The Most Automated Warehouse May Still Have a Manual Buffer
Automation can transform the main storage and picking process while leaving substantial manual work at receiving, decanting, replenishment and exception handling. Mapping the complete flow before approving a design is essential.
6 min read · Buyer guide
Automation at the core, manual work at the edges
Warehouse automation projects often focus on the central operation: the storage grid, the picking station, the conveyor loop. The business case is built around that core. The scope drawings show it clearly. The supplier demonstration runs through it smoothly.
What the drawings can understate is the work happening around the core. Inbound cartons must be received, sorted, counted and decanted before they enter an automated system. Full pallets may need to be staged in a conventional area because the automation only accepts individual cases. Exception handling, damaged goods, non-conforming carton formats and system boundary handovers often remain manual regardless of how advanced the central process becomes.
This is not a failure of automation. It is the natural boundary of any system. The buyer-side risk is approving an automated storage design without mapping what happens outside that boundary.
The Nowaste Logistics pilot
In September 2026, Nordic 3PL operator Nowaste Logistics became the first company to install an AutoStore AutoCase solution delivered by Swisslog. The announced concept allows incoming apparel cartons to enter the AutoStore grid directly and leave either as complete cases or through a picking station. Testing with different carton formats is underway before full operation begins.
The buyer-side significance of the development is what it implies about the previous state. Nowaste already operated a highly automated warehouse. But seasonal inventory still required pallet buffering, manual replenishment and decanting before goods could enter the automated system. The new solution addresses part of that boundary work.
Where manual work hides in automated warehouses
Buyers preparing an automated-storage project should map each of the following activities and confirm whether they are inside the automation scope, handled by an adjacent automated system, or remain manual:
- Unloading and trailer management at the dock
- Goods receiving, counting and quality check
- Inbound staging before putaway
- Pallet and carton buffering when the automated system is at capacity or not yet ready
- Decanting from shipping cartons or pallets into the format the system accepts
- Replenishment of picking stations from reserve storage
- Handling complete cases or pallets that bypass the unit-load system
- Processing of non-conforming carton sizes, shapes or weights
- Exception handling for unidentified, damaged or mislabelled goods
- Returns processing and re-induction
- The physical handover between the automated area and manual picking, packing or despatch areas
Each of these activities requires floor space, equipment, people and time. If they are not in scope, they will not appear in the automation project budget or the labour-saving calculation.
Questions to ask before approving the design
Where does the automated scope begin?
Define the exact point at which goods transfer from manual handling into the automated system. Ask what format, condition and data state goods must be in at that point and who is responsible for achieving it.
What happens to non-conforming loads?
Ask how the system handles cartons that are outside the accepted size or weight range, damaged, mislabelled or missing a barcode. Where do they go? Who processes them? How are they reintroduced?
How is inbound buffering managed at peak?
Understand what happens when inbound volume exceeds the rate at which goods can be inducted. Is there a staging area? Is it inside the project budget? Who manages it during seasonal peaks?
Which activities are in scope for labour saving?
Review the business case to confirm whether boundary activities such as decanting, replenishment and exception handling are included in the baseline labour count. Savings calculated only on the core process may be overstated.
How are system boundary handovers coordinated?
Ask how work is assigned and tracked at the transition between manual and automated areas. Understand which system owns each handover and how performance is monitored across the boundary.
Practical checklist for requirements preparation
Before issuing a request for proposal or approving a layout, walk the complete inbound and outbound material flow and confirm each of the following:
- Inbound process from dock to induction point is fully documented with volume, format and timing data
- All goods formats and their acceptance or rejection by the automated system are defined
- Peak inbound volume and its effect on induction rate are included in the design assumptions
- Decanting and replenishment activities are assigned to either the automated scope or a manual resource plan
- Exception handling volumes and procedures are documented
- Floor space for staging, buffering and exception areas is allocated in the building plan
- Labour requirements for boundary activities are included in the staffing model
- Boundary handover points are clearly defined in the functional specification
- Acceptance test criteria cover the complete flow, not only the automated core
The practical takeaway
Developments such as the Nowaste pilot illustrate that the industry is actively working to extend automation closer to the inbound boundary. For buyers, the lesson is not to wait for that capability. It is to map the complete material flow now, understand where the automated scope ends and where manual work begins, and include those activities in the project scope, budget and acceptance criteria.
An automated storage system that performs well within its design boundary can still leave a warehouse with a significant manual operation outside it. The business case should reflect the full picture.
Sources and evidence
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