Use Case

Part 2: Nestlé Japan Ltd. × ASKUL LOGIST Corporation

CATEGORY
CATEGORY:
Logistics
SOLUTION:
3PL

Driven by the desire for stable delivery
Introducing AMRs through collaboration with partners

This case study is essential for companies seeking to enhance efficiency and reduce labor costs in logistics warehouses. It explores the practical implementation of AMRs through real-world examples of businesses utilizing Rapyuta Robotics’ solutions. The benefits and outcomes of introducing Rapyuta PA-AMRs are detailed through client interviews.


Nestlé Japan Ltd.
(ASKUL LOGIST Corp., ASKUL Value Center Kansai)

Industry: Manufacturing and sales of beverages, food products, confectionery, and pet food
Number of PA-AMRs introduced: 12 units
PA-AMR Operation Start Date: July 2024


This case study highlights how Nestlé Japan Ltd. partnered with the 3PL provider ASKUL LOGIST Corp. to implement Rapyuta PA-AMRs at the ASKUL Value Center, a major logistics hub in western Japan.

Facing potential labor shortages and the need to ensure reliable product delivery during peak seasons, Nestlé conducted a comprehensive review of its warehouse shipping processes. By working closely with ASKUL LOGIST, they successfully integrated Rapyuta PA-AMRs to enhance efficiency and stability

In part 2, we feature an interview with Nestlé to share their perspective as the client.

Interviewee:
Ryota Yamada / Manager, EC Supply Chain Section, Logistics Department, Supply Chain Management Division, Nestlé Japan Ltd.


Index

  • Background on exploring automation solutions
  • Challenges in warehouse operations
  • Key moments that led to the decision to adopt AMRs
  • Goals and objectives of AMR implementation
  • How information was gathered during the evaluation process
  • Process for comparing and evaluating options
  • Prioritizing picking improvements to enhance efficiency
  • Reasons behind selecting Rapyuta’s AMRs
  • Internal feedback after AMR implementation
  • Future outlook for the business and overall logistics process

Q: Can you tell us about the relationship between your company as the client and ASKUL LOGIST as the 3PL provider?

At Nestlé Japan, we view ASKUL LOGIST as a true partner in delivering superior services to our customers. Our collaboration goes beyond transactional logistics to focus on co-developing innovative, long-term solutions.

Our discussions go beyond short-term campaign details. We take a long-term view, focusing on building a sustainable operational environment through ongoing conversations and teamwork.

Q: When did you start considering automation systems?

In July 2022, we consolidated our e-commerce warehouse operations under a single service provider. During this time, we also updated our product lineup and reassessed the warehouse network. By September 2022, after two months of operating under this new setup, we began exploring automation systems as the next step to enhance efficiency and improve operations.

Q: What challenges led you to consider automation?

We had partially automated our warehouse operations using material handling equipment, but picking tasks were still done manually, with staff pushing and pulling carts. This highlighted the need to ensure stable shipping operations amidst growing concerns about labor shortages.

We also run seasonal campaigns that cause sudden spikes in shipment volumes, which put a lot of pressure on the warehouse. Campaigns are usually planned only 1.5 to 2 months in advance, and it’s always a challenge to secure additional staff in time. For instance, in November, we encountered a surge in demand. However, with the support of 12 robots, we managed the workload seamlessly. Without them, we would have required 10 additional staff members.

Now, with 12 robots, we only need five staff members to handle the operations, allowing us to quickly increase shipments with minimal extra staffing. While there are still challenges, the robots have significantly reduced the burden on our team.

Q: Was there a specific event or situation that led to the decision to implement automation?

We experienced a major shift in our business direction, including a complete overhaul of our e-commerce product lineup. During that time, we also reevaluated our shipping locations and shifted to a single-warehouse system managed by ASKUL LOGIST. This gave us an opportunity to review and optimize our shipping processes.

The key driver for our decision was the impact of the COVID-19 pandemic, particularly the disruptions caused by lockdowns in regions like the Philippines. These disruptions caused shipping delays and created challenges for both our e-commerce and B2B operations. It became clear that labor-saving measures were urgently needed, which accelerated our move toward automation between 2021 and 2022.

Q: What are the objectives and goals behind introducing robots?

Our primary goal is to prepare for potential labor shortages in the future and ensure stable delivery of products to our customers, even during peak seasons. To achieve this, we need to maintain high productivity and continue striving for improvement.

While reliable delivery is crucial, it is not sufficient on its own. For instance, certain products, such as 20-kilogram pet food bags or bottled coffee, exceed the current capabilities of our robots.

There are still many processes within the warehouse where robots have yet to be utilized. Ultimately, our goal is to optimize the entire warehouse operation by fully integrating robotics into all processes.

Q: Before your company started exploring automation, ASKUL LOGIST had successfully implemented AMRs at the “ASKUL Value Center Hidaka.” Did that implementation serve as a reference during your evaluation?

Initially, we did not receive detailed information about automation. While the ‘ASKUL Value Center Hidaka’ manages approximately 100,000 SKUs, our operation handles only around 100, leading to skepticism about the feasibility of automation for our needs.. Because of the differences in business type, product lineup, and scale, I think there was an assumption within ASKUL LOGIST that robots wouldn’t be a good fit for Nestlé’s business. As a result, AMRs weren’t proposed to us initially, and to be honest, we weren’t really interested either. We just assumed they wouldn’t work for us.

Later, when we brought up the possibility of introducing AMRs, the site staff shared information with us, and we had the chance to visit the “ASKUL Value Center Hidaka” to see their operations in action.

Q: How did you gather information when considering the implementation?

We gathered information by talking to ASKUL LOGIST about their experience with robots and learning more about what they’ve been doing. We also looked at global examples of automation within our company for reference.

I checked out case studies on Rapyuta Robotics’ website as well. One that really stood out to me was the “Keiyo Distribution Warehouse.” Interestingly, they handle our chocolate products there, which made me think, “Wow, robots are being used in places like this too.” Seeing various examples like that made me realize that similar solutions might be possible for our operations as well.

Q: How did you evaluate and compare your options?

We considered a wide range of solutions. First, we looked at a conveyor system, but we ruled it out because we couldn’t resolve the issue of product drops. Next, we evaluated another automation system, but the upfront costs were too high, and it didn’t integrate well with our existing sorting functions, so it didn’t seem cost-effective. We also explored robotic systems from other providers, but their high costs made them impractical.

Throughout the process, we evaluated each option based on key factors like productivity, quality, safety, cost, space efficiency, and flexibility for BCP (Business Continuity Planning). After in-depth discussions with our team and ASKUL LOGIST, we concluded that Rapyuta Robotics’ AMRs were the best fit for our needs.

Q: After exploring various approaches, what led to the decision to focus on improving the picking process?

We started by analyzing which processes needed the most improvement. We looked at how many staff members were required for each task—like two for receiving or one for storage—and calculated how much labor was needed to complete a single order. For example, we evaluated how efficiently two people could handle three daily truckloads in the receiving process. The results showed that receiving was already very efficient and didn’t need any changes.

Next, we evaluated productivity across all processes and found that sorting and picking were the most time-consuming tasks. Sorting was already mechanized, with significant investments made, so further improvements weren’t feasible. Picking, on the other hand, was still done using outdated methods—workers relied on printed paper notes and pushed carts around the warehouse, which was far from efficient. This analysis led us to focus our improvement efforts on the picking process.

Q: After considering various options, what made you ultimately choose Rapyuta’s AMRs, and what aspects stood out to you?

Key factor in this decision was that we don’t directly operate the warehouse ourselves. Instead, we partner with ASKUL LOGIST, entrusting them with warehouse operations while we collaborate and provide requests as the client. Because of this, even if we found a solution that we thought was excellent, we couldn’t simply impose it on ASKUL LOGIST. That’s why it was essential to select a solution that not only met our needs but was also something ASKUL LOGIST could fully embrace.

Rapyuta’s AMRs distinguished themselves for several reasons, including their proven reliability at the ‘ASKUL Value Center Hidaka. Additionally, they were highly compatible with existing operations, allowing us to enhance productivity in the picking process without disrupting sorting workflows.

Another major benefit was the flexibility they provided. In the rare event of a system issue causing the robots to stop, the operation could immediately switch back to manual picking, ensuring minimal downtime. Ultimately, beyond all these advantages, the deciding factor was how easy it was for the warehouse team to adopt and integrate the solution seamlessly.

Q: What kind of internal feedback have you received after implementing AMRs?

This was the first time robots were introduced in one of our 3PL warehouses in Japan. After the implementation, we received comments like, “The robots move much faster than expected,” and, “Many team members described it as ‘a glimpse into the future of logistics. Even colleagues who don’t usually work directly with the warehouse have shown interest, saying, “I’d love to visit and see how it works.” Personally, I’ve also had people say, “You pulled off an amazing project,” which has been really rewarding to hear.

Q: What is your outlook for the future of your business and overall logistics process?

The e-commerce landscape is continually evolving, with internal shifts—such as product lineup updates and strategic adjustments—and external challenges like labor shortages. To stay ahead, it’s important to make our operations more flexible and prepare for any potential risks.

In addition to the warehouse managed by ASKUL LOGIST, we have other shipping locations. Our focus is on optimizing the entire logistics network and improving End-to-End processes. Moving forward, we’ll continue working closely with ASKUL LOGIST to roll out new initiatives and achieve our goals.

See Part 1 of the interview

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