591: Making Digital Transformation in Warehousing Work
At ProMat 2025, Kevin chats with Doug Schuchart of Beckhoff Automation and Craig Henry of Murrelektronik, two leaders from the CSS (Conveyor & Sortation Systems) Industry Group of MHI , to explore what digital transformation means in warehousing. Their lively conversation unpacks the gap between aspiration and execution, diving deep into how companies can take meaningful steps toward better data visibility, predictive maintenance, and long-term ROI. From hard-earned lessons to surprising insights, they emphasize the importance of asking the right questions before diving into technology.
Start with Strategy, Then Digitize
Digital transformation in warehousing isn’t just about installing sensors or AI tools—it starts with clarity. As Craig puts it, “Everyone should strategize before they digitalize.” Many companies rush into solutions without understanding their specific needs or the problems they’re trying to solve.
Doug adds that foundational systems matter: “If you don’t do the control platform first, then you may not have the… You can’t go to NASCAR with your bicycle.” In other words, without the infrastructure to support data collection, businesses will struggle to realize the full value of their digital investments.
“We don’t know what we don’t know,” Craig emphasizes. “Digitalization… is to see what you couldn’t see before.” That visibility unlocks powerful insights, allowing businesses to measure and manage operational effectiveness, root causes of downtime, and underutilized equipment.
The Real-World Impact of Visibility
The conversation reveals that visibility is more than a buzzword; it’s the foundation for real business gains. Doug shares that “predictive maintenance… is obviously a much better strategy than waiting for failure and having a lot of downtime.” By collecting data on variables like vibration, humidity, and energy usage, companies can anticipate breakdowns instead of reacting to them.
Craig highlights the broader potential of data analysis: “You may find, you look at data and you say, okay, I’ve got bots working… and they’re operational 36% of the time. Why is that? I want 90 plus.” With a digital strategy, companies can move beyond isolated metrics to track Overall Equipment Effectiveness (OEE), throughput, and utilization.
He adds, “If you can measure it, you can manage it. But if you can’t see it, you can’t manage it.” As Craig calls it, this operational renaissance is fueled by the pairing of automation with digitalization, especially as labor shortages and rising costs force companies to do more with less.
Infrastructure Is the Missing Middle
One of the most overlooked components of successful digital transformation is infrastructure. Doug explains that many companies underestimate the importance of choosing automation equipment that supports modern data protocols like EtherCAT: “You can add a bunch of sensors, but you’re gonna add a lot more complexity… if you aren’t thinking about the automation equipment and the types of systems that support digitization.”
Craig builds on this with his concept of “The Forgotten Middle”: “The forgotten middle is this place that’s gonna view all this benefit if you put in those networks… that might cost you a little more, but will pay back big time.” Investing in systems that simplify wiring and centralize data collection creates a future-ready foundation.
While it may feel like a high upfront cost, Craig compares it to the Steve Martin joke: “How to Live Like a Millionaire. Step One, Get a Million Dollars.” It’s not enough to want the benefits—you need the systems that make them possible.
Key Takeaways on Digital Transformation in Warehousing
- Visibility is the primary benefit of digital transformation.
- Predictive maintenance is a widely accessible first step that can reduce downtime.
- Investing in infrastructure is essential to scaling data initiatives.
- A clear business strategy should precede digital adoption.
- Underutilization of automation often stems from missing visibility.
- The MHI Solutions Community offers collaborative, vendor-agnostic resources to help companies succeed.
Listen to the episode below and leave your thoughts in the comments.
Guest Information
For more information on MHI Solutions Group, click here.
To connect with Doug on LinkedIn, click here.
To connect with Craig on LinkedIn, click here.
For more information about digital transformation in warehousing, check out the podcasts below.
MHI Industry Series: The Warehouse & DC Solutions Network Advantage
MHI Industry Group Series: Shaping the Future of Robotics in Warehousing
