Artificial Intelligence and The Future of Warehousing and Intralogistics
Shortly I'll be packing my bags and gearing up for a journey to my hometown, Sydney. I am genuinely excited to be attending the CeMAT conference - the world's leading trade fair for intralogistics, materials handling, and supply chain.
My co-host Paul Mason and I will be representing our podcast, Manufacturing Tech Australia, at the event, which we're proud to be the official podcast sponsor for! In the lead-up we have some engaging conversations lined up with a couple of exceptional thought leaders. We'll be diving deep into the world of microfactories and circular economy with Professor Veena Sahajwalla from UNSW and exploring Amazon's innovative strides in supply chain and intralogistics with their ANZ Senior Innovation Program Director, Anna Reid. You won't want to miss these episodes!
There’s been a lot of buzz about artificial intelligence recently with tools like ChatGPT and Midjourney entering the news cycle, and I’ve recently been asked by several folks about AI and its impact on manufacturing, warehousing and supply chain.
Amazon is at the forefront of this revolution. More than just a warehouse, its facility in Western Sydney, the first of its kind for Amazon Australia, is a ‘robotics fulfilment centre’ where robotic helpers aid human workers in locating and delivering packages. It's a fascinating synergy of human and artificial intelligence, and it's revolutionising the logistics sector.
In this vast, multi-tiered structure, hundreds of robots dutifully sort, distribute, and move products. These compact, roomba-like machines can sort more than 18,000 pods of products ranging from iPhones to books and toys.
As for the question about AI’s impact, in my opinion, the deployment of AI doesn't signal the end of human employment. In fact, it’s all about improving efficiency and optimising space. Every package that passes through the warehouse is handled by at least four humans, who perform the creative work of picking, packing and stowing products. The aim here is to augment, not replace, human labour with AI.
AI adoption does however signify a paradigm shift in warehouse operations. Instead of bulky pallets, Amazon focuses on individual customer orders. With AI and machine learning, it's now possible to efficiently manage the incredible complexities of one-day shipping and keep track of 1-4 million product bins in each fulfilment centre.
But it’s not just about faster delivery. With the help of AI, Amazon can accurately forecast customer demand, personalise customer communications, and optimise delivery routes.
AI isn’t only redefining warehousing – it’s making intralogistics more sustainable. The Western Sydney warehouse will increase the capacity for storing inventory. This, in turn, opens up opportunities for thousands of small and medium-sized Australian businesses. It’s a model of efficiency, innovation, and growth.
Sure, we're a decade away from completely automating the process of a single order picked by a warehouse worker. But with each passing year, the marriage of AI and robotics continues to redefine what's possible in the industry. The AI-powered robots zipping around Amazon's fulfilment centres are the tip of the iceberg. Today, they're carrying products around the warehouse. Tomorrow, who knows?
If you want to learn more about Amazon’s local operations and their approach to innovation in warehousing and logistics, subscribe to Manufacturing Tech Australia so you don’t miss out interview with Anna Reid.
I can't wait to get to Sydney and explore more about these developments and share them with you during the CeMAT conference. So, mark your calendars! Come and join us from 25-27 July 2023 at The Dome, Sydney Olympic Park. Best of all – entry is free so get your ticket here.
If you want to learn more about the show, visit the CeMAT website or listen to our short interview with the event program manager Natalie Green.
Let's meet up and delve into the future of warehousing and intralogistics together.
See you there!