Germany-based online retailer Otto Group has established a long-term strategic partnership with artificial intelligence (AI)-based robotics company Covariant to automate its logistics network.
The partnership will enable Otto to leverage Covariant’s AI-based robotic solutions to automate several manual fulfillment activities that require hand-eye coordination and object manipulation.
The move is expected to support Otto Group’s efforts to improve services for its customers and digitize them using AI-driven solutions.
Covariant robots will be deployed across Otto Group’s logistics network to further increase operational efficiency and build resilience to combat labor market challenges.
The robot will be installed for the first time this year at Otto’s Haldensleben and Altenkunstadt facilities in Germany.
Deploying an AI-powered solution will enable Otto Group to autonomously manage a variety of dynamic and unexpected fulfillment scenarios.
AI-powered technology improves the overall quality of work in Otto’s fulfillment centers. It is also expected that various new employment opportunities will be created.
State-of-the-art investments guarantee reliable delivery times, especially when demand is high or fluctuating.
Kay Schiebur, Executive Officer of Otto Group Services, said: “Using generalist AI, we can reimagine processes that weren’t possible before and provide answers to the massive labor shortage.
“At a time when handling is often outsourced to cheaper locations, we are particularly pleased to continue to stay close to our customers and strengthen our presence in Europe, especially in Germany.”
Otto says that regardless of where they are deployed, all Covariant robots will have the same learning embedded in a single fleet, with the same operational improvements automatically propagating across the company’s logistics network. Stated.
Covariant CEO Peter Chen said, “We are honored that Kay and the team recognize the importance of developing general-purpose AI for robot learning, and we look forward to continuing to lead the Otto Group’s market for years to come.” We look forward to delivering operational improvements that will help us maintain our position.”
