by 2029, recognising the urgency of digital transformation.

“By enhancing asset visibility, they can track and manage resources more effectively, ensuring that every asset is optimally used,” Tay explained. “By embracing these innovations, warehouses can improve workflow optimisation, enhance safety, and reduce physical strain on workers.” The study highlights specific AI-powered warehouse modernisation priorities:

• Predictive analytics (implemented by 65% of decision-makers)
• Real-time task optimisation
• Workflow automation
• Intelligent assistance for connected frontline workers

“Warehouse leaders are increasingly looking for AI solutions that go beyond back-end data crunching – they want intuitive, responsive software that directly empowers their frontline teams,” Tay noted in the interview.

Technology as a worker ally, not a replacement

The study highlights a significant paradigm shift in how warehouse workers view technology – as an ally rather than a threat. The positive perception is reflected in the finding that 90% of APAC associates feel more valued when equipped with the right technological tools.

“By demonstrating how technology can directly improve both their day-to-day tasks and long-term career development, associates are more likely to view these advancements as beneficial,” Tay told Tech Wire Asia. “When associates understand that technologies are introduced to reduce physical strain and enhance productivity, rather than replace jobs, they are more likely to embrace these changes and engage in higher-value, more strategic activities.” The sentiment is reinforced by the finding that 77% of APAC associates feel they spend too much time on tasks that could be automated, indicating a workforce ready to embrace technological assistance.

Implementation challenges in AI-powered warehouse modernisation

Despite the clear benefits, implementing new technologies comes with significant challenges. Warehouse leaders report difficulties in determining ROI, securing adequate technical support, and integrating new systems with legacy infrastructure. “Although warehousing leaders surveyed plan to implement the latest technologies in AI and real-time analytics, the adoption rate is not fast enough,” Tay explained. “Challenges like missing orders in service level agreements and ensuring order accuracy can significantly impact profit & output, leading to negative business outcomes.”

The study found that 45% of APAC warehouse leaders admit they find it challenging to maintain fill rates and 51% struggle to prepare orders outlined in their service level agreements. Order accuracy (43%) and outbound processes (40%) were cited as the top two operational challenges. “Moreover, the ongoing shortage of qualified workers remains a significant concern for APAC warehouse operators, with 73% of decision-makers reporting difficulty in attracting skilled labour,” Tay added.

Real-world success through AI-powered warehouse modernisation

A compelling example of successful warehouse transformation comes from PT Dunia Express Transindo (Dunex), an Indonesian logistics provider. The company deployed Zebra’s mobile computers to allow workers to scan boxes stackedup to 5 metres high, eliminating the need for dangerous climbing.

“Dunex faced a challenge in their warehouse where the cargo was stored on a racking system with boxes stacked vertically. The setup made barcode scanning difficult, as barcodes were often out of reach or could only be scanned using short-range scanners. Workers had to climb or bring boxes down to scan them, which was time-consuming and inefficient,” Tay explained.

The implementation nearly doubled Dunex’s daily outbound delivery capacity from 5 tons to 10 tons, demonstrating the significant productivity gains possible through thoughtful technology deployment. “Zebra’s solutions helped streamline the warehouse operations, enabling Dunex to be more responsive to the demands of the on-demand economy and better support its customers as their businesses grow,” Tay said.

Prioritising automation in warehouse operations

When asked how companies should prioritise which processes to automate first, Tay provided clear guidance: “Companies should prioritise automating high-volume and repetitive processes. Tasks like data entry, inventory tracking, and standard administrative work often consume significant time and resources, making them ideal candidates for automation.”

She emphasised that this strategic approach delivers multiple benefits: “By automating these routine tasks, companies can free up employees’ time to focus on higher-value work, improving overall productivity and job satisfaction. And, processes that are error-prone or require precision, like data transcription or calculations, should be automated early to reduce mistakes and enhance efficiency.”

Safety-focused automation should also be prioritised: “Equally important is automating tasks that directly impact safety, like monitoring equipment conditions or managing hazard identification systems. Intelligent automation in these areas can help ensure consistent adherence to safety standards and reduce human error, preventing accidents and injuries.”

Sustainability through AI-powered warehouse modernisation

Sustainability emerges as another important factor, with 60% of warehouse leaders planning to increase investments in sustainable technologies over the next five years. Zebra facilitates this through initiatives like its Take Back Program, which reduces e-waste while providing operational and cost advantages.

“Sustainability is emerging as a key driver of business success, prompting warehouses to balance environmental priorities with operational efficiency,” Tay explained. “With 78% of decision-makers prioritising the reduction of emissions and waste, and 60% planning to increase investments in sustainable technologies over the next five years, the industry is at an important turning point.” She highlighted specific sustainability solutions:

“Zebra enables customers to meet environmental goals while improving efficiency through a robust Take Back Programme and a suite of sustainably designed products. The initiatives are aimed at reducing e-waste, extending product life cycles, and providing operational and cost advantages to businesses.”

The future of AI-powered warehouse modernisation

As warehouse square footage is projected to increase by 27% globally by 2030 and labour spending continues to rise at a 7% compound annual growth rate, the pressure to modernise operations will only intensify. “The study anticipates a significant shift toward intelligent automation to enhance operational efficiency and worker safety. The includes the adoption of AI, machine learning, and augmented reality to optimise workflows and improve safety,” Tay explained when discussing the future outlook. Specifically, Zebra is investing in emerging technologies beyond AI and AR:

“We are expanding IoT connectivity to enable real-time decision-making and predictive maintenance, supporting more agile resource management. Zebra is also assessing opportunities to apply blockchain technologies to enhance supply chain transparency, traceability, and security.”

The company’s ambitious roadmap also includes collaborative robotics: “Meanwhile, our investments in robotics and autonomous systems, including collaborative robots, aim to improve productivity and workplace safety.” For warehouse operators looking to thrive in this rapidly evolving landscape, the formula appears straightforward: invest in AI-powered warehouse modernisation that enhances visibility, improves safety, and empowers workers or risk becoming obsolete in an increasingly demanding market environment.