DHL to add thousands of autonomous robots to global network
DHL Supply Chain will deploy 5,000 autonomous mobile robots (AMRs) across its global network of warehouses and distribution centers, representing the industry’s largest AMR deal to date.
Logistics ‘heavy hitter’, DHL Supply Chain announced an expansion of its partnership with autonomous mobile robots (AMRs) provider, Locus Robotics, to deploy 5,000 Locus Origin AMRs across its global network of warehouses and distribution centers, representing the industry’s largest AMR deal to date.
Terms of the deal were not disclosed, but the move expands the existing relationship between the two companies. DHL was already the largest Locus Robotics customer worldwide, following its decision in 2021 to boost its fleet of Locus bots from 500 to 1,000, and to reach 2,000 by 2022, counting deployments in the United States, Europe, and the United Kingdom.
Many parts of the supply chain still move products manually, so digitizing these processes has been a focal point for many logistics providers — especially to help with labor challenges. Despite a tight labor market, it’s difficult to find workers to fill positions and retain them.
Directed AMR picking robots can easily double or triple the number of units picked within an hour, allowing a lot of facilities to ship significantly more volume.
It takes little capital upfront and a matter of weeks to get its robots-as-a-service model up and running in fulfillment facilities.
e-commerce sales have exploded over the past few years with more volume going through distribution networks.
The demand for speedier delivery, such as same-day or next-day, is an important factor in the investment in robotics.
Supply chain solutions that address the labor shortage issue like automation and artificial intelligence will drive the next wave of investment.
DHL said it will use the Locus Origin AMRs to gain advanced automation technology to optimize its supply chain operations and improve worker productivity, order accuracy, speed, and efficiency. The robots will be deployed across its global network, enhancing its capabilities in e-commerce fulfillment, retail replenishment, and pharmaceutical and healthcare logistics. DHL has surpassed more than 250 million units picked using the LocusOne solution across its global sites. The deployment of the new LocusBots is expected to be fully integrated into DHL Supply Chain’s operations by the end of the year. The robots will support DHL’s e-commerce fulfillment, retail replenishment, and pharmaceutical and healthcare logistics.
Automation “is the only way to move forward” to address the labor challenges, DHL information chief Sally Miller says.
Automation helps reduce the need for so many workers, she says, and it also enables the company to create higher-skilled and more meaningful positions.
DHL has around 1,400 sites globally, and it expects Locus’ robots to cover “a fair number of those," Miller says.
The robots are “a differentiator for us. It helps our operations be more efficient," she adds.
“An idea is only a good idea if it can scale,” Oscar de Bok, CEO of DHL Supply Chain, said in a release. “The flexibility and scalability of the Locus solution has been instrumental in helping us meet the evolving demands of the e-commerce landscape and leveraging cutting-edge technology to optimize our operations and deliver an even better experience for our customers.”
“An idea is only a good idea if it can scale,” said DHL Supply Chain CEO, Oscar de Bok. “The flexibility and scalability of the Locus solution has been instrumental in helping us meet the evolving demands of the e-commerce landscape and leveraging cutting-edge technology to optimize our operations and deliver an even better experience for our customers.”
DHL says it has now surpassed more than 250 million units picked using the LocusOne solution across its global sites.
According to Wilmington, Massachusetts-based Locus, the large deal cements its position in the warehouse robotics sector. "We are thrilled to be working in an expanded capacity with DHL Supply Chain to bring our industry-leading robotics technology to their global network," Rick Faulk, CEO of Locus Robotics, said in a release. "As the robotics industry continues to consolidate, Locus Robotics has emerged as the clear leader in the market, and we are poised for further significant growth.”
