Warehouse networks rarely move in a straight line.
Some sites are highly automated. Others still rely heavily on manual processes. And most companies operate somewhere in between.
The mistake many leaders make is assuming that every warehouse should follow the same maturity journey at the same pace. In reality, different sites often require different levels of sophistication based on volume, labor availability, service expectations, and physical constraints.
Here’s a breakdown of the five broad levels of warehouse maturity that often coexist within the same organization.
1. Manual Operations
At this level, facilities rely on paper-based processes or basic digital tools. Picking is simple. System-driven orchestration is limited.
These sites are common in remote locations, lower-volume operations, or early-stage facilities where heavy investment doesn’t make financial sense.
Manual doesn’t automatically mean inefficient. In some cases, it’s the right fit.
2. System-Guided Execution
Inventory is tracked in real time. Operators follow optimized task sequences. Processes are standardized, but execution is still mostly human-driven.
For many companies, this level delivers the fastest return. It improves accuracy and consistency without requiring major investments in automation.
3. Automation and Workflows
Todd Kolber
Technology begins assisting workers more directly.
Conveyors, sortation systems, pick-to-light, or voice technology help speed up execution. The warehouse system must coordinate both people and machines without creating extra complexity.
This is often where orchestration becomes more important than simply tracking inventory.
4. High Degrees of Automation
At this stage, facilities may deploy autonomous mobile robots, automated storage and retrieval systems, or goods-to-person technologies.
Operations depend on real-time decision-making and precise coordination. When volumes are high and labor is tight, automation can provide needed scale.
But this level only works when the environment supports it.
5. Dynamic Warehouses
These are software-driven environments where execution logic adjusts continuously based on order volume, labor availability, and equipment status.
Planning and execution begin to blur. Systems must adapt in real time, not just execute static workflows.
This is the most advanced level, but not every site needs to be here.
Why Maturity Isn’t Linear
These levels don’t represent a single path with one destination.
A high-volume urban distribution center may require advanced automation. A rural or lower-volume site may perform better with a simpler setup.
Forcing every warehouse into the same model can dilute ROI. Overinvesting in automation where it isn’t needed adds cost. Underinvesting in complex sites creates bottlenecks.
The real goal isn’t pushing every facility to Level 5. It’s aligning each site’s sophistication with its role in the network.
Warehouse maturity isn’t about being “more advanced.” It’s about being appropriately designed for the job.
Todd Kolber is Managing Director and at Logistics Reply US
