The logistic industry has seen some significant changes in the recent past. Disruptions like the pandemic, lack of availability of cargo, shortage of manpower, emergence of technologically advanced equipment, skyrocketing supply demands and others have functioned as catalysts in the changes.
As an industry, logistics values time, it is one of those industries to embrace automation and robotics on a massive scale to meet the supply and demand.
Recently DHL Express announced opening Middle East’s largest robotic sorting center in Israel. The company said that they have made an investment of 250 million shekel ($80 million) in the facility near Ben Gurion Airport, to keep up with the pace of orders in Israel.
Robotics drive
Yair Bitton, CEO, DHL Express Israel said that to match with the most advanced centers in Europe, they have opted for automated sorting system, where a hundred conveyor belts sort 20, 000 packages an hour, which is roughly around five times more than before. DHL adds that now a cargo plane can be handled in 50 minutes instead of four hours, and the automated sorting system requires almost 70% less manpower, for which employees have been trained for other roles.
“When we planned this facility five years ago we thought this facility would be good for the next 20 years. Unfortunately, or fortunately, when finishing it we see that it’s good maybe for the next five,” Bitton said.
The pandemic revealed the dependence of manpower in industries like logistics, where it came to a screeching halt due to imposed lockdowns and restrictions on physical movement. At the same time essential commodities had to be supplied. Adding robotics arm to industries, which are heavily dependent on workforce do sound like snatching away jobs from them but on the contrary, it adds employment opportunities. Robotics and automation will not only increase safety of human, working under the same roof but also increase efficiency. It will help in channelizing the manpower to other useful work like delivery and maintenance.
Zero emissions
DHL Express has pledged to reduce all logistics-related emissions to zero by 2050. Moving on in the direction to be more sustainable they are also aiming to adopt a more digital and paperless approach.
Also, recently DHL express acquired the first three electric vehicles (EVs) for its fleet in Philippines from Build Your Dreams, a manufacturer of zero-emission medium-and heavy-duty vehicles.
A 2020 report by the World Economic Forum predicts that the growth of e-commerce will result in 36% more delivery vehicles, generating an additional of 32% of carbon emissions by 2030. Now both government and customers demand companies to be more thoughtful towards their carbon emissions and act responsibly towards the environment.
Customers are now more inclined to sustainability and environmentally responsible services and products. An IBM research indicates that 57% of customers are willing to change their purchasing habits to reduce their carbon footprint.
