How the right combination of people and technology can transform retail
Few sectors have felt disruption as acutely as retail. With volatile demand, labour shortages and rising costs, retail supply chains are buckling under pressure, especially when seasonal peaks hit. Scott Merrick discusses how technology can help and how it interplays with employees.
IN FACT, our latest research revealed 68% of retail and eCommerce leaders say workforce issues are the biggest blocker to scaling during seasonal surges.
And while many businesses may respond by turning to robotics and automation, they often do so as a bandage, not a blueprint. The true opportunity lies in not replacing people, but in designing smarter, more resilient operations that bring the right mix of people and technology together.
Amplify – not replace
Automation is often treated as a one-off capital investment – a hardware-heavy fix to rising labour costs. Yet automation, when done right, is not about replacing people: it’s about amplifying them.
In many of today’s warehouses, autonomous mobile robots (AMRs) handle repetitive or physically demanding tasks like transporting goods or navigating complex warehouse layouts. This allows staff to focus on higher-value roles like quality control or inventory oversight, boosting productivity while improving job satisfaction for warehouse staff by making day-to-day work less physically taxing and more engaging.
Meanwhile, technologies such as pick-to-light systems and robotic arms streamline workflows, reduce errors, and support speed and accuracy – especially during seasonal peaks. The result? A smarter and transformative system which turbocharges supply chain efficiency and elevates the customer experience.
But true efficiency doesn’t come from simply adding robots. Without strategic integration across systems and teams, automation becomes fragmented and expensive. Businesses often address isolated issues with narrow fixes, leading to inefficiencies, costly maintenance, and missed opportunities. Digital duct tape won’t cut it.
Automation demands collaboration
One of the biggest misconceptions about warehouse automation is that it is purely a tech investment. In reality, it demands collaboration – not just between software and machines, but between operations, IT, and the C-suite.
Inteq’s research found that over half (56%) of retailers believe their existing fulfilment operations have negatively affected their ability to grow as a business and 91% feel that labour challenges are impacting performance. As a result, nearly 9 in 10 believe robotics would improve fulfilment. But too often, decision-making is siloed: strategic ambitions at the top are disconnected from operational realities in the warehouse.
Before jumping into automation solutions, it’s critical to first understand the overarching business goals and strategy. Only then can organisations identify the right mix of people, processes and technology to support those aims, whether it’s scaling volumes, supporting customers with a better experience or processing orders faster.
By bringing together the C-suite and supply chain leaders, businesses can build solutions that are flexible, scalable, and fit for purpose marrying their expertise with the strategic aims of the business. In coming together and finding the right mix of people and technology, these collaborative teams can grow the performance of the organisation exponentially.
A great example of the success of an integrated approach is our work with a global fashion retailer, who partnered with Inteq to pilot autonomous mobile robots (AMRs) for returns processing at its UK distribution hub.
Over three years, the retailer expanded this into a full-scale deployment, adding 40 AMRs, 1,000 modular pick-walls, and 12 pick-to-light stations to transform its womenswear operations.
Together we tripled returns put-away rates, 99% of returns processed within 24 hours, double the picking efficiency, and 99.9% accuracy – all while improving storage density and scaling flexibly with minimal infrastructure changes.
Getting the right mix of people and machines
Every solution will be tailored to the specific needs of business. Sometimes that means using ready-made systems, other times it means adapting and integrating existing ones. The goal is technology that works seamlessly with your operations – not the other way around.
A wider perspective is needed. True success relies on more than just the right mix of machines in the warehouse. It requires seamless connectivity across the wider business, as part of an integrated, company-wide ecosystem, that has people at its centre.
Get this right and you’re set up for the long-term, able to continually evolve warehouse solutions to meet new demands at any point in the future. Flexible technology that can adapt to your business’ changing software and hardware needs is key to staying agile, scalable, and free from the limitations of a single system or provider – especially as new technology emerges.
Periods of lower consumer demand, which many retailers are experiencing today, offer a golden window to implement strategic changes. Volumes will undoubtedly rise again. But the cost of standing still is also rising: a more manual warehouse means higher labour costs, more errors, and less agility when demand spikes again.
The logistics winners of tomorrow won’t be the ones who install the most machines – they’ll be the ones who focus on the right blend of people and tech and ensure everything integrates seamlessly. Doing so will create operations that are more productive, more resilient and ready for whatever comes next.
Scott Merrick, managing director, Inteq
Scott Merrick was appointed managing director of Inteq, a leading integrator of automation and robotics technology, in 2024. He is focused on engineering smarter businesses, by bringing together the right combination of people, software and hardware for Inteq’s customers. Scott has worked for 20+ years in supply chain technology and continues to be focused on demystifying automation and helping organisations revolutionise their performance.
He was formerly Product Director, Automation & Robotics, at Wincanton, which acquired Inteq, formerly Invar Group, in 2024, where he ensured products were deployed rapidly and at scale for customers. He previously held the role of Chief Information Officer at Cygnia Logistics for 17 years, where he led an agile and rapid capability for customers. Wincanton acquired Cygnia in 2021.
