Modular Automation: Building Smarter, Future-Ready Intralogistics

A Smarter Way to Start?

At its core, modular and highly scalable automation is about breaking automation into manageable, ROI-driven stages. Instead of designing and installing a comprehensive built-out and maxed-out system early on, you can start with a limited scope—fewer components, robots, vehicles, whatever it may be—focus on a specific bottleneck or labor-intensive process, and expand as volumes, SKUs, or service expectations change. Essentially, being scalable as your business grows.

This can bring several advantages:

• Lower initial investment: Starting with a system scale that fits exactly what you need, can be deployed with significantly less upfront capital than a wider, large fixed systems.
• Faster time to value: Projects focusing more on scalable and mobile technologies are typically quicker to design, install, and commission, allowing benefits to be realized sooner.
• Reduced risk: Capacity and functionality can be validated in real operations before scaling further.

Importantly, the point is not about under-investing, it is about investing at the right pace, with each phase justified by measurable returns.

Why are Module and Scalable Systems Gaining Traction?

First, demand uncertainty has become the norm. Seasonal peaks, e-commerce surges, and promotional spikes can make it difficult to accurately forecast long-term throughput requirements. Modular and truly scalable systems allow you to scale capacity up, or even down, without redesigning an entire facility.

Second, labor availability and cost continue to challenge operations worldwide (*2). Many organizations are looking to automate incrementally—starting with areas where automation can realistically ease the burden on manual workflows. Modular systems allow businesses to introduce automation where it provides immediate value while maintaining the flexibility to evolve as technology matures.

Finally, external factors such as tariff uncertainty, geopolitical risk, and supply chain restructuring have made long-term, single-scenario investments harder to justify in some cases. Modular and scalable automation provides a hedge against change by keeping options open.

Daifuku’s Modular and Scalable Solutions: Flexible by Design

Our Intralogistics solutions portfolio comprises a mixture of scalable and modular mobile robotics solutions along with proven fixed systems that allow us to deliver a range of hybrid automation strategies across different operational needs.

The SOTR Series — Achieving Maximum Flexibility with Less Effort

Our newest product family, the Sorting Transfer Robot (SOTR) Series, brings modularity and scalability to a wide range of intralogistics applications. The family includes three models—SOTR-S, SOTR-M, and SOTR-L—covering piece level, tote level, and pallet level intralogistics workflows.

SOTR-S — Piece Item Sorting

Designed for small, lightweight items, the SOTR-S supports high density sortation in e commerce, pharmaceuticals, cosmetics, and similar industries. The number of vehicles can easily be scaled up to accommodate required processing volumes. In addition, dedicated lifters deliver greater space efficiency with the system, creating an efficient two‑tier flow, allowing robots to move continuously and maintain smooth traffic flow.

SOTR-M — Sorting and Transport for Totes

The SOTR-M is a mobile platform for transporting totes, bins, and mid weight goods. It combines the function of conveyor with mobility and flexibility. It offers a highly flexible fleet structure that enables easy scaling, making it suitable for distribution centers with dynamic SKU profiles, such as e-commerce, groceries, and more.

SOTR-L — Pallet Handling

The SOTR-L handles pallet transport with reliability and precision—ideal for both manufacturing, and distribution environments. Its fleet based flexibility provides a scalable alternative to fixed pallet conveyors, meaning less need for fixed infrastructure—simply add more robots as needed.

Fixed Automation Still Matters — The Case for a Hybrid Approach

While modular automation offers compelling benefits, fixed automation still plays a vital role. Many fixed systems, such as the AS/RS, contain inherent modularity (e.g., aisles, cranes, and racks can be added). These systems excel in high volume, stable environments where they deliver the lowest cost per unit handled over time. However, their flexibility cannot match systems like the SOTR-L or SOTR-S, which expand rapidly through additional robots rather than additional infrastructure.

The most effective approach in many cases is a hybrid strategy:

• Mobile or modular systems handle volatility, SKUs shifts, and peak seasons.
• Fixed systems provide throughput efficiency for core operations.

A knowledgeable automation partner can help determine the ideal balance and whether a hybrid approach is truly required.

Measurable Benefits in an Uncertain World

When implemented thoughtfully, modular and truly scalable automation delivers tangible, measurable benefits:

• Peak responsiveness: Systems can be expanded to handle seasonal or promotional surges without permanent overcapacity.
• Capital efficiency: Investment is aligned with growth, improving ROI.
• Operational resilience: Flexibility helps mitigate risks tied to tariffs, supply chain shifts, and market volatility.
• Future readiness: Modular platforms make it easier to adopt new technologies as they mature.

Ultimately, modular automation is not a replacement for traditional automation, it is an evolution that runs parallel with conventional fixed systems in terms of how automation strategies are planned and executed.

Choosing the Right Path Forward

Automation decisions are increasingly complex. The question is not whether to automate, but how and when. Modular automation provides a flexible, low risk pathway for organizations seeking agility without sacrificing performance. Fixed and hybrid systems remain essential for high volume, predictable environments.

By combining systems like the SOTR Series and proven fixed solutions such as the AS/RS, organizations can design intralogistics that are not only efficient today but adaptable for whatever comes next.

See the SOTR Series in Person

Visit us at LogiMAT in Germany and MODEX in the US this March and April to experience the SOTR Series and explore how modular automation can transform your logistics operations.

At LogiMAT, we'll have a live demo of the SOTR-M and display units of the SOTR-S and L. Visit our dedicated LogiMAT landing page to set up a meeting with our experts and get free tickets for the show. To set up a meeting with our US team at MODEX click here — we'll have demo units of the SOTR-S on the stand.

Satoshi Haruta

Intralogistics Business, Daifuku
With more than 40 years at Daifuku, Satoshi has become a cornerstone of the Intralogistics business' international sales team at the company’s Tokyo Headquarters. He launched his career with the company in 1984 in domestic sales, serving a range of industries business units, including Daifuku’s cleanroom business.

His first overseas assignment took him to Daifuku America for four years, after which he returned to Japan to join the international sales team in 2002—stepping into a global leadership role for the Intralogistics business. Satoshi later spent another five years in the United States, this time with Daifuku Intralogistics America, strengthening his management expertise and global customer relationships.

Now based once again at the Tokyo Headquarters in Japan, he plays a pivotal role in supporting major intralogistics projects across the US and Europe, leveraging decades of international experience to drive customer success.