The New Warehouse
Understanding these trends is crucial for warehouse operators facing labor shortages and rising costs, as automation and AI can deliver measurable ROI and improve reliability. The episode offers timely insights for anyone planning to modernize legacy facilities or evaluate the true value of emerging technologies in the supply chain.
Rider, a century‑old third‑party logistics firm, now operates over 100 million square feet of warehouse space across North America. The company reports that roughly 40 % of its facilities have some form of automation—a jump from the single‑digit percentages seen a decade ago. This rapid adoption is driven by falling equipment costs, expanding solution options, and rising labor rates that make a clear ROI on robots and conveyors. As a result, Rider’s warehouses are transitioning from labor‑intensive models to hybrid environments where machines handle travel, pick, and put‑away tasks.
The latest Manifest conference highlighted how autonomous mobile robots (AMRs) and autonomous forklifts are moving from niche to commodity status. While the hardware is increasingly interchangeable, the real competitive edge now lies in software integration, data analytics, and control algorithms. Rider emphasizes the need for robust infrastructure in brownfield sites—level, reinforced flooring is essential for reliable autonomous forklift operation. Modular ASRS solutions, described as “Lego‑type” building blocks, allow quick retrofits in constrained spaces, supporting e‑commerce and CPG clients without the expense of a greenfield build.
AI remains Rider’s second disruptive pillar. The firm has built a Center of Excellence to govern data security and model deployment, focusing on three use‑cases: labor forecasting, operational planning, and document intelligence. A custom labor‑forecasting model will predict staffing needs 30 days ahead and adjust intraday, but the challenge is operationalizing those predictions into shift changes and temp hiring. For broader decisions—such as equipment breakdown response—Rider plans to deploy AI agents that ingest real‑time data and SOP documents. When evaluating new tools, Rider follows a rigorous build‑vs‑buy framework, selecting market‑proven solutions for standard functions and developing proprietary models for complex, data‑rich problems.
Welcome to this episode of The New Warehouse Podcast, recorded live from Manifest 2026 in Las Vegas. Kevin Lawton sits down with Gary Allen, Senior Vice President of Supply Chain Technology at Ryder, for an annual check-in on where warehouse technology is heading. Ryder, one of North America’s largest logistics providers, operates more than 100 million square feet of warehouse space and manages a vast transportation network.
In this conversation, Allen shares how warehouse automation and AI are maturing, and where real ROI is emerging. He also explains why execution is now the differentiator for operators navigating labor constraints, brownfield facilities, and rapidly evolving technologies.
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