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Case Study

How Pick-Assist AMRs Helped ZTO Cloud Warehouse on Business Grow

case-studies-02

Units of AMRs

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Cost Reduction

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Onboarding Accuracy

Project Overview

ZTO Cloud Warehousing is a top provider of cloud warehouse services in China, dedicated to helping businesses tackle logistics challenges in the fast-moving E-commerce market. Their goal is to build a flexible, efficient, and data-driven cloud warehouse network for businesses of all sizes.

To stay ahead in the competitive and rapidly growing E-commerce sector, ZTO Cloud Warehousing teamed up with Syrius Technology to speed up their move towards automation and digitalization. By using Syrius Technology’s Autonomous Mobile Robots (AMRs) and the FlexGalaxy.AI cloud control system, they improved their fulfillment capabilities, cut costs, and boosted efficiency without interrupting current operations.

Now, ZTO Cloud Warehousing runs 30 AMRs at various locations using a Robot-as-a-Service (RaaS) model, setting a new benchmark for scalable, cloud-based logistics services.

The Problem

ZTO Cloud Warehousing faced increasing challenges due to unpredictable E-commerce demand, labor shortages, rising costs, and rigid warehouse operations. To remain competitive, they needed to automate quickly, scale efficiently, and maintain high service quality, all while reducing infrastructure risks and avoiding operational disruptions.

ZTO Cloud Warehousing encountered major hurdles as they adapted to the fast-changing E-commerce logistics environment:

  • Fluctuating Order Volumes: E-commerce demand surged but was unpredictable. Seasonal promotions could cause orders to jump 2–3 times the usual levels. Without automation, it was hard to respond swiftly and keep service quality high.
  • Labor Shortages and Rising Costs: Traditionally, temporary workers were hired for peak times. Recently, finding and affording temporary labor became harder, making manual scaling unsustainable.
  • Reliance on Manual Operations: Workers walked long distances to pick items, causing inefficiencies, fatigue, and errors, especially during busy seasons.
  • Inflexible Warehousing Operations: Without the ability to quickly change warehouse layouts or workflows, adapting to new product launches, promotions, or changing customer needs was slow and costly.
  • Infrastructure Investment Risks: Investing in large-scale infrastructure was risky due to unpredictable future order volumes, leading to underused assets and idle costs.
  • Increasing Customer Expectations: Speed, accuracy, and reliability became crucial. Delays or mistakes in order fulfillment directly affected customer satisfaction and competitiveness.

ZTO Cloud Warehousing urgently needed a solution for fast, flexible scaling, dynamic resource allocation, and cost-effective automation without disrupting current operations.

The Solution

ZTO Cloud Warehousing implemented Syrius Technology’s AMR system for quick and seamless warehouse automation:

  • Low Initial Cost: No major infrastructure changes needed; AMRs independently mapped the warehouse without altering structures or shelf positions.
  • Fast Deployment: Traditional upgrades for a 20,000-square-meter warehouse could take months and require shutdowns. At ZTO's Hangzhou Cloud Warehouse No.3, the upgrade was completed in just one month with no downtime. Smaller warehouses can be fully upgraded in as little as 24 hours.
  • Easy Three-Step Upgrade:
    1. Mapping: Technicians use SLAM technology to guide an AMR through the aisles, creating a complete map.
    2. Map Editing: Work zones, starting points, and routes are set quickly using a backend tool.
    3. Synchronization: The map is instantly shared with all AMRs, allowing them to start work right away.
  • Minimal Training Needed: Workers adapted easily as workflows stayed mostly the same. AMRs provided clear instructions, achieving 99% onboarding accuracy with little training.
  • Flexible Resource Management: Robots can be added or removed based on order volumes without disrupting operations. At Hangzhou, 13 AMRs manage daily tasks, and scaling is easy based on workload.
  • Scalable with RaaS: The AMR fleet can grow to meet demand spikes and reduce idle time during slower periods, ensuring cost-effective operations.

Post-upgrade, the Hangzhou warehouse improved daily order processing efficiency by 20%, and real-time production line adjustments helped avoid resource waste.

The Results

ZTO Cloud Warehousing successfully transformed their operations through Syrius Technology’s AMR solutions and smart logistics system, achieving outstanding business outcomes:

  • Major Efficiency Gains:
    After deploying AMRs, the Hangzhou Cloud Warehouse improved its daily order processing efficiency by 20%, while operational efficiency across upgraded warehouses increased by 80% compared to traditional manual operations.

  • Significant Labor Cost Reduction:
    Labor costs were reduced by 45% by minimizing dependency on temporary workers and automating manual picking and transport tasks.

  • Seamless Handling of Peak Demands:
    During major E-commerce events, the Guangzhou warehouse handled 2–3 times normal order volumes flexibly with scalable AMRs, eliminating the need for massive short-term labor recruitment.

  • Substantial Overall Cost Savings:
    By adopting flexible Robotics as a Service (RaaS) and dynamic robot deployment, ZTO achieved a 50% overall reduction in warehousing operational costs.

  • High-Precision Autonomous Navigation:
    AMRs equipped with vision-based navigation and SLAM technology enabled highly accurate indoor mapping, obstacle avoidance, and autonomous navigation, ensuring stable, collision-free operations in busy warehouse environments.

  • Human-Robot Collaborative Work Model:
    In the new operational model, each picker works collaboratively with three AMRs. Robots guide pickers through optimized picking paths, display item details on their screens, and enable real-time verification through barcode scanning, significantly improving picking speed and accuracy.

  • Increased Sorting Efficiency and Worker Productivity:
    By introducing human-robot collaboration, sorting efficiency improved by 15–20%, workers’ labor intensity was reduced, and reliance on night shifts decreased.

  • Highly Flexible and Scalable Operations:
    AMRs can be easily added or removed without disrupting daily workflows. For example, the Hangzhou warehouse operates daily with 13 AMRs but can adjust robot numbers instantly based on workload demands.

  • Minimal Training and Rapid Onboarding:
    Newly deployed AMRs reached 99% operational accuracy immediately, greatly reducing the time and costs required for operator training.

  • Integrated Smart Fulfillment System:
    Today’s ZTO Cloud Warehousing integrates cloud computing, intelligent AMRs, and human operators to create a seamless smart sorting system that handles massive data, mechanical tasks, and quality checks with high efficiency and precision.

Where are we now

ZTO Cloud Warehousing and Syrius Technology are strengthening our partnership to enhance cloud warehouse services for Chinese businesses.

ZTO Cloud Warehousing

Services we provided:

  • Consultation and Requirement Analysis
  • Warehouse Mapping and AMR Deployment
  • System Integration
  • AMR Fleet Management
  • Robot-as-a-Service

 

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