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🤖📦 AI’s Manufacturing & Logistics Shake-Up

🤖📦 AI’s Manufacturing & Logistics Shake-Up

Plus new from WPP and eBay

Jo Lambadjieva
May 03, 2024

In partnership with

Hey there!

Happy Friday! Today we are covering robotics in manufacturing and logistics. We are starting to see a lot of the big guys like Walmart and Amazon beginning to implement AI in different parts of their warehousing processes which will certainly impact sellers not too further down the line.

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AI’s Manufacturing & Logistics Shake-Up

As artificial intelligence (AI) and robotics continue to advance, more and more manufacturing and logistics companies are embracing these technologies to streamline operations, boost efficiency, and gain a competitive edge. A recent survey by Sikich LLP reveals that 83% of manufacturing executives are increasing their investments in digital technology, with 33% ramping up investments significantly.

The integration of AI and robotics into manufacturing and logistics processes is set to reshape the industry landscape. From robotic process automation (RPA) to machine learning for demand forecasting and predictive analytics, companies are exploring various applications of AI to optimize their operations.

Retail giants Walmart and Amazon are at the forefront of this AI revolution. Walmart recently announced plans to deploy 19 autonomous electric forklifts across four distribution centers, as part of a multi-year agreement with Fox Robotics. These AI-powered forklifts are designed to handle manual labor at warehouse loading docks, potentially reducing the need for human workers in these roles. Similarly, Amazon has introduced its new Sequoia system, which uses AI-equipped sortation machines and robotic arms to work alongside human employees in fulfillment centers. The company expects Sequoia to reduce delivery times by up to 25% and identify inventory 75% faster, becoming a significant part of its operations within the next 3-5 years.

However, the adoption of these technologies is not without challenges. Security concerns, cyber risks, and the lack of a unified IT strategy are cited as the biggest barriers to successful digital transformation initiatives.

As more companies embrace these technologies, the implications for ecommerce sellers could be significant. Faster processing times, improved inventory management, and reduced delivery times could lead to a more competitive ecommerce landscape. Sellers may need to adapt their strategies to keep pace with the evolving industry standards.

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