Beyond toys and troops: the potential role of drones in the warehouse
With their ability to be “eyes in the sky,” drones can help automate many repetitive, time-consuming, and potentially dangerous activities in the warehouse.
Drones have captivated our imagination in various ways, from being recreational toys to military weapons. Meanwhile, prominent corporations like Amazon and Walmart are already experimenting with using drones to deliver products to customers. However, their potential goes far beyond these realms, as they have also found invaluable applications in the dynamic and demanding environment of the modern warehouse. Through the integration of cutting-edge sensors, high-resolution cameras, and advanced processing equipment, drones are proving to be essential allies in the quest for increased efficiency and enhanced productivity within warehouse operations.
Drones and the modern warehouse
What unifies all warehouses is their shared characteristics of being vast, bustling, and frequently crowded. Today’s warehouses are bigger and more complex than ever. As the demand for e-commerce products skyrockets, the average size of a warehouse has ballooned to accommodate consumer preferences. The typical warehouse is around 50,000 square feet, with some extending to as big as 4 million square feet. Warehouses have grown up as well as out. Some have implemented mezzanines that use their vertical space, and others have narrow aisles to maximize shelving.
Given this busy and complex environment, there may initially be some concern about using drones in the warehouse. After all, we’ve all seen toy drones that end up in a neighbor’s tree. So, will warehouse drones get lost in the storage racks or, worse, crash into workers below? Ideally not. Like autonomous mobile vehicles (AMVs), these more sophisticated drones are equipped with navigation technology that allows the unit to avoid obstacles. These small, but mighty machines are capable of autonomous navigation, allowing them to move efficiently within a warehouse without the need for constant human intervention. Drones can also save time by quickly flying across a large warehouse or up to hard-to-reach spaces to find specific products. In this way, they can reduce the amount of time employees spend walking across a warehouse floor or searching for items. Humans no longer would have to climb tall ladders to inspect products and risk injuries. Instead, they can stay safely on the ground and review data collected by a drone. Furthermore, drones can be equipped with sophisticated sensors, cameras, and readers to detect RFID tags and barcodes as well as temperature, possible safety concerns, and any unusual activity. In addition, software algorithms can be used to deliver the insights that make these solutions useful for businesses.
Four use cases
As a result of this level of sophistication, there are many compelling use cases for drones in the warehouse. Below are four main ways drones are already being used to support the warehouse industry.
1. Inventory management:Proper inventory management is critical in the warehouse industry. It is the process of accounting for, ordering, and organizing product stocks to ensure items on hand are in good shape (that is, not damaged or expired) and of sufficient quantity to fulfill anticipated needs. However, manual inventory control can be prone to human error and costly in terms of labor and potential mistakes.
Instead of having workers go around the warehouse counting items and scanning barcodes by hand, drones can perform stocktaking, inventory audits, and cycle counting more efficiently and more accurately. Equipped with an RFID scanner, a drone is capable of wirelessly reading the information on the RFID tags attached to warehouse inventory. This allows drones to count, record, and relay RFID data en masse. Drones can confirm the correct items are where they should be, keep track of stock levels, and search for items that are listed as out of stock or missing.
Drones can also be used for item searches. Searching for products during the picking process is one of the most time-consuming and costly activities in a warehouse. A drone camera can perform these searches seamlessly and report back to human workers.
2. Inspections: Any business environment that gets constant use, such as a warehouse, will also be prone to frequent wear and tear. A broken shelf, dislocated stair rail, or cracked flooring can create a serious safety hazard. A damaged piece of equipment can stall operations and cost the company time and money.
Traditionally, detailed inspections in the warehouse would be done in person, with a manager walking through the aisles examining key equipment, racks, floors, walls, and ceilings. Drones can automate and speed up the inspection process. For example, a drone can fly through the warehouse to capture visual data for managers to review later. Even better, artificial intelligence (AI) solutions can take an initial pass at that data and identify potential areas of concern in real time. In this way, drones can alert management of serious safety hazards, helping them to avoid machinery breakdowns or serious accidents on the warehouse floor while also freeing them up to perform more value-added activities.
3. Indoor intralogistics: Warehouses are busy facilities where smaller items are constantly being moved and relocated from one area to another. Drones can assist with these intralogistics tasks. Even though most drones are used for tracking inventory and are only equipped with a camera, some drones can include mechanical grippers (similar to robotic arms), magnetic grippers, vacuum systems, claw or clamp mechanisms, or a payload release system. As drone technology continues to evolve, human workers will still need to load and assist products onto drones, but once the item is loaded, a drone can fly autonomously through a warehouse without the need for human navigation. For example, a drone can transport a machine part to the area of the warehouse where a repair is taking place. Drones can also move small products for fulfillment activities. To be sure, the gripping, payload, and navigation capabilities of today’s drones remain limited, but these applications are certain to expand in the future.
4. Surveillance and security:As mentioned earlier, warehouses can be massive buildings. Many of them are full of expensive equipment and products, making them attractive targets for thieves. Having security measures in place is essential. Fortunately, drones can fly through a warehouse 24/7 and provide a live feed for security staff to watch from a central location. Alternatively, AI-enabled software can analyze the video footage produced by a drone to alert owners of any unusual activity.
Leveraging the power of drones
The field of warehousing offers significant potential for the integration of new technological solutions, which can enhance efficiency and provide a competitive edge to businesses. The implementation of drone technology in warehouses offers several key benefits. Not only can drones perform repetitive, time-consuming tasks, like inventory counting and inspections, faster and more accurately than humans, they also can take dangerous tasks off workers’ shoulders. Instead of having employees conduct inspections in potentially dangerous areas, drones can be used. Drones also can be used to reach products on high shelves, so workers don’t have to make the climb.
By leveraging the power of these aerial devices and other automation tools, warehouses can optimize processes across multiple facets of operations, ultimately elevating their overall performance and results.
Business software vendor Cleo has acquired DataTrans Solutions, a cloud-based procurement automation and EDI solutions provider, saying the move enhances Cleo’s supply chain orchestration with new procurement automation capabilities.
According to Chicago-based Cleo, the acquisition comes as companies increasingly look to digitalize their procurement processes, instead of relying on inefficient and expensive manual approaches.
By buying Texas-based DataTrans, Cleo said it will gain an expanded ability to help businesses streamline procurement, optimize working capital, and strengthen supplier relationships. Specifically, by integrating DTS’s procurement automation capabilities, Cleo will be able to provide businesses with solutions including: a supplier EDI & testing portal; web EDI & PDF digitization; and supplier scorecarding & performance tracking.
“Cleo’s vision is to deliver true supply chain orchestration by bridging the gap between planning and execution,” Cleo President and CEO Mahesh Rajasekharan said in a release. “With DTS’s technology embedded into CIC, we’re empowering procurement teams to reduce costs, improve efficiency, and minimize supply chain risks—all through automation.”
And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.
One of the biggest targets for innovation spending will artificial intelligence, as supply chain leaders look to use AI to automate time-consuming tasks. The survey showed that 41% are making AI a key part of their innovation strategy, with a third already leveraging it for data visibility, 29% for quality control, and 26% for labor optimization.
Still, lingering concerns around how to effectively and securely implement AI are leading some companies to sidestep the technology altogether. More than a third – 35% – said they’re largely prevented from using AI because of company policy, leaving an opportunity to streamline operations on the table.
“Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage,” Kristi Montgomery, Vice President, Innovation, Research & Development at Kenco, said in a release. “Now’s the time for organizations to explore and experiment with the tech, especially for automating data-heavy operations such as demand planning, shipping, and receiving to optimize your operations and unlock true efficiency.”
Among the survey’s other top findings:
there was essentially three-way tie for which physical automation tools professionals are looking to adopt in the coming year: robotics (43%), sensors and automatic identification (40%), and 3D printing (40%).
professionals tend to select a proven developer for providing supply chain innovation, but many also pick start-ups. Forty-five percent said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
there’s room to grow in partnering with 3PLs for innovation: only 13% said their 3PL identified a need for innovation, and just 8% partnered with a 3PL to bring a technology to life.
Even as a last-minute deal today appeared to delay the tariff on Mexico, that deal is set to last only one month, and tariffs on the other two countries are still set to go into effect at midnight tonight.
Once new U.S. tariffs go into effect, those other countries are widely expected to respond with retaliatory tariffs of their own on U.S. exports, that would reduce demand for U.S. and manufacturing goods. In the context of that unpredictable business landscape, many U.S. business groups have been pressuring the White House to pull back from the new policy.
Here is a sampling of the reaction to the tariff plan by the U.S. business community:
American Association of Port Authorities (AAPA)
“Tariffs are taxes,” AAPA President and CEO Cary Davis said in a release. “Though the port industry supports President Trump’s efforts to combat the flow of illicit drugs, tariffs will slow down our supply chains, tax American businesses, and increase costs for hard-working citizens. Instead, we call on the Administration and Congress to thoughtfully pursue alternatives to achieving these policy goals and exempt items critical to national security from tariffs, including port equipment.”
Retail Industry Leaders Association (RILA)
“We understand the president is working toward an agreement. The leaders of all four nations should come together and work to reach a deal before Feb. 4 because enacting broad-based tariffs will be disruptive to the U.S. economy,” Michael Hanson, RILA’s Senior Executive Vice President of Public Affairs, said in a release. “The American people are counting on President Trump to grow the U.S. economy and lower inflation, and broad-based tariffs will put that at risk.”
National Association of Manufacturers (NAM)
“Manufacturers understand the need to deal with any sort of crisis that involves illicit drugs crossing our border, and we hope the three countries can come together quickly to confront this challenge,” NAM President and CEO Jay Timmons said in a release. “However, with essential tax reforms left on the cutting room floor by the last Congress and the Biden administration, manufacturers are already facing mounting cost pressures. A 25% tariff on Canada and Mexico threatens to upend the very supply chains that have made U.S. manufacturing more competitive globally. The ripple effects will be severe, particularly for small and medium-sized manufacturers that lack the flexibility and capital to rapidly find alternative suppliers or absorb skyrocketing energy costs. These businesses—employing millions of American workers—will face significant disruptions. Ultimately, manufacturers will bear the brunt of these tariffs, undermining our ability to sell our products at a competitive price and putting American jobs at risk.”
American Apparel & Footwear Association (AAFA)
“Widespread tariff actions on Mexico, Canada, and China announced this evening will inject massive costs into our inflation-weary economy while exposing us to a damaging tit-for-tat tariff war that will harm key export markets that U.S. farmers and manufacturers need,” Steve Lamar, AAFA’s president and CEO, said in a release. “We should be forging deeper collaboration with our free trade agreement partners, not taking actions that call into question the very foundation of that partnership."
Healthcare Distribution Alliance (HDA)
“We are concerned that placing tariffs on generic drug products produced outside the U.S. will put additional pressure on an industry that is already experiencing financial distress. Distributors and generic manufacturers and cannot absorb the rising costs of broad tariffs. It is worth noting that distributors operate on low profit margins — 0.3 percent. As a result, the U.S. will likely see new and worsened shortages of important medications and the costs will be passed down to payers and patients, including those in the Medicare and Medicaid programs,” the group said in a statement.
National Retail Federation (NRF)
“We support the Trump administration’s goal of strengthening trade relationships and creating fair and favorable terms for America,” NRF Executive Vice President of Government Relations David French said in a release. “But imposing steep tariffs on three of our closest trading partners is a serious step. We strongly encourage all parties to continue negotiating to find solutions that will strengthen trade relationships and avoid shifting the costs of shared policy failures onto the backs of American families, workers and small businesses.”
In a statement, DCA airport officials said they would open the facility again today for flights after planes were grounded for more than 12 hours. “Reagan National airport will resume flight operations at 11:00am. All airport roads and terminals are open. Some flights have been delayed or cancelled, so passengers are encouraged to check with their airline for specific flight information,” the facility said in a social media post.
An investigation into the cause of the crash is now underway, being led by the National Transportation Safety Board (NTSB) and assisted by the Federal Aviation Administration (FAA). Neither agency had released additional information yet today.
First responders say nearly 70 people may have died in the crash, including all 60 passengers and four crew on the American Airlines flight and three soldiers in the military helicopter after both aircraft appeared to explode upon impact and fall into the Potomac River.
Editor's note:This article was revised on February 3.
GE Vernova today said it plans to invest nearly $600 million in its U.S. factories and facilities over the next two years to support its energy businesses, which make equipment for generating electricity through gas power, grid, nuclear, and onshore wind.
The company was created just nine months ago as a spin-off from its parent corporation, General Electric, with a mission to meet surging global electricity demands. That move created a company with some 18,000 workers across 50 states in the U.S., with 18 U.S. manufacturing facilities and its global headquarters located in Massachusetts. GE Vernova’s technology helps produce approximately 25% of the world’s energy and is currently deployed in more than 140 countries.
The new investments – expected to create approximately 1,500 new U.S. jobs – will help drive U.S. energy affordability, national security, and competitiveness, and enable the American manufacturing footprint needed to support expanding global exports, the company said. They follow more than $167 million in funding in 2024 across a range of GE Vernova sites, helping create more than 1,120 jobs. And following a forecast that worldwide energy needs are on pace to double, GE Vernova is also planning a $9 billion cumulative global capex and R&D investment plan through 2028.
The new investments include:
almost $300 million in support of its Gas Power business and build-out of capacity to make heavy duty gas turbines, for facilities in Greenville, SC, Schenectady, NY, Parsippany, NJ, and Bangor, ME.
nearly $20 million to expand capacity at its Grid Solutions facilities in Charleroi, PA, which manufactures switchgear, and Clearwater, FL, which produces capacitors and instrument transformers.
more than $50 million to enhance safety, quality and productivity at its Wilmington, NC-based GE Hitachi nuclear business and to launch its next generation nuclear fuel design.
nearly $100 million in its manufacturing facilities at U.S. onshore wind factories in Pensacola, FL, Schenectady, NY and Grand Forks, ND, and its remanufacturing facilities in Amarillo, TX.
more than $10 million in its Pittsburgh, PA facility to expand capabilities across its Electrification segment, adding U.S. manufacturing capacity to support the U.S. grid, and demand for solar and energy storage
almost $100 million for its energy innovation research hub, the Advanced Research Center in Niskayuna, NY, to strengthen the center’s electrification and carbon efforts, enable continued recruitment of top-tier talent, and push forward innovative technologies, including $15 million for Generative Artificial Intelligence (AI) work.
“These investments represent our serious commitment and responsibility as the leading energy manufacturer in the United States to help meet America’s and the world’s accelerating energy demand,” Scott Strazik, CEO of GE Vernova, said in a release. “These strategic investments and the jobs they create aim to both help our customers meet the doubling of demand and accelerate American innovation and technology development to boost the country’s energy security and global competitiveness.”