In the era of modern technology, AMR robot is gradually making its way into various industries. Logistics is one of the fields benefiting from this technology, enabling businesses to enhance operational capacity and achieve significant profits while saving substantial costs. So, what is AMR Logistics? And how is it implemented? Let’s explore with Phenikaa-X in this article.
1. What is AMR Logistics?
AMR Logistics refers to the application of Autonomous Mobile Robot (AMR) technology in logistics operations for corporations, businesses and individual enterprises. AMRs can operate and process tasks autonomously thanks to advanced sensor systems and navigation technologies, making them an ideal solution for automating various stages of the logistics chain, particularly in transportation, sorting and distribution within warehouses and production lines.
The research and application of AMRs in logistics operations have been extensively studied by major corporations (e.g., Amazon, Alibaba, Tesla, etc.) across multiple countries to develop solutions for automating production and transportation processes, thereby boosting their business efficiency. AMRs are considered a top choice because they require minimal infrastructure for deployment, are cost-effective and benefit from continuously advancing technologies (such as AI), giving them a significant competitive edge over other automation options in the market.
2. Applications of AMRs in Logistics
AMRs are versatile, addressing multiple logistics tasks with precision and efficiency. Here are some major tasks that AMRs contributing to the field of logistics:
2.1. Material Transport
AMRs transport goods like pallets, totes, or components within warehouses and manufacturing facilities. They move items from receiving docks to storage areas or between production lines, reducing manual labor and speeding up operations.
This ensures uninterrupted production and timely delivery of raw materials, crucial for manufacturing sectors.
2.2. Inventory Management
AMRs can be equipped with RFID or barcode scanners to perform real-time inventory tracking, ensuring accurate stock levels and reducing discrepancies. They can detect misplaced items, optimizing warehouse space. This is critical for every logistics sector, where efficient inventory management supports export-driven industries.
2.3. Order Picking
AMRs enable Goods-to-Person picking, bringing shelves or bins directly to workers, cutting down walking time. Some report about AMR in 2023 shown that AMRs boost order-picking productivity by 2-3 times, making them invaluable for e-commerce businesses handling high order volumes, especially during peak seasons like holiday sales.
2.4. Sorting
In e-commerce, AMR streamline the handling of returned goods by sorting and restocking them efficiently. This reduces processing costs and ensures quick turnaround, a key advantage for the growing online retail market.
AMR sort products by order or destination, minimizing errors in fulfillment. A case study by BPS Logistics Technology (2024) shows a 25% reduction in sorting errors after deploying AMRs, enhancing accuracy in distribution centers.
3. Common Types of AMRs in Logistics
Different types of AMRs cater to specific logistics needs, offering flexibility and efficiency. Below are the most common types used in AMR Logistics:
3.1. Forklift AMRs
Forklift AMRs are designed for heavy-duty tasks, handling payloads up to 1,500 kg or more. They transport pallets or large containers in warehouses and manufacturing plants. For example, Vietnam-based Phenikaa-X offers APM (AMR Pallet Mover) tailored for pallet transport, ideal for large-scale logistics operations.
3.2. Traditional AMRs (Platform AMR)
These compact AMRs handle lighter loads (100-500 kg), such as boxes, cargo, totes or individual items. They are widely used in e-commerce for order picking and sorting, well known as the most basic and widely used AMR model on the market, easily customizable with cargo trays to ensure safe transportation and prevent damage, suitable for the majority of logistics needs today.
3.3. Towing AMRs
Towing AMRs pull carts or trailers to move multiple items at once, perfect for high-throughput distribution centers. They are efficient for bulk transport in large warehouses, extremely important in export logistics.
3.5. Inventory Scanning AMRs
In recent years, businesses have integrated RFID and barcode scanning systems into AMRs, enabling them to automatically scan barcodes on packages and products. These technologies will replace workers performing barcode scanning and sorting tasks, enabling businesses to save labor and significantly improve operational speed, a critical feature for managing complex supply chains in manufacturing hubs.
There are also other types of AMR, but they are tend to be used in other fields of industry. Scanning system can also be installed on other types of AMR.
4. Benefits and Challenges of AMR Logistics
Benefits
- Increased Efficiency: AMRs boost warehouse throughput by 30-50%, enabling faster operations (Locus Robotics, 2023).
- Cost Reduction: Reduced labor costs by 20-50%, critical for cost-sensitive markets like Vietnam (DHL, 2024).
- Accuracy and Safety: Advanced sensors and AI minimize errors and workplace accidents, ensuring reliable logistics and enchance the safety of AMR in use.
- Scalability: AMRs adapt to peak seasons, supporting Vietnam’s e-commerce surges during events like Black Friday or Tet.
Challenges
- High Initial Costs: Even without or minimum infrastructure update cost, the AMR deployment costs range from $50,000 to millions, depending on operation scale.
- System Integration: AMR requires compatibility with existing Warehouse Management Systems (WMS) or ERP systems. Some AMR provider system installations as a bundle while purchasing AMR which can reduce the burden.
- Training and Maintenance: In order to understand and be able to operate an AMR fleet, workforce training and regular maintenance are essential for sustained performance.
5. Some Example of Major Companies Using AMR in Logistics
Global companies have embraced AMR Logistics to enhance efficiency and reduce costs. Below are examples of successful implementations, with verified data:
5.1. Amazon
Amazon, a global e-commerce giant, faces immense pressure to process millions of orders daily across its vast fulfillment centers. The need for rapid order fulfillment, high inventory accuracy, and reduced labor costs drives Amazon’s adoption of AMRs. The company aims to minimize human walking time, optimize warehouse space, and handle peak-season surges, such as Black Friday, efficiently.
Based on Amazon Annual Report 2023, Amazon primarily uses Kiva robots (now evolved into Amazon Robotics AMRs) for the operation. These AMRs are chosen for their ability to support Goods-to-Person picking, navigating dynamically in large, complex warehouses without fixed infrastructure. Their integration with Amazon’s Warehouse Management System (WMS) ensures seamless coordination, and their scalability accommodates fluctuating demand.
5.2. DHL Supply Chain
As a leading third-party logistics provider, DHL requires flexible automation to manage diverse client inventories across global warehouses. The need to reduce labor costs, improve order accuracy, and adapt to varying client demands in dynamic environments prompts DHL to use AMRs. AMRs help DHL address labor shortages and enhance service reliability for clients in Vietnam and beyond.
DHL employed Standard AMR and Forklift AMR, selected for their flexibility in navigating busy warehouses and their ability to handle both small parcels and pallets. Their AI-driven navigation and compatibility with DHL’s WMS allow quick deployment without infrastructure changes, reducing setup costs.
5.3. Walmart
Walmart, a retail giant, needs efficient inventory management and order fulfillment to support its extensive network of stores and e-commerce platforms. The company faces challenges in maintaining high inventory accuracy and processing online orders quickly, especially during peak retail seasons. AMRs are adopted to reduce human errors, optimize warehouse workflows, and lower labor costs.
Walmart uses a basic delivery type of AMR, but with barcode scanner modifications. These AMRs are chosen for their advanced RFID and barcode scanning capabilities, which ensure real-time inventory accuracy, and their ability to support Goods-to-Person picking in distribution centers. Their compact design suits Walmart’s space-constrained warehouses.
4. JD.com
JD.com, a leading e-commerce player in Asia, requires high-speed order fulfillment to meet the demands of its massive online customer base. The company seeks to minimize labor-intensive tasks, reduce fulfillment errors, and scale operations during peak periods like Singles’ Day. AMRs are critical for automating repetitive tasks and maintaining competitiveness in Asia’s e-commerce market.
JD.com utilizes Basic and Towing AMR, including custom-developed models integrated with its smart warehouse systems. These AMR are selected for their ability to handle high-volume order picking and transport multiple orders simultaneously via towing, maximizing throughput. Their AI and SLAM navigation ensure adaptability in JD.com’s large, dynamic warehouses.
You can learn details about JD.com case study in Top 03 AMR Implementation Case Studies in China.
Conclusion
Above is an analysis of AMR Logistics by Phenikaa-X. As you can easily see, AMR are gradually becoming a core technology, playing a vital role in automation solutions for industrial operations across global businesses. With continuous advancements in technologies,AI and AIOT, AMRs are likely to become a central focus in the logistics sector, contributing to a wider range of activities such as long-distance goods delivery, replacing human workers in precise sorting tasks, and many other applications.
Phenikaa-X is the Vietnamese Headliner on the AMR and robotic solutions field. Contact us today to learn more about integrating AMRs into your business:
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