Russia's X5 Group has rolled out a series of robotics projects in its distribution centres as it seeks to optimise logistics processes, increase labour productivity, reduce infrastructure costs, and improve the quality of customer service.
X5 Group, which operates the Pyaterochka, Perekrestok and Chizhik retail chains, has opened an innovative laboratory at one of its distribution centres to test robotic applications.
The company added that it expects its retail chains to be able to start deploying robotics solutions to partially automate warehouse processes as early as September or October 2024.
It also plans to build a fully robotised distribution centre in the next few years.
'Improve Business Efficiency'
Vladimir Salakhutdinov, director of strategy and business development at X5 Group stated, “The rising costs of line staff have prompted us to look differently at logistics robotics projects, which until recently did not seem like a good investment.
“Today, we see them as real opportunities to improve business efficiency, and we are shifting our priorities towards replacing both line and office jobs with modern technology solutions. Many projects in this area require a long-term strategic commitment, but we are confident that making investments today in robotic automation and artificial intelligence solutions is the key to unlocking long-term, sustained success in the future.”
Pilot Laboratory
X5's pilot laboratory is located at its Podolsk-based distribution centre, and is currently testing two types of robots – autonomous mobile robots (AMRs) and forklift mobile robots (FMRs), which move around without human supervision and can perform various tasks depending on their programming.
The automation solutions will help the company explore opportunities to automate key business processes that currently consume significant staff resources.
These include moving and placing goods in storage areas, replenishing pick modules, picking products for orders and moving them to dispatch areas.
The deployment of robotics solutions will enable headcount optimisation by an average of up to 20% at each distribution centre, X5 added.
The retailer is also preparing to launch a digital simulation centre of excellence for the company’s distribution centres.
