Retrofitting Automation in Existing Distribution Centres

Most UK distribution networks rely on existing distribution centres that were not designed for the modern day operation, particularly when it comes to automating operations. At the same time, operational pressure is increasing in the UK due to labour constraints and rising service requirements.

 
Pairing this environment with rising real estate costs and availability issues, retrofitting automation into existing distribution centres represents a practical approach to improving performance within current assets. Retrofit initiatives typically focus on selective automation measures that can be integrated into existing buildings and live operations. A structured retrofit approach, based on a clear understanding of constraints and implementation requirements, enables organisations to improve operational stability while preserving flexibility for future development.

An estimated 82% of warehousing space in the UK has been built pre-2000 and therefore has struggled to adapt to the rapidly evolving robotics landscape. Only 5% of UK warehouses were built in the last decade, with a large focus on “Big-Box” facilities that are suitable for technology.

 
There are also still many businesses operating in facilities that were built in the 60’s, 70’s and 80’s. This often means the operation will struggle with a lower building height, poor floor quality, insufficient power capacity and a significant challenges in meeting ESG targets.

 
The desire for automation still exists in those with ageing facilities. 73% of occupiers are looking to implement automated facilities, but only 21% of existing buildings meet the standard required.

 
Newer Big Box facilities that utilise a larger footprint and increased height are typically reserved by Third Party Logistics (3PL) providers, large businesses or those experiencing significant growth. These have been built with modern technology in mind, meaning implementing automation is often a simpler and more cost-effective task. 3PLs accounted for 41% of UK big box take-up in the first half of 2025, manufacturers 21%, and online retailers 10%.  

For many UK operators, the challenge is no longer whether automation is required, but how it can be introduced within existing distribution centres that must remain fully operational. In existing distribution centres, space constraints and labour dependency limit further performance gains without automation.

 
At the same time, replacing existing facilities with new, automation-ready sites is often constrained by land availability, planning approval processes and long investment timelines. In established logistics regions, these constraints significantly reduce the feasibility of greenfield alternatives.

 
Under these conditions, retrofitting automation has become a practical requirement to sustain performance within existing assets. It allows organisations to respond to operational pressure within their current network footprint while avoiding the risks and delays associated with large-scale replacement projects. 

Retrofitting automation into an existing distribution centre requires a realistic assessment of physical, operational and organisational constraints. Unlike new builds, design decisions are limited by the existing building and by the requirement to maintain ongoing operations.

 
Building and infrastructure constraints 

The building sets clear boundaries for any retrofit initiative and must be assessed in detail at an early stage. Unaddressed building constraints might cause project delays and redesigns. 

Relevant aspects include: 

• Floor quality, flatness and load-bearing capacity, particularly for automated storage systems and AGVs, AMRs 
• Available clear height and column grid, influencing system layout and achievable storage density 
• Automation suitability of existing racking and material handling equipment, including structural condition and system compatibility 
• Fire protection, safety regulations and escape routes, often limiting zoning and system placement 
• Power supply and IT infrastructure, potentially requiring upgrades to support automated equipment 
• Wi-Fi coverage, capacity and reliability, including potential limitations caused by building structure and racking 
  Sprinkler system design and coverage 

 
Operational continuity 

 
Retrofit projects are usually implemented while warehouse operations continue. Maintaining service levels during implementation must remain a central planning assumption.

Key considerations include: 

• Potential requirement of a phased implementation and commissioning 
• Temporary layout changes and process adjustments 
• Alignment with peak periods and seasonal demand 
• Defined fallback scenarios during ramp-up and stabilisation phases 

Systems, data and integration 
 

Existing IT systems often represent a limiting factor for automation performance. System-related constraints should be addressed before finalising automation scope.

 
Critical topics are: 

• Compatibility between WMS, MFS and automation control systems 
• Stability of processes and data quality 
• Interface complexity and long-term maintainability 
• Additional functionality needed for new technology 

Organisation, change management and project governance 

Automation retrofits directly affect operational roles and daily routines. Insufficient organisational preparation increases operational risk during transition phases.

Relevant aspects include: 

• Early involvement of operations, IT and maintenance teams 
• Clear definition of responsibilities during implementation phases 
• Clear project governance and experienced project management, ensuring coordination between operations, IT, suppliers and implementation phases 
• Training aligned with phased commissioning and process changes 
• Change management and communication, ensuring operational teams understand the objectives, impacts and phased implementation approach 

In many UK logistics networks, external constraints limit the feasibility of new build projects. Retrofitting automation therefore remains a relevant and often necessary approach to improving performance within existing assets

Many end-users approach Miebach with a question around how to automate and what opportunities are available for their operation.

Although there are several methods to prepare a business for technology investment, the Miebach methodology typically begins with an assessment. The better the understanding of the operation and the data behind it, the better the opportunity of accurately assessing options moving forward. 

Consider how everything links, such as order volumes, SKU characteristics, picking methods, productivity, service levels and growth expectations. This assessment then allows a more particular focus on areas to implement automation, rather than relying on gut feel or inaccurate assumptions. 

Then assess the opportunities alongside the realities of the existing site, identifying structural limitations, constructability, and impacts of running a live operation alongside building a new solution.

Using the assessment, suitable technologies can be identified that suit both the profile of the business alongside the realities of the facility in question. Comparing this to a new-build or relocation scenario is always useful to identify the commercial impact of having to move facility to enable technology upgrades, however this could also enable a broader scope of technology that can be implemented into a new building. Additional costs around transition, temporary capacity reduction and labour impacts will need to be considered alongside the traditional costs of the building and its fit out.

Often this exercise uncovers several automation opportunities that can be retrofitted into an existing facility, where the initial assumption was that the building was not suitable. 

Utilise data and explore the market, it could create opportunities

For many businesses, the existing warehouse already represents a major invested asset with established transport links, labour access, systems, processes, and customer service routines. 

How could a retrofit project help to support an operation and the business case for investment?

• Asset life:
  Targeted technology deployment can extend the useful life of the asset by improving throughput, accuracy, space utilisation, and labour productivity without requiring a wholesale network change. Many modern technologies can reduce required storage footprint by 50%, effectively doubling the capacity lifespan of the facility.
  
  
• Speed to Go-Live:
  Implementation will often be faster than developing a new facility, particularly when improvements are phased around priority processes and the operation does not lose capacity. Businesses do not have to wait for a leased building to be available or to construct a new facility, once the decision has been made to invest the work can start almost immediately.
  
  
• Improved ROI:
  An advanced business case often includes "capex avoidance". This could include avoiding costs incurred by doing nothing or costs incurred of moving to a new facility. This often makes a dramatic impact to the ROI of a retrofit project, with some projects seeing a reduction from a 3-year ROI to 18 months.

A structured retrofit approach enables organisations to strengthen existing assets and improve performance while maintaining flexibility for future network development.

Retrofit automation enables existing distribution centres to remain competitive while accommodating future requirements.