DHL, UPS & FedEx: How Automation is Reshaping Warehouses & the Future of Work

by Chief Editor

The Rise of the Robot Workforce: How Automation is Reshaping Logistics

DHL Autonomous Robot at function.

Source: DHL

For years, warehouse workers at companies like DHL have faced a grueling daily routine, walking distances comparable to a half marathon simply to classify, pick, and move items. Now, that’s changing. Autonomous mobile robots are increasingly taking on these physically demanding tasks, unloading containers at speeds of up to 650 cases per hour and dramatically altering the landscape of logistics.

From 240 to 10,000: The Scaling of Automation

DHL’s journey with automation began in 2020 with 240 projects. Today, the company has scaled to over 10,000 automation projects globally. This rapid expansion reflects a broader industry trend toward embracing technology to address labor challenges and improve efficiency. Across 95% of DHL’s global warehouses, autonomous innovations are accelerating processes. Item-picking robots have increased units picked per hour by 30%, while autonomous forklifts have boosted efficiency by 20%.

Beyond DHL: A Sector-Wide Shift

DHL isn’t alone. United Parcel Service (UPS) deployed automation in 57 buildings in the fourth quarter, bringing its total to 127 automated facilities, with plans for 24 more in 2026. They anticipate that 68% of U.S. Volume will be processed through automated facilities by the finish of 2026, up from 66.5% at the end of 2025. FedEx is also investing heavily, seeing automation as an opportunity to enhance worker roles, installing robotic arms to process small packages and launching a fully autonomous robot to unload containers.

A worker unloads packages from a FedEx truck in San Francisco, California, US, on Wednesday, Dec. 17, 2025.

David Paul Morris | Bloomberg | Getty Images

The Human Element: Augmentation, Not Replacement

Despite the rise of robots, the future isn’t about eliminating human workers. DHL’s global head of digital transformation emphasizes that automation is intended to complement human labor. Even with the deployment of 8,000 collaborative robots worldwide, DHL still hired 40,000 people. The dexterous tasks of packaging and shipping remain firmly in the hands of employees.

This sentiment is echoed by industry experts. The focus is shifting toward reskilling the workforce for more technical roles, rather than widespread job losses. The global warehouse automation market is expected to exceed $51 billion by 2030, driving demand for skilled professionals who can manage and maintain these advanced systems.

Addressing the Labor Gap

Automation also helps address a critical challenge: a shortage of skilled workers in the logistics sector. Companies face competition for warehouse personnel based on pay, benefits, and lifestyle. Automation can help bridge this gap, augmenting the existing workforce and improving overall efficiency.

DHL Autonomous Forklift at work.

Source: DHL

The Future Isn’t Humanoid… Yet

While humanoid robots are gaining attention, particularly after showcases at events like CES, they aren’t yet poised to dominate warehouses. The current trend focuses on specialized robots designed for specific tasks, like item picking and container unloading. Companies are prioritizing increasing supply chain efficiency and warehouse execution processes over complete automation with humanoid robots.

Investment and the Path Forward

Investment in automation is rising, with a focus on improving efficiency rather than simply replacing people. Accenture estimates that 51% of factories globally expect to have fully automated warehouses by 2040, and 70% of transportation logistics executives consider autonomous supply chains a top investment priority. However, most companies are starting from scratch, and realizing the full benefits of these investments will accept time.

FAQ

Q: Will automation lead to widespread job losses in logistics?
A: The current trend is toward augmenting the workforce, not replacing it. Companies are focusing on reskilling employees for more technical roles.

Q: What types of automation are being implemented in warehouses?
A: Common applications include autonomous mobile robots for item picking and container unloading, as well as autonomous forklifts.

Q: How large is the warehouse automation market expected to become?
A: The global warehouse automation market is projected to exceed $51 billion by 2030.

Q: What is the role of unions in the face of increased automation?
A: Unions are focused on ensuring that technology supports workers and does not work against them, advocating for their members and holding companies accountable.

Pro Tip: Consider investing in training programs for your workforce to prepare them for the skills needed to manage and maintain automated systems.

What are your thoughts on the future of automation in logistics? Share your comments below!

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