The concept of a lights-out warehouse currently exists between ambition and reality. As automation technologies advance, supply chain leaders are exploring what is technically possible while considering financial and logistical capabilities. Understanding how these facilities work is the first step toward a stable transition.
The Allure of the Lights-Out Concept
A “lights-out” warehouse refers to a highly automated facility that can operate with no need for human workers on-site. Sometimes, it literally runs in the dark, since machines do not require lighting or other similar accommodations.
Machines handle storage and movement, usually coordinated by advanced software systems. This concept has gained traction as many companies adopt these new technologies, leading to automation success stories worldwide.
For example, Brightpick has released multiple devices that enable lights-out fulfillment for companies. Its Autopicker 2.0 can boost the warehouse’s throughput by 50% per robot, equating to 70 to 80 picks per hour.
Is a Lights-Out Warehouse Worth the Investment?
A completely lights-out warehouse operation offers some compelling benefits. It enables true 24/7 operations, as automated systems do not require breaks or shift changes. When properly implemented, automated picking and storage systems can also reduce human error.
As a result, companies can process orders more quickly, which is especially important in e-commerce and retail. For example, Pitman Creek Wholesale, a sport fishing company, reported a 600% increase in sales within eight years of implementing automation-related changes to its warehouse.
However, attempting these operations can also present barriers. One of the most glaring is the high upfront costs. Automated systems, robots, software integration and facility redesigns can require a substantial amount of capital and labor.
They also have complex setup requirements, especially with their numerous moving parts. Companies may need to hire specialists or skilled technicians to ensure proper installation and configuration.
With these factors in mind, leaders face the challenge of balancing long-term operational savings against the financial risk associated with setting up a lights-out warehouse.
Core Technologies Powering the Dark Warehouse
A lights-out warehouse relies on two main categories of technologies. First, its brain, which is powered by warehouse management systems and the industrial Internet of Things (IIoT). Second is the brawn, powered by various types of robots and heavy machinery.
Warehouse Management Systems
The warehouse management system (WMS) is the facility’s command center. For traditional warehouses, a WMS usually tracks inventory and manages labor. In lights-out environments, however, its role expands, managing autonomous equipment and resolving issues with minimal human intervention.
Industrial Internet of Things
The IIoT provides data that enables the lights-out warehouse to function autonomously and make informed decisions. It comprises sensors and various devices that continuously report on performance and environmental conditions.
Automated Storage and Retrieval Systems
Automated storage and retrieval systems (AS/RS) do the heavy lifting in these dark warehouses, comprising robots, cranes and other machines to store and retrieve items on a larger scale. Many modern warehouses rely on autonomous mobile robots (AMRs) and driverless forklifts to enhance operational efficiency. The global forklift market has made over $134 billion in revenue in 2024 and is expected to reach $289 billion by 2030.
The Necessary Human Element
The term “lights-out” doesn’t necessarily mean phasing out the human element entirely. Instead of having people handle manual picking and transport tasks, labor needs will shift toward system monitoring, maintenance, data analysis and continuous improvement. Workers become supervisors instead of handling repetitive jobs, which emphasizes the importance of upskilling and training.
However, companies do need to be mindful of workers’ conditions and safety as they transition toward full automation. Multiple reports have revealed a correlation between warehouse automation and worker injuries.
A Phased Approach to Automation
Fully lights-out warehouses are achievable, but they aren’t universally practical. For most organizations, a phased approach is most feasible, prioritizing areas that can deliver the most impact and building on these systems over time. As a result, companies can enjoy the benefits of automation while maintaining financial and operational stability.
