China is among the first countries to implement AMRs to support e-commerce, demonstrating that autonomous vehicles are a critical solution for optimizing supply chains and enhancing operational efficiency. In this article, Phenikaa-X explores three compelling case studies of AMR implementation in China, featuring big companies such as Alibaba and JD.com.
1. Overview of AMR and the Chinese Market Context
Autonomous Mobile Robots (AMR) are advanced robots that leverage artificial intelligence and sensors to navigate and perform tasks without fixed paths. They are widely used in warehousing, logistics, manufacturing and most recently, e-commerce also implementing AMR for different tasks such as picking, transporting and inventory management.
The concept of robots replacing human labor is now driven by Autonomous Robot, supported by advanced technologies such as AI, IoT, and machine learning. These advancements enable AMR to perform tasks with greater consistency, making them increasingly vital in industrial settings, particularly as labor costs continue to rise daily.
Known as the “Factory of the World,” China has solidified its position as a global manufacturing and logistics powerhouse, which always puts heavy pressure on both suppliers and the manufacturers. The rise of AMR technology has revolutionized production, transportation, prove to be the answer for all the problem China industry faces at the moments.
2. AMR Implementation Case Studies
Here are some of the case studies about AMR implementation Phenikaa-X collect and look after during market research. They are all from the well known brands on the global market that can be useful examples of AMR used in different fields of industry.
Case Study 1: Foxconn’s AMR Implementation
Foxconn, officially known as Hon Hai Precision Industry Co., Ltd., is the world’s largest contract electronics manufacturer, producing components and products for leading brands such as Apple, NVIDIA, and Xiaomi. With major factories in Shenzhen, Zhengzhou, and other regions in China, Foxconn has aggressively transitioned to smart manufacturing to maintain its competitive edge in the fast-paced electronics industry.
With a reported revenue of approximately $208 billion in 2024, Foxconn faces significant challenges that necessitated the AMR Implementation:
- Rising labor costs and a shortage of young workers.
- Demand for fast and precise production of products.
- Large-scale factories require optimized internal logistics.
- Transition to smart factories.
In order to solve those problems, Foxconn partnered with FARobot, a Taiwanese company specializing in AMR. While exact figures for AMRs deployed in China are not publicly disclosed, estimates suggest that major facilities may have deployed 14,000 units of AMR in total, based on their scale and automation levels.
So what does Foxconn achieve from AMR implementation? Base on various report posted by them and FARobot, here are the number:
- Reduced workforce by 55% at the Kunshan factory (from 110,000 to 50,000 workers in 2016). Despite the workforce decreasing, production value remained unaffected due to automation and AMR.
- Achieved 200% revenue growth in AI servers (accounting for 26% of 2024 revenue).
- Reduced energy consumption by over 30% thanks to AMRs and AI.
- AMRs integrated with AI and machine vision technology help reduce errors in component transportation, achieving nearly 99% accuracy in internal logistics processes.
With the support of AMR, Foxconn successfully launched the world’s first Lights-off Factory. This facility operates primarily through automation, including AI and AMR, with minimal manual intervention from workers (e.g., for maintenance). The lack of human labor is also the reason the facility does not really need light, as you can guess from the name. Nowadays, Foxconn operates a total of three Lights-off Factories to meet its production demands
Case Study 2: JD.com’s AMR Implementation
JD.com is a leading e-commerce platform in China, well known in China for competing closely with Alibaba.With over 1,400 warehouses covering more than 30 million square meters, the company reported annual revenue of approximately $153 billion in 2024, driven by its direct-to-consumer model and focus on rapid delivery.
But even when they are on the Top of the market with a lot of impressive numbers, JD.com is not perfect. In fact, they faced several challenges that necessitated the adoption of warehouse automation through AMR:
- Surge in E-Commerce Demand: The explosive growth of e-commerce in China, with a market size exceeding $2 trillion in 2024, required JD.com to scale its logistics to handle peak order volumes, especially during major shopping events.
- Labor Costs and Shortages: Rising labor costs and a shortage of workers in urban areas like Shanghai and Beijing increased operational expenses. Automating repetitive tasks was essential to reduce reliance on manual labor.
- Demand for Speed and Accuracy: JD.com’s commitment to same-day and next-day delivery demanded faster order processing and minimal errors in picking and packing, which traditional methods struggled to achieve.
- Complex Warehouse Operations: With millions of SKUs across its warehouses, JD.com desperately needed logistics optimization to streamline inventory management and material handling in large-scale facilities.
- Smart Warehousing Goals: JD.com aimed to pioneer smart warehousing by integrating Industry 4.0 technologies, to enhance operational efficiency and customer satisfaction.
AMR implementation was a strategic choice to address these challenges, so JD.com decided to cooperate with Geek+, a Beijing-based leader in autonomous mobile robots and warehouse automation solutions. For Picking AMR in smart warehouses, they also partnered with Mujin, a Japanese robotics company. Reports indicate that the total number of AMR JD.com was implemented reached around 10.000 units, with the number still growing as new facilities are automated.
The AMR implementation has significantly enhanced JD.com’s logistics operations:
- AMRs reduced order processing time by up to 50% in key warehouses like Kunshan, enabling faster delivery to customers.
- Automation lowered labor costs by reducing the need for manual workers in repetitive tasks. JD.com reported a 30-40% reduction in logistics costs in automated facilities.
- AMR achieved ~99% accuracy in picking and transport tasks, minimizing errors in order fulfillment.
- AMRs allowed the company to handle a 300% surge in orders during special sale days without significant operational disruptions.
- By automating heavy lifting and repetitive tasks, AMRs reduced workplace injuries, aligning with JD.com’s focus on employee welfare.
Case Study 3: Alibaba – Streamlining E-commerce Logistics with AMR Fleet
Alibaba, a global e-commerce giant, processes billions of orders annually through platforms like Taobao and Tmall. Its Wuxi fulfillment center faced challenges managing millions of SKUs, minimizing order processing times, and reducing labor costs during peak events like Singles’ Day, which generated $74 billion in sales in 2024.
With a massive number of orders like that, especially during sale-holiday events, Alibaba often becomes overwhelmed and in many cases, unable to fulfill their customer demands. Also, the labor cost in the China market has surged recently, resulting in higher cost for employment. This affected a lot of Alibaba’s businesses, especially when they are considered Top 1 in China E-Market.
To address these challenges, Alibaba’s Cainiao Network has partnered with Geek+ and Quicktron – 02 AMR manufacturers – deployed a fleet of estimated 15,000 AMRs in 1000 warehouses. These applications leverage the adaptability of autonomous mobile robots, enabling Alibaba to manage dynamic warehouse environments and fluctuating demand.
With the support of AMR, some tasks are completely shifted into automations:
- Goods-to-Person Picking: AMR transport shelves to picking stations, reducing worker travel time and speeding up order fulfillment.
- Material Transport: The task of transporting products, packages and cargo between receiving, storage and packing zones was moved from human work into AMR.
- Automated Sorting and Packing: AMR delivers items to automated sorting systems, streamlining the final stages of order processing, reducing labor on this site and increasing accuracy.
- Peak Demand Scalability: Operational stability during high-demand events by handling increased order volumes efficiently.
The AMR implementation has transformed Alibaba’s logistics operations:
- AMRs reduced order processing time by 50%, enabling same-day and next-day delivery for 90% of orders in key regions.
- Logistics costs were lower by 30%, reducing reliance on manual labor and optimizing resource allocation.
- Autonomous Mobile Robots achieved ~99% accuracy in picking and transport tasks, minimizing errors.
- AMR allows Alibaba to complete 1 billion orders during the 11/11 sale event, maintaining performance under extreme demand and meeting the customer expectation from the top 1 brand in China.
- There are small to no workplace injuries reported at Alibaba since the implementation of AMR, proving that safety was ensured with the support of the new technology.
Conclusion
AMR implementation is revolutionizing China’s logistics and warehousing sectors, as demonstrated by success stories from Foxconn, JD.com and Alibaba. Phenikaa-X hope these case studies help you highlight the transformative power of AMR in industry fields, give you better detail before investing in AMR technology..
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