COVID‑19 Drives Rapid Adoption of Robotics in Supply Chains

Key takeaways:

• COVID‑19 has accelerated the deployment of automation that limits virus transmission.
• Companies must decide whether robotics is a tool for operational efficiency or a catalyst for strategic innovation.
• Robotics‑as‑a‑Service (RaaS) offers a low‑capex entry point for firms with limited budgets.

As supply chains navigate the pandemic, businesses are cautiously embracing robotics to maintain continuity and safety.

Prior to COVID‑19, tightening labor markets pushed manufacturers toward robotics to boost productivity and cut costs. A 2020 MHI supply‑chain report shows robotics adoption rose to 32% and automation to 39%—the fastest growth among all supply‑chain technologies between 2019 and 2020.

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Even amid tighter budgets, the sector still views robotics as a long‑term strategic investment. An IDC 2020 survey found 73% of respondents consider robotics “important” or “very important” for the next three years.

Modern robots excel at highly repetitive, precisely programmed tasks. In warehouses, a robot can transport carts between aisles, freeing human workers to pick items more quickly. 6 River Systems’ Guy Courtin notes that “robots can pull heavy carts and reduce wasted walking in warehouses.”

In manufacturing, targeted robotic solutions can simplify complex operations. For example, a company uses a point‑and‑click interface to program intricate sanding patterns on contoured surfaces, cutting a multi‑day setup into a 20‑minute task, says Universal Robots’ Joe Campbell.

COVID‑19 and E‑Commerce: Drivers of Automation

The pandemic heightened the need to limit close contact, prompting many firms that previously avoided robotics to reconsider automation. Courtin observes, “Since COVID, we’ve seen more companies embrace robotics to maintain a 6‑foot distance and address labor shortages.”

Simultaneously, e‑commerce surged as stay‑at‑home orders increased. Adobe’s Digital Economy Index reports a 49% jump in April e‑commerce orders amid closed brick‑and‑mortar stores. This shift creates new demands for flexible, high‑throughput automation.

John Santagate, VP at Körber Supply Chain, explains, “The rise of e‑commerce requires fewer people in warehouses yet higher fulfillment rates. Robots help optimize productivity and meet that demand.”

Robotics‑as‑a‑Service Accelerates Adoption

Robotics can be expensive, especially for organizations lacking in‑house expertise. A recent advanced robotics report shows that 90% of companies with revenues over $1 billion have already deployed advanced robotics, whereas firms under $250 million lag significantly due to budget constraints.

RaaS mitigates upfront costs and shortens deployment time—from months to weeks. Randy Bradley, Associate Professor of Information Systems and Supply Chain Management at the University of Tennessee, notes, “Robotics‑as‑a‑service frees you from capital expenditure and reduces implementation time.”

For smaller firms, RaaS levels the playing field in an unpredictable supply chain. “Previously, small players lacked capital to experiment, but now they can compete,” Bradley says. “RaaS models often use lasers or sonar, so you don’t need to retrofit facilities.”

Robots: Augmenting or Replacing Human Work?

Automation’s workforce impact remains contested. An Oxford Economics study projects 20 million manufacturing jobs displaced by 2030. A McKinsey analysis suggests that while 60% of jobs will have 30% of tasks automated, only 5% will be fully automated.

Proponents argue robotics primarily augment human capabilities. Santagate remarks, “Robots don’t replace workers; they enable them to perform faster, higher‑quality work—much like how a nail gun replaces a hammer.”

In regions like China, where robotics adoption is accelerating, the narrative is nuanced. Felix Yang of SF DHL China notes, “Current automation largely replaces repetitive manual labor, but collaborative robots are expected to join more complex production processes.”

Bradley cautions that framing robotics solely as an efficiency tool can drive headcount cuts. “If the goal is only cost reduction, you waste the strategic potential of robotics,” he says. “Robotics should unlock new services, products, and faster time‑to‑market.”

As supply chains evolve, the challenge will be to align robotics deployment with long‑term innovation goals rather than short‑term cost savings.