Enhancing storage capacity and shipping efficiency
The Covid-19 pandemic has brought demand for better logistics for online shopping and more efficient product warehousing. In traditional warehouse operations, moving products requires a great deal of human time and labor, and workers suffer physically when they are required to move large items over long periods of time. This is why automated guided vehicle (AGV) technology was invented.
In Taiwan many small and medium sized enterprises have introduced AGV technology, and there are firms specializing in manufacturing AGVs. The artificial intelligence (AI) based high-density shuttle rack service system jointly developed by the Industrial Technology Research Institute (ITRI), HCT Logistics, and iAmech, is a major step forward. Janet Chen, chief operating officer of the Service Systems Technology Center at ITRI, says that this system is unique in being able to service storage racks up to 14 levels high and being compatible with shuttle-based automated storage and retrieval systems, greatly increasing effective storage space. Moreover, it refines the application of AI technology to various aspects of the warehousing process.
When a product enters the warehouse at a logistics center using ITRI’s AI dynamic decision technology, the system automatically measures the item’s dimensions. Next, through an AI algorithm and big data analysis, popular products that are often bought together are placed near each other in order to reduce the distance that they must be moved. When a consumer places an order online, the system can analyze the types and numbers of products ordered and map out the optimal route for retrieving the items from the racks, so that items for the same order can arrive at the order picking station at virtually the same time.
Chen says that once the storage bins that bring goods to the picking station are returned to their storage locations, the system will work out the optimal route to ensure that the next retrieval operation is similarly efficient. Also, even before customers place orders, the system will use historical order data to estimate the most popular items for sale in high and low seasons and store the products in suitable locations in advance. This resolves the problems that many e-commerce platforms face when they run sales promotions of their workforce being overwhelmed and products not getting shipped on time.
This smart warehousing system was first proposed by HCT Logistics, which then worked with ITRI, handling the warehouse operational management side of the project while ITRI developed the AI technology. iAmech later came on board to build the automated equipment. In 2019, after two years of intensive discussions and on-site inspections among the three parties, the AI automated logistics center created for the Yahoo! Taiwan online shopping portal came into operation. The use of this new technology has greatly upgraded the efficiency of filling online orders at Yahoo!, so that it takes only about ten minutes from the time a product is ordered until order picking is completed, and manpower has been reduced by 30%.
Since this technology won an Edison Award, inquiries about it have come in from Taiwanese businesses in South Africa, the US, and Southeast Asia. Some firms hope to use the new technology to replace slow and error-prone AGV systems, while others in densely populated areas hope that the tall, compact storage system of this smart warehouse can optimize their use of space and manpower.
Janet Chen says that in the future this smart warehouse system will also be used for fresh food products, to reduce the health problems that workers suffer due to long exposure to low temperatures in cold storage facilities. It is hoped that the system will both occupy less land and provide a more comfortable and convenient environment for people.
In 2019 Yahoo Taiwan’s online shopping fulfillment center began using ITRI’s AI-based shuttle rack service system. It now takes only ten minutes from the time a customer submits an order for the products to arrive at the order picking station. (courtesy of ITRI)
The AI-based warehousing system developed jointly by the Industrial Technology Research Institute, HCT Logistics, and iAmech won a gold award in the AI Applications category at the 2021 Edison Awards. (courtesy of ITRI)