Project Report

On

Implementation of AGV & AMR in Order Fulfilment Process in Warehouse

Operations

Submitted By

SANJANA BHOWMICK
(201918309)

Under Guidance of
Nikhil Premkumar
Manager, Supply Chain

SYMBIOSIS CENTRE FOR DISTANCE LEARNING

BATCH 2020-21

[1]
 NO OBJECTION CERTIFICATE

This is to certify that Ms Sanjana Bhowmick is permitted to use relevant data/information

of this organization for his / her project in fulfilment of the PGDSCM Program.
We wish her all the success.

Place: Bangalore

Date: 25/10/2021

[1]
 DECLARATION BY LEARNER

This is to declare that I have carried out this project work myself in part fulfilment of the
PGDSCM Program of SCDL.

The work is original, has not been copied from anywhere else, and has not been submitted
to any other University/Institute for an award of any degree/diploma.

Date: Signature:

Place: Name: Sanjana Bhowmick

[2]
 CERTIFICATE OF SUPERVISOR

Certified that the work incorporated in this Project Report “Implementation of AGV &
AMR in Order Fulfilment Process in Warehouse Operations” submitted by Ms Sanjana
Bhowmick is her original work and completed under my supervision. Material obtained
from other sources has been duly acknowledged in the Project Report.

Date: 20-10-2021 Signature of Guide:

Place: Bangalore
Name of Guide & Designation
Nikhil Premkumar
Manager-SCM
IBO Mart Pvt Ltd.

[3]
Table of Contents
Table of Contents...................................................................................................................4
Acknowledgement..................................................................................................................4
Introduction:...........................................................................................................................5
Objectives & Scope:...............................................................................................................7
Autonomous Robots- AGV & AMR......................................................................................8
Automated Guided Vehicles (AGVs):................................................................................9
Autonomous Mobile Robots (AMRs):.............................................................................11
Comparing Autonomous Mobile Robots to Automated Guided Vehicles:..........................14
Order Picking Process with the help of AGV and AMR:.....................................................17
Order Sorting Process with the help of AGV and AMR:.....................................................20
Cost of AGV and AMR:.......................................................................................................22
Advantages and Disadvantages of AGV & AMR:...............................................................25
Analysis of Data:..................................................................................................................27
Reduction in wages costs:................................................................................................27
Increase in Order Fulfilment Capacity:............................................................................28
Reduction in Damages:....................................................................................................29
Conclusion:..........................................................................................................................31
Future of AMR in warehouse operations:............................................................................33

[4]
 Acknowledgement

I find myself fully engulfed with immense pleasure in expressing my sincere and profound
gratitude to ‘United Logitech Pvt Ltd.’ for allowing me to carry out this project.

I am very grateful to Mr Ravi Saini – RM (South) for having shown confidence in me to

assign this project.

I am also thankful to all staff members for their kind co-operation.

I take this opportunity to express my deep sense of gratitude & respect to my guide Mr
Nikhil Premkumar without whose constant encouragement, it would not have been
possible to complete this work. I am also thankful to him for being highly cooperative &
approachable.

Ms Sanjana Bhowmick
Course: -PGDSCM
Reg. No.: 201918309

[5]
Introduction:

Delivering correct products, in correct quantity, to correct customer, at correct place, at

correct time, in correct condition and at correct price is role of supply chain. where
warehouse has a significant role. Delivering correct product in correct quantity relies on
warehouse picking and dispatching.

Warehouses evolve. Technology has moved on apace and as a result, opportunities to

improve efficiency and effectiveness within warehouse are constantly being introduced.
This, together with increasing demands from customers and internal pressures to reduce
costs yet improve service levels, can prove a significant challenge to warehouse managers.

The introduction of sophisticated automation, robotics, and advanced software systems into
warehouse operations can potentially affect logistics operations. These advances in
technology are likely to lead to a significant reduction in staff and improved efficiency.
This comes at a cost. However, not all warehouse operations are likely to benefit from such
advances or can afford large investments in technology.

The past few decades have brought monumental changes to world of order fulfilment and
material handling. From rising labour costs to a shrinking pool of qualified workers to
increased pressure of next, same day, and two-hour delivery—today’s order fulfilment
operations have a lot of new challenges to conquer. Embracing new technologies,
processes, and procedures has always been an important piece of puzzle for distribution
operations, which must regularly modernize and adapt to remain competitive and profitable
in this new reality. One such emerging technology which is already reshaping order
fulfilment landscape is autonomous mobile robots or AMRs. robotic units are next
evolution in autonomous equipment, offering operations a pathway towards increased
efficiency, lower labour costs, and improved profitability. Here, we’ll explore different
types and applications of AMRs, outline potential pros and cons of their use

in your operation, compare them against their Automated Guided Vehicle (AGV), and
examine cost factors and justification for their use, and look to future of AMRs in order

[6]
fulfilment industry to better understand the potential role that technology can play in
warehouse operation.

This project tries to find out the impact of automation implementation in order fulfilment
process at warehouses.

[7]
Objectives & Scope:

To find impact of implementation of AMR & AGV in order fulfilment process in an e-

commerce warehouse.
Following are points studied in this project:
 Cost optimization by reducing remuneration cost of manpower
 Real-time tracking of inventory to improve order fulfilment
 Reduction of handling damages at warehouse

[8]
Autonomous Robots- AGV & AMR

Automated Guided Vehicles (AGVs):

This category of mechanized automation has lowest on-board computing power. These
vehicles use magnetic strips, wires, or sensors to navigate a hard and fast path through
warehouse. Computer-controlled and wheel-based, AGV’s are load carriers that move
along a facility while not associated to on-board operator or driver. Their movement is
directed by a mix of software package and sensor-based steering systems. As a result of a
predictable path with exactly controlled acceleration and swiftness and embodying
automatic obstacle detection bumpers, AGVs offer the safe movement of material. Typical
AGV applications embody transportation of raw materials, work-in-process, and finished
merchandise in support of producing production lines, and storage/retrieval of alternative
movements in support of selecting storage and distribution applications. Typically,
powered, AGV systems carry with them multiple vehicles that navigate on pre-defined
guideways. Vehicles navigate in facility mistreatment many steering technologies, as well
as floor-surface, mounted tape or bars, lasers, optical sensors, and magnet/gyroscope-based
steering. These steering technologies create simple to alter routes and expand the AGV
system in response to facilitate changes for a versatile material handling solution.
For real-time management and observation of multiple AGVs, a computer-based package
uses wireless connections to gather information regarding every unit’s current location,
then interfaces with WMS/WES package for destination and routing logic. The package
directs vehicles’ pass by wirelessly human action specific tasks to AGVs via frequency
(RF). directions embrace stops, starts, dynamic speed, lifting, lowering, multi-point turns,
reverses, divergent from guide path, and interfacing with alternative material handling
instrumentality and systems—both automatic and static.

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Figure 1- AGV in Warehouse

Types of AGV:
• Unit load vehicles
• Towing (or tugger) automatic guided vehicles
• AGV Forklifts

Benefits of AGV:
• Provides optimal operation 24/7
• Guaranteed safety for processes, loads, and people
• Improvement of operators’ working conditions and reduction of MSDs
(Musculoskeletal Disorders)
• Reduced production costs

Limitations of AGV:
AGVs are limited to large, simple warehouse environments designed with this navigation
layout. Complex warehouses with lots of human traffic and space constraints are not good
candidates for AGVs.

Autonomous Mobile Robots (AMRs):

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An AMR is any robot that can understand and move through its environment without being
overseen directly by an operator or on a fixed predetermined path. AMRs have an array of
sophisticated sensors that enable them to understand and interpret their environment, which
helps them to perform their task most efficiently and path possible, navigating around fixed
obstructions (building, racks, work stations, etc.) and variable obstructions (such as people,
lift trucks, and debris).

In a warehouse and distribution centre environment, these sophisticated technologies are

integrated with warehouse’s control systems, which allow AMRs increased flexibility
to create their routes between locations within a warehouse or facility. end
the result is a robot that is much better able to work with humans within dynamic
the environment offered by most order fulfilment operations.

Autonomous mobile robots make processes and workflows more efficient and productive.
This is typically achieved by performing non-value-added tasks—such as transporting,
picking up, and dropping off products—to free up labourers to perform other tasks
that add value to product/operation—like picking, checking, or packing an order.

Types of Autonomous Mobile Robots:

AMR’s are broadly classified into three based on application:

 AMRs that move inventory within a facility
 AMRs that assist in picking process
 AMRs that is a flexible sortation solution

Classifications of AMR based on its role:

 AMRs that Transport Inventory and Product
 AMRs Used in Order Picking
• AMRs used in conventional picking
• AMRs used in Goods-to-Person Picking 
• AMRs That Facilitate Picking in Other Ways
 AMRs for Flexible Sortation
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 • High-speed AMR sortation
• Floor sortation
• Consolidation and returns sortation AMRs that Increase Inventory Visibility
Benefits of AMR:
 Increased Flexibility
 Increased Safety
 Quick Implementation
 Ability to Scale
 Easy to Move Between Facilities

Limitations of AMR:
 AMRs Work Best with a High Amount of SKUs
 Limitations on Load Size

Applications of AMR:
 Manufacturing, warehousing, and logistics
 Healthcare
 Retail, banking, and hospitality
 Agriculture
 Smart cities and public sector

[12]
Figure 2- Applications of AMR

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Comparing Autonomous Mobile Robots to Automated Guided Vehicles:

Points of Automated Guided Autonomous Mobile

No.
Comparison Vehicle (AGV) Robot (AMR)
Requires predefined Does not require a
1 Navigation
fixed paths predefined fixed path
AMR goes around
Stops when detect
2 Obstacles obstacles and finds best
obstruction
path to avoid it
3 Flexibility Less flexible More flexible
4 Bot Cost Less expensive More expensive
Installation Complex and require Simple and require less
5
Cost more time time
Follows a specific Not obliged to follow
6 Reliability
route any specific route

Table 1- AMR Vs AGV

AGVs and AMRs can both be used to accomplish same basic task of moving products or
materials from one location to another within a facility. Because this is a low-skill task
that does not add a lot of value to an operation, using AGVs and/or AMRs in this way can
enable an operation to increase efficiency and productivity while simultaneously reducing
labour costs. tech can also be a boon for operations that are facing a labour shortage or
tightening labour market.
Additionally, AGVs and AMRs can both be implemented on a modular, piece-by-piece
basis. This can help an operation avoid tying up too much capital in their initial investment
in automation, enabling them to utilize those funds for other initiatives while expanding
fleet at a later date.
Similarities aside, there are several very important differences between AMRs and AGVs
need to be considered so that technology chosen meets unique needs of business.

1. Fixed Routes vs Intelligent Navigation

Of all of differences between AGVs and AMRs, most important difference is the
fact that their navigation systems rely on very different technologies. AGVs operate by
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following fixed routes within a facility. AGVs are typically guided by devices in floor
(wires, magnets, or tape) or lasers mounted on vehicle using reflectors mounted throughout
operating area. Each type of guidance has its advantages and disadvantages Though AGVs
will often have a variety of onboard sensors, these are used primarily to identify obstacles
so that an AGV can stop (and avoid causing an accident). AGV’s fixed path designs require
a fair amount of time and cost to change. hardware and software usually need to be
modified by manufacturer and there could be physical limitations caused by build or
equipment within building. In case of laser-guided systems, they require a straight line of
sight to each reflector. If there is an obstruction (equipment or building) certain paths and
Pick up & Drop Off (P&Ds) points may not be possible. As such, AGVs may be better
suited for operations that do not experience much change- mature businesses following a
traditional business model.
AMRs, on other hand, do not rely on wires or magnetic markers to operate. Instead, they
utilize a complex set of onboard sensors and maps to interpret environment and
dynamically create their efficient path from point A to B within a facility.
Because AMRs work by sensor and not by pre-set routes or tracks, it is relatively easy to
adjust task that they perform or zone that they serve within a facility. Their navigation
technology, inherently, does not require much time and cost to change available paths or
P&D points. This reality likely makes AMRs a better choice for younger, more agile
businesses that regularly experience change.

2. Cost
It can be difficult to compare AGVs and AMRs on cost alone, as cost will ultimately
depend on several factors, from supplier you work with to model you choose, etc. But it is
possible to make a few generalizations. One such generalization: AGVs are typically more
expensive than AMRs—up to 40% more expensive, in some cases.

The reasons for this price difference are many. First and foremost is fact that as
discussed above, AGVs follow fixed routes. Establishing these routes requires physical
changes to infrastructure of a facility, which adds to cost of system. AMRs do
not require such infrastructure changes, allowing them to deploy more quickly and with
less expense.
AGVs have historically been built larger and heavier in physical form of automated lift
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trucks, and have been applied to similar tasks that require heavier vehicles. This reality
makes AGVs more expensive purely from a materials perspective, whereas AMRs have
been built for tasks that require less heavy-duty capability.

3. Ability to Collaborate

The primary goal of automatic guided vehicles is to transport products from one location to
another. Because this typically does not require human intervention, AGVs are best suited
to work independently of human operators. Most are simply too bulky and rigid to work in
a collaborative setting like order picking.
Autonomous mobile robots, on other hand, were designed to be much more collaborative.
Their sophisticated sensors and relatively compact size make them safe enough to operate
in same floor space as labourers, meaning they can facilitate other tasks besides simply
moving products like in an order picking operation).

4. Size and Manoeuvrability:

As mentioned above, AGVs tend to be built to handle much larger loads than AMRs.
Naturally, this means that AGVs are often much larger than their AMR counterparts.
Because they are smaller, AMRs are typically better able to navigate facilities with small
footprints and narrow aisles than AGVs because it is easier for them to manoeuvre tight
corners, etc.

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Order Picking Process with help of AGV and AMR:

Order picking is process of retrieving products listed in an order from their respective
warehouse location based on customer requirements. In conventional method of order
picking, SKUs stored shelves or racks are in a stationary pick area. Pickers will move from
location to location to pick up SKUs and place them into open order containers on a
conveyor or other carriers.

Once pickers have collected all of items to deliver in order, they take order containers to
shipping area to finalize delivery. This method needs well-trained pickers, and pickers
should work carefully to avoid mistakes. most critical problem is that people will spend a
lot of time moving to a huge warehouse to search and pick up SKUs, which is a big waste
of time and money.

One of main cost areas within picking operation is movement between pick locations.
Depending on operation, this can account for up to 60 per cent of a picker’s time.
requirement for increased speed, accuracy, and productivity has pointed managers towards
automation as a realistic option in today’s competitive automated equipment market. A
high-volume item pick operation is an area where automation can have a high impact.

Automation requires a great deal of preparation and time spent on design, evaluation, and
implementation. Well-thought-out automation can provide significant improvements in
productivity and accuracy in warehouse operation.

Uses of AGV and AMR in order picking system:

AMRs used in conventional picking

We define conventional picking as having SKUs stored in a stationary, forward pick area in
some type of shelving or rack, where pickers move from storage location to storage
location picking SKUs and placing them into discrete order containers on conveyors, carts,
or manually carry.
In zone picking, an AMR takes an order tote/bin to a shelving or rack location within a
zone. A picker, working that zone, is then able to select inventory from surrounding

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locations to complete order. Augmented vision, RF, paper picklists, or pick-to-light may be
used to direct picker. Once order is complete AMR will retrieve tote and bring it to next
zone for further picking, or a packing station for final shipping. This process is repeated
with multiple AMRs operating and transporting to zones. result is that cans able to spend
more time picking orders, and less wasted time walking and searching.

AMRs used in Goods-to-Person Picking 

Goods to person picking involve storing multiple SKUs in sections of shelving, rack, or
bins. AMRs are directed to retrieve a specific SKU found in shelving. bot manoeuvres
under shelving and lifts it off ground. AMR then moves via shortest path to designated pick
station.
The pick stations are designed to have a queue of AMRs with shelving on them ready to
pick. AMR moves into position and pick-to-light directs operator to make correct pick and
quantity. operator is then directed to place correct SKU and quantity into open orders they
have in their station. As they are putting SKU into proper open orders, AMR leaves and a
new one presents itself. This assures that next pick is always waiting for operator. 
The below picture shows traditional process of order picking before AGV was introduced:

Figure 3- Traditional Order Picking

The below picture shows process of order picking after AGV/AMR was introduced:

[18]
 Figure 4- Automated Order Picking
Order Sorting Process with help of AGV and AMR:

Autonomous mobile robots can also play an important role in sortation. Different models
come equipped with a variety of handling technologies. From conveyor roller to tilt trays
and cross belt systems.

High-speed AMR sortation

This is easily achieved by utilizing a fleet of tilt tray AMR models. These bots work on a
mezzanine with chutes for location or order positions. Either people or robotic arms induct
an item on top of AMR. induction station camera above bot reads barcode and takes off via

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shortest path to its destination chute. Once it comes upon its chute position, it stops parallel
to it and tilts item off bot and down chute. Items or parcels are collected in sacks, gaylords,
or containers. Once complete either an operator or AMR takes completed order to ship.
Another AMR brings in an empty container to resume sortation process. 

Floor sortation 

For e-commerce, returns, kitting, and order fulfilment can be accomplished by using a
sorter AMR. These units are 42” tall and are equipped with a tilt tray top. This system
works directly on floor and can be expanded or condensed based on daily requirements. 

Consolidation and returns sortation 

In this application, AMRs bring an open Gaylord, bin, or pallet to a workstation. queue is
in position. As one is complete and leaves another AMR moves into position. operator is
directed to put correct item and quantity in bin. This process is repeated until complete. 
The AMR will then take completed order to buffer storage, shipping, or a pick location for
order fulfilment. There is tremendous flexibility in designing and implementing this
application.  This application eliminates operators’ wasted walk and search time and is
tremendously flexible to varying business requirements. 

The below image depicts order wise sortation through AMR in fulfilment centre:

[20]
Figure 5- Automated Sortation

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Cost of AGV and AMR:

When an organization decides to implement AGV and AMR, first and foremost thing to be
considered is cost.
Costs which to be considered are:
➔ Installation Cost
➔ Maintenance Cost
➔ Breakdown Cost
➔ Alternative Cost
➔ Additional Cost

Autonomous Mobile Robot (AMRs) Cost Factors:

Type of AMRs (and Their Use/Application):

AMRs come in many different designs, each of which is suited to performing certain tasks.
Some are designed to move cases, totes, or pallets in a piece pick or full case picking
operation, while others are designed to tow a cart of some type.
The application that an AMR is designed to perform dictates its physical requirements —
its size, materials used to construct it, complexity of its components, etc. AMRs
that perform more complex tasks will typically be more complex themselves and are often
more expensive than simpler AMRs performing simple tasks. Just as complexity of a
robotic solution will impact its cost, so too will its expected size and capacity.
The cost per AMR vehicle is directly tied to size and weight capacity it is designed to
carry or pulls. Those designed for larger or heavier loads are often more expensive than
those that carry smaller and lighter loads, simply due to increased component costs
that go into building them.

Size of Fleet:

The ultimate cost of implementing a suite of AMRs in order fulfilment operation will
be heavily influenced by number of units (individual robots) being utilized. tasks
that an AMR must perform can also affect number of AMRs in total system. The

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more time-consuming task, like putting a product away in a rack or automatically picking
up a cart. Larger or more complex operations are likely to need a greater number of AMRs
compared to smaller or more simple operations, and more bots will by necessity require a
greater upfront investment of capital.
That being said, when overall costs of implementation are factored into equation, it is
very possible that implementing more bots will be more cost-effective on a per-bot basis,
because implementation costs will be spread out across a greater number of units.

Controls and Software:

The complexity of AMR controls and software system can be a major contributor to
the cost of system. If a system needs to manage only 5-6 AMRs while performing
simple tasks, like transporting carts from front of facility to back, then the
controls and software can use standard functionality and require little to no modifications
and customization. This can save 15-20% off price of total system. number of
AMRs has a direct correlation to amount of time and labour needed to commission the
system. Smaller fleets take less time to implement and larger fleets require more time.
The complexity of software also impacts cost. If software system only requires
routine management of AMR traffic, this standard functionality is less expensive and
requires less commissioning time.
A split case order picking system that integrates AMRs and pickers with a Pick-to-Voice
The system can require Warehouse Execution Software (WES) software that requires
integration and coordination of order management, inventory, and order picking. This
adds to project cost with subsystem hardware costs plus development and
commissioning services.

Ancillary Costs:

For some AMRs to operate effectively, it may be necessary for an operation to adjust other
aspects of facility. These ancillary adjustments can naturally increase cost of implementing
AMRs.
For example, to implement a fleet of AMRs specifically to transport carts of product
between different zones in operation, costs of modifying existing carts or replacing them

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with carts that are compatible with AMRs should be covered. If system uses AMRs that
pick up and drop off on a conveyor system, conveyor system and controls will need to be
added to or modified. If AMR system is used to sequence or sort lose product, there can be
racks, conveyors, platforms, and chutes. While easy to overlook, these ancillary costs will
impact overall cost of system and should be considered during budgeting process.

Advantages and Disadvantages of AGV & AMR:

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The advantages of AGV and AMR are as follows -

Reduced Labor Costs:

AGVs reduce labour costs in your operation in many ways. By replacing a human worker
with an AGV, a company pays a single expense for equipment—the initial investment—
versus ongoing costs that would come with a new hire such as healthcare coverage, payroll
taxes, salary increases, vacation time, etc.

Increased Safety:

AGVs are programmed with safety in mind, and as such are crammed full of cameras,
lasers, and other sensors that allow them to safely operate around personnel and structures.
By contrast, equipment run by human operators, such as forklifts, does not have as many
built-in safety mechanisms and ultimately relies on human input, which can be
compromised in any number of ways. Whereas a human operator always has potential to
become distracted or fatigued, and therefore cause an accident, these are not concerning
when using AGVs.

Increased Accuracy and Productivity:

Simply put, humans make mistakes. By replacing human element with AGVs, you remove
some of potentials for inaccurate workflows, ultimately reducing waste and increasing
output, allowing your operations to become more productive and accurate.

Modularity:

As your operations expand, it is easy to add additional AGVs as necessary (this is

sometimes called a “modular system element”). This allows you to avoid an incredibly
high initial investment because instead of purchasing 20 or 30 AGVs at once, you can start
with one or two and transition slowly, eventually expanding your fleet to a fully-automated
or mostly-automated operation.

The disadvantages of AGV and AMR are following –

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1. Potentially High Initial Investment:

Ultimately, AGVs increase bottom line for an operation by reducing labour costs and by
increasing productivity, but it comes at a cost: initial investment. Purchasing an AGV, in
short term, is likely going to be more expensive than hiring personnel or using other
equipment such as forklifts. It is usually in long term that savings are fully realized. This
initial investment can be burdensome on smaller operations that may not have ready access
to capital.

2. Maintenance Costs:
As with any equipment, AGVs will need to undergo routine maintenance and occasional
repair. And though AGVs will not be operated directly by staff, there is bound to be some
operational downtime as staff is trained and AGVs are implemented. This isn’t necessarily
a “disadvantage” per se, but potential for an occasional ongoing expense should be
considered.
3. Not Suitable for Non-repetitive Tasks:
AGVs make most sense in operations that deal with repetitive tasks since that is what they
are programmed to do. If tasks in your operations tend not to be repetitive, then they can
probably be done more quickly and efficiently by staff operating other equipment (such as
a forklift).
4. Decreased Flexibility of Operations –
One of benefits of having human personnel is that sometimes operations require flexibility,
such as ability to jump between tasks.

Analysis of Data:

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AGV has been introduced in warehouse from January 2021. All data is for one year to
show us yearly projection changes with introduction of AGV.
In warehouse, workers work in 2 shifts and they must work 2 weeks in night and 2 weeks
in morning shift in a month. Also, if employee does not take any leave, he/she gets a leave
bonus.

Reduction in wages cost:

Before AGV implementation, warehouse Picking team was having 30 manpower in each
shift, and Dispatch team were having 40 manpower per shift. warehouse operates in 2
shifts.

Cost is borne by company per employee

Cost Wages in INR
Fixed pay 12100
Night shift allowance for 15days in a month 105*15=1575
Leave Bonus 1000
Food & Transportation Expenses 1200
Total CTC 15875

Table 2- Per Person Cost

Before AGV implementation

The cost paid to 60 employees in order picking team for
15875*60=952500
transportation
The cost paid to 80 employees in order packing & dispatch team for
15875*80=1270000
transportation
Total cost 2222500

Table 3- Monthly cost before Automation

After AGV implementation, manpower count of both functions has reduced. For picking it
has reduced to 14 manpower per shift and for dispatch team to 19 employees per shift.

[27]
After AGV implementation
The cost paid to 60 employees in order picking team for
15875*28=444500
transportation
The cost paid to 80 employees in order packing & dispatch team for
15875*38=603250
transportation
Total cost 1047750

Table 4- Monthly cost post automation

Therefore, AGV implementation brought a reduction of 74 employees from both functions

of warehouse and a reduction of 11.74 lakhs of remuneration cost monthly or 140.97 lakhs
remuneration cost of a year.

Increase in Order Fulfilment Capacity:

Below are numbers of outward quantities processed month-wise in warehouse, where we

can see an upward slope curve due to implementation of AGV.

Month Outward Quantity

September'20 3175984
October'20 3190984
November'20 3208384
December'20 3264384
January'21 4008358
February'21 4023358
March'21 4037358
April'21 4797358
May'21 5357358
June'21 5446358
July'21 5502358
August'21 5592358
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Table 5- Monthly order processing

Figure 6- Monthly Order Quantity

From this, it’s evident that after implementation of technology and reduction of manual
interdependence order fulfilment capacity increased from 1.06 lakh units to 1.86 lakh units
of FC which generated a revenue of 2.8 crores.

Reduction in Damages:

After implementation of AGV and AMR, damages of product have reduced which was
earlier happening due to human intervention I.e., improper material handling by workers
and while transporting totes/trolleys from picking to dispatch.
Below are inferences concluded from FC:

Cost in lakhs
Month Damaged Quantity
(Rs.)
September'20 768 2.74
October'20 770 2.75

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November'20 755 2.70
December'20 750 2.67
January'21 731 2.61
February'21 723 2.58
March'21 650 2.32
April'21 623 2.22
May'21 588 2.10
June'21 545 1.94
July'21 490 1.75
August'21 467 1.67

Table 6- Monthly Handling Damages

Figure 7- Value of handling damages

[30]
Conclusion:

Warehouse automation is here to stay. They are an active part of material handling and they
are overcoming traditional manned vehicles in many industries and specific applications
such as e-commerce distribution centres.

From the data points studied, it can be imperatively concluded that implementation of
AMR/AGV has given visible cost-saving, order processing capability, and reduction in
handling damages at the warehouse. The higher scope of use of AMR compared to AGV
makes them the robot of choice for warehouse operation.

Monthly cost saving:

Event Amount (Rs.)

Before Robot 22,22,500
After Robot 10,47,750
Saving 11,74,750
% Saving 53%

Improved Order Processing:

Period Orders Processed % increase

Sep'20 - Dec'20 12839736  
Jan'21 - Apr'21 16866432 31%
May'21 - Aug '21 21898432 30%

Reduction in cost of damages:

Period Damage Value (Lakh Rs.) % change

Sep'20 - Dec'20 10.86  
Jan'21 - Apr'21 9.73 -10.41%
May'21 - Aug '21 7.46 -23.33%

In recent years, autonomous robots have moved from an innovative solution pursued by
only a few large companies to a conventional technology capable of bringing real benefits
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to an array of operations across the spectrum.

But these remarkable improvements and developments are only a start when it comes to
the part that autonomous robots have to play in supply and fulfilment. As AMR’s
technology continues to mature, it has the potential to vividly change many facets of how
AMRs are used by operations.

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Future of AMR in warehouse operations:

Following are a few trends & advancements expected in the field of AMR:

1. Reduced Costs:

Autonomous robots are already a reasonable automation option for many operations,
requiring a lower investment and faster deployment than many conventional systems.
AMRs are likely to become more affordable in future as prices drop, due to several factors.

Technology evolves as manufacturers develop new and better parts, processors, and
controls. This constant evolution allows them to streamline their production- Units can be
built more quickly and more efficiently, and with less material and less expensive
components. This has the immediate effect of reducing the cost of individual units. As the
industry grows, manufacturers are now realizing economies of scale in the procurement of
parts and production processes. As in any other case, mass production leads to lower costs
for both producer and the end consumer.

2. Greater (and More Varied) Functionality:

AMRs already come in a variety of types, each of which is capable of performing unique
tasks within an operation. AMRs continue to adapt and advance as technology is adopted
by new operations. In doing so, they will become adept at an even wider range of
tasks and applications in future. Exactly what these advancements will look like is difficult
to predict, but much of this new functionality will be driven
by several factors:
 Advancements in navigation technology
 Artificial intelligence (AI) and machine learning
As robotic vision and sensors become more sophisticated, AMR navigation will be more
accurate and be able to recognize a wider range of specific objects and react differently
depending on object. Instead of just recognizing an obstruction like a rack column and
finding a way around it AMR will be able to tell difference between a rack and a lift truck.
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lift truck is a temporary obstruction that will cause a much shorter disruption than a
permanent obstruction.

3. Increased Connectivity
Data has always been an important part of order fulfilment, and it is only going to become
more important in coming years.
In addition to bringing us more data to leverage in designing and running our operations,
the future is also going to provide greater access to this data. It is this access to data,
which will enable all warehouse technologies (including AMRs) to become more
responsive, more integrated, and, simply put, more intelligent.

4. More Adoption:

The companies that have currently incorporated AMRs into their operations already
understand value and return on investment that they can bring to a company’s bottom
line. AMR manufacturers will also gain a wider scope of applications.
As these companies prove ROI of AMRs and novelty of technology continues
to disappear, it is only natural that more operations will realize unique value that AMRs
bring and adopt technology themselves. As AMR manufacturers find more applications,
they will tailor new designs that will automate new tasks.

Unlike most conventional material handling equipment and systems, AMRs lend
themselves to Proof of Concept systems. modularity, scalability, and flexibility of AMRs
allow POC systems to be designed and implemented cost-effectively. After the
POC is complete, virtually entire system can be moved and integrated into full system,
saving time and resources while reducing risk. Autonomous mobile robots are already
having a major impact on order fulfilment industry. Operations that incorporate technology
into their work-flows can lower their labour costs, reduce their reliance on an overstrained
and unreliable labour pool, and improve their accuracy and efficiency.

As technology continues to advance, though, this impact is only expected to become

even greater.

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