DHL extends Locus Robotics collaboration

DHL Supply Chain has agreed to expand its collaboration with Locus Robotics. Initial investments in assisted picking robots have proven effective in commercially scaled operations, and this multi-million dollar agreement will enhance DHL’s wider Accelerated Digitalisation Strategy.

By 2022, the supply chain specialist plans to take on up to 2,000 robots, then being by far the largest customer of Locus Robotics worldwide. The assisted picking robots are mostly used in e-commerce or consumer warehouses to help with picking and inventory replenishment, thereby increasing efficiency and accelerating delivery processes.

“It is particularly important for us to be able to consistently optimise our supply chains – assisted picking robots are very effective in this respect,” says Markus Voss, Global CIO & COO DHL Supply Chain. “So far, more than 500 assisted picking robots are already in industrial use in our warehouses in the USA, Europe and the UK. By the end of 2021, another 500 robots are to be added in a total of more than 20 locations.

“The collaborative picking technology has clearly proven its effectiveness and reliability in modern warehousing. More locations have already been identified with concrete implementation roadmaps for the remaining robots, which we will deploy in 2022. However, the overall potential for assisted picking robots in our DHL warehouses is much bigger, so we are confident that we will meet the targets we have set ourselves together with Locus Robotics.”

Further implementing these robots is one step in DHL Supply Chain’s Accelerated Digitalisation Strategy. Assisted picking robots help reduce time spent on manoeuvring pushcarts through warehouses, lower physical strain on employees, and increase picking efficiency. Assisted picking robots display images of goods to be picked, calculate optimal navigation routes and reduce required training time.

“Also, they can be swiftly integrated into the warehouse system landscape via DHL Supply Chain’s Robotics Hub and are well received by staff. In addition, during peak operational periods the robots provide an optimal solution for capacity expansion as we can swiftly bring in more robots with minimal onboarding effort to the existing fleet.

“Our expanded partnership with DHL reflects the increasing demand for warehouse digitalisation worldwide to meet today’s exploding fulfilment challenges,” said Rick Faulk, CEO, Locus Robotics. “Locus is proud to be a valued technology resource that is helping DHL realise their strategic vision of digital transformation.”

The pandemic has accelerated the booming trend of e-commerce, which makes the labour-intensive picking process in e-fulfilment play an even bigger and more critical role in meeting high end-customers’ demands. These trends speeded up the introduction of new technologies and automation in various industries, but especially in warehousing. It has also shown what the “supply chains of the future” may look like and that the world must quickly adapt to new challenges.

DHL Supply Chain is constantly assessing which of the implemented technologies will make their way into the warehouses permanently in order to further optimise processes. In addition to these tangible robotic solutions, DHL Supply Chain relies on software and cockpit solutions that can provide real-time information on the status of the global service logistics network of their customers. Accessing the pool of big data and implementing algorithms and artificial intelligence has proven to be a “game changer” in global supply chain planning and will be rolled out further.

Flexible Fulfilment Functionality to Survive and Thrive

The impact of COVID-19 has brought into sharp focus the need for agile solutions, such as warehouse software, to meet sudden changes to business operations says SnapFulfil CEO Tony Dobson.

Traditional business models are being turned upside down and facility rentals are soaring as brands try to capitalise on the e-commerce trend with a direct to consumer (D2C) offering, so it’s more critical than ever to consider the warehousing and logistics part of the supply chain. The solution sits with advanced, digital technology, which is central to tackling new challenges and optimising premium fulfilment centre space. It’s also key to satisfying more demand, staying competitive, plus managing labour efficiency and productivity.

The required change – particularly the shift from wholesale to individual order dispatch –isn’t an easy move. The days of distribution centres designed for bulk ‘pallet in, pallet out’ operations are numbered – and when space comes with a premium price tag, it’s essential that the WMS has the capabilities to effectively support smaller, incremental orders in the thousands.

It should also be specifically engineered to meet the needs of an ever-evolving market place without being expensive or time consuming to set in motion and reconfigure – even remotely.

Consequently, digital transformation of business will continue apace, with more automation to control stocks, fulfilment and delivery. A tier 1 WMS will integrate with other solutions, creating a valuable ‘blockchain’ network of peer-to-peer transactions. This lets firms share information about a container just once, but everyone up and down the chain can see that data in an instant.

Bosses can also access a real-time view of their business allowing them to make better, more efficient decisions based on solid data – essential in disruptive markets and with margins tighter.

Through blockchain technology, companies are also waking up to the value of the customer data trail and the loyalty they can harness through having a single customer view. This can only be achieved through integration and mapping each customer’s buying journey from start to end and beyond. And fulfilment is part and parcel of that.

Data analysis increasingly drives much of the decision making in business, which is why it is so important for companies to understand their past and current performance and challenges in order to succeed in the future.

D2C operations are in stark contrast to bulk or retail-based shipping, so a technology advanced WMS can really help keep goods and processes flowing, while managing staff and resource allocation, through the targeted data it collects and delivers. Savvy businesses are using data to identify trends and make important operational and fulfilment decisions based on a strategic version of their truth.

For example, when labour is at a premium and self-isolation is a reality, coupled with a rapid change in orders, then having data to boost the effectiveness of the available workforce, their picking and packing performance, plus available space– underpinned by highly efficient receiving and putaway activity – is crucial.

Data driven WMS also allows you to take a fresh look at shipping visibility and accuracy. There is an ever-growing expectation from consumers for fast and accurate order fulfilment and during a recession, business can be hard to win but easy to lose due to disgruntled purchasers. Incremental improvements in visibility and error reduction, however, will yield proportionately greater benefits to sales growth and customer retention.

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