Hypermarket Warehouse Automation
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Hypermarket Warehouse Automation with Digital Twins

Digital twin-powered smart warehouse automation system for omnichannel retail business

  • AI
  • Retail
  • Transformation
  • Automation
  • Digital twins
  • Supply chain development

About the client

Our client is one of the largest hypermarket chains in their country. They aim to strengthen their online presence by offering their customers an omnichannel platform where they can order groceries and receive them within 1-2 hours.

Details

  • Date:2022

PixelPlex helped its client conduct comprehensive research into automating their warehouse and improving the speed and efficiency of product delivery by implementing intelligent storage solutions, robotic lifts, and automated conveyor systems. The project was enhanced by the integration of digital twin technology, enabling a more accurate and dynamic simulation of warehouse operations.

Project goals

  • 1

    Implement a fully-automated smart warehouse system to speed up product delivery

  • 2

    Develop a visualization prototype using digital twin technology to demonstrate system functionality

  • 3

    Prepare comprehensive technical documentation for the future system

  • 4

    Ensure efficient order collection with no congestion

  • 5

    Provide a solution for how equipment can deliver items to the cashier intact and undamaged

Work done

  • Developed a comprehensive vision for a smart warehouse automation system
  • Created a visualization prototype showing how the system works non-stop
  • Consulted with suppliers to select the most suitable equipment based on the precise digital twin simulations
  • Prepared detailed technical specifications for vendors to develop and manufacture a custom warehouse automation system
  • Completed project preparation up until the equipment purchasing stage

Business opportunity

With the rise of online grocery delivery, our client recognized the need to optimize their order fulfillment process and last-mile delivery solutions.This decision was motivated by their outdated and inefficient method of order collection, which relied on staff members who physically searched the supermarket for specific items. This led to unnecessary delays because sometimes products were unavailable and staff needed to contact the customer and change the order.To address these issues and ensure a seamless and efficient delivery experience for their customers, our client needed to re-imagine and improve their processes.

A person in a red t-shirt carrying a grocery store bag

Solution

We proposed the idea of an innovative warehouse equipped with intelligent storage solutions, robotic lifts, and automated conveyor belts, all integrated with digital twin technology. This approach streamlines the order fulfillment and delivery process, reduces human intervention, and boosts overall efficiency.The digital twin model allows for real-time monitoring and simulation, enhancing decision-making and operational flow. The system also alerts administrators when goods are about to run out, minimizing the risk of items becoming unavailable.

A person searching for a parcel in a warehouse

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Details

Smart delivery system: hardware

We collaborated with the client to design a warehouse featuring:
  • 20 robotic lifts
    for delivering goods carefully from intelligent storage solutions to automated conveyor belts
  • 50 intelligent storage solutions
    for storing and organizing items by type, size, weight, and material
  • 300-meter-long automated conveyor belt system
    for transporting goods from storage to the cashier

Workforce optimization in the delivery process

Introducing the automated system significantly reduced manual labor, resulting in cost savings. Three human roles will be required for the successful operation of the delivery service:
  • Vending machine stocker
    Monitors the loading of storage solutions, replenishing items when necessary
  • Cashier
    Receives boxes with goods, packs items for delivery and hands them over to the courier
  • Courier
    Picks up orders from the cashier and delivers them to customers

Manual labor vs. the automated system

  • By80%
    Reduced the time required for order collection
  • By58%
    Labor costs decreased due to the reduced need for manual order pickers
  • By95%
    Reduced the number of human errors in the order collection process

AI-powered order picking: the flow

Our team proposed the following flow to automate the order fulfillment process:

  • 1

    The system receives an order through API.

  • 2

    Intelligent storage solutions receive a signal and prepare items for withdrawal.

  • 3

    Robotic lifts pick up items and place them in boxes on conveyor belts.

  • 4

    The boxed orders are transported to the checkout.

  • 5

    The cashier packs the items into shopping bags and updates the status for pickup.

  • 6

    The courier receives the order for delivery.

  • 25min → 7 min
    Reduction in average time for order collection
  • 24/7
    Non-stop operational capacity of the warehouse automation system

Visualization model

Our team used digital twin technology to develop a virtual simulation, accurately modeling the warehouse operations. This approach allowed us to meticulously plan the logistical route of orders, ensuring smooth system functioning and preventing congestion on the conveyor belts. We conducted comprehensive calculations of product movement and manual labor allocation within the system.

The digital twin model also enabled us to test and optimize various operational scenarios virtually, leading to more efficient real-world implementation. The insights gained from the model helped our client achieve an impressive 10-minute average order collection time, with the system operating non-stop.

Visualization model
Warehouse visualization model
Hypermarket warehouse visualization model
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Software integrations

We provided our client with expert advice on the software and integrations needed for seamless warehouse operations and delivery systems.

We recommended developing custom software for hardware management, including an admin panel. Administrators would be able to monitor the state of the equipment and receive timely notifications for restocking.The application would replace the software previously used by manual order pickers, as the new system eliminates this role.

Project features

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Innovative approach to omnichannel order fulfillment

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Smart system with optimized logistics routes from intelligent storage solutions to couriers

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Detailed vision of non-stop warehouse operations, enriched by digital twin technology

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Prevention of congestion on conveyor belts

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Reduced manual labor, leading to less human error and fewer delivery delays

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Increased efficiency of the order collection process

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Accelerated delivery times