Warehouse Automation Explained: From Conveyors to Robots What Australia Logistics Can’t Afford to Ignore

Are your warehouse staff constantly walking back and forth every day, spending excessive time locating and picking items — yet still struggling to keep up with growing order volumes? The root issue often isn't manpower, but whether your picking model suits your business.

"Goods-to-Person" (GTP) refers to automated systems delivering items directly to a stationary picking workstation, while "Person-to-Goods" (PTG) requires workers to travel to storage locations to pick items. Let's break down these two approaches to help you determine which model can maximise your operational performance.

Person-to-Goods vs Goods-to-Person: A Comprehensive Comparison

With high rents and ongoing labour shortages in Hong Kong, choosing the right picking model has a major impact on operating costs.

A Goods-to-Person system replaces manual picking with automation, significantly improving efficiency while maximising limited warehouse space — making it especially suitable for growing businesses.

While Person-to-Goods has a lower entry barrier, increasing order volumes will gradually drive up labour and space costs, eroding profit margins.

Key Differences

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Technology Behind Goods-to-Person Systems

It's important to note that GTP is not a single piece of equipment, but a combination of automation solutions. Depending on warehouse size, SKU count, and order profiles, businesses can choose the most suitable setup:

• Grid-based Systems
  Robots transport entire shelves or pallets to picking stations. These systems require less rigid rack structures, are faster to deploy, and allow multiple related SKUs on the same shelf — improving picking efficiency.
• Shuttle Systems
  Extract individual totes and deliver them to workstations before returning them. With standardised structures, they support extremely high speed and throughput — ideal for high-frequency operations with relatively concentrated SKUs.
• Robotic GTP with Fixed Racks
  Robots retrieve totes from pre-designed fixed racking systems. These solutions maximise vertical space (up to 30 feet or more), making them ideal for high-SKU, high-density storage environments.
• Carousel Systems
  Use horizontal or vertical rotation to bring items to operators. They are ideal for space-constrained warehouses and help improve picking accuracy while reducing manual errors.

Each architecture has its strengths in space utilisation, speed, and investment cost. Businesses should choose based on their order structure, SKU characteristics and future scalability — not just the level of automation.

How to Choose the Right Model for Your Warehouse

Selecting the right picking model requires evaluating several factors:

• Daily Order Volume
  If you process a few hundred orders per day with limited growth, PTG may suffice. But if orders exceed 1,000 daily or are rapidly growing, GTP offers significant efficiency advantages.
• SKU Count and Product Characteristics
  The more SKUs and the smaller the items, the greater the benefit of GTP. Large or heavy items may require specialised automation solutions.
• Warehouse Size and Lease Terms
  With typical lease cycles of 2–3 years, companies must assess ROI timelines. If space is limited but storage needs are growing, GTP's dense storage is ideal.
• Seasonal Demand Fluctuations
  For businesses with peak seasons, GTP systems provide far greater scalability than relying on temporary labour.

Ultimately, beyond order volume and space, companies should also evaluate ROI, system integration costs, and operational disruption during implementation.

Real Case: How a Hong Kong E-commerce Brand Improved Efficiency

A local health supplement e-commerce brand previously operated a 2,000 sq ft warehouse in Kwai Chung using a traditional PTG model.

As order volume grew to 800 orders per day, five pickers were no longer sufficient. During peak seasons, error rates reached 3%, leading to frequent returns and customer complaints.

After engaging BPS Global for a warehouse assessment, the team recommended implementing a compact AMR-based GTP system and redesigning the warehouse layout.

Results after transformation:

• Picking staff reduced from 5 to 2
• Throughput increased from 450 to 1,200 order lines per hour
• Picking accuracy improved to 99.97%
• Storage capacity increased by 60% within the same space

Most importantly, the company postponed relocating to a larger warehouse, saving significant rental costs.

Tailor-Made Warehouse Solutions by BPS Global

Modern GTP solutions can integrate seamlessly with warehouse management systems (WMS), conveyors, pick-to-light systems, and robotic arms — creating a fully connected workflow from picking to sorting and dispatch.

No matter what stage your business is in, your picking strategy directly impacts operational costs and customer experience.

With extensive experience in Hong Kong and cross-border logistics, BPS Global provides end-to-end warehouse solutions — from PTG setups to full GTP transformation. From system design and equipment selection to process reengineering and daily operations support, BPS delivers one-stop solutions to help your warehouse achieve efficiency, accuracy, and scalable growth.

Contact Us today to start your Goods-to-Person upgrade journey.

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MHD Magazine (March 2026)

‍MHD sits down with Malcolm Druce, Managing Partner at BPS Global Australia, to discuss how 30 years of Asian manufacturing connections combined with deep local expertise is demystifying Chinese automation purchases and de-risking implementation for Australian businesses.

Supply chain operators are looking directly to Chinese manufacturers for innovative, cost-effective solutions. But this route requires expert knowledge in sourcing, installing, and maintaining equipment to Australian standards.

BPS Global Australia is stepping forward as a leader in this area. Malcolm Druce, Managing Partner at BPS Global Australia, says their connections to Asian manufacturing markets and local Australian expertise positions them to solve this challenge.

“We want to be able to demystify purchasing robotics and automation out of China," says Malcolm. "We don't want companies to miss out on the opportunity to buy really good quality,cost-effective equipment. But we also want to make sure that they go in with their eyes completely open, and there are no hidden surprises."

The Hong Kong advantage

BPS Global Hong Kong has been operating for over 30 years, turning over more than $35 million annually and serving over 1,000 clients across engineering and construction, logistics technology, investment and real estate,and robotics solutions. This gives BPS Australia immediate access to Asian manufacturing markets.

“They are connected to just about every single manufacturing organisation in China of any significance," Malcolm explains. This infrastructure provides BPS Australia with an edge: expertise on Chinese manufacturing capability, quality standards, and emerging technologies. The organisation can assess factories, understand equipment capabilities, and identify which manufacturers deliver on their promises.

“If necessary, we'll bring people out of BPS Hong Kong who know the equipment to assist with installations,” Malcolm notes. “We can tap into our factory knowledge, understand market trends, and help clients get the best value from Chinese manufacturers.”

Addressing the need in Australia’s market

Australian businesses looking at innovative, cost-effective equipment at trade shows or through online research face hurdles when trying to bring that technology into local operations. Often there are language barriers, different compliance requirements, installation challenges and warranty concerns. Malcolm says these roadblocks have the potential to derail promising automation projects before they have the chance to hit the ground running.

Malcolm emphasises BPS will still maintain an ‘equipment agnostic’ approach, keeping a strong pulse in analytics and operational understanding. Instaying neutral, BPS recommends the right equipment for each application rather than pushing specific brands or suppliers.

The full-service offering covers equipment selection, factory quality assessments, design and CAD drawings, Australian compliance management, installation, warranty support, and integration with warehouse management systems. BPS also has deep connections with local suppliers for complementary requirements like racking systems.

BPS can work in multiple capacities depending on client needs: as a consultant providing advice and facilitating connections, as a broker, or as a full-service integrator managing the entire process.

"Some businesses out there know automation really well, and we can support them to make their own decisions. Some don't know automation very well, and we can offer more guidance in those cases," Malcolm says.

Essentially, BPS supports businesses through two pathways: purchasing equipment through BPS as part of a full-service engagement, or buying direct from a Chinese manufacturer. In cases where the buyer chooses to purchase direct, BPS can act on the customer’s side – supporting negotiations, duediligence and freight coordination if required, while ensuring the buyer understands responsibilities such as warranty and importer-of-record requirements.

Understanding the local landscape

BPS has a deep understanding of Australian business requirements,including the compliance, safety, and physical specifications that can catch overseas manufacturers unaware.

BPS has a deep understanding of Australian business requirements,including compliance, safety, and the physical infrastructure needed to support automation.

Malcolm says the biggest mistakes that derail projects are often basic butcostly – overlooking infrastructure requirements such as fire regulations,floor quality and site connectivity.

He also emphasises the importance of safety and compliance duringinstallation. “You need to make sure that whatever you’re buying is manufactured to Australian standards, and that your installation contractors are properly covered with insurance, licences and permits,” he says.

For BPS, de-risking the purchase means ensuring warehouse infrastructure is fit for purpose, verifying factory quality and processes, and putting the right controls in place for installation – whether BPS delivers the installation directly or takes a project management role with customer-selected contractors.

This is what he describes as de-risking the purchase, ensuring businesses understand and meet all Australian requirements from day one.

Getting businesses automation-ready

Ensuring businesses are prepared for automation means assessing operational processes, IT capability, and physical infrastructure before any equipment arrives.

"When you automate, particularly with robotics, you have to change your operational processes," Malcolm emphasises. "You can't do what you've always done, throw in equipment and expect to be able to do that into the future. It won't work and you will fail."

Part of BPS's initial assessment involves analysing whether a client's warehouse management system or ERP could handle the messaging requirements ofautomated equipment. “You need to be able to send and receive the messages thatthe robotics and automation require in order to function," Malcolm explains. "If you've got a very basic ERP or an accounting system with no operational capability, you're going to struggle.”

The business also looks at extracting operational knowledge before automation implementation. "The worst cases are where knowledge sits inthe heads of the operators and no one documents the process flows,” Malcolm says.

“Automation gets installed, you realise you missed part of the workflow and all of a sudden you've got to rework it or throw it all out and start again."

The BPS approach

BPS's strength comes from the combined operational experience of its Australian team, many of whom – Malcolm included – have worked their way up through manual and automated warehouses.

This, combined with strong data analytics and design capability, allows BPS to create solutions that work for operational staff, not just procurement teams or supply chain directors. In one of its most recent major projects, feedback highlighted BPS's innovation, flexibility, quick understanding of operations, and ability to design solutions that support ground-level workers.

For BPS, success means changing how Australian businesses approach Chinese automation purchases - moving from hesitation to confidence.

"With all our experience, we are best placed to be the Australian face of Chinese equipment manufacturers," Malcolm says.

With Chinese manufacturers producing innovative equipment at competitive prices and Australian demand growing, Malcolm sees BPS's role as essential -not just facilitating sales, but ensuring successful implementations that deliver long-term value.

Malcolm references a colleague from the military’s wisdom. “Time spent in reconnaissance is time seldom wasted.” For BPS, this means thorough understanding of cross-cultural regulations, risk mitigation strategies, and business continuity processes built into every project from the start.

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In fast-moving warehouse and e-commerce environments, operational success depends less on isolated technologies and more on how effectively processes work together. Conveyor systems, often treated as basic infrastructure, play a far more strategic role than they are given credit for.

Rather than simply transporting goods, modern conveyor systems shape how efficiently orders move through a facility. When designed thoughtfully, they help businesses maintain consistency, adapt to demand fluctuations and improve overall performance across the fulfillment lifecycle.

Beyond Transport: Managing Operational Flow

At their core, conveyors move products between different stages of fulfillment. But in high-volume operations, their real value lies in managing flow between processes that operate at different speeds.

For example:

• Picking may generate items in bursts
• Packing may require more time per order
• Sortation may depend on downstream carrier schedules

A well-designed conveyor system balances these differences. It creates buffers where needed, prevents congestion and ensures that no single stage disrupts the entire operation.

Throughput Depends on Coordination

It is tempting to think that faster conveyors lead to higher output. In practice, throughput depends on how well each part of the system is aligned.

Key factors include:

• Balanced workflows: Matching capacity across picking, packing, and shipping
• Controlled accumulation: Allowing items to queue without blocking movement
• Efficient merging: Managing multiple input streams without delays

In this context, conveyors are not about speed alone. They are about maintaining a steady, predictable flow.

Impact on Cost and Efficiency

Conveyor systems influence several core cost drivers in warehousing and e-commerce:

1. Labor Efficiency

By reducing the need for manual transport, conveyors allow employees to focus on value-adding tasks. This improves productivity and reduces reliance on temporary labor during peak periods.

2. Space Utilisation

Conveyors enable more compact layouts, including vertical designs and multi-level operations. This can delay or eliminate the need for facility expansion.

3. Error Reduction

Integrated systems with scanning and routing capabilities help reduce mis-sorts and lost items, improving order accuracy and customer satisfaction.

4. Designing for Changing Demand

E-commerce operations rarely deal with consistent order patterns. Variability is constant, whether due to promotions, seasonality, or shifting product mixes.

Effective conveyor systems are designed with this in mind:

• Modular components that can be reconfigured
• Flexible routing to adapt to changing workflows
• Scalable capacity to handle both daily operations and peak demand

The goal is not just to handle volume, but to handle change.

The Role of Data and System Integration

Modern conveyor systems increasingly serve as data sources within the warehouse ecosystem. With sensors, scanners and software integration, they provide visibility into how goods move in real time.

This enables:

• Early identification of bottlenecks
• Performance monitoring across zones
• Predictive maintenance to reduce downtime

When connected with warehouse management and control systems, conveyors become part of a larger, data-driven operation rather than standalone equipment.

Preparing for Peak Periods

High-demand periods such as holiday seasons place significant strain on fulfillment operations. Conveyor systems that perform well under normal conditions may struggle if not designed for peak scenarios.

Key considerations include:

• Sufficient buffer capacity in critical areas
• Redundancy to avoid single points of failure
• Clear processes for handling exceptions

Designing for peak conditions ensures stability when it matters most.

Integration as a Success Factor

The effectiveness of a conveyor system depends heavily on how well it integrates with other technologies, including:

• Warehouse Management Systems (WMS)
• Warehouse Control Systems (WCS)
• Automated picking and robotics
• Sortation and scanning solutions

Strong integration enables smoother workflows, better visibility, and more consistent performance across the operation.

Conclusion

In warehousing and e-commerce, operational efficiency is driven by how well materials move through the system. Conveyor systems play a central role in enabling that movement, influencing everything from throughput and labor efficiency to accuracy and scalability.

Organisations that approach conveyor design strategically, rather than as a basic equipment purchase, are better positioned to adapt, grow, and meet increasing customer expectations.

In an industry defined by speed and reliability, managing flow effectively is not just an advantage. It is a requirement.

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