Cainiao Network, Alibaba’s logistic arm, announced the launch of its enterprise smart warehouse plan, in a bid to accelerate digitalisation momentum for the industry and mitigate the Covid-19 pandemic-induced supply chain disruptions, which is expected to last through 2022.
At a global level, the smart warehousing market is expected to grow from US$14.8 billion in 2021 to US$25.4 billion by 2026, nearly doubling in size at a compound annual growth rate (CAGR) of 11.5%.
As such, logistic firms such as Cainiao look into plans with a digitalisation facet to reap benefits from the growth, as a majority of warehouses worldwide (80%) today continue to lack core automation capabilities that could impede ideal growth rates. Cainiao has been prioritising its innovation efforts to digitalise the entire value chain for over eight years, with artificial intelligence (AI), cloud, and automation in smart warehouses as a core focus to support the exponential rise in demand and parcel volume, especially during global shopping festivals such as the famed 11.11 sales.
This smart warehouse is a testament to Cainiao’s experience in logistics innovation, as it has over the past eight years prioritised innovation efforts to develop new solutions that can digitalise the entire value chain.
Its proprietary warehouse management system leverages artificial intelligence (AI), cloud, and automation in smart warehouses to support the exponential rise in demand and parcel volume during global shopping festivals. This is supported by smart logistics resources such as autonomous mobile robots (AMRs), automatic guided vehicles (AGVs), a central warehouse management system (WMS) and more.
For the smart warehouse plan, the Cainiao team will engage a range of new technologies, from solution design to hardware installation, segmented into three main key components.
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Firstly, digital space-spatial modelling that engages two- and three-dimensional spatial visualisation to provide a panoramic view of equipment and manpower distribution and operation status to facilitate equipment planning and sourcing.
Secondly, digital space-employee effectiveness display and management backed with AI vision technology to further achieve intelligent scheduling, resource monitoring and accurate stocktaking of parcel volume.
Lastly, digital space-device management to track sorting efficiency in real-time, control sorting quality, monitor the status of the equipment and build the procurement and operation ecology of the automation field.
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This tailored and layered approach is exceptionally critical in the logistics sector where technology applications must be adapted specifically for each use case in order to address unique business needs, according to Cainiao. Hence, with the commercialisation of its smart warehouse technology, businesses will be able to leverage its automation technology to increase logistics efficiencies, streamline warehouse processes and overcome manpower shortages.
“Global supply chain disruptions in the past year have shed new light on the necessity of an efficient logistics value chain that is also capable of alleviating external disruptions, and highlighted the urgent need to accelerate innovation within the logistics industry,” says Dr Ding Hongwei, General Manager of Cainiao Technology.
“With the successful digitalisation of our supply chain processes, we want to bring that know-how to the rest of the world to safeguard operational efficiencies of cross-border eCommerce logistics,” he adds.
The host facility was built in part with Cainiao’s first overseas partnership with Flash Express, an eCommerce logistics company in Thailand. It stands at 20,000 sqm, with 100 AGVs used within 5,000 sqm–the largest smart warehouse in Southeast Asia equipped with Cainiao’s smart warehouse technology. Cainiao’s technology has since helped warehouse employees to reduce distances travelled by 90%, and achieve an overall accuracy of 99% in the areas of sortation and parcel handling.
This venture stands to mitigate mounting pressure when meeting business and consumer expectations during mega shopping festivals, which could see demand rise up to ten times of its usual volume.
“Besides enhancing the solutions available within the global logistics industry, it’s crucial for us to leverage present opportunities to raise the visibility and value of supply chain strategies and operations. By democratising our smart warehousing solutions, we hope to boost supply chain resilience to withstand further potential supply chain disruptions, and become a key player in supporting the global e-commerce boom,” added Ding.
Photo: Cainiao
