Omar Asali: The Future of Warehouse Automation Involves Humans
Omar Asali, CEO of sustainable packaging company Ranpak, says he's excited about what AI and automation can do for warehouse operations — but only if human workers are involved, too.
Ranpak makes paper packaging and automation systems that streamline the process of packing boxes before they are sent to customers.
Asali says that while robots in warehouses can help retailers save time and money, make their businesses more sustainable, and improve worker safety, he doesn't see humans being completely eliminated from the equation.
"I don't think automation is headed toward a dark warehouse with no labor," Asali said in a recent interview with Business Insider. "I think man and machine is a lot more compelling than machine alone."
He said that using automation in warehouses allows workers to transition from demanding, manual tasks, like loading and unloading boxes, to more skilled tasks they can do in conjunction with a robot.
"It will require upskilling and re-skilling, but I believe this is going to be a tool for further growth, further improvement with our customers, and more jobs down the road," Asali said.
Sustainable Packaging Solutions and Automation
Ranpak is seeing the most demand from companies looking to use less plastic in packaging. Its flagship product is a biodegradable, renewable paper that keeps items from moving around inside boxes. Asali said the idea is to attract customers with sustainable packaging solutions and then keep them interested with automation that can help streamline their warehouse operations.
Ranpak's automated systems include a machine that optimizes package sizes by cutting cartons down to their highest point so that there is no excess room inside the boxes. It then glues the box lid in place.
It also has a system that uses computer vision to measure the amount of empty space inside a box, and then insert the appropriate amount of paper packaging material to fill it.
Asali said that physical AI is making robotic equipment more efficient and easier to use, and it's helping to make an older industry — packaging — more state-of-the-art. Ranpak, which was founded in 1972, can also give their customers more data than was possible before, on things like how many items should be packed in a box and how those items should be arranged.
"All this data is designed to make their packages smaller, more efficient, to make them use less energy," Asali said. "All these savings are going to go, ultimately, to these companies and to the consumer."
Investments in Robotics Companies
Ranpak also invests in other robotics companies that automate specific warehouse operations. Investments have included bets on Pickle Robot, which makes robots that can unload packages from trucks, and Rabot, which uses computer vision at employee packing stations to help optimize the process, improve safety, and reduce waste.
Key Customers and Partnership with Amazon
Amazon, Ikea, and Urban Outfitters are all customers of Ranpak. In January, Ranpak said in an SEC filing that it had issued Amazon a warrant to buy 18.7 million shares in the packaging company. The company says that Amazon is Ranpak's biggest customer, and Asali described the e-commerce giant as an "important strategic partner." An Amazon representative declined to comment further on their partnership.
Financial Performance
Ranpak said in its March 6 earnings release that 142,700 packaging systems had been placed as of the end of 2024, a 1% increase year over year. More than 85,000 of those systems were machines that help workers fill boxes with paper more quickly. Its revenue grew 10% year over year in 2024, to $369 million.