Robotic system supports e-commerce picking and replenishment

Kerry Logistics Network Limited, a leading logistics service provider in Asia, sought to improve picking operations for e-commerce where high volumes of small and irregular orders predominate. After introducing seven fully automated and programmed robotic butlers at its flagship facility in Hong Kong, the company has enhanced fulfillment efficiency and accuracy to meet the ever-growing consumer demands in online shopping.

“The rapid growth of B2B and B2C e-commerce models are transforming the retail landscape,” says Wilson Lee, director of information technology for Kerry Logistics. “The complexity of product mix in an order and the best customer experience challenge the warehouse to handle fast-moving items, piece picking and accurate operations. The new robotic butler system promotes agility and offers flexible infrastructure.”

The robotic butler system consists of three main components. The mobile robots (Greyorange, greyorange.com) are equipped with Wi-Fi support, an in-built obstacle detection system and bar code readers that can read a grid of 2D bar codes on the floor for navigation. A modular, movable and bar coded storage unit features layers of shelving and is delivered to the third component, a dual-purpose pick/put workstation for replenishment and item picking.

Real-time sales orders are transmitted to the robotic butlers with Kerry Logistics’ proprietary warehouse management system (WMS). Robots deliver movable storage units to the pick station, where the system indicates the right items to be picked for shipments using a simple lighting system and bar code tracking. Operators can also place inbound replenishments to shelving locations before they are transported back to the warehouse.

Currently, the robotic butlers operate 24/7 and can pick 280 items per hour compared to 50 items in the normal course, and the pick rate is four times faster. The robots have helped reduce operating costs by maximizing space utilization and minimizing the effort and travel time of warehouse staff while improving accuracy and productivity. The shorter lead time of order processing also promotes customer satisfaction. The solution can be scaled by adding more robots, movable storage units and pick/put workstations.