Unlocking a digital transformation success story

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Digital transformation in the warehouse is no longer a luxury—it’s a strategic imperative. And to Andrew Southgate, vice president of business development for EMEA at Lucas Systems, it’s also a matter of survival in an increasingly data-driven supply chain landscape.

With three decades of experience in the field and a decade at Lucas Systems, Southgate brings a uniquely global lens to warehouse digitization efforts. He’s worked closely with supply chain leaders navigating the complex journey from paper to platform—often starting right at the warehouse floor.

“You don’t want to boil the whole ocean,” Southgate advises. “When you look at the supply chain, you can look at just the warehouse operation … and start there.”

He says that companies should approach a digitization project one step at a time. It might start in the warehouse, or in the logistics operation, or maybe in procurement. What it should be, though, is well-thought-out.

“First thing is to look the whole scope of the digital transformation piece and what it will look like, and then look at the [section you want to integrate],” Southgate says. “You don’t want to be limited in how you roll this out and integrate it into the rest of the business.”

Choose the right tool, the right integration approach, and the right technology (like AI) to set up the company for the best chance at success, Southgate says.

The first step: Data readiness

Before diving into automation or AI, organizations need to evaluate their data. Is it accessible? Is it siloed? Is it clean enough to power real-time analytics? Real-time business decisions depend on high-quality data, Southgate notes, and it is one of the first things Lucas looks at with customers.

“What data do we need so the real-time analytics can run on the right data,” he asks. “If they don’t have data, we can recommend what you may need.”

Cloud considerations and integration

Despite years of buzz, many organizations are still running warehouse systems on-premise. Southgate says now is the time to make the leap—if not for cost, then for scalability and integration potential. Cloud-native platforms also simplify API-based integration with other systems—from ERP to TMS to data lakes—ensuring that digital transformation isn’t a siloed project, but a business-wide evolution.

Don’t forget the people

Technology won’t transform your operations alone. Southgate warns that one of the biggest risks to any digital initiative is underestimating the human element.

“If companies don’t invest in the skills and training of the existing staff, or invest in new talent that is immersed in the digital transformation, there is an [increased risk] the digital transformation will fail,” Southgate points out.

Phillip Hazen, CEO of Cosmo Tech, goes a step further, suggesting that a digital transformation is about more than just a technology upgrade and upskilling the workforce—it is about managing change.

“Transformation is about change. In a time when change is constant and velocity is increasing, organizations must prioritize creating the organizational capability to navigate it effectively,” he explains. “The culture of change can feel overwhelming without a clear vision of the outcomes. Digital transformation is no longer just about replacing legacy systems with modern alternatives—it’s about continuous evolution.”

Southgate says all of these considerations are important, and that goes to ensuring the digital transformation has the right structure around it—the right people, the right training, the right technology—and the business goals are clear.

A blueprint for success

Southgate shared the story of a global education company that used Lucas Systems’ warehouse automation tools to transform a shrinking print distribution center into a thriving third-party logistics operation. The digital tools provided the flexibility and efficiency needed to turn a cost center into a revenue generator.

The customer, Southgate explains, applied digital automation and Lucas software to the warehouse to make it more efficient which resulted in more flexibility among the workforce and better management of the space. The result was real-time decision-making in picking and orders and freeing up space to create a 3PL operation inside the facility.

Hazen says that success of any digital transformation lies in the ability to show the value delivered by adopting new technologies.

“Simulation-powered decision intelligence is one of the tools that can play a crucial role, enabling real-time scenario analysis, predictive modeling, and ‘what-if’ simulations that support data-driven decision-making,” he says. “Rather than overhauling everything at once, a dynamic roadmap based on these data-driven insights allows organizations to restructure gradually, starting with the most critical functions and scaling strategically. Transformation isn’t a one-time event—it’s an ongoing, value-generating process that adapts to new challenges and opportunities.”

With the right approach—clear goals, the right people, scalable technology, and quality data—a digital transformation isn’t just possible, it’s profitable.

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