Warehouse Automation Trends in Cambodia

Introduction

Cambodia is in the midst of a logistics transformation. Once reliant on manual labor and outdated supply chain practices, the country is now embracing warehouse automation as part of a broader shift toward smart logistics. Fueled by rising e-commerce activity, foreign investment, and government efforts to modernize infrastructure, automated warehousing has begun to take hold—especially in special economic zones (SEZs) and near Cambodia’s growing dry port networks.

In this blog, we explore emerging trends in warehouse automation in Cambodia, the key drivers behind this transformation, the industries leading adoption, and how businesses—both local and international—can benefit from integrating advanced warehouse technologies.

The Rise of Smart Logistics in Cambodia

With Cambodia’s GDP expected to grow by 5.8% in 2025 (source: World Bank), logistics modernization is a key pillar of the country’s development agenda. The Cambodian government’s Logistics Master Plan includes strategic investment in dry ports, smart customs procedures, and improved supply chain management practices—all of which are accelerating demand for warehouse digitization.

🔗 Cambodia’s Inland Dry Ports: A Competitive Advantage for Exporters

What Is Warehouse Automation?

Warehouse automation refers to the use of technology and robotics to handle storage, inventory management, order picking, packing, and shipment preparation without heavy reliance on manual labor. Solutions include:

• Automated Storage and Retrieval Systems (AS/RS)

• Barcode and RFID inventory tracking

• Automated guided vehicles (AGVs)

• Warehouse management systems (WMS)

• Conveyor belts and robotic palletizers

In Cambodia, many warehouses are starting with hybrid automation, integrating basic digital tools with traditional processes before fully automating operations.

Key Trends in Cambodia’s Warehouse Automation Landscape

📈 1. E-commerce Driving Last-Mile Fulfillment Tech

Cambodia’s digital economy is expected to exceed $2 billion by 2025, according to a report by Google, Temasek, and Bain. Local players like Smile Shop, as well as regional giants like Shopee and Lazada, are prompting logistics companies to invest in automation to meet rapid delivery expectations.

🔗 What the Cambodian Consumer Wants in 2025

🏗️ 2. Growth of Smart Warehousing in SEZs

Special Economic Zones such as Phnom Penh SEZ and Sihanoukville SEZ are developing modern logistics parks with built-in automated warehousing solutions. Tenants, including global apparel, electronics, and food brands, benefit from access to optimized storage, customs clearance tech, and inventory control systems.

📦 3. Integration of Warehouse Management Systems (WMS)

More Cambodian 3PLs are integrating Warehouse Management Systems (WMS) to automate tracking, reorder alerts, and reporting. These systems also enable coordination with E-Logistics platforms used by SMEs.

🔗 E-Logistics Platforms for Cambodia-Based SMEs

🤖 4. Use of Robotics and IoT Devices

While still early-stage, some high-capacity warehouses have started introducing robotic sorting machines, temperature sensors, and automated forklifts—especially for cold chain logistics and high-value inventory such as electronics or pharmaceuticals.

📡 5. Blockchain and AI-Driven Supply Chains

Emerging startups in Phnom Penh and logistics tech consultants are exploring blockchain integration for real-time tracking and AI algorithms to optimize shelf space and order frequency, aligning Cambodia with regional smart supply chain trends.

🔗 AI Startups in Phnom Penh: Cambodia’s Tech Future

Industries Leading Warehouse Automation in Cambodia

🧵 Garments and Apparel

With Cambodia as a major garment exporter, factories and logistics providers are adopting WMS and RFID tagging to handle large volumes of exports efficiently—especially for time-sensitive orders from the EU and U.S.

💊 Pharmaceuticals

Pharma distributors are investing in temperature-controlled automated warehousing to meet both domestic and export demand. Automation ensures regulatory compliance and reduces spoilage.

🌾 Agricultural Exports

As Cambodia expands its agriculture exports (mangoes, cashews, rice), cold storage automation and IoT devices are helping monitor freshness from warehouse to shipping.

🛍️ Retail and E-commerce

As online retail surges, local e-commerce fulfillment centers are investing in sorting machines, automated shelving, and app-integrated WMS for tracking parcels in real-time.

Benefits of Adopting Warehouse Automation in Cambodia

• ✅ Higher accuracy and fewer errors in order fulfillment

• ✅ Reduced labor costs and operational delays

• ✅ Scalability to handle seasonal spikes or demand fluctuations

• ✅ Enhanced visibility and control over inventory in real-time

• ✅ Compliance with international shipping standards

How Cambodia-Agent.com Can Help

At Cambodia-Agent.com, we support international companies and Cambodian SMEs by:

• Sourcing local warehouse tech partners

• Finding logistics agents familiar with automation tools

• Offering consulting on WMS integration and ROI planning

• Helping develop distribution strategies using smart logistics

🔗 Logistics Coordination Through Cambodia-Based Agent Networks

Whether you’re building a new warehouse or retrofitting existing space, we connect you with vetted professionals and scalable automation solutions tailored to Cambodia’s fast-changing logistics environment.

Challenges to Consider

While automation offers major advantages, businesses must also consider:

• High upfront capital investment

• Limited local workforce trained in advanced tech

• Electricity reliability in rural areas

• Slow digital adoption among smaller SMEs

Government partnerships, donor-funded training, and private sector incentives will be essential to overcoming these hurdles.

Conclusion

Warehouse automation in Cambodia is no longer a far-off dream—it’s a growing reality shaped by digital commerce, global trade shifts, and local policy reforms. Businesses that embrace automation today will enjoy greater efficiency, cost control, and competitive edge in tomorrow’s supply chain economy.

📩 Interested in automating your warehouse operations in Cambodia?
Contact Cambodia-Agent.com to consult with logistics experts, identify automation partners, and build a future-ready supply chain.