Digital Transformation in Warehouse Management: The Impact of Automation on Operational Flexibility and Supply Chain Efficiency

This thesis examines the influence of warehouse automation on operational flexibility and supply chain efficiency within digital transformation in logistics environment. Since businesses quickly use technologies such as robotics, artificial intelligence and the Internet of Things, warehouse operations have changed from labor intensive process to data driven systems aimed at increasing productivity and responsiveness. The motivation for the research stems from the growing industry require to understand how automation affects performance metrics like order accuracy and processing time and the adaptability to operate in fluctuating demand and supply chain disruptions. The main purpose of the study to assess the dual impact of automation on efficiency and flexibility in warehouse management. Key concepts include automated warehouse systems, operational flexibility, digital transformation, and supply chain performance. A mixed methods approach has been used to provide a broad perspective. Empirical data was collected from a focus group study involving two logistics companies working under a shared corporate group. A semi-structured interviews were conducted with six professionals in the industry, including operations managers and logistics coordinators to gather deep insight into warehouse automation practices. These interviews were analyzed using thematic analysis to extract patterns and main themes. In addition, a structured questionnaire survey was distributed among 30 logistics professionals and warehouse operators within the same group. The goal was to expand and validate the interview findings through quantitative means with analyzed data using descriptive statistical methods. The results suggest that automation leads to increasing order accuracy and improving efficiency by reducing lead times, and enhancing inventory control. However, there are challenges in integrating automation with survival systems and maintaining human-machine collaboration. Operational flexibility affected by both types and scalability of automation technologies provides better adaptability in dynamic environments with semi-automated systems. Those identified best practice include implementation of automation, training in employees and modular system design. The study conclusion that although automation is the most important promoter for efficiency in warehouse operations requires to achieve operational flexibility, technical integration and strategic balance between human monitoring. These findings contribute to the ongoing discourse on digital transformation in logistics and offer practical guidance for organizations seeks to optimize warehouse performance through automation.