Logistics and e-commerce

Logistics refers to the detailed organisation, planning, management, and execution of complex operations, particularly those related to the movement and storage of goods. In a broader business context, logistics encompasses the entire supply chain process, which includes manufacturing, warehousing, transportation, and distribution to the end consumer. Efficient logistics ensures that products are available in the right place, at the right time, in the desired condition, and at an optimal cost.

E-commerce, or electronic commerce, is the buying and selling of goods and services over the internet. E-commerce is often used to refer to the sale of physical products online, but it can also describe any kind of commercial transaction that is facilitated through the internet. With the rise of digital technology and increased internet access, e-commerce has become a significant aspect of the global economy. It covers a range of businesses, from consumer-based retail sites (like Amazon) to auction sites, music portals, and online service platforms.

The US Robotics Roadmap 2020 reported that in the USA alone, online orders have doubled since 2015. Remarkably, there’s an annual growth rate of 12-20%. They expect online orders to accelerate in the next five years and identify ‘logistics and ecommerce’ as an important area that necessitates robotics and automation solutions.

Some problems of logistics and e-commerce include:

• Inventory management: logistics software can help track stock levels in real-time, send alerts for restocking, and optimise storage space utilisation.
• Order fulfilment: efficient order fulfilment is crucial in e-commerce. Logistics systems can automate order processing, allocate orders to the nearest fulfilment centre or warehouse, and provide real-time tracking information to customers.
• Shipping and delivery: logistics technology is essential for choosing the best shipping methods, carrier selection, and route optimisation. It ensures timely and cost-effective delivery to customers. Real-time tracking and notifications keep customers informed about their order status.
• and many more.

Ocado is an online grocery shop which employs robots to automate order fulfilment. In this course, Giuseppe from Ocado Technology, the company that develops these technologies, will be talking about such robots. Don’t miss out the interviews with Giuseppe to learn more!

Similarly, Amazon, a dominant force in e-commerce, is at the forefront of robotic system development. Amazon Robotics, a specialised arm of Amazon, delves deep into researching and deploying robots tailored for Amazon’s operations. Their innovative pursuits range from warehouse automation and robotic manipulators for picking and packing, to drone-based deliveries.

Robots can help in ecommerce today (some of them exist, while others are under active research and development) in the following way:

• Order preparation: robots picking and packing items, whether for individual parcels or bulk grocery orders, ensuring accuracy and efficiency.
• Advanced delivery systems: through drones and autonomous mobile robots, there’s a revolution in the speed and flexibility of parcel delivery, 24/7, reaching customers more directly and quickly.
• Warehouse productivity: instead of humans navigating vast warehouses, robots bring cluttered shelves directly to workers, optimising the item retrieval process and reducing manual labour.
• Inbound goods management: robots efficiently unpalletise and categorise goods upon arrival in the warehouse, ensuring seamless integration into the inventory.
• Handling returns: automated systems swiftly manage returned items, assessing conditions and determining the next steps, be it restocking, repair, or disposal.
• Efficient packaging: robots are designed to package goods with precision and consistency, ensuring products are securely prepared for shipment.

It’s evident that giants in the industry (like Amazon, Ocado, Alibaba, etc) are pouring resources into robotic systems. This not only underscores the importance of this domain but also makes it an exhilarating industry to be a part of.

In the next step, you will begin to explore autonomous vehicles.