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Automated Warehouse In Tokyo Managed To Replace 90 Percent of Its Staff With Robots (qz.com)
Japanese retailer Uniqlo in Tokyo's Ariake district has managed to cut 90% of its staff and replace them with robots that are capable of inspecting and sorting the clothing housed there. The automation also allows them to operate 24 hours a day. Quartz reports: The company recently remodeled the existing warehouse with an automated system created in partnership with Daifuku, a provider of material handling systems. Now that the system is running, the company revealed during a walkthrough of the new facility, Uniqlo has been able to cut staff at the warehouse by 90%. The Japan News described how the automation works: "The robotic system is designed to transfer products delivered to the warehouse by truck, read electronic tags attached to the products and confirm their stock numbers and other information. When shipping, the system wraps products placed on a conveyor belt in cardboard and attaches labels to them. Only a small portion of work at the warehouse needs to be done by employees, the company said."
The Tokyo warehouse is just a first step in a larger plan for Uniqlo's parent company, Fast Retailing. It has announced a strategic partnership with Daifuku with the goal of automating all Fast Retailing's brand warehouses in Japan and overseas. Uniqlo plans to invest 100 billion yen (about $887 million) in the project over an unspecified timeframe. (The Japan News reported that it costs about 1 billion to 10 billion yen to automate an existing warehouse.) Uniqlo believes the system will help it minimize storage costs and, importantly, deliver products faster around the world. The company has set a target of 3 trillion yen (about $26.6 billion) in annual revenue. Last year its revenue was about 1.86 trillion yen (pdf).
The Tokyo warehouse is just a first step in a larger plan for Uniqlo's parent company, Fast Retailing. It has announced a strategic partnership with Daifuku with the goal of automating all Fast Retailing's brand warehouses in Japan and overseas. Uniqlo plans to invest 100 billion yen (about $887 million) in the project over an unspecified timeframe. (The Japan News reported that it costs about 1 billion to 10 billion yen to automate an existing warehouse.) Uniqlo believes the system will help it minimize storage costs and, importantly, deliver products faster around the world. The company has set a target of 3 trillion yen (about $26.6 billion) in annual revenue. Last year its revenue was about 1.86 trillion yen (pdf).
Trying to figure out if losing all those jobs to a robot will make things better in Japan or anywhere? Always skeptical when we dive into solutions like this without factoring in all the human ramifications positive and negative.
Japan has chronic labor shortages due to low birth rates, high longevity, and strict immigration. The latest unemployment is 2.5%. Anything that frees up people to do other things in Japan is good for them.