While you might be wondering about how automation is impacting logistics, or looking for the best ways to implement AI into your trucking business, these aren’t the only technologies providing value to the industry.
In fact, many of the technologies powering US freight have been overlooked by flashier counterparts, including route optimization software and warehouse robotics. Both have made significant gains for companies in terms of productivity, safety, and even sustainability.
Below, we outline the technologies and how they are are quietly turning the fortunes of the logistics industry, with expert-led insight and data.
The Unsung Tech Heroes of Modern Freight
According to Tech.co’s 2025 Logistics Report, 73% of logistics companies reported that technology has helped them address workforce shortages. Likewise, 29% of respondents said that they have actively implemented technology or automation to reduce reliance on drivers.
As the ongoing driver shortage continues to slow down businesses and the industry as a whole, our findings point to new and existing technology as well-positioned to tackle its effects.
In this article, we’ll be exploring warehouse robotics and route optimization software and the benefits they have brought to the logistics industry.
Warehouse Robotics: How Does It Work?
15% of logistics companies have adopted warehouse robotics recently, according to the latest Tech.co data. Robots are designed to assist in general warehouse processes, often resulting in higher efficiency and lower costs.
The robots use sensors and cameras to navigate the warehouse space, either following pre-determined paths or moving freely to adapt to changes in their environment. They are able to maneuver around obstacles and identify goods, as well as collaborate alongside human workers and sometimes, other robots themselves.
Robots are connected to a central software, where they are able to receive updates and instructions. Some companies will use AI to analyze the behavior of the robots and optimize them over time.
Route Optimization: How Does It Work?
Route optimization software works to improve the processes surrounding deliveries, ensuring efficiency, safety, and improved costs by finding and evaluating the best possible route for drivers to take.
Our latest data showed that 51% of logistics companies have recently adopted route optimization software, and 87% said that routing software has helped significantly or somewhat in their overall business operations.
For Sangam Reddy, Group Executive Vice President for Port and Terminal Systems at DP World, route optimization sits at the centre of the company’s model, “giving planners a single window across ports, vessels, trucks, and rail”.
The software works by analyzing potential constraints to the delivery process, including deadlines and traffic patterns. Routes are then planned, and managed in real-time so managers can view daily progress and reduce delays. At the end, data is collected into reports that highlight key performance metrics, and actionable insights are offered.
How ‘Quiet Tech’ is Delivering Big Gains
Here are the ways these tech solutions are helping today’s logistics businesses.
Improving Productivity and Efficiency
Warehouse robotics
A recent survey from IDC found that the majority of commercial service robotic projects delivered strong improvements in productivity, efficiency, and capacity.
It goes without saying that robots can work a lot longer than humans. They often operate 24/7 and improve with each task they carry out, due to a steady flow of performance insight and review.
Therefore, using robots means that tasks can be done faster and more efficiently, and they can be done around the clock – making a company more productive.
Route optimization software
The routes planned by the software are specifically designed to improve efficiency and productivity. The software can plan ahead based on current data, and because results are managed live, obstacles such as roadworks or collisions can be monitored and avoided.
According to Reddy, the software “reduces empty miles”, keeping “assets productive” as they make their way to their desination. Likewise, he reports that use of the software has results in “40% less production downtime”.
Enhancing Safety
Warehouse robotics
Robots are able to take on the tasks that could be dangerous to warehouse workers. For example, they can carry heavy loads and reach tall heights, causing less injuries to human workers who would otherwise have to carry these out.
Route optimization software
Most software can easily identify safe routes for drivers to take, by consistently monitoring the state of the road.
Likewise, by increasing efficiency, drivers are able to complete their journey more quickly and are therefore less likely to get tired carrying out long journeys. This will result in fewer accidents from tired drivers, who are less able to stay alert.
Managers are also able to keep an eye on their drivers and monitor their driving situations, helping to keep them updated if a situation becomes dangerous.
Saving Costs
Warehouse robotics
There is the potential for reduced errors when robots are programmed to carry out a role in a specific, effective way. Reduced errors altogether could mean fewer returns from clients.
There’s also potential to save on real estate, too. Robots can move through much tighter spaces than human-operated machines like forklifts, while automated storage and retrieval systems (AS/RS) can help businesses optimize how they’re using their space and increase storage over the same footprint.
Implementing robots into your warehouse could also result in reduced labor costs, although upfront costs could still be high initially when getting set up with the technology. Likewise, keeping your robots running can also be expensive, especially if you are dealing with complex or delicate goods.
Whether or not robots can be truly cost-effective depends on your business, its budget and operations.
Route optimization software
By providing efficient and productive routing, fuel consumption will decrease, and managers can expect less wear and tear on vehicles that have taken longer journeys.
More efficient routes also mean more deliveries can be made in a day, increasing a company’s turnover.
Sangam Reddy reports that his company have seen “up to a 30% drop in miles travelled and 35% fewer empty backhauls”, savings which “improve fleet availability, lower fuel costs, and reduce emissions”.
Samsara’s AI-powered route optimization, as part of its fleet management offering. Source: Samsara
Increasing Employee Satisfaction
Warehouse robotics
The speed and efficiency at which robots can work means they can take a lot of the more repetitive and autonomous tasks from the human warehouse workers. This frees up human workers to focus on other elements of the warehouse, leaving them more satisfied with their work.
Increased safety also means that warehouse workers will be less anxious about injuring themselves, improving how they feel at work, and they’ll experience less strain from doing the physical tasks that robots can do. This will contribute to a nicer working experience.
Route optimization software
Safer drivers means happier, and less anxious, drivers. They will be able to complete their journeys more efficiently, which will improve satisfaction levels.
With route optimization software, driver schedules can similarly be more easily managed, allowing drivers to have a clear understanding of their output and preventing over-working.
Encouraging Sustainable Practices
Warehouse robotics
Automated systems can be set-up to only operate when necessary, using up fewer warehouse resources.
Improved efficiency will also reduce energy use, and because robots can identify damaged or expired goods, waste can be minimized and easily disposed of.
Route optimization software
Distance minimization and vehicle usage optimization methods within the software helps companies reduce their carbon footprint, setting them up for a more sustainable future.
According to Sangam Reddy, DP World’s CARGOES Flow system “can cut route-level CO₂ without adding transit time”. This data has helped in the company’s efforts to “slash Scope 1 & 2 emissions 87% since 2021, putting the site on course for operational net-zero in 2025.”
Technology Continues to Lift Heavy in Logistics
As Sangam Reddy says: “When capacity is tight, knowledge beats guesswork”.
Technology is able to provide knowledge and insights for logistics companies when old practices are no longer as effective. Particularly, as freight demand remains high, with Tech.co finding that 85% of logistics businesses are operating at near full capacity.
In terms of what Reddy sees next for route optimization, he says: “The next chapter is orchestration: algorithms that weigh time, cost, capacity and carbon simultaneously”.
Regardless, both technologies will continue to make a big impact on the industry as it heads into a new, but forward-thinking future.