Key Considerations for Implementing a Goods-to-Person (GTP) System

In the fast-evolving world of distribution and fulfillment, Goods-to-Person (GTP) systems have emerged as a game-changing solution. These systems bring items directly to workers, significantly improving efficiency, accuracy, and ergonomics. However, implementing or upgrading a GTP system in 2025 requires a strategic approach. Below are the key considerations to keep in mind.

Before investing in a GTP system, assess your current and projected order volumes, especially during peak seasons. The system must be capable of handling high throughput efficiently to justify the investment.  Look five years out so that you understand what you need in the long term from a flexibility and scalability perspective.  You can scale back your initial investment, so you don’t have unused capacity lengthening your ROI.  You will also need to understand your business cycle and how it affects average and peak day volumes.

GTP systems are best suited for environments with small, lightweight, and high-mix SKUs. It’s important to evaluate how items are stored, retrieved, and presented to operators to ensure compatibility.  SKU unit and cubic velocity are also key considerations.  High volume SKUs generally need to be stored in multiple bins.  Low volume SKUs may need to be stored in separate bins or in sub-divided bins.

Evaluate your facility’s space availability, ceiling height, and floor slab integrity. GTP systems provide high-density storage that require precise layout planning, which may necessitate structural adjustments.  Rack-based systems increase building cube utilization over top load grid-based systems, but storage density can offset the difference.  GTP systems require detailed fire and life safety analysis requiring permitting from fire and building officials as well as approvals from an insurance perspective.  There also may be floor flatness concerns that could require floor grinding to achieve.

Seamless integration with your Warehouse Management System (WMS), ERP, and other automation technologies is crucial. Where else has this been done?  Have they done this with your WMS provider?  Ensure compatibility with tools like pick-to-light systems, robotic picking, and AI-driven software.

Choose a system that supports modular expansion—such as adding robots or workstations—without significant downtime. Flexibility is essential to adapt to SKU proliferation and evolving business needs.

One of the biggest advantages of GTP systems is the reduction in walking and lifting, which improves worker ergonomics and reduces fatigue. This can lead to higher productivity, lower injury rates and ultimately greater associate retention.

Introducing a GTP system changes workflows significantly. Operators will need training on new interfaces and processes, and a strong change management plan is essential for smooth adoption.  The key benefit to this change is the fact that the interfaces are more intuitive to use, reducing training time and making it feasible to use seasonal temp labor because of the ease of use.

While GTP systems require a significant upfront investment, they can deliver long-term savings through reduced labor costs and increased operational efficiency. A detailed ROI analysis is essential.  The key to this ROI is the modularity, which we discussed earlier.  This allows you to buy just what you need more readily, increasing utilization of the asset and using it to its full potential.  It should be noted that, AutoStore does offer a Robotics-as-a-Service (RaaS) program. They call it a pay-per-pick model, where customers pay a recurring subscription fee for robots, ports, and software based on order volume. This RaaS offering, in collaboration with their partner network, allows customers to purchase the storage grid up front and then lease the other components on a subscription basis.

When doing the business case, it is important, however, to understand the total cost of ownership.  Make sure you factor in the ongoing costs of system maintenance, software updates, and technical support. Not accounting for these recurring expenses can potentially sabotage the project.  In addition, make sure you align your GTP implementation with broader business goals such as omnichannel fulfillment, next-day delivery, or micro-fulfillment strategies. This is a significant investment, and leveraging its full potential is extremely important.  It is critical to leverage a clear vision to ensure the system supports long-term growth.  Like with any technology, you need to stay informed about advancements in AI, robotics, and machine learning. These technologies are rapidly enhancing GTP capabilities, offering new opportunities for optimization and innovation.

A GTP system can transform your distribution operation—but only if implemented thoughtfully. By considering operational needs, human factors, financial implications, and strategic alignment, you can ensure your investment delivers maximum value in 2025 and beyond.

Let Sedlak assist you in addressing these challenging times. With over 65 years of experience advising industry leading organizations, Sedlak will help address the challenges of today and prepare you for an ever-evolving future. Reach out to Dave Teeple at dteeple@jasedlak.com  for more information.

Don’t forget to register for our upcoming virtual event! Revolutionizing Supply Chains: The Power of Swisslog Goods-to-Person Warehouse Automation – A Sedlak Virtual Event is scheduled for Wednesday, June 11^th.