German-based international e-commerce firm Otto Group has entered a long-term strategic partnership with AI robotics company Covariant to deploy robots in its fulfilment hubs to automate a wide range of manual activities including picking, placing and sorting.
First, the two companies will work together to deploy more than 100 robots across Otto Group’s logistics network in Germany at its Haldensleben and Altenkunstadt facilities. The aim of the new partnership is to have hundreds of Covariant’s AI-powered robotic solutions installed across all Otto Group’s fulfilment centres.
Automating tasks
The robots will automate tasks that require hand-eye coordination and object manipulation to increase operational efficiency, build resilience against labour market challenges, and improve the overall quality of work within its fulfilment centres.
For the Otto Group, they will help to autonomously handle the dynamic and unexpected fulfilment scenarios that have previously limited picking automation including the successful processing of ever-changing products without having to pre-program data.
Furthermore, all Covariant robots regardless of facility location will learn together as a fleet, ensuring that leanings and operational improvements automatically propagate across the entire Otto Group network.
“Cost-efficient” logistics
The investment is expected to create new work profiles and attractive jobs while enhancing overall facility performance and ensuring more reliable delivery times, especially during periods of high or fluctuating demand.
“Logistics faces the challenge of being as cost-efficient as possible. The use of a generalist AI allows us to rethink processes that were not possible before and provides an answer to the massive shortage of workers,” said Kay Schiebur, Member of the Executive Board, Services, Otto Group.
“In times when handling is often outsourced to cheaper locations, we are especially happy to continue to be close to our customers and strengthen the European, and especially German business location. The use of AI will be a key success factor in logistics in the future,” Schiebur added.
Universal platform
Covariant was founded in 2017 by pioneers of modern deep learning-based AI. To date, the firm has received more than US$222 million in funding to develop its robotic picking, placing, and sorting solutions for warehouses and fulfilment centres. Each of its robotics solutions is powered by the Covariant Brain, a universal AI platform that enables robots to see, think and act.
Covariant’s customers include GXO, Radial, drug distributor McKesson, and Norwegian delivery firm Brødrene Dahl, among others.
Speaking about the Otto Group partnership, Peter Chen, Chief Executive Officer of Covariant, said: “This is a huge step forward for the automation of Europe’s e-commerce market – and represents one of the largest investments in a foundation model for robotics to date.
“We’re honoured that Kay and team recognize the importance of developing a universal AI for robot learning and we look forward to delivering the operational improvements that will help maintain Otto Group’s market-leading position for years to come,” he added.
