Nippon Express drives DX for logistics with NEC Vol.3

February 9,2022

― Warehouse digitalisation and robotics

The boom in online shopping during the pandemic, along with rising demand for next-day delivery, has intensified efforts to switch to more automated systems and robots in warehouses around the world. In 2021, some $36bn is estimated to have been invested into automation technology for warehousing, a 20 per cent increase from 2020. This trend is likely to continue, but full automation will require accurate know-how of the vast diversity of processes such as the sorting, picking and packing done by workers now.

"Currently, a lot of operations in warehouses are fine-grained and depend on the skills and experience of workers. Moreover, depending on the industry and type - whether it is for materials, manufacturing parts or finished products - the processes differ," explains Masuda. "To optimise operations, what must be done first is to digitise the know-how of all these workers and processes across different warehouses."

Through the alliance, the two companies are aiming to collect data on the movement of people and goods in warehouses using IoT. It will then analyse them with AI and design processes to minimise labour input while maximising performance on the warehouse floor. NEC will provide unique technologies such as 3D sensors which can track objects through space and time as well as AI which can capture the tacit knowledge of highly skilled workers.

Building up this kind of extensive database will help in the quest to eliminate accidents and optimise staffing in not only logistics facilities but also in transport and delivery. Initial focus will be on electrical machinery and electronics, later expanding into semiconductor and automobile supply chains.

Another significant area of cooperation will involve the development of remote-controlled robots to work in places where manual labour is particularly difficult, remote or where labour shortages are acute. The initial stage in this project will involve remote robotics control in Nippon Express' warehouse operations - for example picking operations - by employing NEC's key technologies such as robotics control and 5G.

This content was paid for and produced by Nippon Express in partnership with the Commercial Department of the Financial Times.