Detailed Guide to Automated Warehouse Picking Systems for 2025

While your team is still walking aisles, your competitors are cutting pick times in half with automation. Guess who’s shipping faster and stealing market share?

Automation isn’t the future anymore. It’s the present. For growing eCommerce brands or fulfillment centers under pressure to deliver faster, cheaper, and more accurately, automated warehouse picking systems are no longer a luxury. They’re a necessity.

In this guide, you’ll learn how automated picking systems work, the types available, how to choose the right one, and how ShipHero can help you streamline fulfillment processes with confidence.

What Are Automated Warehouse Picking Systems?

Automated warehouse picking systems use software, robotics, and real-time data to locate, retrieve, and prepare items for shipment, without relying solely on human labor. Instead of employees walking long distances and manually selecting items, automated systems bring items to workers or direct them with tools like lights, voice commands, or mobile robots.

For example, in the eCommerce space, brands use Goods-to-Person (GTP) systems to increase operational efficiency and efficiently handle large catalogs of SKUs. In retail, where seasonal order surges can overwhelm manual processes, automated solutions help companies double their picking speed and maintain consistent fulfillment even during peak demand.

How Does An Automated Picking System Work?

The process is surprisingly seamless:

1. An order is received from your store (e.g., Shopify, Amazon).
2. Your WMS (like ShipHero) routes the order.
3. The picking system (robot, light, voice, etc.) guides or performs the retrieval.
4. Items are packed and shipped.

This flow is driven by smart software that integrates with warehouse management systems and supports key warehouse processes, including picking, packing, and tracking real-time inventory.

Want a deeper look at the tech behind it? Read this guide on warehouse automation software.

Types of Automated Picking Solutions

There’s no universal solution for warehouse automation. The best picking system depends on your space, order volume, and the variety of products you offer. Some work better for high-SKU, high-volume operations; others are ideal for smaller, more focused setups. Below, we break down the top systems and which warehouse types they’re best suited for.

Goods-to-Person (GTP) Systems

GTP systems deliver inventory directly to a stationary picker, eliminating walking marathons. This setup enhances inventory management, reduces physical strain on workers, and improves worker safety. 

It also optimizes order accuracy by minimizing human error. By minimizing walking time and keeping pickers in one place, GTP systems significantly boost pick rates while also cutting down on labor fatigue.

Pick-to-Light Systems

Pick-to-Light is an automated solution that uses LED light bars to guide workers to the right location for picking items, enhancing accuracy, speed, and efficiency while reducing errors.

When paired with Pack-to-Light and Receive-to-Light, your entire workflow is streamlined. Pack-to-Light ensures precise packing, while Receive-to-Light optimizes inventory storage and retrieval. Together, these technologies simplify inventory management, reduce labor costs, and accelerate fulfillment.

At ShipHero, we offer all three solutions, Pick-to-Light, Pack-to-Light, and Receive-to-Light, under one roof, seamlessly integrating with your existing systems to optimize warehouse operations. The combination can help boost efficiency by 20% while also cutting costs by up to 30% for batches of 10 to 30 orders.

Voice Picking Systems

Pickers wear headsets and follow voice commands to locate items, like a GPS for your warehouse. This hands-free approach automates repetitive tasks, shortens training time, and reduces picking errors, even in noisy environments. It also improves accuracy, even in noisy environments where traditional methods might fall short.

Autonomous Mobile Robots (AMRs)

AMRs, or autonomous mobile robots, navigate the warehouse floor independently, delivering items or bins to human workers or packing stations. 

Unlike fixed systems, AMRs offer greater flexibility and adapt to varying warehouse sizes, support scalable operations, and offer the flexibility to grow without major infrastructure changes. They’re also highly scalable, which makes them a smart choice for warehouses looking to grow or adjust operations without major infrastructure changes.

Automated Storage and Retrieval Systems (AS/RS)

These are high-tech racking systems equipped with robotic cranes or shuttles that automatically store and retrieve inventory. They’re especially well-suited for large warehouses with high inventory turnover, where speed and space efficiency are critical. 

Businesses that need to maximize vertical storage find these systems invaluable, and industries such as pharmaceuticals, automotive, and electronics often benefit the most from their precision and scalability.

Benefits of Automated Order Picker

Still not convinced? The real-world benefits speak for themselves. Automation significantly reduces human error, particularly in fast-paced warehouse environments where accuracy is crucial. It also speeds up fulfillment, often cutting pick times in half or more. 

By streamlining operations, businesses can lower labor costs by either reducing headcount or reassigning team members to more valuable tasks. 

By transitioning to automation, companies often see dramatic improvements in efficiency and cost savings. For example, automation can reduce warehouse labor costs by up to 60%, allowing businesses to reallocate resources and scale more effectively. 

Challenges of Using an Automated Picking System

It’s not always smooth sailing when implementing automated picking systems. One of the biggest hurdles is the high initial investment, as hardware, software, and integration can come with a steep upfront cost. 

Staff training is another challenge, as teams need time to learn how to use the new technology effectively. There can also be short-term disruption; installation and onboarding may temporarily slow down operations. But the long-term gains are often worth it. 

For example, James Enterprise struggled with paper-based picking and processing delays before switching to ShipHero’s Warehouse Management System. 

The transition required workflow changes and staff training, but with proper planning, such as going paperless, reorganizing their layout, and utilizing smart pick paths, they boosted productivity by 38%. New hires cut their pick time from 55 to 34 seconds in just five days, proving that smart automation pays off.

How to Choose the Right Automated Order Picking System

Finding the right automated picking system starts with understanding your specific needs. Warehouse size plays a big role, as larger spaces often benefit most from solutions like AMRs or AS/RS that can cover more ground efficiently. If your business manages a high variety of SKUs, systems like GTP or voice picking can offer the flexibility and accuracy you need. 

For those working with tighter budgets, starting with light-based or voice-guided systems can provide a solid foundation without breaking the bank. Regardless of your starting point, scalability is crucial; your system should be able to grow in tandem with your business. Partnering with ShipHero ensures you get expert, customized guidance and future-proof solutions designed specifically for your operation.

Best Practices for Successful Warehouse Picking Automation

Implementing warehouse picking automation isn’t just about installing new tech; it’s about doing it strategically. To get the most out of your investment and avoid common pitfalls, follow these proven best practices:

Best Practices for Successful Warehouse Picking Automation

• Set clear goals. Know what success means—faster picks, lower costs, or better accuracy.
• Train your team. Ensure staff are confident in using the new tools.
• Monitor performance. Track KPIs, such as error rates and pick speed, to identify issues early.
• Start small. Test automation in one area before scaling across the warehouse.

For example, Black Wolf Nation and its 3PL arm, ONE23 Fulfillment, partnered with ShipHero to scale their operations. By adopting ShipHero’s warehouse management software, they increased their order volume from 10,000 to over 25,000 per month in less than a year. This strategic implementation allowed them to efficiently manage growth and expand into the 3PL space.

Key Takeaways

• Automated picking systems boost warehouse efficiency, accuracy, and cut labor costs by up to 60%.
• Choosing the right system depends on your space, SKU variety, and growth goals.
• Strategic implementation, including starting small, training teams, and tracking performance, is crucial to achieving long-term success.

Frequently Asked Questions

What is the Average ROI Timeframe for Automated Picking Systems?

Most companies see a return on investment within 12 to 24 months, depending on the system and order volume.

Are Automated Systems Suitable for Small Warehouses?

Yes. Many automated systems are designed to be scalable and cost-effective, which makes them ideal for small warehouses. Solutions like Pick-to-Light and voice picking can start small and expand as your operation grows.

Can Automated Picking Systems Handle Fragile or Irregularly Shaped Items?

Yes. Advanced systems feature adjustable grippers, sensors, and packaging logic to safely handle delicate or irregularly shaped products.