EY — Facilities are heavily automated, but coordination between machines is still done by hand, an essay argues
Abhi Manohar of EY (Ernst & Young), the accounting and consulting giant, contributed an article on logistics facility automation to the US trade outlet Supply & Demand Chain Executive on November 7. Robots, conveyors, automated storage and retrieval systems (AS/RS) and warehouse management systems (WMS, software that manages inventory and work in a facility) have spread, the article says, yet facility managers still spend a great deal of time reacting to changing conditions. It cites the 2025 report of the US industry group MHI, in which 45% of the supply chain executives surveyed said they intend to adopt automated solutions.
The article names three challenges. First, receiving, putaway, replenishment, picking and shipping are each managed with their own automation and metrics, and compete for labor, equipment and storage space. Second, exceptions such as stock shortages, equipment downtime and last-minute order changes cannot be resolved by fixed procedures. Third, dashboards show that shipments are running late, but there is no means of deciding the best response and getting it done in time.
Improvement is described as a progression in three stages. The first is to automate so that fixed tasks run reliably. The second is to use forecasting and optimization analytics to see congestion and delays coming. The third is to decide, approve and follow through on responses across the facility's processes. As an example, the article takes a case where a production delay holds up replenishment and an order due to ship that day is at risk. The system identifies the order at risk, compares options such as moving replenishment up or reassigning labor, and proposes a response. Once a person approves, the system monitors execution and checks whether the risk of delay has gone.
Existing equipment need not be replaced, the article says, and it lists four points for proceeding. The first is to start with exceptions that recur. The second is to make WMS records, inventory, order priorities and equipment status available as the same information. The third is to decide which actions the system may carry out on its own and which need human approval. The fourth is to measure exception resolution time, on-time shipment, supervisors' workload and cost, and to extend to other workflows only after results are confirmed.
Source Supply & Demand Chain Executive (contributed by EY) / 2026.11.07