– Increased adoption of logistics robots due to online market growth and shortage of manpower
– Czech startup industrial delivery robot, last mile delivery robot development
The introduction of logistics robots that can handle picking, sorting, transport, packing, and delivery is accelerating in the Czech Republic to increase online market growth, manpower shortage, and work efficiency. With the advent of the non-face-to-face era and the rapid growth of the online market in the Czech Republic, the logistics throughput has increased significantly and the number of items has increased, increasing the need to introduce technology that can quickly and accurately process multiple types and large quantities of goods. In addition, as consumers expect faster and more efficient delivery services due to the generalization of online purchases, the industry's efforts to increase the processing speed from order to delivery are continuing. An official from a local consulting company said that the introduction of cutting-edge technologies such as automation systems and logistics robots in distribution centers and warehouses in the Czech Republic is gradually increasing in order to effectively respond to the increased consumer demand and increase the efficiency of logistics processing according to the development of the Czech online market. .
In addition, long-term shortage of manpower and wage increase are also becoming one of the main reasons for the introduction of logistics robots. An official from the Czech job portal said that 60% of manufacturing companies in the Czech Republic are facing a manpower shortage, and the shortage of manpower is particularly noticeable in the logistics sector.
According to data from the International Federation of Robotics (IFR), in 2020, 1 robots per 162 employees (up 10% compared to the previous year) were used in the Czech Republic, which is the global average (employees) 1 per 126 people). In addition, according to a survey by the Czech Small and Medium Business Association (AMSP CR), 7% of SMEs are using transport robots used in the logistics field, and the proportion considering the introduction of transport robots in the future has increased to 15%.
Cases of introduction of logistics robots in the Czech Republic
Czech courier company Zasilkovna has introduced a robot to automate sorting as shipments at the border have increased rapidly, leading to frequent sorting errors and rising average transport costs. The small sorting robot moves along the path of the attached RFID chip and delivers the shipment to the operator through the corresponding sorting slide. The sorting robot can transport items up to 40x40x50cm in size and up to 10kg in weight, and can handle up to twice the amount that humans sort. The small sorting robot can run for up to two hours on a single charge, can handle 2 items per hour, and can be fully charged in just 2 minutes. Zasilkovna expects that the investment in the sorting robot system will be recouped within two years, and plans to expand the sorting robot system to other logistics centers as the introduction of the logistics robot can reduce the average handling cost of shipments and the additional warehouse investment cost.
[Source: lupa.cz]
Czech Republic's largest e-commerce company, Alza, plans to invest around 9 million Koruna (about $4,000 million) in warehouse automation to respond to growing orders and deliver faster delivery. Alza uses Element Logic Czech Republic to bring technology from Norwegian logistics automation company AutoStore. When the new system is introduced, a cube-type grid rail system that uses much more space than the existing shelf-type method is installed, so that the logistics robot can move the rails and efficiently transport goods to the right place. When the new system is completed, Alza expects to operate more than 8,000 robots on an area of about 400 square meters, capable of handling 4,000 million products a year. In addition, it is expected to improve the logistics processing speed by 75% and reduce the express delivery time from the current 2 hours to 30 minutes. Continental Automotive, an auto parts company, also introduced the Autostore system for the first time in the Czech Republic.
[Source: Alza.cz]
Amazon is planning to introduce the robot system to the second large-scale logistics center (5 m1000) being built in the Czech Republic in Kojetin, Czech Republic. The logistics center, which will be operational in 2023, will be equipped with a logistics robot built in-house by Amazon to reduce order processing time. Amazon acquired Kiva Systems (now Amazon Robotics) to develop its own logistics robot, and is making additional investments in Agility Robotics, a logistics robot developer.
<Amazon logistics center under construction in the Czech Republic and logistics robots used by Amazon>
[Source: olomoucky.denik.cz, idnes.cz]
Local logistics robot development start-up
Czech startups are also jumping into the development of logistics robots such as industrial delivery robots and last-mile delivery robots*. Founded in 2019, BringAuto, a startup focused on the development of delivery robots, is developing robots in cooperation with hardware suppliers. BringAuto's industrial delivery robot can set a delivery route by remote control or autonomous driving, and can travel up to 100km on a single charge. Since it can transport up to 1 ton, it can be used for cargo transportation within industrial complexes and can be equipped with various upper structures suitable for each customer's use. Currently, it has successfully completed the test for unmanned transport of chemical samples within the actual chemical plant complex, and is also developing a self-driving last-mile delivery robot.
Note*: Last Mile Delivery Robot: A robot that delivers parcels and cargo to their final destinations (to end customers and consumers).
[Source: BringAuto]
The last mile delivery robot is attracting attention as a field with high market potential as Estonia's Starship Technologies successfully commercialized it. Vanilla robotics participated in the accelerator of Prusa Research, a Czech 3D printer manufacturer, to develop a last-mile delivery robot capable of autonomous driving based on sensors and artificial intelligence, and is planning a pilot operation in Prague this year. Vanilla robotics' delivery robot can carry up to 25 kg of cargo and can be used for about 10 hours on a single charge, and the robot can be controlled through a mobile app. In terms of labor cost reduction, which is the main reason for adopting the last mile delivery robot, Vanilla robotics emphasized that it can have price competitiveness in the market because it is expected to produce the robot at a price of less than $3 by using a 1,000D printer to manufacture the robot itself.
[Source: lupa.cz]
Increase in investment in logistics automation and robotics companies in the Czech Republic
Investment in the Czech Republic by logistics automation and robot technology companies is also on the rise. Honeywell, a technology development company in various industries, plans to build a warehouse automation R&D and test plant in Brno, Czech Republic within 2022 to respond to the growing European market demand for logistics automation technology. The new plant will be built on an area of 1 square meters and will design and test an automation system that will be used to improve the accuracy, efficiency, and throughput of the logistics center. The new plant will be Europe's only development and testing center for its digital supply chain technology portfolio, and will be used to develop and test a variety of technologies, including robots, conveyor belts, sorting systems, automatic loading and retrieval systems (ASRS) and warehouse software.
Dematic (KION Group), one of the world's largest logistics automation manufacturers, also invested more than 200 million euros to expand the production of intelligent automation solution equipment in the Czech Republic Plzen region. In addition, ABB, a global automation technology and robotics company, is expanding its production portfolio while relocating production from Sweden, investing 3 million Koruna (approximately $1,300 million) in Mosnov near Ostrava for industrial robots. started operating a robot center focusing on the development and production of final parts for Robot repair and overhaul, robot cell development and production will be carried out at the center.
implication
Globally, as the logistics robot market expands along with the development of robot technology, the market potential is attracting attention. In the Czech Republic, the need for advanced logistics technology due to the growth of the online market and the shortage of manpower is increasing, so the introduction of logistics robots is expected to continue. Currently, due to the rapid growth of the online market in the Czech Republic, there is a situation where there is a shortage of logistics warehouses, and logistics outsourcing is also on the rise. According to the trend of logistics outsourcing and fulfillment, the introduction of logistics robots and automation technology is expected to become more active as the logistics system becomes larger. The CEO of Element Logic Czech Republic, a local company that provides logistics robots and automated warehouse solutions, also said that in 2022, the Czech market is expected to grow fivefold compared to the previous year, driven by growing demand for automated logistics systems. Currently, the logistics robots of local Czech companies are in the development stage, and large companies are introducing technologies from global companies one after another. It is expected to grow, and it is likely to be advantageous to promote market entry through various methods such as technical cooperation with local solution providers and investment in local R&D.
Source: ekonom.cz, businessinfo.cz, lupa.cz, irozhlas.cz, olomoucky.denik.cz, idnes.cz, alza.cz, BringAuto, Vanilla Robotics and KOTRA Prague Trade Center