What’s Slowing Down Manufacturing—and What Leading Factories Are Doing About It

1st: The Real Problems in Traditional Manufacturing

While automation continues to gain attention across the production line, internal logistics often remains untouched in traditional manufacturing plants. But this hidden layer is precisely where many long-standing problems are intensifying. Based on our experience across sectors, we see four recurring issues—each tied to industry-specific realities:

1. Labor Shortages and High Turnover in Light Industries

Industry most affected: Apparel, Food Processing, Electronics Assembly

Factories that rely heavily on manual picking, pushing, or forklift operation are now struggling to hire and retain workers—especially for repetitive, physically demanding, or night-shift roles. Labor cost inflation adds pressure, while high turnover leads to constant retraining and operational instability.

Without predictable workforce availability, even the best production schedule becomes unreliable.

2. Inconsistent Material Supply to Production Lines

Industry most affected: Automotive Parts, White Goods, Consumer Electronics

In multi-model, just-in-time production environments, material delivery must be timely and accurate. Yet traditional workflows still depend on human-driven transport, leading to frequent delays, bottlenecks, and even line stoppages.

The more flexible the production model, the more rigid the logistics needs to be—which human systems can rarely guarantee.

3. Poor Space Utilization and Fragmented Warehousing

Industry most affected: Chemicals, Personal Care, FMCG Distribution

Facilities using floor stacking or standard racking often suffer from low-density storage and disorganized layouts. Inventory gets misplaced, picking becomes inefficient, and warehouse throughput is capped by space—not demand.

When materials take up more room than necessary, cost per pallet rises while throughput stalls.

4. Inability to Adapt to Fast-Changing Demand

Industry most affected: E-commerce Manufacturing, Seasonal Packaging, Customized Products

Fluctuations in order volumes and SKU complexity expose the weakness of rigid systems. Many factories lack the flexibility to adjust task flows, reallocate capacity, or absorb short-term volume spikes without disrupting operations.

Static processes fail in dynamic markets—and traditional logistics is often the most static part of all.

2nd: Scenarios Where Intralogistics Made the Difference

To address these challenges, BlueSword has deployed targeted, intralogistics-driven automation solutions that enhance throughput, reduce reliance on labor, and build operational resilience. Below are several recent cases that demonstrate the real-world impact of these systems.

Case 1: Enabling Dock-to-Line Delivery for FAW-Volkswagen Foshan

Challenge: To support high-frequency, precision production on its final assembly line, FAW-Volkswagen needed a logistics system that could keep up with throughput while minimizing manual handling and lead time variation.

Solution: BlueSword delivered a full-stack automated warehousing solution. A high-speed tote shuttle system handles 1,400 totes per hour for small parts, while a pallet AS/RS supports large components at 300 pallets/hour. All flows—from receiving to dock-to-line delivery—are fully automated and MES-integrated.

Impact: The system ensures synchronized material supply for just-in-time assembly, improves traceability, and forms a stable logistics backbone for large-scale automotive production.

Watch the video: https://youtu.be/7jMrWQfZ_Mo

Case 2: Automating Hazardous Chemical Production – Dalian Bio-Chem

Challenge: Traditional storage methods could not meet the safety and precision demands of Dalian Bio-Chem’s hazardous and low-temperature chemical inventory. Manual handling posed risks to both compliance and efficiency.

Solution: BlueSword delivered a fully automated storage and retrieval system (AS/RS), integrated with intelligent warehouse management software to manage hazardous materials under strict environmental controls. 

Impact: The project achieved a 2.6× increase in storage density and 100% accuracy in retrieval—even in low-temperature zones—while significantly reducing manual intervention and risk exposure.

Watch the video: https://youtu.be/-GWgtl2LSCc

Case 3: Smart manufacturing for Tianma’s Production Base

Challenge: Tianma’s Wuhu site needed a more agile warehouse system to support high-frequency, small-batch material flows and integrated outbound logistics for its growing display manufacturing operations.

Solution: BlueSword delivered a smart logistics system combining a tote shuttle warehouse, pallet AS/RS, and a 420-meter overhead conveyor. The solution enables “D+1” material readiness, end-to-end automation, and real-time connectivity with production.

Impact: The system reduced WIP, stabilized supply to the line, and supports Tianma’s transition toward a digital, flexible, and low-carbon smart factory model.

Watch the video: https://youtu.be/evEWbRq7K8c

Case 4: Supporting Peak E-Commerce Fulfillment for BuyQuickly

Challenge: During major promotional campaigns, order volumes surged rapidly—but internal logistics couldn’t scale fast enough to meet same-day shipping expectations.

Solution: BlueSword implemented an AMR-based goods-to-person system, combined with intelligent scheduling and real-time task allocation.

Impact: The new system reduced reliance on temporary labor, streamlined picking operations, and enabled stable fulfillment even under extreme order pressure. During peak seasons like 11.11 and 6.18, the warehouse maintained over 99.5% on-time dispatch.

Watch the video: https://youtu.be/OC6-llUrJuA

Conclusion: Internal Logistics as a Practical Path to Manufacturing Resilience

Across different industries and production models, one pattern is becoming clear: real gains in efficiency, accuracy, and adaptability often start not with the production line—but with the systems that support it.

Instead of large, disruptive overhauls, many manufacturers are choosing to improve internal logistics first. The result? Fewer delays, more predictable operations, and a structure that can actually keep up with today’s production demands.

BlueSword works with manufacturers to design targeted, modular solutions that deliver real impact—from warehouse to line-side delivery.