Raw Data of Report

8/15/2019 Raw Data of Report

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Peter Baker (Centre for Logistics and Supply Chain Management, Cranfield School of Management,Cranfield University, Cranfield, UK!aheed "alim (#epartment of $ndustrial % Production &ngineering, Shah 'alal University of Science andechnology, Sylhet, Bangladesh

Citation)Peter Baker , !aheed "alim, (*++ -.n e/ploration of 0arehouse automation implementations) cost,

service and fle/i1ility issues-, Supply Chain Management) .n $nternational 'ournal, 2ol3 4* $ss) *,pp34*5 6 478

#9$http)::d/3doi3org:4+344+8:47;58; .utomated 0arehouse e?uipment is often regarded as 1eing infle/i1le, and yet its use continues torise even though markets are 1ecoming increasingly volatile3 he purpose of this paper is to e/plore the

reasons for, and nature of, 0arehouse automation implementations in order to further thisunderstanding3

Design/methodology/approach > he research is 1ased on semi‐structured intervie0s 0ith some of the key stakeholders in automationpro@ects3 his is follo0ed 1y a survey ?uestionnaire to 0iden the findings3

Findings > he research indicates that the main reason for automation is to accommodate gro0th, 0ith costreduction and service improvement also 1eing important3 he implementation process tends to 1ecomple/ and lengthy, although most pro@ects are controlled 0ithin the planned 1udget and timescale3here is, ho0ever, a real risk of disruption and service level failings during the operational start ‐up ofthese pro@ects, as 0ell as some concerns a1out ongoing fle/i1ility3

Research limitations/implications > he findings provide a useful insight into these areas 1ut further research is re?uired to e/plore thekey characteristics of successful implementations and to understand ho0 0arehouse automation can 1edesigned to provide responsiveness to rapidly changing market conditions3

Practical implications > he findings have important implications as regards the need to incorporate scenario planning into thedesign process and to plan for the management of the ongoing operation3

Originality/value > here has 1een relatively little previous research into this important area, 0hich involves a su1stantialproportion of the capital 1udget of many supply chains3 he a1ove findings are of value to academics

and practitioners3

http://www.emeraldinsight.com/action/doSearch?ContribStored=Baker%2C+Phttp://www.emeraldinsight.com/action/doSearch?ContribStored=Baker%2C+Phttp://www.emeraldinsight.com/action/doSearch?ContribStored=Halim%2C+Zhttp://www.emeraldinsight.com/action/doSearch?ContribStored=Baker%2C+Phttp://www.emeraldinsight.com/action/doSearch?ContribStored=Baker%2C+Phttp://www.emeraldinsight.com/action/doSearch?ContribStored=Halim%2C+Zhttp://www.emeraldinsight.com/action/doSearch?ContribStored=Halim%2C+Zhttp://www.emeraldinsight.com/action/doSearch?ContribStored=Halim%2C+Zhttp://dx.doi.org/10.1108/13598540710737316http://www.emeraldinsight.com/action/doSearch?ContribStored=Halim%2C+Zhttp://www.emeraldinsight.com/action/doSearch?ContribStored=Baker%2C+Phttp://www.emeraldinsight.com/action/doSearch?ContribStored=Halim%2C+Zhttp://dx.doi.org/10.1108/13598540710737316http://www.emeraldinsight.com/action/doSearch?ContribStored=Baker%2C+Phttp://www.emeraldinsight.com/action/doSearch?ContribStored=Baker%2C+P


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Foreword The world might be fat again,1 but it still takes considerable time to

ship goods rom one side to the other. Distribution centres take up a central role

in the supply chain to stock goods coming rom a multitude o producers and

ship customer-specic orders to the end client. !ncreasingly high demands ha"eto be ullled in a cost-e#cient manner. !n $%%&, we took up the challenge to

tackle ''one o the last rontiers(( in industrial automation) unstructured item

picking by human order pickers in distribution centres. *t the time, progress in

"ision technology and robotics ga"e us the impression this was an achie"able

goal. +owe"er, automation o the ''hardware(( is only hal the problem, and not

e"en the most di#cult hal. * distribution centre ulls many unctions and its

design is based on many years o eperience. !tem picking by human operators

takes up a central role, and thereore design rules incorporate aspects o the

whole system. ou simply cannot replace one aspect, in isolation, by an

''automated(( "ersion without considering the total system. That was the realchallenge we put into this proect) how to incorporate a new and yet unknown

unction in an optimal way or the system as a whole. *nd what a challenge it

was. The ''industry-as-laboratory(( philosophy o the /mbedded 0ystems !nstitute

was enthusiastically embraced by research groups o the uni"ersities o

/indho"en, Delt, Twente, and trecht. 2ight rom the start these groups aced

the challenging 3''rustrating((, some would say4 deadlock situation. 5roups

working on component design needed o"erall system aspects o the yet to be

de"eloped system, groups working on system design needed details o the yet to

be de"eloped components. *nd both were not able to pro"ide the other with the

re6uested inormation. 1 0ee Thomas Friedman(s The 7orld is Flat) * 8rie+istory o the Twenty-First 9entury published by Farrar, 0traus and 5irou. " :ow,

; years down the line, this book summarises what we ha"e achie"ed. anderlande

!ndustries, a leading supplier o integrated logistics systems or automation o

warehouses, were selected as Falcon(s carrying industrial case. This books is the

sith in a series o books, all reporting on the large ;-year industry-as-laboratory

proects, as eecuted by the /mbedded 0ystems !nstitute 3/0!4, in close

collaboration with its industrial and academic partners.$ The Falcon proect was

eecuted rom anderlande

!ndustries, Demcon *d"anced Bechatronics, Delt ni"ersity o Technology,

/indho"en ni"ersity o Technology, /urandom, the ni"ersity o Twente, and

trecht ni"ersity, and lead by /0!, together encompassing C; FT/. Falcon

ocuses on model-dri"en de"elopment within the contet o warehouse


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automation with a specic emphasis on warehouse control and enabling

technologies or the automation o warehouse unctions. Bodel-dri"en

de"elopment pro"ides a means to handle increased system compleity by

ocusing on the problem domain instead o the solution domain. !t is a

de"elopment approach that ocuses on creating models and system abstractions,

as a means to increase producti"ity and 6uality by simpliying design processes

and supporting design decisions, whilst promoting communication between all

parties in"ol"ed. The /mbedded 0ystems !nstitute has, in its pre"ious proects,

already shown the benets o model-dri"en de"elopment in se"eral other

domains. The Falcon proect adds a new domain by successully applying this

approach to the design o warehouses, robotic warehouse components, and

warehouse management and control systems. Aey results o the proect include

highly modular reerence architectures that support the model-dri"en

de"elopment o warehouse management and control $ The books o the earlier

industry-as-laboratory proects 8oderc, Tangram, !deals, Trader, and Darwin are

a"ailable on /0!(s website) http)www.esi.nlpublicationsbooks. "ii systemsEsimple aspect models that eecti"ely guide the de"elopment o new warehouse

concepts or the conguration o new warehouse systemsE a "ersatile automated

item-picking workstation integrating a no"el underactuated robot hand and new

item recognition and localisation algorithmsE and a scalable and robust shuttle-

based transportation system with similar perormance as con"entional con"eyor-

based transportation systems. ! would like to thank the participants o the Falcon

proect or their commitment and contributions to the proect) together they ha"e

secured Falcon(s success. The nancial support by >anderlande !ndustries and

the Dutch Binistry o /conomic *airs 3through *gentschap:=4 are grateully

acknowledged. ! would also like to thank 0pringer or their willingness to publishthis book, with which the /mbedded 0ystems !nstitute wishes to share the most

important results o the Falcon proect with a broad audience, in both industry

and academia. /indho"en, *pril $%11 @ro. Dr. !r. 8oudewin +a"erkort 0cientic

Director and 9hair /mbedded 0ystems !nstitute "iii @reace *cknowledgments

*utomation in warehouse de"elopment is a result o the Falcon proect

conducted under the responsibility o the /mbedded 0ystems !nstitute with

>anderlande !ndustries as the carrying industrial partner. This proect is partially

supported by the :etherlands Binistry o /conomic *airs under the /mbedded

0ystems !nstitute 380!A%G%$14 program. 7e grateully acknowledge the

cooperation with the employees o >anderlande !ndustries throughout the ;-yearproect. Their warehouse domain knowledge and our partners( applied research

ha"e ormed the basis or *utomation in warehouse de"elopment, a book

targeted at academic researchers and industrial practitioners describing state-o-

the-art research on warehouse automation and model-based warehouse design.

7e would like to thank the employees o our partners 3/mbedded 0ystems

!nstitute, >anderlande !ndustries, Demcon *d"anced Bechatronics, Delt

ni"ersity o Technology, /indho"en ni"ersity o Technology, ni"ersity o

Twente, trecht ni"ersity, and /urandom4 or writing the chapters o this book.

7e would also like to thank the re"iewers rom >anderlande !ndustries, the

/mbedded 0ystems !nstitute, and our academic partners. Their constructi"eeedback has impro"ed the 6uality o the book.


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PICK, PACK, AND SHIP

E-commerce fulfillment is basically a piece-pick operation, which is historically a hands-

on procedure. The right automation facilitates the minimization of manual touch,

resulting in more accurate orders, improved ergonomics, lower labor costs and worker

travel time, fewer returns, and space saved by operating in a smaller footprint.

Much of the recent investment in automation by e-commerce 3!s has been driven by a

desire to improve order picking, packing, and shipping processes, with a focus on

picking. "nd the most basic form of automation for e-commerce in 3!s is theaugmentation of manual order picking with #T support, such as pick-to-light, hands-free

voice systems, zone routing, or dynamic slotting.

#n most distribution centers, picking is the most labor-intensive $% function, and usually

can provide the most cost-savings when automated. #T-based picking options e&ist that

have significantly lowered capitalization costs, and can e&ert a sizable positive impact on

a $%'s throughput efficiency, while reducing operating costs. (or many distribution

centers)and especially for e-commerce 3!s)#T-based picking options can provide the

ideal automation solution to streamline their throughput cost-effectively, while realizinga short-term *+#.

E-commerce 3!s are finding that their clients are progressively reuiring shorter-term

contracts)where once five-year and -year contracts were typical, now three-year to

five-year contracts have become the standard. 3!s need to factor their automation

investment for a much shorter *+#, which makes heavily capitalized euipment a poor

option.

(or dynamic e-commerce picking, highly automated robotic and shuttle-based systems

provide accurate and rapid goods-to-person solutions. These systems can achieve


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performance levels of many hundreds of order lines per hour with precision accuracy.

(or e-commerce fulfillment within 3!s, however, it is difficult for these organizations to

factor the capital euipment *+# over such a short three-to-five-year span.

Eually important is the scalability of the automation as a 3!'s client needs increase ordecrease, and the fle&ibility to move the automation for use in a new location, when and

if the contract does terminate. This is further pointed up by the fact that e-commerce

retailers can fluctuate in their use of 3!s. /aving retained a 3! to handle their e-

commerce fulfillment for several years, a retailer can pull the fulfillment back in-house,

then several years later put the fulfillment back out for 3! bid consideration again.

(rom the perspective of the 3! operator, the more fle&ible and scalable the pick, pack,

and ship euipment, the better the possibility of achieving their return on investment on

that euipment.

The focus on automation for any e-commerce 3! should be to easily increase fulfillment

throughput and 012 density over time. 0uch a system should enable e-commerce 3!s

to pick, pack, and ship orders and handle returns uickly and accurately, while reducing

labor costs and shipping errors, and realize euipment *+# over the life of the contract.

ASSESSING 3PL CAPABILITIES FOR E-COMMERCE

ithin e-commerce, unpredictability is a constant factor. (le&ibility in the 3! supply

chain, therefore, becomes critical. This can be derived from implementing the right

software and automated systems that can support the fluidity that e-commerce reuires.

3!s under consideration for handling a retailer's e-commerce fulfillment should be

assessed against the following criteria as to their performance capability. These points

represent potential trouble areas in e-commerce fulfillment4

!arge 012 counts, with a high percentage of slow movers.

0mall number of pieces per order.

E&treme peak season volumes.

2nder-stocking due to unpredictable changes in market demand.

(ront-end order processing.

(ast 56 to 67 hour delivery.

/igh volume of returns from end consumers.

/igh potential for brand damage from poor fulfillment performance.

*eal-time, accurate inventory and order visibility.


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These points can best be addressed in concert with an independent logistics consultant,

who can provide considerable value to logistics e&ecutives at both the retailer and 3!.

The methodology of independent logistics consultants permits an ob8ective e&amination

of all e-commerce options, helping both parties determine underlying costs and designfor facilities, automation, and labor within the 3!. %onsultants size the facility based on

the retailer's reuirements, the anticipated level of operator cost, and what the 3! plans

to invest, factoring in the optimum level of automation.

#ndependent consultants draw on solutions from many e-commerce 3! options used in

different applications, thus providing a broad perspective on potential solutions that

might otherwise not be considered. This depth of e&perience can make the critical

difference in selecting the right 3! and euipment that will meet retailers' reuirements

for throughput and efficiency, and the 3!'s need for minimized capital outlay that willdeliver the e&pected return on investment.

0ource-http)www.inboundlogistics.comcmsarticlemaimiHing-producti"ity-in-

e-commerce-warehousing-and-distribution-operations


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hree years ago, Man@unath Aamappa 0as attending to customers at one of $ndias largest retail chains 0hen he

noticed the 0inds of change 1lo0ing around him3 .s 1ig discounts lured shoppers online, the am1itious salesman

follo0ed suit, signing up as a 0arehouse manager at fashion portal !ivame3

Behind the glity online catalogues of clothes, perfumes and apparel that are dra0ing $ndians in droves to

ecommerce portals, there is an organised net0ork anchored 1y technology and manned 1y people like

Aamappa, 0ho are tasked 0ith ensuring that the 0heels of $ndian online retail run smoothly3 -$ think $ made the

right career moveD ecommerce is gro0ing like anything,- says the 7*6year6old, 0ho leads a team of over


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lure customers 0ith deep discounts and sameday deliveries, faster processes 1ecome necessary3 .nd these

giant automated 0arehouses give them the horsepo0er to deliver on promises3

-$ts important 1ecause youre selling more products in a lesser amount of time3 he fi/ed cost gets spread over

more items, so the cost per unit reduces,- said #atta, 0ho estimates that $ndian portals no0 manage a1out 7+

large 0arehouses3

!ivames 0arehouse in central Bangalore occupies t0o floors spanning 4*,+++ s?uare feet each and 0ill 1e

tripling in sie soon3 Hhile these facilities appear enormous, they 0ould pale in comparison to .maon, .mericas

largest online retailer, 0hich manages over 8+ 0arehouses, some large enough to hold more than *8 foot1all

stadiums3 ypically, 0arehouses in the US are located in the su1ur1s and close to airports to help companies

take advantage of lo0er land and manpo0er costs3 Using technology to help manage day6to6day operations

0ithin a 0arehouse is key to success, according to #atta3

-$n the apparel industry, gauging stocks is tricky and soft0are helps them decide 0hat different people 0ant to

0ear and 0hich trend 0ill disappear tomorro0,- he said3

But there is only so much that soft0are can do3 $t takes human ingenuity to find the right mi/ of technology and

people to make sure that processes are efficient and costs are controlled3

For instance, 0hen a Myntra customer places an order, say a pair of @eans, it makes its 0ay out of the 0arehouse

in less than four hours3 .t !ivame, it takes less than t0o hours3

-. year ago, orders 0ould get delayedD the 0arehouse space 0as not 0ell utilised3 He have come a long 0ay

from that,- said 2enkatesh SS, vice6president of operations at !ivame3

.t Myntra, 0hich says it handles one lakh shipments every day, the pickers 0ho collect items are given a device

much like the card6s0iping machine carried 1y delivery 1oys3 he device sho0s 0hat item should 1e picked up

from 0hich grid3 he 0orkers scan, pick and deposit items in the grid, irrespective of 0hether all items 1elong to

one single order or not3

Myntras logistics are handled 1y 2ector ecommerce3 .t !ivame, 1ecause there are relatively fe0er orders (a1out

*,;++ a day, each picker handles a set of orders 0ithout a handheld device3 But as more orders come in,

!ivame too 0ill have to graduate to handheld devices to save paper and time3

Ilo1ally, .maon is kno0n to have timers set 0ithin the handheld device, so the picker finishes the task 0ithin

the time limit3 $ts a race against time and orders3 Last holiday season, .maon gave a peek into its 0arehouse

0here it sho0ed short 4=6inch ro1ots criss6crossing the 0arehouse, helping employees complete multiple orders

at once3

-he greater the volumes, the greater is the re?uirement for automation,- said Gaman 'ain, head of 1usiness

development at Falcon .utoech, 0hich sells automation solutions to large ecommerce companies3 -Conveyor 1elts and 0eighing machines 0hen automated can reduce turnaround time 1y a fourth,- said 'ain3

#eep discounts that mark holiday sales are also 0hen 0orkers put in all6nighters at the 0arehouse3 9n regular

days, they 0ork round the clock in three shifts of nine hours each3

But 0ill 0e see ro1ots anytime soonJ

-Lets see3 $f things continue to progress like this, 0e 0ont have an option3 May1e in the ne/t ; to years,- said

Myntras La0ania3

Quick facts about the ecommerce industry


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$ndian e6commerce is pro@ected to e/plode from E4+ 1illion to E


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while many ound the "oin" very tou"h. $ere! we tac%le a %ey

pro&lem that an eCommerce company aces' settin" up a

warehouse. (e visited )o"Spot a ew days a"o and here the

*ana Atheya +co'ounder, and the man who setup the entire process! An%ur Tandon ta%e us throu"h the cycle they ollowed.

Ankur Tandon

@roblem we were acing at managing in"entory and operations

at Dog0pot.in)

1. +ow to make @icking scalable and easier$. +ow to a"oid dependency on human resource while picking

the products

G. 7hat will be the logic o arranging products in a ware house

I. +ow to make operations o inward and picking smooth

!n a warehouse, cost o order picking is highest and it becomes

more crucial when you are dealing with niche products. +andling

http://yourstory.in/2013/06/inside-the-warehouse-of-an-ecommerce-store-see-how-it-works/http://www.dogspot.in/http://yourstory.in/2013/06/inside-the-warehouse-of-an-ecommerce-store-see-how-it-works/http://www.dogspot.in/


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le"el understand at this step about arranging the stu in the

warehouse.

Third step: *dd another le"el o sorting, "elocity o mo"ement o

products.

>elocityJ :o. o 0A soldTime

*s said earlier we made dierent Hone. elocity Lone M+>LN) +ere we keep all our ast mo"ing

items here

$. >ery hea"y Lone M>+LN) +ere we keep all items weighing

more than ; kg, such as big dog ood bags


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+yperlocal is the net rontier or e-commerce companies to bring

massi"e scale and deli"er goods instantly. 7hile we see the rise o

on-demand startups like 5roers, @eppertap and Ougnoo among

others, e-commerce giants Flipkart, *maHon, 0napdeal and @aytmsee hyperlocal as the net a"enue to accelerate scale.

Flipkart announced 'Flipkart :earby( to cater to hyperlocal needs

like grocery, FB95 goods this month and aspires to oer

supermarket eperience to customers in 8engaluru. *maHon

launched '*maHon Airana( to deli"er grocery and essentials in

8engaluru within two to our hours while 0napdeal is piloting


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0napdeal !nstant in select cities. !t also led 0D G& million round

in on-demand grocery platorm @eppertap to ramp up its

hyperlocal stake.

Bore recently, @aytm rolled out its hyperlocal platorm and

epects hal o its sales coming rom hyperlocal business by $%1&.

0o why ha"e these e-commerce maors turned hyper towards

hyperlocal spaceP !ndian digital commerce businesses are trying

to emulate *libaba(s consumer acing marketplace Taobao which

le"erages network o retailers or product procurement and

deli"ers using thelogistics arm o *libaba.Emulating the Taobao model


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tune o 0D I% million. @eppertap had secured 0D G& million last

month and 5roers is in ad"ance talks with 0otbank or a 0D

1%%-million round. Ougnoo is also epecting to gobble abigger

round or epansion.

/perts belie"e that e-commerce maors will either in"est in

growth-stage hyperlocal startups or ac6uire them to make their

business attracti"e or more >9 capital. 7e ha"e witnessed the

rst strategy by @aytm and 0napdeal. The ormer had pumped in

money in 9handigarh-based Ougnoo while the latter had recently

in"ested in @eppertap. *ccording to some reliable sources, 5roerswas in talks with Flipkart or possible ac6uisition but it didn(t work

out.

9 unding, we see there is a sense o ear o

missing outamong e-commerce players as ar as hyperlocal sector

is concerned. /-commerce maors ha"e realised the potential o

hyperlocal and are now ramping up their stakes "ia in"estmentand ac6uisition.

!rowth stagnation and massi"e scale are dri"ing e-

commerce maors towards hyperlocal

7hile e-commerce still has to nd strong inroads in smaller cities,

its growth in metros and Tier ! cities is ushering in stagnation. This

seems to be one o the biggest dri"ers or e-commerce companiesto go or hyperlocal segment. +yperlocal startups are scaling up

6uickly and could be the net sector to bring massi"e scale to e-

commerce maors. *ccording to an industry estimate, the current

market opportunity o the space is about 0D 1& billion, much

bigger than e-commerce and it(s epected to grow to 0D Q%

billion by $%$%.


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"ccording to consulting firm Technopak , #ndia9s ecommerce startups spend

as much as 3 percent of their net income on logistics. #t9s a big reason why

http://www.technopak.com/http://www.technopak.com/


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#ndia9s ecommerce giants,(lipkart and 0napdeal, still aren9t profitable :

and partially the reason why the country9s logistics industry is worth a

staggering 20;3 billion.

See: 15 top funded ecommerce startups in India this year – with

a few surprises

!ess than two months ago, (lipkart re-acuired its own logistics arm,

#nstakart, and rival ecommerce site 0napdeal invested heavily in its partner

logistics startup

a day.

https://www.techinasia.com/flipkart-snapdeal-battle-indias-online-shoppers-infographic/http://www.novonous.com/logistics-market-india-2015-2020https://www.techinasia.com/top-funded-ecommerce-startups-in-india-2015/https://www.techinasia.com/top-funded-ecommerce-startups-in-india-2015/https://www.techinasia.com/top-funded-ecommerce-startups-in-india-2015/http://www.flipkart.com/http://snapdeal.com/https://www.techinasia.com/snapdeal-20m-booster-logistics-partner-win-mile-race-flipkarts-instakart/http://gojavas.com/http://www.roadrunnr.in/http://www.nextbigwhat.com/roadrunnr-electric-scooters-297/https://www.techinasia.com/flipkart-snapdeal-battle-indias-online-shoppers-infographic/http://www.novonous.com/logistics-market-india-2015-2020https://www.techinasia.com/top-funded-ecommerce-startups-in-india-2015/https://www.techinasia.com/top-funded-ecommerce-startups-in-india-2015/http://www.flipkart.com/http://snapdeal.com/https://www.techinasia.com/snapdeal-20m-booster-logistics-partner-win-mile-race-flipkarts-instakart/http://gojavas.com/http://www.roadrunnr.in/http://www.nextbigwhat.com/roadrunnr-electric-scooters-297/


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+pinio, a hyperlocal logistics startup, helps make deliveries within a radius

of five to seven kilometers and recent entrant Bugnoo takes advantage of

#ndia9s massive fleet of auto rickshaws to conduct deliveries.

Photo credit:Robert Donovan

+n the other end, arcelled comes to a seller9s doorstep, brings along

packaging materials, and helps properly prepare a product for its 8ourney.

Storage solutions

+nce a product reaches a node : maybe a warehouse or a fulfillment center

: the way it9s stocked is crucial. 0tocking it right can save precious time

http://www.opinioapp.com/https://jugnoo.in/https://www.flickr.com/photos/booleansplit/7286681412http://www.parcelled.in/http://www.opinioapp.com/https://jugnoo.in/https://www.flickr.com/photos/booleansplit/7286681412http://www.parcelled.in/


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when shipping, reduce electricity usage, and make the most of storage

space.

0ome startups work on making these processes easier.


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Photo credit: Jason Saul

(reights, trains, and planes can be e&pensive and are often owned by larger

companies. hile they9re often hard to keep track of, they can cover long

distances in short times. Many startups work on organizing and disrupting

the world of cheap, on-ground shipping.

%onventionally, mini-trucks have helped conduct affordable package

movement. 0tartups like Clowhorn use an 2ber-esue model to help

customers book them on demand. hile there are plenty of others in this

space working both within city limits and outside : 0hipper,The orter,

and The1arrier, to name a few : the market for mini-truck transportation

https://www.flickr.com/photos/gylo/485276661/http://www.blowhorn.net/http://www.shippr.in/https://theporter.in/http://thekarrier.com/https://www.flickr.com/photos/gylo/485276661/http://www.blowhorn.net/http://www.shippr.in/https://theporter.in/http://thekarrier.com/


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is enormous and is estimated to be worth anywhere between 20;6-G

billion.

+thers feel that it9s inefficient to hire a single driver to ship goods across a

country. *ivigo is essentially a relay system for truckers that have to make

long deliveries. #t uses a network of drivers across #ndia that are located in

hub cities. Each trucker is assigned a leg of work between two of these

points.

There are also several startups that leave it up to shippers and loaders to

manage themselves. This includes Mahindra and Mahindra9s 0mart0hift,

an online portal that connects people that want to ship goods with truckers,

as well as Truck0uvidha, andTruckMandi.

http://rivigo.com/index.htmlhttp://smartshift.in/http://trucksuvidha.com/http://www.truckmandi.in/http://rivigo.com/index.htmlhttp://smartshift.in/http://trucksuvidha.com/http://www.truckmandi.in/


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Back-end technology

Photo byPixabay

There9s always room to tighten your supply chain. lenty of data collection

startups are capitalizing on this fact : interestingly enough, there are

several combinations of startups that provide both last mile and back-end

technology services, perhaps because seamless automation is the only way

to handle a problem so vast.

!ogi@e&t analyzes the internal data of logistics companies in order to

improve their work. #ts products include Track-"-ack, a coordinated

system that places matchbo&-sized trackers in vehicles and shipment bags

in order to keep track of them as they move from hub to hub, and oint-to-

https://pixabay.com/en/purchasing-shopping-cart-internet-689442/http://www.loginextsolutions.com/https://pixabay.com/en/purchasing-shopping-cart-internet-689442/http://www.loginextsolutions.com/


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oint, an app based system that assigns last-mile tasks to local delivery

boys and vehicles by considering factors like priority, distance, and type of

vehicle.

$elhivery takes a slightly different approach. Cy enhancing its backend

technology : and providing last mile support, of course : it invests in and

employs a full stack of startups to conduct its end to end logistics.

+thers, like !ocus, automate delivery processes in a more hyperlocal sense.

+nce a package is out for delivery within a smaller radius, it tracks and

manages it.

Photo credit:Erwyn van der Meer

https://www.delhivery.com/http://www.delhivery.com/http://locus.sh/https://www.flickr.com/photos/erwyn/286334151https://www.delhivery.com/http://www.delhivery.com/http://locus.sh/https://www.flickr.com/photos/erwyn/286334151


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0tartups like 0hip$roid take technology a step further and focus on helping

people save money. +nce an ecommerce site lists with 0hip$roid, it can sift

through a bunch of courier services to pick the cheapest and uickest one.

One stop shops

hile there is plenty of room for the coe&istence of many startups, some

firms continue to believe that they can do it all. %ompanies like $/!9s Clue

$art and


27/33

What is hyperlocal---/yper-local seems to be the new buzzword in the fledgling e-commerce industry. 0ince the beginning of 5A, about half a dozen hyper-local start-ups such as epperTap, Hop@ow,Biffstore,


28/33

* typical *rkrobot consists o a wheeled dri"e unit, a "ision sensing unit,

na"igation unit, mo"eable etendable arms and su#cient storage space to carry

multiple products or containers. /ach *rkrobot communicates with the ser"er

computer 3*2A-:/T4 that allocates tasks and coordinates with other *rkrobots in

the workspace to implement swarm theory. *rkrobots can na"igate to any point

in the known workspace and store or retrie"e product containers. *d"anced

shortest path and collision a"oidance algorithms are used to nd the most

e#cient routes with least resistance to reach in"entory locations. These products

are then deli"ered to the worker locations at "arious @ick stations.

pon recei"ing all the products at a pick stations, the worker packs the items

and orwards it to the logistics area where it will go out or deli"ery or assembly.

The process can be summariHed in ; simple steps )

1. 2e6uest or products

$. 0end tasks to 2obots and @ickup locations

G. Deli"er to @ick worker

I. @ack and 0hip @roduct

;. 2estore the product back to locations 3or new locations4

7hy do we need 7arehouse *utomationP

!n a business, that re6uires storing and retrie"ing o huge number o productin"entories, it becomes a critical actor to implement a 6uick and e#cient

automation solution. !t is widely known that manpower dependency leads to

delays, 6uality issues, inaccurate picking and slower pick rates, hence reduced

throughput rom a warehouse. * rapidly growing business which is looking to

scale up, oten aces this as a bottle neck when it comes to handling the surge o

orders. *n e#cient and scalable order ulllment system is thereore re6uired to

automate the process. The current process in"ol"es sending pick workers with a

trolley to in"entory locations. This is easier said than done when you ha"e

warehouses as big as many ootball eldsS Thereore with *rk 2obot, we bring

the goods to the people and store them e#ciently using data analytics such thatthe astest selling items are always stored closest to the workerS

* properly *utomated warehouse once implemented, becomes the backbone and

growth accelerator o a business on which urther epansion is possible. =ong

term benets such as stability, consistency, lower cost o operation and accurate

picking are some o the benets o such an *utomated warehouse. +owe"er it is

necessary or such a technology to be cost eecti"e and reliable such that a

business can bet on it round the year. *rkrobot is de"eloped around these lines

or "arious !ndustry 0egments including e2etail and 2etail among others.

Focus) /commerce !ndustry *pplications


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Following are the problem areas *rk2obot sol"es or an ecommerce industry)

- >ery high number o product 0As being stored in a warehouse acility,

- @roducts need to be stored or retrie"ed 6uickly,

- Bistake proo product and 6uantity picking,

- @roper and sae handling o products,

- 2elling products on storage racks,

- /ecti"ely remo"ing unsold products out o the in"entory,

- 2emo"ing perishable products and those nearing epiry date,

- +uge amount o manpower and cost in"ol"ed in @icking and 2elling,

- *ccessibility o product locations to workers,

- @ilerage

- +uge electricity costs due to =ights, *ir 9onditioners, 9ontinuous use o

con"eyors, etc

- 0calability,

- !mpro"ed utiliHation o warehouse 0torage 0pace,

- +andling sudden surge o orders especially during promotions or esti"e

season,

- Training new manpower and maintaining consistent perormance and 6uality

le"els

2obotic *utomation >s other *utomation

7arehouse automation has had its own e"olution spread o"er a ew decades. !nthe begining workers on oot using gadgets such hand held @D*s walked across

the warehouse to pick products. 9on"eyor systems were also used or sorting

and transporting products across huge warehouses. 9omple networks o such

smart con"eyors also e"ol"ed to reduce tra"el distance in warehouse workspace.

This technology is used to this day in modern airport terminals or baggage

automation. +owe"er the pursuit to optimiHe use o warehouse horiHontal ?

"ertical space along with the need 6uickly retrie"e and store in"entory led to the

de"elopment o *020 3*utomatic 0torage and 2etrie"al system4.

* break through was made when the *020 was de"eloped which is leap ahead in

terms o e#ciency and optimal use o warehouse space. This technology uses

bins to store products on multi le"el in"entory racks and a multi ais gantry


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robotic arm ed to a track helps retrie"e or store any product among an

in"entory o thousands o products.

!n early $%%G then came a disrupti"e robotic technology using Bobile 2obotic

Dri"e units that transported mo"eable in"entory pods to the workers instead o

workers going to in"entory locations. Bultiple robots work as a swarm to storeand retrie"e products on a gigantic scale making it the most e#cient solution o

them all. 9ompanies such as *maHon 37orld leader in /commerce4 ac6uired Ai"a

0ystems and uses such ad"anced automation robots that enables them to

handle any sudden surge in order ulllments such as during esti"e season and

reduce the operational time and cost drastically. Bost orders are now ullled in

minutes bringing down deli"ery time to hours instead o daysS

This 2obotic automation solution has really been a technology breakthrough in

the last three or our decades or warehouse automation and Fulllment centers.

9ompanies that use this technology are able to also compete at low cost

oerings on products and gain signicant market share. 0hipping times ha"e

been reduced along with the promise o deli"ering the right products to

customers. This leads to customer delight and thereore a pleasant shopping

eperience. !t is a widely known act that customers build brand loyalty when

rendered with a great buying eperience.

7ith the e"er epanding /commerce industry, scaling up new warehouses and

setting up new ulllment centers also becomes e6ually important. 2obotic

*utomation solution has helped use warehouse space e#ciently and also epand

6uickly as business grows. !t has gi"en a decisi"e edge or a ew companies o"er

the others enabling 6uick deli"eries and reduced cost o product due tomanpower replacement. The biggest ad"antage o such a technology is being

able to automatically remo"e unsold products on time and those that are nearing

epiry dates. 2obotic dri"e units are programmed with intelligent algorithms to

change product locations dynamically. They store the ast mo"ing products close

to the worker locations based on the re6uency while the unsold or perishable

products are mo"ed towards remo"al counters and e"entually remo"ed without

disturbing the o"erall system.

*d"antages o"er other methods)

2obotic *utomation also has a long list o indirect cost sa"ings such as electricity

usage. 2obotic dri"e units only mo"e to perorm necessary tasks. 7hereas

con"entional con"eyor systems and its motors are always kept running and

consume a lot o power throughout the day. 2obots do not need "isible light to

work and can work in minimal or complete darkness. 2obots do not need *ir

conditioning or "entilation either leading to power sa"ings. /#ciency is impro"ed

o"er manpower as they do not re6uire resting, lunch or leisure breaks. They rest

in the warehouse ater shits and hence do not need pickup or drop acility to

their homes )4 2obots do not all temptations to neither stealing nor are error

prone hence do not re6uire constant monitoring o"er security cameras or be

risked each time. *ll human worker associated actors such as attrition or Oob


31/33

satisaction are also not nati"e to the robots and hence pro"ide ast growing

business a scalability actor.

7hy is *rkrobot a breakthrough in 2obotic 7arehouse *utomation technology P

*rkrobot although sounds a amiliar concept, it is "ery dierent rom eisting

2obotic warehouse automation solutions. 2obotic warehouse automations ha"e

come in to make human workers highly eecient in many order ulllment

centers. 0peed, accuracy and e#ciency o these 2obots complement human

workers to signicantly increase throughput and reduce operational costs. Today,

in the 0* alone there are more than $%,%%% 2obots installed in gigantic

ecommerce and 2etail ulllment centers in companies such as Target and

*maHon. These robots ha"e pro"en to be especially eecti"e in the /-commerce

companies where shipping time, accuracy, bandwidth o order processing and

cost plays a huge actor. They are not ed structures and hence can be

relocated with ease and scaled up rom small to gigantic installations.

*lthough by now we know the capablities o robotic solutions, *rkrobot comes

across as a new disrupti"e Technology. *rkrobot has arms and dri"e units that is

ocused on mo"ing containers rather than in"entory pods. !t precisely picks the

eact product or its container rather than bring an entire in"entory pod

containing irrele"ant items. !ts dri"e unit can na"igate across any point in awarehouse to perorm picking or stacking tasks. !ts principle o operation makes

it a much more e#cient or order ulllment than any known robotic dri"e unit

technology. @ick rates are now impro"ed rom ;% odd manual picking to o"er &%%

pickshrS *rkrobot now stands to redene the warehousing industryS

Factors in comparison that makes *rkrobot the best solution or 7arehouse

*utomation ? Fulllment)

- >irtually nlimited >ertical 0torage 0pace

Aeep stacking them upS !n comparison to other 2obotic 0olutions, with *rkrobotthe 0torage acility is now no more limited to the height o pick workers. The

*rkrobots can etend beyond human reach and source in"entory items that were

pre"iously not possible. This results in huge cost sa"ings and optimiHed workfow

ha"ing all in"entories stored at one place than to segment the warehouse or

open new warehouses.

8enets) 0a"ings on 2entals cost, manpower cost, power sa"ing, !nrastructure

cost, Transportation 9ost, Time,


32/33


33/33

'ames A3 Cossey, 'r3, 2ictor G3 Prutu,Aichard '3 e0

Ursprünglichevollm!chtigter United Parcel Service 9f .merica, $nc3

United Parcel Service 9f .merica, $nc3 'ames A3 Cossey, 'r3, 2ictor G3 Prutu,Aichard '3 e0
http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22James+R.+Cossey,+Jr.%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Victor+N.+Prutu%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Victor+N.+Prutu%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Victor+N.+Prutu%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Richard+J.+Tew%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=inassignee:%22United+Parcel+Service+Of+America,+Inc.%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=inassignee:%22United+Parcel+Service+Of+America,+Inc.%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22James+R.+Cossey,+Jr.%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22James+R.+Cossey,+Jr.%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Victor+N.+Prutu%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Richard+J.+Tew%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22James+R.+Cossey,+Jr.%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Victor+N.+Prutu%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Richard+J.+Tew%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=inassignee:%22United+Parcel+Service+Of+America,+Inc.%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=inassignee:%22United+Parcel+Service+Of+America,+Inc.%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22James+R.+Cossey,+Jr.%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Victor+N.+Prutu%22http://www.google.ch/search?tbo=p&tbm=pts&hl=en&q=ininventor:%22Richard+J.+Tew%22

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