Logistics firms looking for extra help during the holidays are leasing temporary package-handling robots, which can be returned to their manufacturers when online shopping orders cool down after the seasonal rush.
Leased robots, which have grown in popularity across the industry in recent years, can be added to existing fleets of warehouse, distribution and fulfillment center robots at any time to support an anticipated jump in demand. The robots are increasingly being used for picking up and sorting packages, receiving and unloading them, moving heavy payloads and replenishing stock shelves, among other automated tasks.
Spending in the global logistics robotics market, which was valued at $2.6 billion in 2020, is expected to grow at a compound annual growth rate of 23%, reaching $11 billion by 2027. Excluding Amazon, which is by far the sector’s largest robotics user, there are more than 20,000 logistics robots of all kinds in use today. Known as robots-as-a-service, leased robots are employed widely in manufacturing, but are relatively new to the logistics industry. Under the model, users are charged a subscription-like fee from third-party robotics firms.
By leasing robots, companies are spared high upfront costs and ongoing maintenance expenses. On the downside, orders for subscription-based robots have to be made well in advance of an anticipated upturn in demand. The process of outfitting a company with a leased robot typically involves taking a 3-D scan of a facility and feeding the data into an artificial intelligence-enabled program designed to generate a mock-up of a robot’s mechanical, electrical and software systems.
Classroom discussion questions:
- What is the main driver of robot leasing in warehouses?
- What is the difference between a “service robot” and one used in manufacturing?