Viewpoint: Unpredictable markets, fluctuations in demand, lack of space: a case for building better, not bigger

This comment was written by Peter Chen, CEO of a variable. The opinions expressed here are those of the author only and do not necessarily represent the opinions of Modern Shipper or its affiliates.

Over the past few years, e-commerce has experienced tremendous growth for reasons we all are very familiar. Logistics teams scrambled to keep pace with demand while dealing with painful interruptions in the supply chain; One of the solutions to meet the demand was Building new warehouses and staff accordingly.

Now, after this massive growth was Latest dip In demand – although we are still seeing historic highs. Constant inflation may hamper spending on holiday gifts, but no one can be sure of that. This tension between volatile demand and retailers’ willingness to prepare for peak season creates a challenging atmosphere for logistics professionals. Not to mention the constant pressure Added from labor shortage.

Taken together, these factors become a compelling function of expansion decisions made by implementation leaders. Continuing to pursue capital-intensive strategies such as building warehouses and driving recruitment can be disastrously risky to the company’s profits. They are highly dependent on the future of economic markets; A situation beyond anyone’s control. So how do e-commerce retailers and logistics companies take back control? Do they keep building bigger? Or do they build better?

As CEO and co-founder of Covariant, an AI Robotics company, we advise companies on how best to answer this question. I’ve toured hundreds of facilities around the world and noticed a wide range of automation solutions that implementation leaders use to improve their existing warehouse and business resources.

Consider the modern facilities that It cost tens of millions to build. The truth is that it is still relatively ineffective. Automation with technology like conveyors and AMRs is useful, but when productivity rates are a competitive differentiator, smart automation like AI robots can act as a deal-maker. So if you find yourself in a situation trying to improve warehouse productivity before an unexpected peak season, here are some key considerations.

  • AI robots are smart enough to handle the “hands” part. For some time, conveyors and AMR devices have been around to automate the movement of goods from one part of the warehouse to another – the “core” part of the work. Meanwhile, the handling of the items The “hand” part of the work, largely unresolved, which leaves this part of the completion process vulnerable to the costs and unreliability of traditional labor. This has finally changed due to the massive advances in artificial intelligence. Hands, powered by machine learning, is smart enough to handle the dynamic and ever-changing nature of modern pre-programmed warehouse requirements. With hundreds of thousands of SKUs that change with the seasons along with different Packaging Genres, this kind of clever automation can finally pick and sort whatever comes its way — without interruption.
  • Dirsk flexibly. Choose an AI platform that can cover all your business needs today and grow into the needs of tomorrow. Find a single AI platform that can run any application within fulfillment workflows, serve multiple facility locations, integrate with any type of integration, and handle a wide range of levels of automation. High-quality AI robotics solutions are adaptive. Dynamic autonomous technology is a great match for the unpredictable.
  • The first day return on investment is a must. As mentioned earlier, you are considering an approach that is not as capital-heavy as most traditional automation investments. Invest in an automation solution that delivers high productivity and accuracy from day one to maximize operational efficiency and protect cash flow. Flexible and inclusive for everyone Subscription form It also helps protect the cash flow of capital. Added bonus? You should choose a vendor that is a solid partner in your success by offering guaranteed performance for the life of the system.

The future of work will continue to move away from reliance on labor to handle repetitive tasks and Automation adoption rates reflect this transformation. in Survey from early this year1 in 4 supply chain and logistics professionals are using these automation technologies or are in the midst of adopting them.

While you’re reading this, there’s AI powered there robots in Major retailers and 3 PLs Worldwide independently fulfills thousands of customer requests per day with hourly pick-up rates recorded between 500 and 1000+ PPH depending on the use case. All less than 0.1% of them needed human intervention. Currently It’s time to build better repositories that automate part selection using modern technology like AI Robotics.

About the author

Peter Chen is CEO and co-founder of a variablea robotics company that developed Covariant Brain, a global artificial intelligence that allows robots to see, infer and act on the world around them.

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