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Friday, December 5, 2025

Zepto’s Full Supply Chain Automation Boosts Productivity by 45 Percent, Says CEO

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Quick commerce company Zepto has completed a full automation rollout across its supply chain network in India, a move that the company says is reshaping how it manages fast-moving consumer goods at scale. Chief executive Aadit Palicha announced the development after sharing a look into the firm’s upgraded warehouse operations, where automated systems now process close to 25 lakh units every day across multiple locations.

According to Palicha, the technology overhaul is already delivering measurable gains. Early data from the automated sites shows a sharp rise in outbound productivity, with warehouse teams recording improvements of more than 45 percent compared to earlier manual operations. The company expects the efficiency jump to translate into annual savings worth several hundred crores, giving Zepto a stronger cost structure in a market where margins are typically under pressure.

The automation programme has been built almost entirely in-house. Zepto’s engineering teams have designed the software that coordinates every automated asset running inside the network. These systems plug directly into the company’s logistics backbone, allowing for continuous tracking, routing, and movement of inventory in real time. Palicha said this level of integration is now central to Zepto’s ability to scale while keeping unit economics intact.

The rollout comes at a time when the quick commerce industry is navigating constraints on warehousing and staffing. Dark store capacity has struggled to keep up with growing urban demand, and smaller warehouse formats, including refurbished neighbourhood properties, have become essential to meeting delivery timelines. The sector has also been dealing with operational pressure in food-led verticals, with Zepto Café recently scaling down due to sourcing concerns and shortages of trained kitchen staff.

With its latest push, Zepto is betting that automation will give it a decisive long-term advantage as the race for speed and efficiency intensifies.

SnackTeam
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