How Robotics Is Revolutionizing E-Commerce Fulfillment This Holiday Season

Is your warehouse or distribution center on Santa's 'nice list' this year? If so, you might want to ask the jolly man in red for some robotic solutions to help streamline operations in your facility during the peak holiday season.

The holiday season is by far the busiest time of the year for e-commerce companies. Sales surge, competition increases and companies must navigate various operational challenges to ensure success and meet their goals. The holiday season is also the most profitable period for businesses, accounting for a significant portion of annual revenue, further underscoring the importance of putting the best strategies in place for success.

In 2024, total holiday sales reached nearly $1 trillion ($994.1 billion), representing a 4 percent increase from 2023. Online sales accounted for more than $130 billion, up 8.6 percent from 2023 figures. According to most estimates, 2025 holiday sales are projected to reach $1.08 trillion, with e-commerce growth between 7 and 9 percent year-over-year. Growth is expected to be slightly slower than in previous years due to economic uncertainty, but it remains poised to be a profitable season for the e-commerce companies that are prepared.

With all, how is your business expecting to meet the fulfillment demand this holiday season? If you're making a list (and checking it twice), we suggest putting robotics on it. In this post, we'll cover how robotics is revolutionizing e-commerce fulfillment and how it can create competitive advantages in your fulfillment center this holiday season. Read on to learn more or contact Daifuku today.

Robotic Solutions to Streamline Your E-Commerce Fulfillment

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Some of the robotics solutions that are transforming fulfillment centers include:

Automated storage and retrieval systems (AS/RS)

These robotic systems, which include cranes, shuttles, and autonomous mobile robots (AMRs) are ideal for storing and retrieving items in large warehouses and fulfillment centers and for optimizing storage density.  AS/RS systems make full use of vertical space, achieving up to 90 percent better floor-space utilization and increasing labor productivity by up to 60 percent in both piece-picking and replenishment operations.   AMR(s) can function as material transporters and storage and retrieval machines.  There is a broad range of automation options when selecting the appropriate automation for order fulfillment centers.

They speed up storage and retrieval processes, resulting in faster cycle times and higher overall productivity. Repetitive tasks are automated, reducing labor costs and the likelihood of errors, while also improving workplace safety.

Simply put, AS/RS systems help store and get items out the door faster, allowing your fulfillment center to keep up with high demand during the holiday season.

Daifuku, the pioneer of AS/RS technology, has installed tens of thousands of units worldwide, helping fulfillment centers store more, pick faster, and ship sooner.

Robotic picking

Robotic picking solutions from Daifuku use a combination of machine vision and encoded conveyor integration to identify and handle products with speed and consistency. With pick rates that can exceed 100 parts per minute and advanced tooling options available, robotic picking solutions reduce waste, improve throughput and accuracy, and enhance safety in your center. Even when dealing with high-mix SKUs or variable tote placement, robotic picking maintains consistent quality and keeps lines moving efficiently. During the busy holiday season, this translates to higher throughput, improved accuracy, and faster deliveries. Pairing robotics picking systems with AS/RS is an ideal way of creating a goods-to-robot solution which produces many advantages in terms of productivity and accuracy for the e-com peak.

Returns Management System

The holiday season is associated with strong product demand and a significant volume of product returns, especially after the holidays. Is your fulfillment center prepared to handle a large volume of returns?

A Returns Management System (RMS) integrates with your Warehouse Management Software (WMS) and can connect seamlessly with AS/RS, unit sortation, and robotics to streamline the reverse logistics process. By automating return-to-stock workflows, RMS helps products get back on the shelves faster for resale, turning returns into renewed revenue opportunities and minimizing manual processing friction.

Key Benefits of Robotic Solutions in Fulfillment Centers

Though automated solutions have an upfront cost, when utilized correctly, they more than pay for themselves in increased efficiencies and labor savings over the long term. This is especially true during the busy holiday season when you're looking to optimize productivity and improve profitability in this key period.

Some of the top benefits of adopting automated solutions in your fulfillment center include:

• Improved accuracy: Automation reduces errors, leading to more accurate inventory counts and fewer shipping mistakes, optimizing stock levels and improving customer satisfaction.

• Scalability: Robotic systems can easily scale as demand ebbs and flows. This flexibility is critical during the holiday surge, allowing operations to expand capacity without mass seasonal hiring.

• Safety: Robots can operate in tight or elevated spaces that may pose risks to human workers, improving workplace safety and reducing injury rates.

• Improved employee experience: Automation doesn’t replace people, it elevates them. Employees can shift from repetitive tasks to more meaningful, skill-driven work, improving morale and engagement.

• Speed and throughput: Robotics accelerate order processing, reduce cycle times, and help ensure that products reach customers faster, improving loyalty and repeat business.

Just because it's worth repeating, automated solutions also help increase efficiency and speed in your warehouse. They process orders faster and get them out the door to your customers. Aside from increasing your e-commerce company's productivity, they can also help improve customer satisfaction thanks to faster and more accurate deliveries.

Contact Daifuku Today

Contact Daifuku today for more information on how robotic solutions can improve your e-commerce fulfillment center's operations this holiday season. As a world leader in designing and manufacturing automated solutions, Daifuku is standing by and ready to help you increase throughput, improve efficiency and conserve resources — this holiday season and beyond. Contact us today for more information.

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