Robotic eCommerce Fulfillment Optimization and Automation with Jonathan Briggs

Introduction:

In a compelling podcast hosted by Aaron Alpeter, the founder of Izba, we had the privilege of listening to Jonathan Briggs, the VP of Sales and Solutions at Nimble, as he delved into the transformative world of robotics and automation in the realm of eCommerce fulfillment.

Watch the full episode here.

In this comprehensive blog, we will extract the rich insights shared in the podcast, exploring the evolving paradigms and practical applications of robotics in modern fulfillment centers.

Changing Paradigms in Robotics:

Aaron, inquisitive about the evolving landscape of robotics, started the conversation by asking Jonathan about the changes and key technologies steering the industry. Jonathan highlighted several key areas of transformation:

1. Beyond Labor Cost and Throughput: Traditionally, companies focused on labor cost and activity throughput when considering the return on investment (ROI) of robotics. However, this narrow perspective is evolving. Companies are now expanding their outlook to consider factors such as the physical warehouse’s structure and available space.
2. Cubing and Vertical Space: Warehouses are now constructed with significant vertical space, going up to 36-40 feet, but the productive workspace is typically limited to the first six to seven feet. This inefficiency prompted the emergence of solutions like Automated Storage and Retrieval Systems (ASRS) that optimize space by eliminating traditional racking and aisles.
3. Square Footage Cost: Due to increasing demand and inflation, warehouse space costs have risen. Companies now need to factor in square footage cost when evaluating ROI models. Maximizing the use of vertical space has become crucial for cost efficiency.
4. Efficiency Beyond Throughput: Focusing solely on throughput can be shortsighted. Companies often overlook the time spent waiting for certain processes in a fulfillment chain. Understanding the dependencies between different stages of the process, from the picker waiting for a bot to arrive to the end-to-end flow, is essential.
5. Islands of Automation: The concept of “Islands of Automation” highlights a scenario where individual processes are automated but aren’t seamlessly integrated with each other. Companies now realize the need for a more holistic approach, accounting for dependencies and optimizing the entire workflow.

Nimble’s Approach:

Jonathan introduced Nimble’s innovative approach by emphasizing the importance of measuring productivity end-to-end, rather than focusing on specific activities in isolation. Nimble uses a measuring stick called raw UPH (units per hour) to account for shuttle time, picking time, packing time, and any downtime or waiting times in the process. This approach provides a more realistic measurement of productivity.

Applicability Beyond eCommerce Giants:

One of the most intriguing aspects discussed was whether robotics solutions are exclusive to eCommerce giants like Amazon. Jonathan emphasized that robotics in fulfillment is not just for mega-shippers, and there are several reasons why small to medium-sized brands can also benefit:

1. 3PL Collaboration: Even small brands can leverage robotics through collaboration with 3PL providers that have aggregate volumes and the infrastructure to support automation.
2. Robotics as a Service (RaaS): Many robotics companies offer RaaS, allowing companies to amortize the cost of automation, either through monthly payments or a per-unit activity basis. This approach minimizes the need for a large upfront capital investment.
3. Functional Selectivity: Companies don’t have to automate every aspect of their fulfillment. They can selectively implement robotics in areas where it makes the most sense. For example, palletization and depalletization, which don’t require a vast number of robots, can be cost-effective even for smaller brands.
4. Integrator Involvement: Integrators can play a pivotal role in helping smaller brands adopt robotics. They can deploy automation solutions on a smaller scale and bundle them with other services, making them more accessible to a broader range of companies.

Ideal Operational Profiles for Robotics:

Jonathan further elucidated that not all brands are ideal candidates for robotics. They focus on the complexity of the SKU profile, considering high SKU counts, size, and the dynamic slotting of products. This approach aligns well with industries like apparel, footwear, nutraceuticals, and cosmetics, where SKU complexity and storage density are high.

Additionally, they look for SKU correlations, grouping “peanut butter and jelly” SKUs together to optimize pick paths and minimize the need for multiple bin presentations during order picking. Jonathan acknowledged that robotics are not the perfect fit for all scenarios, and in some instances, manual kitting processes or basic conveyor belts may suffice.

Takeaway:

The conversation with Jonathan Briggs provides a fascinating glimpse into the ever-evolving world of robotics and automation in the eCommerce fulfillment landscape. 

The paradigm shift in how companies approach automation, moving beyond labor cost and throughput, indicates a maturing industry. Nimble’s emphasis on measuring productivity comprehensively, considering the end-to-end fulfillment process, reflects a more holistic approach to automation.

Notably, the applicability of robotics in eCommerce fulfillment is not restricted to industry giants; it extends to a broader range of businesses. Smaller brands can leverage collaboration, Robotics as a Service, and integrator involvement to adopt automation solutions that best suit their operational profiles.

As eCommerce fulfillment continues to grow, the adoption of robotics is poised to play a pivotal role in enhancing efficiency and cost-effectiveness for businesses of all sizes. It’s clear that the future of fulfillment will see a diverse range of brands benefiting from the power of robotics.

 Watch the Full Conversation here.