Workforce Transformation through Autonomous Mobile Robots (AMR): Human-Factor Evidence from a Malaysian Retail Warehouse
List of Authors
Kang Zhuang Wang, Lee Lee Than
Keyword
Workforce Transformation, Autonomous Mobile Robots (AMR), Human Factors, Warehouse Automation, Emerging Markets
Abstract
This study presents human-factor insights on workforce transformation following the adoption of Autonomous Mobile Robots (AMRs) in a Malaysian retail pharmacy warehouse, one of the first real-world applications in Southeast Asia. The AMR initiative demonstrates a scalable approach addressing workforce challenges such as demand spikes and labour shortages, offering a replicable model for improving efficiency and fulfilment reliability in the region’s retail sector. Through a mixed-methods approach combining operational metrics, staff surveys, and interviews, this research uncovers how AMR adoption fundamentally reshapes labour dynamics and organizational agility. Notably, AMR integration resulted in a 50% reduction in peak manpower requirements, substantially reducing the dependence on temporary labour. Previously, campaign fulfilment operated with a 2:1 full-time to temp staffing ratio; post-AMR, just 24 full-timers manage high-volume surges. Onboarding costs, once incurred by the time and effort to train a new group of temporary workers for each campaign and to address the mistakes made by inexperienced temps, have been almost entirely eliminated. Picking accuracy improved dramatically from 600 errors per 10,000 orders to just 5 errors per 10,000 post-AMR. The workforce also experienced a qualitative transformation, with roles evolving from manual pickers to exception handlers focused on digital monitoring, system validation, and problem-solving. This shift has made continuous upskilling and clear communication of changing job expectations essential. Despite significant productivity gains and a 30.7% increase in inventory density, employee trust in automation was challenged by backend instability. Survey results also highlighted the importance of facilitating conditions such as training and management support (mean = 4.70/5 for organisational benefits) in driving technology acceptance. These results highlight that automation success depends not only on robots deployment, but on investments in digital infrastructure, workforce reskilling, and transparent change management to achieve sustainable, agile operations.