FEATURE
worker can do if a robot takes their job ,” he explained .
“ Retailers using AMRs should be aware of the potential backlash from consumers who ( rightly or wrongly ) worry about the impact on the labour market .”
Flexibility in capacity Two retailers that have invested in AMR technology are Australian office supplies chain Officeworks and online fashion retailer The Iconic .
The Iconic ’ s chief operations officer Rostin Javadi said the retailer installed and used AMRs in June 2022 to support increasing customer demand in its fulfilment centre , and to provide optimal delivery times to its customers . He told Inside Retail that AMRs were introduced to improve delivery , reduce operational costs and keep delivery prices at the lowest possible levels .
“ AMR [ s ] support our picking team by helping them streamline their operations and create better efficiency to enable greater output ,” Javadi said . “ More specifically , the AMRs are used to receive and store products , and present them to our pick team based on order sequencing and cutoff times .”
Regarding inventory management , Javadi explained that The Iconic ’ s AMRs scan and identify inventory on its shelves , update inventory data in real time by triggering regular checks , and ensure that the brand ’ s inventory is accurate and up to date .
Javadi also explained that , in categories like beauty , which include high volumes of small and fragile packaged SKUs , AMRs have helped to increase the range of products that The Iconic is able to offer .
This is because AMRs are well suited to handling fragile goods like perfume , sunglasses and watches , while also reducing stock damage , as the system requires fewer touchpoints and movements across the store .
“ We ’ re excited to have introduced AMRs as a fulfilment solution for The Iconic , as they help us create greater flexibility and speed for our team , while ensuring we have a high inventory accuracy rate ,” Javadi said .
New fulfilment centre Brett Kelly , general manager , supply chains , at Officeworks , said the brand started using AMRs in early 2020 , after its Victoria customer fulfilment centre – which services Victorian , Tasmanian and South Australian online customers – exceeded its storage and throughput capacity .
The environment of surging online sales amid the pandemic – in addition to the shift toward working from home , and customer expectations for ever faster delivery – also contributed to Officeworks ’ decision to upgrade its supply chain through investment in new technology .
In mid-2020 , Officeworks transitioned to its Briggs Drive facility in Derrimut , Victoria . Its new , 15,000sqm customer fulfilment centre features 116 AMRs and 32 sorting robots . It was the first solarpowered AMR system in Australia .
Kelly said the site , which became fully operational in mid-2021 , processes 30,000 SKUs , and will contribute to Officeworks ’ net-zero ambition of 100 per cent renewable electricity by 2025 . It is also part of its roadmap for net zero by 2030 .
“ We are now able to process more than twice the order volume of our old site , which is especially rewarding during our busier retail periods , including back-to-school , EOFY , Black Friday and Christmas ,” Kelly said .
“ At its peak , we expect the operation to be processing over 40,000 lines and 15,000 orders per day , servicing both online delivery and store click-andcollect orders .”
He added that construction of Officeworks ’ newest , Western Australiabased customer fulfilment centre has already commenced , and it is set to open
54 | www . insideretail . com . au May 2023