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EDITION-2 | SEPTEMBER 2019

OIG NEWSLETTER

Stop worrying about robots ARTICLE


Even while humans aren’t going away in the
OVERVIEW:
warehouse, there are not enough of them to fill the
Warehousing of the future will
number of slots needed to accommodate growing
survive by combining the unique,
warehouse volume. Supply chain workers are part strategic thinking of humans with
of the larger U.S. labor story of shortages across all the efficiencies that automation and
sectors, with unemployment at a low level. It AI offer. Automated processes, in
demands that warehousing workers focus on tasks which a robot can pick items in
that bring the highest value and productivity to the super-sized warehouses, will help
company, leaving more rote tasks to a robot, or control costs and enhance the
adding the support of a cobot. competitiveness of the retailer. At
the same time, humans can begin to
The logistics sector continues to benefit from make more use of voice-enabled
structural changes, such as online retailing and wearable mobile technology to
and evolving consumer behaviors, transforming make picking and receiving more
global supply chains. E-commerce operators require efficient. This will create a ‘bionic’
up to three times more space than traditional worker using technology to become
warehouse users due to a greater diversity in more productive.
products handled and the need to have them
immediately accessible. Global investors have
caught on and are keen on adding industrial assets
to their portfolios.
Challenges in "From Maersk's partners
Farm To Home" - with BlackBuck
Ninjakart
NinjaCart is currently Maersk announced a However, grocers are investing
operational in seven cities . On partnership with BlackBuck, an in rapid digital transformation
the back of funding rounds online freight that could drive a compound
from marquee investors such booking and trucking services annual growth rate (CAGR) of
as Tiger Global, debt venture company, this week to launch 13% through 2024, for a total of
fund Trifecta Capital, the an online $162 billion  by the end of the
company is bracing for the next marketplace for containerized forecast period.
phase of growth. trucking logistics in India.
Although driven by
The supply chain startup has SECTOR WATCH- competition, the companies are
been working diligently to not simply throwing
Online grocery money at the problem, but are
solve optimisation issues
through its vehicle routing Online grocery sales currently seeking to curb their
system to track vehicle total just 3.25% of the global investment in the complex
movement in real-time. grocery sector, or $91 billion of supply chains that come with
Through an evolving farmer the $2.8 trillion  annual sales of delivery services, even as they
harvest calendar, NinjaCart strive to continuously attract
the food & beverage category;
helps farmers get insight into shoppers to physical stores.
ambient groceries, fresh
the demand in the market, so To hit both goals at once, many
groceries,  carbonated drinks, retailers are investing in fast,
they can adjust their
harvesting accordingly, and
fruit drinks, water, hot store-based fulfillment or are
also tailor the farm beverages, beers, wines and teaming up with third parties
production to the volume of spirits. for improved last-mile
the demand. logistics.
AMAZON'S DRONE
DELIVERY SYSTEM
ROBOTS AS A SERVICE
(RAAS)
Following the trends of the software as a service (SaaS)
industry,robotics companies are now offering robotics as
a service (RaaS) solutions that make robot deployments
more feasible than ever. Much like companies that use
SaaS to efficiently adopt software solutions, RaaS models
offer a cost-effective, less risky and scalable way to adopt
robotics in warehouses with no additional infrastructure
requirements and little training.

ABI Research says the concept will tip the scale in robot
adoption and estimates there will be more than 1.3 million
RaaS deployments worldwide by 2026 with the largest
installations in logistics, manufacturing and
hospitality.  RaaS revenues and deployments are rapidly
eclipsing those from robot purchases, as end users
discover more value in securing robotic solutions rather
than just equipment, according to ABI.

Quick deployment with little infrastructure requirements RaaS warehouse solutions require little infrastructure
and can be flexibly deployed in any facility, Parks said. InVia Robotics offers an automated picking system to
manage a network of picker robots that can autonomously move inventory from one point to another. The
compact robots are two feet tall by two feet wide, can reach up to eight feet high and can carry standard totes
weighing up to 40 pounds. In addition to improving efficiency, RaaS can also help support the human workforce in
the supply chain where labor shortages have become a growing issue. RaaS can enable warehouses to more easily
extend hours and handle surges during peak seasons without the complexity of adding more staff,
and it can help cover work when staffing is light.
Uber Freight sets up
shop in Germany
Last month, Uber Freight, a subsidiary of the
ubiquitous, ride-sharing service Uber, whose
proprietary app matches
trucking companies with loads to haul,
announced it has expanded into
Germany.

“A more efficient and transparent freight


marketplace is something Uber Freight
can bring to the table that will
benefit carriers and shippers, as well as
reduce wasted miles and fuel,”
said Uber Freight in a blog posting.

"German trucking market dealing with a


severe driver shortage, which the World
Bank expects to triple by 2028!"

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