Parcel handlers experience two major pain points in their logistics solutions. Firstly, they need more capacity per square metre, which requires improving the capabilities of their sorters. Secondly, there is a need to reduce dependency on operators. Although most solutions at parcel facilities are already automated, a significant amount of labour is still required to keep depots and hubs operational. The majority of this work involves the unloading and loading of parcels from and onto sorting equipment, trailers, pallets and cages.
During the COVID-19 pandemic, our customers faced significant challenges as travel restrictions and illness led to employee shortages and disrupted operations. This underscored the need for advanced automation and reducing reliance on human operators, sparking interest in robotic solutions. Although the urgency has diminished, our customers remain committed to finding ways to minimise their dependency on human operators. This approach helps them address labour scarcity and supports their business as it grows.
Generally, anything that involves lifting in the parcel business requires manual labour and can now be dealt with by robotic solutions. An example of one of those processes is picking and placing small items (up to 5 kg) onto a sorter. At Vanderlande we have developed a robotic solution called Auto Induct to automate this task. Leveraging Ai and smart programming, Auto Induct picks small parcels from a 3D bulk flow at a rate of up to 1,500 parcels per hour.
That’s an interesting question. During the peak of the pandemic, operators were not available, which made automation a priority despite the costs. However, as the situation relaxed, the need for automation decreased. While there are many benefits to automation, the investment required is significant. Depending on local salaries, the return on investment for a robotic solution today can happen between 4-5 years , which for some CEP companies is still too long.
After COVID, customers were able to deploy people again, reducing the incentive to invest in automation. Our prediction is that either regulations – in areas such as ergonomics – will stimulate a push for more automation, or the business case for it will be evaluated differently. However, automation will become necessary for business expansion, as more projects and sortation facilities compete for scarce labour resources.
From a technical perspective, machines can perform tasks more accurately and continuously, operating 24/7 without breaks. In our industry, many applications only require four to eight hours of operation per day, so round-the-clock availability is not always necessary. While operators cannot work continuously, they remain economically viable when working eight-hour shifts.
Nonetheless, there are increasing guidelines and regulations regarding occupational health and safety for handling heavy items. Robots contribute to a more ergonomic work environment by taking on the heavy lifting, making them an ideal option.
Although robots excel at repetitive tasks with great accuracy, they still lack the flexibility needed to handle exceptions. Operators are adept at managing unexpected situations and can easily perform unanticipated actions. As technology advances with smarter grippers, faster robots and artificial intelligence, the gap between machine and human capabilities is narrowing. However, for now, operators are still the preferred choice due to their flexibility and lower investment costs.
Robotics technology is evolving rapidly. Cost is still a limitation, but the price difference is narrowing and the technology is getting closer to what an operator can do. When you assess the capabilities of robotics now compared to five years ago, there are several significant differences.
Initially, to identify parcels, robots relied on basic optical sensors or barcode readers, which were less effective with varied shapes or packaging materials. Today, modern robotic solutions integrate advanced AI-powered vision systems, high-resolution cameras and lidar technology. These enhancements allow robots to detect and handle irregularly shaped packages, translucent materials, and even poorly labelled items with remarkable accuracy.
In terms of operational capabilities, older systems operated on limited shifts and often required manual intervention to reset or recalibrate for specific tasks. Modern systems now run 24/7 with minimal downtime and can self-calibrate to accommodate varying volumes and parcel types. This provides a continuous and scalable operation.
Speed and throughput have also seen enhancements. Whereas earlier robotic systems could only process small batches due to slower mechanical actions and simpler sorting algorithms, today’s solutions can handle thousands of parcels per hour with significantly reduced error rates.
Lastly, the integration of robotics with broader logistics systems has improved. In the past, robots often functioned as standalone units, requiring manual intervention to feed parcels into sorting systems. They may have also required a lot of space and had large enclosures. Now, they are lighter, smaller and can be seamlessly integrated with automated conveyor belts and data systems, enabling end-to-end automation from parcel singulation to final dispatch.
The primary benefit for our customers is the ability to expand their businesses. Investing in machines is crucial for growth, and while they may not always surpass operators in accuracy, they offer greater predictability and reliability for their designated tasks. Moreover, advancements in AI and vision technology enable machines to learn from and optimise facility workflows. Therefore, it’s not just about the mechanics of the robot, but also the underlying technology that enhances overall efficiency.
In robotics, we started with automating the picking and placing of smaller items, such as with the Auto Induct robot. The performance and speed of these robots will increase in the coming years, from being able to handle 1,500 to 1,800 pieces per hour, and eventually 2,000 or more with increasing accuracy. Another trend is the automation of picking and placing larger items (up to 30 kg) when, for example, unloading trailers, pallets and cages.
The price of robotics will drop, making the investment more feasible, and the industry will increasingly accept automation as a reliable solution. Operators will need to adapt to new technology, seeing it as a tool to help them rather than replace their jobs.
Another trend is the advancement in vision technology and AI. These will improve the machine’s ability to handle exceptions and predict actions, enhancing overall performance. The next level of technology will also address the challenge of loading and unloading larger carriers, such as trailers and unit load devices (ULDs) used in aviation. At the moment, operators still have to pick items from ULDs manually, as it’s not possible for robots to carry out that task from above. We are currently working closely on a pilot around loading ULDs with our colleagues from the airports domain, because they have the same challenges with loading and unloading baggage as we do in the parcel.
A final development I foresee is the acceleration of automation driven by stricter governmental regulations on ergonomics. Authorities are tightening rules, making tasks – like heavy lifting – increasingly unacceptable. If governments mandate improved ergonomics for operators, the adoption of robotic solutions will accelerate.
Our colleagues in the airports industry are providing valuable insights. The societal pressure to automate luggage handling is greater, because people care more about their luggage than a box. This drives automation in airports, which we can learn from and apply to the parcel industry.
Vanderlande is also active in the warehousing domain. Here we see different technologies at play, particularly in storage. Introducing warehouse technology, such as ADAPTO and other automated storage solutions, into the parcel business can improve loading and unloading processes. This collaboration and leverage between the two industries can enhance our solutions.
As operators are currently still the preferred option when looking at cost and handling exceptions, we are forced to view the application of robots differently. Operators need to handle exceptions while robots deal with the default, heavy and non-ergonomic tasks. This creates a hybrid solution, in which robots and operators work together. The heavy and boring work is taken over by machines, while the complex duties and exceptions remain with the operators. This combination is more adaptable for future processes and business.
Eventually, as machines become more capable of handling exceptions, the nature of human roles in the process will evolve. For now, collaboration between robots and humans remains essential. Looking ahead, our vision is to move toward a “dark factory” – a facility operating with minimal human intervention – where operators will transition into more dynamic and rewarding roles, such as supervisors or specialists in robotics management. However, achieving this level of automation is likely over a decade away. In the meantime, we will still require operators to maintain and service machines, and handle part of the process.
Parcel companies should adopt a gradual approach to automation, ensuring employees, especially operators who will interact with robots, are actively involved in the process. Engaging employees early fosters acceptance and collaboration. While the initial investment in robotics may be high, the long-term benefits — such as increased capacity, efficiency, and business growth — far outweigh the costs. Collaborating with suppliers through workshops and partnerships can align automation efforts with long-term goals, ensuring a smooth and successful implementation.
As the parcel industry continues to evolve, the integration of robotics and automation will play a crucial role in meeting growing demands for efficiency and capacity. At Vanderlande, we are committed to staying at the forefront of these advancements, ensuring our solutions not only meet but exceed the expectations of our customers.
For more information about our innovative robotic solutions, visit our product pages and discover how we can help transform your parcel operations.
Every parcel company and market are different. This is reflected by the various layouts of depots and sortation centres. Our experts are available to offer help and advice in every respect.