JD.com's Chain Store Warehouse Challenges
JD.com’s chain store warehouse handles inventory for various retail locations, with high fluctuations in demand throughout the year. During peak seasons, such as Singles’ Day or other promotional events, the warehouse faces an immense surge in order volume. JD.com needed a solution that would streamline workflows, reduce error rates, and lower operational costs.
ForwardX Robotics worked closely with JD.com to implement a fleet of AMRs designed to improve efficiency and reduce costs while maintaining high productivity during peak demand periods.
Chain Store Warehouse Pain Points
1. High Error Rates
Manual picking in a high-SKU environment can lead to picking errors, which result in delayed shipments and dissatisfied customers. For JD.com’s chain store warehouse, reducing these errors was a top priority.
2. Fluctuating Seasonal Demand
As with most 3PL operations, JD.com’s chain store warehouse experienced significant peaks in demand, particularly during shopping events. Scaling operations to meet this demand without drastically increasing labor costs was a key challenge.
3. Rising Costs
Recruiting and training workers for peak periods was both costly and time-consuming. JD.com needed a solution that could simplify workflows, reduce the reliance on temporary labor, and lower overall operational costs.
Chain Store Warehouse Solutions
To tackle these challenges, JD.com deployed 31 of ForwardX’s Flex AMRs across their chain store warehouse. The AMRs worked alongside human workers, forklifts, and manual carts in a dynamic warehouse environment.
1. Dynamic Warehousing
ForwardX’s AMRs were designed to navigate busy warehouse environments, moving goods efficiently between different areas of the warehouse. The robots were able to work alongside human pickers, forklifts, and other equipment, creating a highly productive and flexible operation.
2. Improved Workflows
The AMRs integrated into JD.com’s existing picking workflows, eliminating the need for workers to manually transport goods across the warehouse. This significantly reduced the time spent on low-value tasks, allowing workers to focus on more complex activities like quality control and order verification.
3. Scalable for Peak Seasons
ForwardX’s AMRs were easily scaled up to meet JD.com’s fluctuating seasonal demand. During peak shopping events, the AMRs helped JD.com achieve a peak UPH of 645, without the need to hire additional workers or increase labor costs.
Results & Final Thoughts
By implementing ForwardX’s AMRs, JD.com’s chain store warehouse achieved the following results:
- 53% increase in units per hour (UPH)
- 33% reduction in operational costs
- 645 peak seasonal UPH
JD.com’s chain store warehouse has seen significant improvements in efficiency, productivity, and cost savings thanks to ForwardX Robotics. The solution helped JD.com position the warehouse for future growth and scalability as demand continues to rise. By embracing automation, JD.com has set a strong foundation for continued success.
Contact us to learn how we can help you customize your operations while significantly reducing costs.
