How Warehouse Robotics Is Automating E-commerce

Amazon is one of the companies that society dislikes for various reasons. One of them is Jeff Bezos. Other reasons boil down to the fact that the share price of one of the most expensive companies in the world is too high (over $3000), and competing with the e-commerce giant is practically impossible. 

However, Amazon's influence on virtually every sector of the economy cannot be ignored. Almost 10 years ago, the company spent $775 million to buy Kiva Systems, which developed mobile robotic order fulfillment systems. This became the impetus for a new industry of companies creating intelligent robots for warehouses, including firms such as Berkshire Grey and inVia Robotics.

At the same time, Walmart invested heavily in robotics and artificial intelligence to keep up with competitors. The online retailer Ocado Group has turned into a technology company that creates automated robotic systems. 

Why warehouse robotics companies are becoming important

Founded in 2014, the startup Locus Robotics initially attracted $249 million in investment. Recently the company has become popular, and over the past year it received another $190 million: $40 million as part of a Series D round in June 2020 and $150 million for a Series E round in February 2021. According to the latest data, Locus Robotics is valued at $1 billion. 

Locus robots sit at the intersection of several trends: autonomous navigation, machine learning, computer vision, the growth of e-commerce, and the associated demand for warehouse automation. The company is leveraging major investment in autonomous movement, which is lowering the cost of LIDAR sensors, and is moving into motion planning and computer vision. 

Based on data from various sources, the US e-commerce retail market alone may exceed $400 billion. Online stores will continue to grow regardless of external factors. For example, the coronavirus pandemic and isolation have only increased the popularity of e-commerce. 

E-commerce is also driving demand for additional warehouse space. According to some forecasts, by 2025 companies will need an additional more than 300,000 square meters of warehouse space. In addition, large companies may need 350,000 square meters of space for every $1 billion in sales. It is logical that human labor cannot cope with such enormous warehouse areas. 

How Locus Robotics automates warehouse operations

The company's platform is a combination of hardware and software. A clustering algorithm works with any warehouse management system to analyze orders and optimize the workflow. LocusBots operate autonomously, moving through a maze of aisles to meet their partners to pick up or drop off an order. 

The bots charge automatically, operate around the clock, and are configured to move a wide variety of items. They automatically recognize workers, and the robot's large screen displays information in the preferred language. The platform also includes real-time analytics, dashboards, and reports for clients. 

Clients and case studies

Locus currently serves more than 40 clients with robots at about 80 warehouses worldwide. The company says customers can expect two- to threefold productivity gains and measurable return on investment within just a few months. Full-scale work with the bots takes about four weeks to start. 

Let's look at a few examples to understand how this works in real life:

1. Evo, a retailer of sporting equipment and apparel that operates a warehouse of more than 50,000 square meters. Last year the company's sales doubled, so it began looking for something to simplify work during peak seasons. With the arrival of LocusBots, average hourly productivity increased almost threefold, and crowding in the warehouse dropped from 15 people in one zone to five. 
2. GEODIS, a global supply chain company. It had difficulty finding enough workers for its US operations, so it bought 28 LocusBots for seven human operators. Together they work in a warehouse area of more than 18,000 square meters and almost immediately doubled productivity. 
3. Other clients include DHL, CEVA Logistics, Material Bank, Boots UK, Port Logistics Group, Verst Logistics and Radial. The deal with DHL is especially important, as the international parcel and mail delivery company plans to acquire up to 2,000 robots by next year to help with e-commerce and consumer warehouses. 

Five more companies that rank among the top makers of warehouse robotics: KineticaDB, Plus One Robotics, Osaro, RightHand Robotics, Attabotics. 

Locus, Ocado and other companies developing autonomous mobile robots for e-commerce logistics will continue to grow and develop rapidly in the coming years. However, they do not intend to stop at working with online marketplaces. For example, Locus is trying to expand into other industries, including healthcare and manufacturing.