IRAU Quarterly MAY 2023 | Page 55

Retailers using AMRs should be aware of the potential backlash .
FEATURE

Retailers using AMRs should be aware of the potential backlash .

at the end of this year .
“ The success of our first facility has encouraged us to consider further opportunities to ensure we ’ re keeping up with customer demand , and continuing to create new job opportunities across Australia ,” Kelly said .
Never turn-key Futurist Perera cautioned that there are a range of ethical considerations that should be scrutinised before brands consider implementing AMRs .
These include ( but aren ’ t limited to ) potential job losses and reputational damage , inequitable distribution of wealth and a reduction in person-toperson interaction .
He believes retailers should be careful about introducing AMRs too quickly and without considering the consequences , as each of these concerns could lead to backlash .
Javadi said The Iconic ’ s use of AMRs doesn ’ t represent a prioritisation of technology over people . He contended that its team works hand-in-hand with AMRs to increase its efficiency , accuracy and speed by reducing the volume of items that needs to be picked manually .
“ While AMRs have an important role [ to play ] in enhancing operational efficiency , they have not affected The Iconic ’ s staffing levels , given the solution works [ with ] our manual pickers and wider fulfilment centre team members ,” Javadi said .
He added that the health and safety of the retailer ’ s people are its highest priority , with the business conducting full risk assessments and controls to minimise the chance of any harm .
The Iconic has also fenced off AMR movement areas , and has clear guidelines on how staff can safely interact with them . It has sensors and failsafes to detect obstacles and prevent collisions .
Meanwhile , Kelly explained that he doesn ’ t see AMRs as in competition with Officeworks ’ staff . Rather , he said they are replacing older , fixed and less scalable types of infrastructure , and driving long-term growth across all facets of the business . They are also giving staff the opportunity to upskill .
As far as risk , Kelly said AMRs raise some concerns related to lack of knowledge and capacity . However , he added that these risks can be mitigated by understanding the technology at a detailed level and applying it to the right setting .
“ These things are never ‘ turn key ’. There are always layers of complexity . Risk occurs when there is an expectation that everything will just work as conceived in design ,” Kelly said .
“ These programs are best delivered in phases , as striving for perfection across every element of the operation on day one is not realistic . There must be areas of flex and an ability to adjust .”
Kelly believes AMRs are gaining traction but , as yet , have not widely been adopted in the Australian market .
‘ Disruption ’ Perera said regulation of AMRs is “ definitely needed ”, in the form of laws , industry standards or voluntary guidelines . This should cover a variety of areas , including “ labour laws , responsibility and liability , privacy and data security , workplace safety and so on ”.
“ As with much technology regulation , regulators and policymakers can ’ t operate alone , and will need input from industry and other stakeholders ,” Perera said .
“ Retailers who start implementing AMRs need to be ready for retrospective regulation that might affect them .”
Kelly stressed that brands should build close working relationships with solution partners , but avoid outsourcing ownership of their solution and outcomes .
“ It is only together that the knowledge of the business and the solution can be truly harnessed ,” he said .
Meanwhile , The Iconic is planning to expand its use of AMRs as part of its long-term fulfilment strategy , and to meet its growing customer demand .
“ Automation is an exciting part of our growth and helps our teams become more efficient and effective , while managing our growing volumes ,” Javadi said . �
May 2023 www . insideretail . com . au | 55