Automation in internal logistics: strategic and operational challenges

Automation in internal logistics is an enabler to increase overall competitiveness in an organisation. However, its use is currently limited. The main objective of this paper is to highlight the existing strategic and operational challenges to using and developing automation in internal logistics. A three‐phased empirical study has been conducted, including case studies and a survey. The findings reveal a lack of responsibility for, and insight in current state of logistics operations as well as a lack of vision and strategy giving directions for desired future state of operations. In addition, the actual automation projects are hindered by poorly defined and supported processes. It is concluded that functional strategies for internal logistics and automation can give the support needed along with process models for automation projects. The content and application of these strategies and models are suggested.