Nippon Express drives DX for logistics with NEC

Warehouse digitalisation and robotics

The boom in online shopping during the pandemic, along with rising demand for next-day delivery, has
intensified efforts to switch to more automated systems and robots in warehouses around the world. In
2021, some $36bn is estimated to have been invested into automation technology for warehousing, a 20 per
cent increase from 2020. This trend is likely to continue, but full automation will require accurate
know-how of the vast diversity of processes such as the sorting, picking and packing done by workers
now.

“Currently, a lot of operations in warehouses are fine-grained and depend on the skills and experience
of workers. Moreover, depending on the industry and type – whether it is for materials, manufacturing
parts or finished products – the processes differ,” explains Masuda. “To optimise operations, what must
be done first is to digitise the know-how of all these workers and processes across different
warehouses.”

Through the alliance, the two companies are aiming to collect data on the movement of people and goods
in warehouses using IoT. It will then analyse them with AI and design processes to minimise labour input
while maximising performance on the warehouse floor. NEC will provide unique technologies such as 3D
sensors which can track objects through space and time as well as AI which can capture the tacit
knowledge of highly skilled workers.

Building up this kind of extensive database will help in the quest to eliminate accidents and optimise
staffing in not only logistics facilities but also in transport and delivery. Initial focus will be on
electrical machinery and electronics, later expanding into semiconductor and automobile supply chains.

Another significant area of cooperation will involve the development of remote-controlled robots to
work in places where manual labour is particularly difficult, remote or where labour shortages are
acute. The initial stage in this project will involve remote robotics control in Nippon Express’
warehouse operations – for example picking operations – by employing NEC’s key technologies such as
robotics control and 5G.