When Dave Morrison started looking at warehouse automation for his Ballarat-based distribution centre, the technology seemed designed for mega-facilities in Sydney and Melbourne. But after 18 months of gradual implementation, his team has cut picking errors by 40% and improved throughput by 25%.

I sat down with Dave to learn how a regional business with 35 staff navigated the automation journey.

The Starting Point

Morrison’s business distributes automotive parts across western Victoria, from Geelong to Horsham. Before automation, they ran on paper pick lists and experienced error rates around 3%—not terrible, but costly when you’re shipping brake components that absolutely need to be right.

“Every wrong part costs us at least $80 in return shipping alone,” Dave explained. “Plus the customer relationship damage. Country mechanics can’t wait three days for the right part.”

Why They Didn’t Go Full Automation

The initial quotes for full warehouse automation systems came in at $800,000 to $1.2 million. That wasn’t happening for a business their size.

Instead, Dave’s team implemented what he calls “assisted picking”—handheld devices that guide workers through optimised pick routes and use barcode verification to prevent errors.

The software cost around $45,000, plus $12,000 for hardware. Implementation took four months, including training.

What Actually Worked

Route Optimisation

The system analyses each order batch and generates walking routes that minimise distance. Pickers now walk about 30% less per shift, which matters when you’re covering a 12,000 square metre facility.

Error Prevention at the Moment of Picking

Before, a picker would read a part number, grab what they thought matched, and move on. Now they scan the bin location, scan the part, and the system confirms the match. Mismatches generate an immediate alert.

“It sounds slow, but it’s actually faster,” Dave said. “No more second-guessing yourself or walking back to check something.”

Real-Time Inventory Accuracy

Every scan updates inventory. They went from weekly stock counts to continuous accuracy—currently sitting at 99.2%.

What Didn’t Work

Voice-Directed Picking

The system included voice-directed picking as an option. Workers wear headsets and the system reads instructions aloud.

“We tried it for two months. Some people loved it, but most found it distracting. There’s a lot of ambient noise in a working warehouse.”

They reverted to visual displays on the handheld devices.

Automated Suggested Reorders

The software’s demand prediction features didn’t account for regional patterns. It kept suggesting reorders based on statewide trends that didn’t match western Victoria buying habits.

Dave’s team now runs their own forecasting in a spreadsheet and imports it.

The Workforce Impact

This is where Dave was most concerned. Would technology mean fewer jobs?

In practice, productivity gains meant they could handle more volume without adding staff. Two roles shifted from picking to quality control and customer service.

“We haven’t let anyone go because of the system. We’ve actually hired two more because we’re taking on new product lines we couldn’t handle before.”

Lessons for Other Regional Businesses

Dave’s advice for other regional Victorian businesses considering similar technology:

Start Smaller Than You Think

“The sales pitch is always about transforming your whole operation. Don’t. Pick your highest-error area and focus there first.”

Find Regional References

Technology vendors often can’t provide regional case studies. Dave found references by asking around at Business Victoria networking events and through the Victorian Freight and Logistics Council.

Budget for the Second Year

“First-year costs are the software and hardware. Second-year costs are the customisations you’ll need once you understand how it actually works in your facility.”

Keep Some Manual Fallback

“Our internet went down for a day last winter. We could still operate because we’d kept our paper processes documented. Don’t become completely dependent on systems you can’t control.”

The Numbers After 18 Months

• Pick error rate: 3.1% → 1.8% (40% reduction)
• Daily order throughput: Up 25%
• Stock accuracy: 94% → 99.2%
• Worker compensation claims (back injuries): Down 30%

Return on investment came at around month 14, faster than the 18-month projection.

What’s Next

Dave’s considering adding AI-powered demand forecasting trained specifically on regional patterns. He’s talked with several AI consultants Brisbane and Melbourne firms about building something custom, but hasn’t committed yet.

“I want to see another year of data from our new system before we layer more technology on top. You’ve got to walk before you run.”

Solid advice for any regional business weighing up where technology can genuinely help—and where it might just add complexity you don’t need.