Warehouse automation: Robots and drones sorting our delivery boxes

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  Quantumrun Foresight
• November 17, 2022

Insight summary

Warehousing automation is transforming how inventory moves from storage to customers, driven by the latest industrial advancements. This shift includes both digital tools like data analytics and physical machines like robotic arms, enhancing efficiency and safety. These changes are leading to broader impacts, such as redefined workforce roles and the need for new cybersecurity strategies in logistics.

Automated warehouses context

The practice of handling inventory from a warehouse to consumers with minimal human involvement is known as warehousing automation. Warehouse operators are actively introducing and implementing automation throughout their facilities to take advantage of efficiency opportunities made possible by the fourth industrial revolution (Industry 4.0). These automation upgrades include using autonomous vehicles and robots to ensure that each warehouse process is micromanaged to perfection. 

Warehouses may be simplified by removing error-prone, labor-intensive activities that require manual data entry and analysis. An example is the implementation of software records that accurately tracks the movement of all inventory items. Another form of automation may be autonomous mobile robots (AMR) that can move inventory quickly and efficiently from the warehouse to the shipping zone. 

There are two types of automation in warehouses: physical and digital. 

• Digital automation comprises data analytics and software to eliminate manual processes. This system integrates enterprise resource planning (ERP) with cybersecurity and management efficiency. Automatic identification and data capture (AIDC) technology and the pervasive use of radio frequency identification (RFID) tracking tags on items can improve worker productivity and efficiency and increase operational savings. 
• Meanwhile, physical automation uses machines and robots to improve worker safety or take over the more labor-intensive roles. For example, robotic arms that can lift heavy packages or re-stock shelves. 

Disruptive impact

Various technologies lead to more independent and resilient warehouses; examples are goods-to-person (GTP) devices, such as conveyors, carousels, and lift systems. Another technology is automated guided vehicles (AGVs) that use sensors and magnetic stripes to follow a pre-programmed route in the facility. However, these AGVs are not ideal for warehouses with a lot of human activity and foot traffic.

Meanwhile, automated storage and retrieval systems (AS/RS) comprise vehicles, shuttles, and mini-loaders that are programmed to carry specific materials or loads across the warehouse. Finally, automated sortation systems can use RFID, barcodes, and scanners to identify specific packages and route them to the appropriate container or vehicle.

In 2023, China-based e-commerce firm JD.com enhanced its logistics and warehouse operations through advanced automation and robotics. A significant development is at JD Logistics’ California distribution center, where they have implemented Hai Robotics’ automated storage and retrieval system (ASRS). The system is capable of handling up to 600 picks per hour per operator, which equates to approximately 350 orders per hour per workstation, resulting in a maximum of 2,100 orders from the entire system every hour. JD.com stated its motive in automation is not to replace human workers but to make them more efficient and reliable. 

Implications of automated warehouses

Wider implications of automated warehouses may include: 

• Increased investments in logistics machines like autonomous mobile robots and sensors, fueling commercial opportunities for the robotics industry throughout the 2020s and 2030s.
• Increased investments in autonomous last-mile deliveries, such as drones and self-driving trucks, encouraging government transportation agencies globally to develop expedited legislation around self-driving vehicles. 
• Incorporating research and development in virtual/augmented reality (VR/AR) devices with processes like virtual training and vision guidance through smart glasses.
• Customers receiving their packages faster and in better condition, motivating people to try purchasing more products online since they can receive (and return) them within a day.
• Enhanced focus on employee skill development, leading to a shift in workforce dynamics where warehouse workers acquire new skills in technology and systems management.
• Governments crafting specialized training programs and incentives to support the transition of the workforce towards more technologically advanced roles in logistics and automation.
• Retailers adapting their business strategies to capitalize on the faster and more efficient supply chains, potentially shifting towards just-in-time inventory systems to reduce costs and increase responsiveness.
• Increased demand for cybersecurity measures in logistics, as reliance on digital systems grows, prompting businesses and governments to invest more in protecting data and infrastructure from cyber threats.

Questions to consider

• If you have worked in a warehouse, what other automation technologies have you seen used?
• How else might automation transform the warehouse and supply chain?