Exploring Logistics Automation
Published on : Thursday 21-12-2023
Adoption of artificial intelligence and robotics are surging in the logistics automation industry.
Almost every sector has witnessed the integration of automated technologies which seeks to simplify the processes. The logistics sector is no exception. Logistics automation involves using technology to streamline and optimise various processes in the supply chain, such as inventory management, order fulfillment, and transportation. This can include the use of robotics, artificial intelligence (AI), cloud technology, and software systems to enhance efficiency, reduce errors, and ultimately improve the overall flow of goods from production to consumption.
Role of robotics in logistics automation
Robotics plays a multifaceted role, contributing to increased efficiency and precision throughout the supply chain. It aims to reduce manual labor, enhance speed and accuracy, optimise resource utilisation, and ultimately improve the overall efficiency of the supply chain. The integration of robotics is essential for meeting the demands for modern, fast paced logistics environments. Here’s a detailed look at the roles of robotics in logistics automation:
Warehousing & order picking: Automated guided vehicles (AGVs) navigate autonomously within warehouses to transport goods between locations. The use of robotic arms for automated order picking and packing minimises the need for manual labor and increases accuracy.
Sorting and distribution: Robotic systems are employed for sorting and organising products based on various criteria, facilitating faster and more accurate distribution processes.
Inventory management: Drones and robots equipped with sensors can perform regular inventory checks, providing real time data and reducing the risk of stockouts or overstock situations.
Packaging: Robots are utilised in packaging tasks, ensuring consistency and precision. They can handle repetitive tasks like packing boxes, labeling, and palletising at ease.
Last mile delivery: Autonomous vehicles and drones are explored for last-mile delivery, reducing delivery times and costs. These technologies have the potential to enhance the efficiency of the final leg in the supply chain.
Quality control: Vision systems and robotic arms are employed for quality control checks, identifying defects or errors in products during various stages of the supply chain.
Collaborative robotics (Cobots): Collaborative robots work alongside human workers, enhancing overall efficiency and safety. They can be programmed to assist with tasks like loading and unloading items.
Data collection and analysis: Robotics generates a wide array of data, contributing to analytics for process optimisation. This data driven approach helps in making informed decisions and identifying areas for improvement.
Role of artificial intelligence in logistics automation
AI plays a pivotal role in logistics autonomation by enhancing efficiency, accuracy, and decision making throughout the supply chain. Here are key aspects of AI’s role in logistics:
Demand forecasting: AI algorithms analyse historical data and market trends to predict demand accurately. Improved forecasting helps optimise inventory levels, reducing excess stock or stockouts.
Route optimisation: AI optimises delivery routes in real time based on factors like traffic, weather, and order priorities. This minimises transportation costs and enhances delivery speed.
Warehouse management: AI powered systems enhance warehouse operations through automation and optimisation. Automated picking and packing systems, guided by AI, improve order fulfillment speed and accuracy.
Inventory management: AI monitors inventory levels, predicting when to reorder products to maintain optimal stock levels. This prevents overstocking and reduces holding costs.
Supply chain visibility: AI provides real time visibility into the entire supply chain, allowing stakeholders to track shipments and anticipate delays. This transparency improves responsiveness to disruptions.
Last mile delivery: AI facilitates efficient last mile delivery by optimising routes and enabling technologies like drone and autonomous vehicle delivery. This enhances delivery speed and reduces costs.
Risk management: AI analyses data to identify potential risks in the supply chain, such as disruptions due to natural disasters or geopolitical events. Early identification allows for proactive risk mitigation strategies.
Chatbots and customer service: AI powered chatbots assist customers with tracking orders, addressing queries, and providing real time updates. This improves customer satisfaction and reduces the workload on customer service teams.
Predictive maintenance: AI monitors the condition of vehicles and equipment, predicting maintenance needs before failures occur. This minimises downtime and extends the lifespan of assets.
Data analytics: AI processes vast amounts of data to derive insights for better decision making. Analytics help identify opportunities for improvement and optimisation across the logistics network.
Risk assessment and fraud detection: AI analyses data to identify anomalies, preventing fraud and enhancing security in logistics operations.
Current market scenario and new product launches
According to a report published by Allied Market Research, the global logistics automation market size is anticipated to reach $147.4 billion with a considerable CAGR from 2021 to 2030. Various factors including numerous technological advancements, rapid growth in adoption of e-commerce, and the growing need for efficient and organised supply chain operations are driving the global logistics automation market to a great extent.
With this drift on board, the key companies are focusing on huge investments in R&D activities in order to stay competitive in the market. Few of them are launching their own products in the market to strengthen their position in the market substantially, which in turn is boosting the growth of the global logistics automation market.
For instance, Emtec Digital, a leading technological solutions provider, launched OptimateIQ which is a digital platform offering a wide array of services for enhancing the productivity of supply chains. These services are automation solutions specifically designed for the logistics industry.
Similarly, Omron, a major player in automation industry, announced the unveiling of its automation center in Singapore with an aim to cater to the demands of logistics industry in
Singapore.
At the same time, mergers and acquisitions by the key companies have further contributed to the growth of the market. One such acquisition is of Altiall by Hyundai Glovis Co., South Korea’s logistics giant.
Moreover, The Asia-Pacific region is expected to witness the fastest growth rate during the forecasted period. The rapid rise of e-commerce in India is driving the demand for logistics automation in the region. The top e-commerce industry player Amazon is investing $5.0 billion for automated warehouses in the Indian market. Amazon is one of the first companies in India to test and implement robotics in its warehouses. Amazon developed an autonomous robot named Porteus which navigates the company’s facilities using advanced security, perception, and navigation technology.
Future of logistics automation industry
As technology continues to evolve, AI and robotics will become even more integrated into the logistics automation industry. Innovative technologies such as artificial intelligence, data analytics, machine learning, robotics, etc., have a big role to play in the logistics industry in the coming period. The deployment of autonomous trucks, drones, and delivery vehicles will become more widespread for transportation and last mile delivery. Edge computing will gain prominence, enabling real time processing of data at the edge of the network. IoT devices, including sensors and RFID tags, will be more extensively integrated into logistics processes. Here, it is worth mentioning that the global logistics automation market has a huge scope to gather exponential growth in the near future.
Suchita Gupta is an explorer, musician and content writer. While pursuing MBA, she found that nothing satisfies her more than writing on miscellaneous domains. She is a writer by day, and a reader by night. Besides, she can be found entertaining her audience on social media platforms. Find her on LinkedIn & Instagram.
