The future of fulfilment: power of people and / or power of machines?

Automation in eCommerce operations is a key trend, enabling retailers to enhance efficiency and streamline logistics. At the same time, online shoppers are increasingly demanding sustainable packaging solutions. Mondi bridges these two priorities by offering eCommerce paper and packaging solutions that are optimised for automated packaging lines while being sustainable by design. This ensures that retailers can improve operational efficiency without compromising on their sustainability commitments, aligning both business and consumer expectations.

Fulfilment operations form the backbone of the eCommerce industry, but as customer expectations evolve, so must the processes that drive efficiency and sustainability. Businesses face a critical decision: should they rely on manual picking or embrace automated packaging machines?

Let’s examine these different fulfilment approaches, explore where the general trend may head, and what synergies could be created by incorporating the benefits of each.

Manual picking: flexibility and personalisation

Manual picking remains a staple for many fulfilment operations, particularly for businesses handling lower-order volumes or offering customised products. Human workers excel at handling fragile, irregularly shaped, or multi-item orders, offering a level of adaptability that machines struggle to replicate.

However, this flexibility comes at a cost. Manual fulfilment is labour-intensive, prone to human error, and less efficient during peak periods. Scalability is often a challenge without significant workforce expansion, which can increase operational costs. Already in 2022, shortage of manual labor became a negative trend foreseeing a potential shift in the packaging processes, and we looked into this topic   

In addition, McKinsey projected in the same year that fulfilment centres were initially hesitant to replace manual tasks with robotic automation. Nevertheless, it has become necessary to consider automation to keep up with unprecedented demand and remain competitive. According to McKinsey, the industry is seeing significant investment in automation from retailers: 80% of retailers surveyed from a pool of fifty in fashion, grocery, and other key sectors said they planned to step up investments in automation over the next two to three years.

Automated packaging: speed but also risk on scale

The shift towards automation is accelerating. The global packaging robot market size was estimated at USD 6.89 billion in 2024 and is anticipated to reach around USD 19.32 billion by 2034, expanding at a CAGR (compound annual growth rate) of 10.87% between 2024 and 2034. This forecast highlights the growing need for optimisation in warehouse management and increased trust in automated packaging operations, such as pick-and-pack robots and box-sizing machines, which offer unmatched efficiency and accuracy, processing hundreds of orders per hour.

Automation can also support sustainability goals by reducing material waste through custom-fit packaging and optimising resource use. The initial investment is significant, however, and ongoing maintenance requires technical expertise. For small and medium-sized enterprises (SMEs), or businesses with highly variable order profiles, full automation may not yet be practical. There are many traps an organisation might fall into when automating their operations. shared, "A significant portion of automation projects fail, largely for three reasons: lack of cohesive vision, a poor understanding of automation technology by leadership, and misalignment of beliefs and principles within the organisation.”

Finding comfort in the middle ground

Many organisations are embracing hybrid models, combining manual processes with automation to achieve the best of both worlds. Deloitte reports that semi-automated systems are becoming popular, helping businesses reduce repetitive tasks while maintaining human oversight for complex or bespoke orders. In their article "Reduce the Productivity Gap With Robotic and Cognitive Automation", Deloitte discusses how organisations are adopting robotic process automation (RPA) to automate manual, repetitive, and rules-based tasks. They note that integrating cognitive automation or machine learning capabilities enables predictive decision-making, allowing businesses to reduce repetitive tasks while maintaining human oversight for more complex processes.

Sustainability as a driving factor

Consumers increasingly demand environmentally conscious packaging in eCommerce, and businesses are responding by using paper-based and recyclable materials to support their sustainability goals. Regarding the increasing demand for sustainable packaging, our Mondi Group eCommerce trend report 2025 conducted by RetailX found that around nine in ten consumers feel more positively about a brand or retailer when packaging is recyclable, appropriately sized or sustainable. This indicates a significant consumer preference for sustainable packaging, which in the long term can harm online retailers if they don’t adapt to consumers' expectations, as around four in ten shoppers will avoid shopping with a retailer who generates packaging waste (oversized packaging 45% or too much internal packaging 40%) or whose packaging is hard to recycle (41%). If you are curious to read more about our recent findings, download the report right here.  

These insights highlight a growing shift towards semi-automated systems that enhance efficiency while supporting the increasing demand for sustainable packaging in fulfilment. Automation enables right-size packaging, minimises material waste, and improves overall resource efficiency, making it a key driver in the transition to more sustainable eCommerce operations. As businesses look to balance speed and sustainability, hybrid models are emerging as the solution—combining automation with human expertise to optimise fulfilment, reduce costs, and meet consumer expectations for recyclable, paper-based packaging that fits precisely and is easy to recycle, ultimately strengthening brand loyalty.

Examples of how automation can support sustainability improvements

• Automated fulfilment systems significantly bolster sustainability in online retail by enhancing operational efficiency and reducing environmental impact. For instance, Active Ants employs automatic packing machines that custom-cut and fold boxes to the exact size of each item, resulting in up to 40% less air being shipped and eliminating the need for additional padding materials. This approach not only reduces waste but also allows more packages to be transported simultaneously, decreasing the number of delivery vehicles required.
• Similarly, Amazon leverages artificial intelligence to minimise packaging waste, contributing to its sustainability goals.
• One example for semi-automated operations, our eComPack machine optimises the packaging of our EnvelopeMailer, ensuring speed, precision, and lower operational costs while minimising excess material use.
• Moreover, automated systems streamline order processing through the use of robotics and intelligent software, leading to faster and more accurate order fulfilment. This efficiency reduces energy consumption and lowers the carbon footprint of fulfilment operations (source here).

By integrating automation, online retailers can meet consumer demands for swift delivery while adhering to sustainable practices, thereby enhancing brand loyalty and contributing to environmental conservation.

At Mondi, we see your challenge as our challenge!

At Mondi, we recognise that each business’s fulfilment journey is unique, with no one-size-fits-all solution. That’s why we provide a comprehensive portfolio of innovative and sustainable eCommerce paper and packaging solutions designed to meet the demands of both manual and automated operations—delivering flexibility, efficiency, and sustainability.

For automation in packaging, our kraft and containerboard paper for eCommerce or our corrugated fanfold ensures high-speed performance with robust protection and a natural premium finish, while FunctionalBarrier Paper provides a paper-based alternative to plastic for goods that need protective barriers.

For manual fulfilment, we provide a range of corrugated boxes, corrugated and solid board envelopes and paper mailer bags that prioritise flexibility, ease of use, and environmental responsibility, ensuring a superior unboxing experience.

Conclusion: choosing the right path

As eCommerce continues to evolve, balancing automation with sustainability is no longer a choice—it’s a necessity. At Mondi, we understand that retailers need packaging solutions that work seamlessly across fulfilment models, whether fully automated, manual, or hybrid. By offering a full portfolio of high-performance eCommerce paper and packaging solutions, we empower businesses to improve efficiency, reduce waste, and meet consumer expectations for sustainability. Our commitment to innovation ensures that as fulfilment processes advance, Mondi remains a trusted partner in delivering smart, sustainable, and scalable packaging solutions tailored to the future of eCommerce.