• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Blogs » Think Tank » Robots Eased Pressure on Retailers This Holiday Season

Think Tank
Think Tank RSS FeedRSS

Coronavirus / All Warehouse Services / Robotics / Consumer Packaged Goods / E-Commerce/Omni-Channel / Retail

Robots Eased Pressure on Retailers This Holiday Season

Retail Holiday Shopping Season
December 30, 2020
Paul Roy, SCB Contributor

Despite all of the unforeseen challenges of 2020, the retail industry was expected to have a strong finish for the year. Retailers scored huge successes during Black Friday and the Christmas shopping season. E-commerce grew at an unprecedented pace, as retailers and consumers were forced to go digital to avoid physical contact and exposure to the coronavirus. The National Retail Federation was expecting 2020 holiday sales to rise between 3.6% and 5.2% year over year, amounting to between $755 billion and $766 billion in sales.

In the U.S., the Christmas shopping season is the busiest and most profitable time of the year for the retail sector, putting companies to the test of their ability to meet the rapidly changing demands of consumers. But unlike other years, 2020 brought a plethora of challenges as the virus dominated. Many buyers opted to do their holiday shopping online, and stay away from crowds (such as they were) at brick-and-mortar stores.

According to the NPD Group, consumers were planning to do 48% of their holiday shopping online in 2020, up from 41% in the previous year. And while the pandemic has already underscored a need for more robust supply chains, many retail business owners are still struggling to keep up with the sharp increase in e-commerce demand.

Traditional brick-and-mortar stores are facing new challenges, with their storage facilities and warehouses being placed under the greatest strain. Businesses with less robust e-commerce platforms will feel significant pressure, while retailers with vigorous e programs, technologies and support systems will see the most success.

A crucial aspect of online shopping is the demand of many consumers for same-day delivery, putting increased pressure on the supply chains of some of the world’s most popular brands. From the consumer perspective, the faster that a company can fulfill product orders, the better for them. As a result, companies that have implemented technology to improve productivity and efficiency are at a greater competitive advantage.

Warehouse robots have been growing in popularity over the past 10 years, but 2020 may prove to be the tipping point. According to ABI Research, by 2025 roughly 28% of warehouses globally will deploy commercial robots, compared to around 3% in 2018.

Not only do robots make better use of human resources, allowing more orders to be pulled with fewer workers needed, they also reduce picking times to help meet consumer demands for quicker delivery. Robots don’t require breaks or sleep, and can extend work shifts long beyond the norm without adding payroll. And don’t forget the ability of robots to allow for proper social distancing, which helps to keep workers healthy and safe in the pandemic.

Another critical component of many robotic systems is that they are extremely flexible and able to scale to meet higher throughput in response to peak demand. Many systems are easily customizable and expandable, growing as needed to match each retailers’ capacity, without shutting down or experiencing operational loss. When companies need to ramp up production for the holidays, robots allow them to do so seamlessly.

Going into the 2020 holiday season, companies across the retail landscape were in a much different position than the year before. Aided by sophisticated automated systems, retailers were looking to meet ever-growing demands for faster order fulfillment. It was a year for robots — as will be 2021.

Paul Roy is vice president and managing director of AutoStore North America.

RELATED CONTENT

RELATED VIDEOS

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • 0620_NFT.png

    Can NFTs Be an Effective Tool for Supply Chain Visibility?

    Technology
  • The Craft Beer Boom: How to Satisfy Changing Consumer Tastes

    Shortages of Beer, Popcorn Join Supply Chain Crisis

    Global Supply Chain Management
  • FedEx

    FedEx Faces Big Changes as New Boss Confronts Higher Costs, Angry Contractors

    Last Mile Delivery
  • 0621_Burrito.png

    Chipotle Zeroes in on Supply Chain Traceability and Visibility

    Sourcing/Procurement/SRM
  • cyber crime

    The Cyber Blind Spot That Makes Every Supply Chain Vulnerable

    Regulation & Compliance

Digital Edition

Scb may 2022 sm

2022 Supply Chain ESG Guide

VIEW THE LATEST ISSUE

Case Studies

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

  • Fast-Growing Fashion Brand Scales E-Commerce Fulfillment With Whiplash

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics Generix
GEP GreyOrange Here
Honeywell Intelligrated IFM Inmar
Keelvar Kinaxis Korber
Liberty SBF Locus Robotics Logility
Lucas Systems Nvidia Old Dominion
ORTEC Parsyl QIMA
Redwood Logistics Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Verity
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing