In our continuing thought leadership series for LogisticsGulf, our regular contributor and technology correspondent Brian Pereira examines how robotics solutions are transforming the logistics sector and how global companies are leveraging warehouse automation to streamline operations and improve turnover.
Warehouses are the heart of supply chains and are crucial for e-commerce firms, shipping and transportation companies, manufacturers, and retailers.
Logistics companies routinely grapple with bottlenecks such as volatility and volume of parcels, inflexibility, delivery times, and space constraints. When space is limited, every inch in a warehouse must be used efficiently.
To improve space utilization, inventory accuracy, operational and financial efficiencies, more warehouses and logistics companies are opting for automation and robotics-based sortation solutions.
Empowering robots
Using robots in warehouses is not a new concept. However, technological advancements make robots smart and capable of doing much more than just the ‘heavy lifting’. Today’s warehouse robots have embedded computer chips, artificial intelligence, machine learning, and are integrated with warehouse automation systems and even the internet.
Modern robotics systems are powered by artificial intelligence-enabled software and are capable of efficiently sorting parcels leading to higher yield. They also have a smaller footprint compared to older sortation systems.
Warehouse automation systems can boost revenues and enable faster ROI. E-commerce company Zappos, for instance, leveraged robotics and automated warehouse systems years ago. Because of this, it was able to maintain free shipping, a 365-day return policy, and a full-time call centre – to gross over US$ 1billion in revenue in 2009. That’s why Amazon acquired Zappos for US$ 928million.
MarketInsightsReports estimates the global Warehouse Robotics Market was valued at US$ 6.12 billion in 2019 and is expected to reach US$ 25.80billion by 2025, at a CAGR of 27% over the forecast period 2020-2025.
With labourers working in shifts due to the Covid-19 pandemic, robots have taken over and are doing much of the work in warehouses. Factories are producing hand sanitizers, face masks and other essential items. They rely heavily on automation for the production and distribution of these items.
Let’s take a look at some of the robotics solutions available today and how logistics companies are utilizing these new solutions.
How Robotics solutions improve warehouse efficiencies
Repetitive tasks such as sorting and order picking, can lead to inaccuracies and errors if performed entirely by humans. Warehouse automation and robotics systems do not suffer from these human traits and can work for long hours, with higher sorting accuracy.
Order picking can account for 50% or more of warehouse labour costs, especially for large warehouses. This task can be performed by automated sorting and picking systems to reduce labour costs and reduce workplace injuries.
Humans can focus on the more complicated processes, such as inventory management, order management, deliveries, labelling, packaging, and posting goods.
Here are some examples of robotics solutions used in warehouses:
Automated Guided Vehicles (AGVs): These are portable robots used on the warehouse floor. AGVs can carry heavy loads or tow objects behind them in trailers. Some AGVs follow a magnetic track to move around. Others have sensors and a map of the warehouse floor. They are controlled by computers that are integrated with the warehouse management system or WMS.
Modern warehouses, such as those used by Amazon, have robotic carriers moving autonomously within aisles to move goods — without the supervision of a human operator. Amazon has over 100,000 such robots active in its warehouses around the world.
AGVs present multi-fold benefits such as a reduction in labour costs, improved efficiency, minimal processing errors, and expediting the movement of goods within the warehouse and across supply chains.
Autonomous Mobile Robots (AMRs): These are smaller than AGVs and can identify information on a package for precise sorting. Unlike AGVs, they do not require a magnetic track to guide them around the warehouse. Instead, they rely on computers, maps, and onboard sensors to guide their movement along predefined routes. And they can avoid obstacles in their path and change their course autonomously.
Automated Sorting Systems: These use a cross belt and the bomb-bay sorter that drops its contents at the desired sort location through a false bottom in the tray using gravity. The flat sorter automated sortation system is unique because the sort trays are not connected, and are moved through the system asynchronously on a conveyor instead of synchronously on a continuous chain. This difference provides several advantages over synchronous type warehouse sorting systems.
Sliding Shoe Sorters: These systems are used in high volume carton warehouse sorting systems such as loading dock areas of large distribution centres. They are named after the sliding ‘pucks’ that guide loads off the main sorter, typically down conveyor lanes or chutes, these automated sortation systems are the fastest in their class.
Automated Storage and Retrieval Systems (AS/RS): These systems are used to bring inventory in and out of storage and are controlled by warehouse execution software.
AS/RSs are available in different forms depending on the type of tasks, the system needed, or the variety of goods. They operate either as a shuttle on a fixed track or as a crane that retrieves goods between aisles. The latest systems now use aisle climbing robots like the Skypod, to retrieve customer orders from vertical storage.
Alibaba, the largest retailer in the world, uses AS/RS at their warehouse in China. Using 60 robots, they reduced warehouse labour by 70%. The robots operate over Wi-Fi to bring inventory to workers to package and post it. As a result, their operations skyrocketed and tripled their output, while reducing labour costs.
Aerial Drones: These are used within, and outside the warehouse for deliveries. The trend of using drones for deliveries was set off by Amazon; now other logistics companies like UPS and DHL are using drones.
Drones make use of optical sensors and GPS guidance systems to navigate within a warehouse or externally. They can access hard to reach places in a warehouse to retrieve goods. Drones also integrate with a WMS to retrieve or update inventory information.
What logistics companies are doing
United Parcel Service (UPS) is testing mobile robots as part of smart technology for its warehouse network. It wants to use this advanced technology to boost its productivity by 50%.
Its Supply Chain Solutions team just launched a Warehouse Execution System (WES) that adds efficiencies to order intake and fulfillment and should also help leverage its autonomous robot capabilities. UPS said it partnered with supply chain solutions provider Softeon to create the WES.
The system has real-time monitoring of capacity, fulfillment requirements, backlogs, and labour status, according to UPS. This should help the Atlanta-based logistics giant identify and resolve potential disruptions before they arise.
UPS has also invested in AGVs and automated sorting systems. It unveiled plans to launch a new “visibility and reporting platform” that will let customers monitor and track end-to-end supply chain activity and performance — from transportation to warehouse inventory to order volume — in one platform.
DHL has partnered with Locus Robotics since 2017 for AMRs. It recently announced that it is expanding this partnership and plans to deploy a total of 1,000 LocusBots from the Massachusetts-based start-up. DHL is also evaluating partnerships with other robotics and warehouse automation companies.
In late 2018, DHL’s North American wing (DHL Supply Chain) announced its plan to invest US$ 300million in robotics and automation across 350 facilities. These robots would use IoT and sensors.
Robotics solutions providers
Several manufacturers produce robotics solutions. These include ABB, Fanuc, Honeywell, Toshiba, Kiva Systems (Amazon Robotics), Daifuku, Robert Bosch, Kuka, Knapp, SSI Schaefer, Rethink Robotics, and System Logistics to name a few.
Other companies making smart factory solutions could soon offer robotics solutions for warehouses. These include: Siemens, Boston Dynamics, Rockwell Automation, Cognex, Zebra Technologies, Cainiao (Alibaba Group), and the KION Group.
The logistics sector will have more options to choose from (and competitive pricing) as more players enter the arena in the next two years.
Conclusion
Robotics and warehouse automation systems are more affordable than ever today. Thanks to technological advancements, these are capable of doing much more than traditional warehouse sorting systems.
Robotics solutions are transforming warehouses and streamlining supply chains. Modern robots are integrated with warehouse automation and management systems.
The adoption of modern robotics solutions in warehouses can improve sortation, reduce the turnaround time, reduce labour costs, shorten delivery times, and introduce efficiencies in the supply chain. All this can boost the turnover of the logistics company, as we have seen in the case of Zappos and Alibaba.
It is, therefore, imperative for Logistics companies to deploy robotics solutions like AGVs and automated sorting systems to gain a competitive edge.
Brian Pereira is a trend monitoring expert and tech influencer with thousands of followers on social media. He is the former editor of InformationWeek and CHIP Magazine in India. He has also contributed to many other leading tech publications. Read all his stories on Digital Creed.
