Robotics Fulfillment Centres: The Future of eCommerce

Fariha Shuvakhana

|

June 5, 2024
< Back to Blog

A robotic fulfilment centre is a warehouse or distribution centre that utilises automation and robotics technology to streamline and optimise the process of fulfilling orders. These centres are an integral part of the modern eCommerce industry and supply chain management, as they allow for the efficient and accurate handling of high volumes of orders.

The use of robotics in fulfilment centres has revolutionised the way goods are received, stored, and shipped, enabling companies to increase speed and accuracy while reducing labour costs and errors. In today's fast-paced and competitive eCommerce market, the ability to quickly and reliably fulfil orders is crucial for businesses looking to meet the expectations of their customers. For the full picture of how this technology works, see our guide to robotic fulfilment.

01. How A Robotic Fulfilment Centre Operates

The fulfilment process in a robotics fulfilment centre typically begins when an order is placed by a customer. The order is then transmitted to the fulfilment centre, where it is received and processed by the system. This may include verifying the availability of the ordered items and preparing them for shipment.

Robotics technology plays a significant role in automating and streamlining many of the tasks involved in this process. For example, robots may be used to sort and organise products, retrieve items from shelves or storage bins, and package orders for shipment. These tasks are often performed more quickly and accurately by robotics than by human labour, leading to increased efficiency and productivity.

At SKUTOPIA's fulfilment centre, robotics technology is utilised in various ways. Some examples of tasks commonly performed by robotics include:

  • Sorting and organising products based on various criteria such as size, weight, and destination
  • Retrieving products from storage bins and transporting them to designated areas for packing and shipping
  • Inspecting and scanning products to ensure accuracy and quality
  • Picking and packing orders for shipment, including the application of labels and the placement of items in boxes or other packaging materials

Overall, the use of robotics in the fulfilment process allows for the automation of many time-consuming and repetitive tasks, freeing up human workers to focus on more complex and value-added tasks such as customer service and quality control. This helps to increase efficiency and productivity in the fulfilment centre, ultimately leading to faster and more accurate order fulfilment for customers.

Want to see this exact process running for your own orders?

Our Third-Party Logistics Provider 3PL runs on this same robotics-powered process. Boost Lab plugged into it and scaled processing capacity 5x while cutting fulfilment costs by 50%. Explore our Sydney and Melbourne fulfilment centres. Call us now - (02) 9090 4747

02. Benefits of Using A Robotic Fulfilment Centre

There are many benefits to using a robotic fulfilment centre to fulfil your orders, including increased speed and accuracy of order fulfilment, reduction of labour costs and errors, and the ability to handle high volumes of orders.

One of the primary advantages of using robotics in fulfilment centres is the increased speed and accuracy of the fulfilment process. Robots are able to work around the clock without breaks, and are capable of completing tasks much faster and more accurately than humans. This allows for faster turnaround times on orders, which is essential in today's fast-paced eCommerce market.

In addition to increased speed and accuracy, the use of robotics in fulfilment centres can also lead to a reduction in labour costs and errors. Robots do not require breaks, sick leave, or other forms of human-related downtime, and can work continuously without the risk of fatigue or mistakes. This can help to lower labour costs and minimise errors, resulting in cost savings and increased efficiency for the company.

Finally, the use of robotics in fulfilment centres allows for the handling of high volumes of orders, as robots are able to perform tasks at a much faster rate than humans. This is particularly useful for companies that experience spikes in demand or have a large volume of orders to fulfil on a regular basis. The ability to handle high volumes of orders efficiently and accurately is essential for meeting the needs of customers and maintaining a competitive edge in the eCommerce market.

03. Case Study

SKUTOPIA is a great example of a company that has successfully implemented robotics in its fulfilment centres. By leveraging the speed and accuracy of robotics technology, SKUTOPIA has been able to increase the efficiency of its fulfilment process, resulting in faster turnaround times and higher customer satisfaction.

One of the key benefits achieved by SKUTOPIA through the use of robotics is a significant return on investment (ROI). By automating tasks and reducing labour costs, the company has been able to realise significant cost savings, which have contributed to its bottom line. In addition to the financial benefits, SKUTOPIA has also seen an improvement in the accuracy of its fulfilment process, as robots are able to perform tasks with a much higher degree of precision than humans.

Other quantifiable benefits achieved by SKUTOPIA through the use of robotics include an increase in productivity and a reduction in errors. By allowing robots to handle repetitive and time-consuming tasks, the company has been able to free up its human workers to focus on more complex and value-added tasks, resulting in an overall increase in productivity. In addition, the use of robotics has helped to minimise errors and mistakes, leading to a reduction in product returns and customer complaints.

 High volumes, fewer errors, lower costs - that's not a promise, it's a system.

Whether you're shipping B2B wholesale orders or B2C direct to customers, our Pick and Pack Solutions deliver exactly these benefits at scale. tbh Skincare used this system to ship over 1M units with a 20x increase in daily orders. Call us now - (02) 9090 4747

04. Future of Robotics in Fulfilment Centres

The future of robotics in fulfilment centres looks bright, with trends and predictions pointing towards continued growth and adoption of this technology in the industry. As eCommerce continues to expand and customers increasingly demand faster and more accurate fulfilment of orders, companies will increasingly turn to robotics to meet these needs.

One trend that is expected to continue is the adoption of more advanced and sophisticated robotics technology. This may include the use of robots with greater dexterity and flexibility, as well as the integration of artificial intelligence (AI) and machine learning to enable robots to perform more complex tasks. Another trend is the increasing use of collaborative robots, which are designed to work alongside human workers and can adapt to changing environments and tasks.

In terms of predictions for the adoption of robotics in the industry, it is expected that more and more companies will turn to automation to meet the demands of the growing eCommerce market. The use of robotics in fulfilment centres is expected to become increasingly prevalent as companies seek to increase efficiency, reduce costs, and improve the accuracy and speed of order fulfilment.

The potential impact of these trends on the job market and employment opportunities is a topic of debate. While some jobs may be replaced by robotics, it is also expected that the adoption of robotics will create new job opportunities in fields such as programming, maintenance, and repair. In addition, the use of collaborative robots may help to augment the capabilities of human workers, leading to the creation of new and more highly-skilled jobs.

The technology this article predicts is already running in our fulfilment centres today.

Our Cloud Fulfilment platform and Inventory Forecasting tools bring the AI-driven, data-backed approach covered above to your business right now. Babyboo grew order volume 77% while holding a 99.9% same-day dispatch rate on this exact combination. Call us now - (02) 9090 4747

05. Concluding Thoughts

The revolution in robotics has changed the way fulfilment centres operate, ushering in a new era of efficiency and effectiveness in the supply chain process. From sorting and organising products to picking and packing orders for shipment, robotics technology has revolutionised the way fulfilment centres do business. The advantages of using a robotics-based fulfilment centre include increased speed and accuracy of order fulfilment, reduction of labour costs and errors, and the ability to handle high volumes of orders. 

SKUTOPIA is a shining example of a company that has implemented robotics in its fulfilment centres, resulting in a marked reduction in costs, improved productivity, and a decrease in errors. With the potential for further growth and development in the robotics industry, the use of robotics in fulfilment centres is an exciting development in the modern supply chain process. Not only does the implementation of robotics offer increased speed and accuracy, but the potential for cost-savings, improved productivity, and fewer errors makes it a must-have for any modern business. As the e-commerce industry continues to grow, the use of robotics in fulfilment centres will become an even more integral part of the supply chain management process.

Fariha Shuvakhana

Chief Growth Officer, SKUTOPIA

Fariha Shuvakhana is the Chief Growth Officer at SKUTOPIA, a 3PL fulfilment and shipping platform for fast‑growing eCommerce businesses. Fariha focuses on sustainable, customer‑first growth - aligning go‑to‑market strategy with operational efficiency and partner‑led expansion.