Knight Optical delves into the realm of online commerce and the automation technologies that have been pivotal in managing the surge of orders manny businesses faced during the COVID-19 crisis.
The e-commerce sector has witnessed remarkable growth in recent years, but as the initial surge begins to stabilize, the pressure on warehousing facilities is becoming evident. As we contemplate the future of online shopping, Knight Optical—renowned for its bespoke, high-quality optical components—examines the technological advancements that warehouses have adopted during these challenging times.
When the pandemic struck, e-commerce sales soared. With many individuals confined to thier homes due to lockdowns and health concerns,online shopping became a lifeline. This sudden demand placed immense pressure on warehouses globally, particularly those managing grocery supplies. The challenges of panic buying, workforce shortages due to COVID-19, adherence to social distancing, and supply chain disruptions made it tough to balance supply with demand. In response, many warehouses turned to automation to meet these heightened needs while complying with regulations.
In this article, we explore the landscape of e-commerce and the automation systems that have been crucial in fulfilling the surge of orders experienced by businesses during the pandemic.
Online Grocery Shopping: A Lifeline
Let’s begin with the most essential form of online shopping that saw delivery slots become highly coveted—grocery shopping. Consumer behavior shifted dramatically during the lockdowns of 2020 and 2021. While physical stores remained operational as essential services, many individuals—whether due to vulnerability, self-isolation, or general apprehension about the virus—turned to online grocery services.
Automated Grocery Solutions
During the pandemic, many consumers flocked to the online supermarket Ocado, which reported a 20% increase in sales in May 2021. As a fully online retailer, Ocado has always relied heavily on its warehousing capabilities, making it a leader in innovative warehouse technology.
In 2018, Ocado unveiled its automated facility in Andover, UK, where thousands of robots operate continuously to pack groceries. Utilizing a grid-based system managed by an air traffic control-like setup, these robots can move at speeds of up to four meters per second. At the end of the packing process, human workers typically bag the items, although at one location, a robotic arm with a suction cup has taken over this final task. Unfortunately, a fire caused by an electrical fault in 2019 led to the destruction of the facility, which has since been rebuilt with improvements based on the incident’s lessons.
Following Ocado’s lead, UK supermarket chain Tesco partnered with Swisslog, a technology provider also used in several Ocado fulfillment centers, in 2020 to enhance operations at its logistics hubs. This technology employs a pallet storage and retrieval system that utilizes robots on conveyor belts to manage goods. With a storage capacity increase of up to 60%, this innovation was crucial during a time when panic buying and empty shelves were rampant.
Advancements in Last-Mile Delivery
however, the grocery sector’s technological evolution extended beyond warehousing. Considering labor shortages during the pandemic, companies began exploring automation options that reduced reliance on human labor. A notable example is in last-mile delivery, where companies like starship Technologies have developed self-driving robots to deliver groceries and takeout. Udelv is another player in this space, utilizing human-assisted guidance for middle- and last-mile deliveries, aiming to automate the delivery process with self-driving vehicles.
Fashion Retail: Adapting to Change
As brick-and-mortar stores faced repeated closures during the pandemic, retail sales plummeted globally.In contrast to grocery sales, total retail sales volumes fell by 1.9% in 2020, marking the largest annual decline on record. However, online sales surged, reaching a historic high of 33.9% of total retail spending, with clothing sales rebounding above pre-pandemic levels by November 2021.
Robotics in Fashion Retail
As the retail landscape evolves, the demand for rapid delivery options has become paramount. ASOS, a prominent online fashion retailer, has distinguished itself with its next-day delivery service, setting it apart from competitors. The company is investing in automation and advanced systems in its warehouses, with plans for a robotics expansion at its Atlanta facility expected to be completed next year.
Gap is another fashion retailer embracing automation, having implemented robotic technology to minimize human contact during the pandemic. Supplied by Kindred AI, these machines can perform tasks that would typically require four human workers.
Innovative In-store Experiences
recently, ABB Robotics showcased the future of retail with a striking window display at Selfridges on Oxford Street. Their robotic arm demonstrated the ability to 3D print personalized designer items from Parley Ocean Plastic, raising awareness about lasting manufacturing and hinting at the future of both online and offline retail.
The E-Commerce Giant: Amazon
Amazon, one of the most recognized e-commerce platforms worldwide, capitalized on the surge in online shopping during lockdowns. With essential items like toiletries and groceries readily available and next-day delivery becoming standard, Amazon emerged as a vital resource for those unable to venture outside.
Since its inception in 1994, Amazon has experienced tremendous growth, driven by its innovative mindset. One of its latest initiatives includes the concept of a ‘floating warehouse’ for drone deliveries, showcasing its commitment to pioneering advancements in logistics. The company estimates that transitioning operations from ground to air could save it $887 billion.
Looking Ahead: The Future of Retail and E-Commerce
The retail and e-commerce sectors are undoubtedly on the brink of a technological revolution as consumer demands and delivery expectations continue to escalate. From airborne warehouses and high-speed robotic pickers to automated packing systems and driverless delivery vehicles, Knight Optical is poised for the rise of smart warehouses. As a premier supplier of optical components for autonomous technologies, including robotics and LiDAR systems, we are excited to contribute to the next generation of warehouse solutions.
Why Partner with Knight Optical?
Customers choose Knight Optical not only for our extraordinary product quality and advanced Metrology Laboratory but also for our extensive range of Stock Optics available for next-day dispatch, alongside our Custom-Made Components.
Celebrating 30 years in business last year, we take pride in our extensive experience and our collaborations with numerous esteemed clients, having contributed to some of the most innovative projects in the industry.
FOOTNOTES:
1Â https://www.businessoffashion.com/articles/retail/what-happens-when-the-e-commerce-boom-ends/
2Â https://www.theguardian.com/business/2021/jul/06/ocado-sales-shopping-online-covid-pandemic
3Â https://www.chargedretail.co.uk/2020/01/24/tesco-uses-ocados-tech-partner-for-automated-warehouse-robots/
4Â https://www.ons.gov.uk/economy/grossdomesticproductgdp/articles/impactofthecoronaviruscovid19pandemiconretailsalesin2020/2021-01-28
5Â https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/november2021
6Â https://www.roboticsandinnovation.co.uk/news/retail/asos-invests-in-robotics-for-u-s-warehouse-expansion.html
7Â https://www.reuters.com/article/us-health-coronavirus-gap-automation-foc-idUSKBN22X14Y
8Â https://phys.org/news/2018-07-amazon-warehouses-sky-drone-deliveries.html
