Why This Matters to Distributors: Many distributors have invested in warehouse automation, but the next productivity gains may come from connecting existing systems rather than deploying additional technology. The findings suggest integration is becoming a key competitive advantage for improving warehouse performance and maximizing automation investments.
Most warehouse operators have yet to fully integrate the systems that support automation, creating a growing operational challenge as companies modernize their distribution networks, according to a new industry survey.
The 2026 Integrated Warehouse Systems Survey, conducted by Peerless Research Group on behalf of warehouse automation provider Kardex, found that only 23% of warehouse and distribution center leaders reported having fully integrated warehouse systems. Two-thirds, or 62%, said their systems are only partially integrated, while 15% reported no integration between warehouse technologies.
The findings indicate that connecting warehouse management systems, enterprise resource planning software, robotics, and other material handling technologies has become a greater challenge than deploying automation itself.
Three-quarters of respondents said integrating warehouse systems is essential to realizing the full value of automation investments, underscoring the growing importance of software connectivity as warehouses become more automated.
Despite increased investment in warehouse technology, automation adoption remains limited. Two-thirds of respondents, or 63%, said their warehouse operations are still primarily manual. Another 31% described their facilities as partially automated, while just 6% reported operating highly automated warehouses.
The survey also measured adoption of specific automation technologies. Among respondents:
- 36% use industrial robots or robotic arms.
- 32% use goods-to-person systems.
- 29% use automated storage and retrieval systems.
The results suggest that while advanced automation technologies are becoming more common, most warehouses have yet to deploy them at scale.
Respondents cited reducing operating costs, improving order accuracy, increasing throughput, and making better use of warehouse space as the primary reasons for integrating warehouse systems.
For companies that have not automated more extensively, cost and scale remain significant hurdles. Among respondents operating primarily manual warehouses, 38% said their facilities are too small to justify automation, while 26% identified implementation costs as the biggest barrier.
The survey included 127 warehouse and distribution center decision-makers representing manufacturing, wholesale distribution, retail, third-party logistics and other industries.
The findings come as distributors continue investing in warehouse modernization to improve productivity, offset labor shortages and meet growing customer expectations for faster and more accurate order fulfillment. For many companies, the next phase of modernization may depend less on purchasing new automation than on integrating the technology already in place.
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