Can warehouses even operate automatically? One article clearly explains the "intelligent brain" of modern logistics.

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Publish Time:

2025-09-30

 
When people think of "warehouses," many still picture the traditional scene: shelves piled high with cardboard boxes, workers pushing carts to sort items, and handwritten ledgers used to track inventory. But today, modern logistics has long since entered the era of "automated operations"—where the entire process, from goods entering the warehouse, storage, picking, to dispatch, happens seamlessly without any human intervention, even allowing for 24-hour, non-stop operations. Behind this transformation, it’s not just a single piece of equipment working in isolation; instead, it’s a sophisticated "smart brain" that orchestrates everything—a system acting as the warehouse's "central nervous system," connecting all automated devices and enabling "data-driven, precision-based collaboration." Today, we’ll uncover the secrets behind warehouse automation and decode the core logic of this "smart brain."

 

I. First, let's examine the "surface level": How does an automated warehouse achieve "unmanned operation"?

To understand the "smart brain," you must first clearly see the "hardware army" it commands—automated warehouses rely on the coordinated operation of three major categories of hardware: "storage equipment, handling equipment, and sorting equipment." Every step of the process is precisely directed by the "brain," eliminating the need for manual intervention.
1.1 Core Hardware: The Automated "Hands and Feet"
These hardware components form the foundation for the warehouse's "unmanned" operation—they each perform distinct tasks yet all follow the coordination of the "intelligent brain."
  • Storage Devices: Enabling Goods to "Grow Upward"
Traditional warehouses rely on manual labor to stack goods, limiting their storage height. In contrast, automated warehouses utilize "high-rise, three-dimensional racking systems" (ranging from 10 to 40 meters in height) paired with "stacker cranes" that enable fully automated storage and retrieval of items. These stacker cranes move precisely along tracks—up, down, left, and right—to accurately position themselves at a specific level and storage location. As a result, picking or placing items takes only 15 to 30 seconds, making the process 5 to 8 times more efficient than using manual forklifts.
  • Moving equipment: Letting goods "run away on their own"
Goods within the warehouse are moved using "AGVs (Automated Guided Vehicles)"—these vehicles operate without a driver, navigating via laser, QR codes, and other advanced methods. They follow paths meticulously planned by a central "brain," transporting items from the receiving area to storage racks or from racks to sorting zones. What’s more, AGVs can automatically avoid obstacles, even queue up when necessary, achieving an average daily operational efficiency 2.5 times higher than manual labor.
  • Sorting equipment: Enabling goods to "automatically find their place"
Order sorting is the most time-consuming环节 in a warehouse, and automated warehouses address this challenge with "cross-belt sorters" and "electronic-label picking systems." — The cross-belt sorter can handle 150 to 300 items per minute, automatically sorting goods into the corresponding compartments by scanning and identifying order information. Meanwhile, electronic labels light up to guide pickers to the correct locations, enabling "goods-to-person" picking when paired with AGVs. As a result, the error rate drops dramatically—from 0.5% with manual picking to below 0.01%.
1.2 Fully Automated Process: A "Paperless Closed Loop" from Inbound to Outbound Logistics
Taking "100 cases of beverages being received into and dispatched from the warehouse" as an example, let's see how the "Hardware Legion" collaborates under the command of the "Smart Brain":
  1. After the truck arrives, the unmanned forklift automatically unloads the goods. A barcode scanner then reads the product information and uploads it to the "brain"—the central system, which instructs the AGV to transport the items to the temporary storage area. From there, a stacker crane precisely places the goods onto the high-level racking system.
  1. Storage: The "brain" instantly records the storage location and expiration date of each beverage box, automatically reminding users to follow the "first-in, first-out" principle, ensuring products don’t expire.
  1. Picking: After receiving the order "50 cases of beverages to be picked," the "brain" breaks down the task, dispatching the stacker crane to retrieve items from the shelves. Meanwhile, AGVs transport the goods to the sorting area. The cross-belt sorter then sorts the items according to individual orders, distributing the 50 cases of beverages into the designated "outbound slots."
  1. Outbound: The AGV transports the sorted goods to the outbound station, automatically docking with the delivery truck. The entire process takes just 25 minutes, whereas a traditional manual warehouse would require more than 3 hours.

An intelligent warehouse management system is inevitably highly digitalized.

 

II. Digging Deeper into the "Core": What Exactly Is the "Smart Brain" of Modern Logistics?

If hardware is the "hands and feet" of the warehouse, then the "intelligent brain" is its "central nervous system"—not a single piece of equipment, but rather an integrated system composed of a "management system + data technology," with the core goal of "using data to drive decision-making and enabling devices to work together seamlessly."
2.1 The Brain's "Core Organ": Three Major Systems Keep It Running
The core of the "Smart Brain" consists of three systems, each with its own role yet seamlessly interconnected:
  • WMS (Warehouse Management System): The Warehouse's "Command Center"
WMS is the "decision-making layer" of the "brain," responsible for receiving orders, managing inventory, and formulating operational plans—such as, after receiving 1,000 e-commerce orders, the WMS will automatically analyze the distribution of items across the orders and determine the "optimal picking route," ensuring AGVs avoid retracing their steps. At the same time, it continuously monitors inventory in real time; when a particular item falls below the safety stock level, it automatically triggers a "replenishment alert," preventing stockouts.
  • WCS (Warehouse Control System): The "Dispatcher" for Equipment
WCS is the "executive layer" of the "brain," responsible for translating WMS plans into precise equipment instructions—such as, after the WMS formulates a "stacker crane picking" plan, WCS will specifically instruct the stacker crane to "rise to level 15, move to column 8, and retrieve the item from storage location 3." At the same time, WCS coordinates the movements of AGVs and sorters to prevent any equipment conflicts.
  • IoT (Internet of Things) Systems: The Warehouse's "Sensing Nerves"
The IoT system serves as the "perception layer" of the "brain," responsible for collecting real-time data from devices and goods—by installing sensors on shelves, AGVs, and sorters to continuously gather information such as "stacker crane location," "AGV battery level," and "product temperature and humidity." This data is then uploaded to the WMS/WCS, enabling the "brain" to stay fully informed about the warehouse's status at all times. For instance, if an AGV’s battery drops below 20%, the system automatically instructs it to head straight to the charging station.
2.2 The Brain's "Fountain of Wisdom": AI and Big Data Make Decision-Making More Precise
Having a system alone isn't enough—the "intelligence" of the "smart brain" stems from AI (artificial intelligence) and big data technologies, which enable warehouses to shift from "passive execution" to "proactive optimization."

 

AI-based path optimization: The travel paths of AGVs are calculated in real time by AI. For example, when 10 AGVs simultaneously need to transport goods, the AI will plan "congestion-free routes," ensuring equipment doesn’t queue up in the aisles. As a result, equipment utilization has increased from 65% to 92%.

 

Big Data Demand Forecasting: By analyzing historical order data—such as the fivefold increase in sales of a certain beverage during last year’s “Double 11” event—AI can predict future demand, enabling warehouses to prepare stock in advance and preventing issues like "out-of-stock situations during peak seasons and inventory buildup during off-peak periods." For instance, JD.com’s Asia No.1 warehouse has boosted its replenishment accuracy to 95% thanks to AI-driven forecasting, while also slashing inventory turnover days from 30 to just 12 days.

 

Equipment Predictive Maintenance: The IoT system collects operational data from equipment (such as the motor temperature and vibration frequency of stackers). AI analyzes this data to predict potential failure risks—for example, if the motor temperature deviates unexpectedly—promptly alerting maintenance personnel to perform inspections and repairs. This proactive approach helps prevent sudden equipment downtime, reducing the failure rate by more than 50%.

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III. Finally, let’s look at “Value”: The “Smart Brain” makes warehouses “smarter,” benefiting businesses significantly.

“The smart brain” is not just a fancy display piece—it delivers tangible improvements in efficiency and significant cost reductions for businesses, which is also the core reason behind the widespread adoption of modern logistics.
3.1 Efficiency Boost: From "people waiting for goods" to "goods delivered to people," doubling the speed
  • Task efficiency: The sorting efficiency of the automated warehouse reaches 1,500–3,000 items per hour—30 to 60 times faster than manual processing. Order fulfillment time has been dramatically reduced from the traditional 2–4 hours down to just 20–30 minutes, making "same-day delivery" and "next-day delivery" the new norm.
  • Space efficiency: High-rise, three-dimensional racking systems achieve a storage density 3 to 5 times greater per unit area compared to traditional warehouses. For instance, a 10,000㎡ automated warehouse can store the equivalent volume of goods as a conventional 30,000–50,000㎡ warehouse, helping companies significantly reduce their facility rental costs.
3.2 Cost Reduction: Shifting from "labor-intensive" to "unmanned," significantly cutting expenses
  • Labor Costs: An automated warehouse spanning 10,000㎡ requires only 3 to 5 operators for maintenance, whereas a traditional warehouse would need 20 to 30 workers, resulting in annual labor cost savings exceeding 2 million yuan.
  • Inventory Costs: AI-driven forecasting combined with real-time inventory management boosts inventory turnover by 50%–100% while reducing inventory capital tied up by 30%–50%. After a leading home appliance company introduced its "Smart Brain" system, its inventory capital requirement dropped from 50 million yuan to 25 million yuan. Calculated at a loan interest rate of 4.35%, this has resulted in annual savings of over 1.08 million yuan in funding costs.
3.3 Reduced Error Rate: From "Manual Recording" to "Data Synchronization"—Accurate and Reliable
Traditional warehouses rely on manual recording, resulting in an inventory error rate of 0.5%–1%, often leading to discrepancies between records and actual stock levels. In contrast, automated warehouses achieve an error rate of no more than 0.01%, with every item—whether entering, being stored, or leaving the facility—fully documented for real-time tracking. This ensures that issues like "lost or misrouted products" are effectively prevented. For instance, after implementing an automated warehouse, a pharmaceutical company reduced its drug-picking error rate from 0.3% to a mere 0.005%, fully meeting GMP certification standards.
3.4 Case Study: JD.com's Asia No.1 "Smart Brain"
JD Asia No.1 Wuxi Smart Industrial Park is a leading benchmark for automated warehouses in China:
  • Core configuration: 15-meter-high automated立体 shelving, 1,000 AGVs, and 5 cross-belt sorters, paired with a self-developed "Smart Brain" system.
  • Operational Performance: The single warehouse can now handle over 200,000 orders per day—four times the capacity of traditional warehouses of similar size. Sorting error rate is a remarkable 0.01%, with inventory turnover occurring in just 12 days.
  • Labor Comparison: A traditional warehouse requires 200 people to handle 200,000 orders, while Asia No.1 needs only 30 workers, resulting in an 85% reduction in labor costs.

 

“The Smart Brain” isn’t the future—it’s the present.

From "manual warehouses" to "automated warehouses," the fundamental shift lies from being "experience-driven" to "data-driven"—and at the heart of this transformation is the "intelligent brain." Today, it’s no longer "exclusive to large enterprises"—as technology costs decline, smaller and medium-sized businesses are also embracing "lightweight smart warehouses" (such as a 500㎡ automated storage system paired with a basic WMS), enabling more companies to reap the benefits of "automated operations."
 
In the future, as technologies such as digital twins (simulating warehouse operations on computers), 5G (enabling more real-time device communication), and robotic vision (for more precise item recognition) converge with the "smart brain," warehouses will further achieve "fully automated processes" and "self-optimization," becoming smarter and more efficient "core hubs" within the modern logistics supply chain.
 

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