Logistics automation is here to stay, particularly in India. The Indian e-commerce market is growing rapidly, so the need for automation in logistics has never been greater. India had 140 million online shoppers in 2020, making it the third-largest e-commerce market after China and the US. The growth of e-commerce in India is largely attributed to the rise of smartphones and the Internet. Logistics automation is the process of using machines, software and control systems to improve the performance of operations.
Automation typically refers to processes that are carried out in a warehouse or distribution center and require minimal human interference. The advantages of automation logistics can be summarized as follows: enhanced customer service; increased scalability and efficiency; increased organizational control; and reduction of mistakes. The Digital India program played a major role in the growth of internet connectivity in India in 2021, resulting in 830 million new internet connections. Several administrations, including the approval of 100% Foreign Direct Investment (FDI) for B2B e-commerce by the government of India and the automatic route for marketplace model of e-commerce activities, contributed to this growth.
For instance, Amazon, one of the largest e-commerce corporations in the world, has made a $5 billion investment in the Indian market, intending to expand its automated warehouse operations in the country. Amazon has been at the forefront of the Indian e-commerce industry, pioneering the use of robotics in its warehouses, with the company's Kiva robot being one of the first to utilize the technology in large warehouses. Amazon launched its first-ever autonomous mobile robot, Porteus, in June 2022, to reduce the workload of warehouse laborers. Porteus is a robot that can navigate Amazon facilities using the most up-to-date safety, perception and navigation technologies developed by Amazon.
In addition, FMCG investments are increasing in India, and the demand for warehouse automation is expected to increase. Automated guided vehicles (AGVs) and automated mobile robots (AMRs) are key technologies within logistics automation. The essential usage of mobile robots is the use of AGVs (automated guided vehicles) in warehouses to transport goods. These robots work in predetermined ways by moving products around to get them to where they need to go. AGVs are important because they help reduce logistics costs and make the supply chain more efficient.
AGVs are used to fill up containers and pick them up for inbound or outbound processing. For instance, AGV moves inventory from a receiving location to a storage location or a long-term storage location to a forward-picking location to replenish inventory. The transfer of inventory from fixed storage locations to forward-picking locations ensures that sufficient stock is available for pickers, thereby streamlining the order-picking process. Some of the vendors in the market are coming up with innovations and launches of AGVs and AMRs for the warehousing segment of operations, including logistics. For example, JBT introduced their warehouse freezer AGVs (automated guided vehicles) in April 2021.
It can operate in temperatures ranging from -10 to 110 degrees Fahrenheit and has a 2,500-pound lift capacity. The AGV has a hydraulic mast with three stages, with a side shift and tilt. It can go up to a height of 357 inches (below the top of the fork) and down to a height of 422 inches. Furthermore, the automotive sectors are increasing the number of production and transportation units, which suggests the utilization of AGVs and AMRs.
For example, in 2022, BMW reported that it had shipped more than two and a half million automobiles to customers across the world, including those of its BMW, MINI, as well as its Rolls Royce brands, this had been a challenging year for the automotive industry, as it had affected by the lockdown, supply disruptions, due to the pandemic in China, and other external factors. According to the latest report published by Allied Market Research, the global logistics automation market is predicted to exhibit a remarkable CAGR during the forecast timeframe. Therefore, as technology advances and becomes more accessible, automation will give logistics companies a competitive edge and create new industry norms.
Automation unlocks efficiency, precision and creativity, transforming the way goods move, store and deliver, leading to a more efficient and seamless supply chain ecosystem.
