Humanoid Robots in Warehousing: The next frontier in supply chain automation?

“By 2040, humanoid robots could outnumber humans.” This might sound like something from a sci-fi movie, but it’s actually a prediction made by Elon Musk during a recent talk on the future of artificial intelligence (AI). With AI improving at a rate of 10x every year, businesses are quickly approaching a major turning point.

In the world of supply chains, that raises an important question: Are we ready for this change? Humanoid robots might still seem far off, but they’re already being tested in warehouses, supply chains, and manufacturing. General-purpose humanoids like Agility Robotics’ Digit and Sanctuary AI’s Phoenix* are progressing through testing and proof-of-concept phases.

Notably, companies like Amazon and Tesla have even begun incorporating them into their operations to handle repetitive tasks or lift heavy objects.

There is no denying it’s early days yet for humanoid robots. Current usage is limited, and development costs remain high. But their potential is undeniable as they offer additional automation options to mitigate labor shortages, enhance efficiency and reduce costs in ways that established robots can’t.

What’s driving the push for humanoid robots?

1. AI as a game changer: Artificial intelligence is the key enabler for humanoid robots. With advancements in generative AI, these robots can engage in more natural interactions using simple language. Even more impressively, AI allows them to learn new tasks and adapt to changing workflows without the need for constant reprogramming. This means a single humanoid robot could handle various tasks, such as sorting, picking, and moving goods.

Designed to operate in dynamic environments, humanoids will interact seamlessly with machines, automation tools like AGVs (automated guided vehicles), and human workers. Leveraging digital twins and physics-based virtual environments (offered, for instance, by NVIDIA), organizations can train humanoid robot AI models and simulate warehouse workflows to ensure smooth operations as humanoid robots get introduced to the real world tasks.

2. Automating where it wasn’t possible before: Unlike traditional robots, humanoids are specifically designed for human workspaces. This makes them ideal for roles that were previously too complex or expensive to automate. In distribution centers, for example, where oversized items or intricate picking tasks require human intervention, humanoids could work alongside human employees.

3. Addressing labor shortages: The warehousing and logistics sectors are grappling with persistent labor shortages. Descartes Research reveals that 76% of supply chain and logistics operations are experiencing workforce shortages, affecting everything from distribution to logistics service providers. Humanoid robots can help fill these gaps by taking on physically demanding tasks, like moving heavy pallets or repetitive jobs.

They are especially handy during busy holiday seasons when companies require extra workers. This flexibility is particularly valuable in environments like cold storage units or warehouses without air conditioning. Notably, Gartner predicts that by 2030, 80% of people will engage with smart robots daily, up from less than 10% today.

4. Enhancing workplace safety: Humanoids can be well-suited for tasks that pose risks to human workers, such as heavy lifting or operating in hazardous conditions. They can work long hours without breaks, minimizing human error and the risk of injuries. The goal is to create a hybrid workforce where humans and robots complement to optimize safety, reduce errors, and lower liability risks for employers.

5. Shrinking costs: At $30,000 to $150,000 apiece, humanoids aren’t a bargain yet. However, they are becoming more cost-effective as component and AI model training costs are dropping, and the pricing is projected to settle around $50,000 to $60,000 once humanoids are produced at scale. But who says logistics managers need to purchase them? Robot-as-a-service (RaaS) options will allow renting them for as little as $30 an hour.

Preparing for humanoid robots in warehouses

While the technology is still evolving, supply chain leaders can take steps now to ensure a smooth transition to humanoid robots:

1. Identify areas for automation: Focus on operations where humanoid robots can provide the most value, particularly in tandem with existing automation like AGVs and AMRs (autonomous mobile robots), cobot arms, automated storage solutions, and industrial robots with maximum efficiency and collaboration. Look for repetitive or physically demanding tasks in warehouses that slow down operations or heighten injury risks.

2. Simulate future use cases: Create a virtual high-fidelity physics simulation environment and start training humanoids for future tasks and use cases. This simulation will help measure their effectiveness and capture their ROI, while training their future brain (AI) for real-world roles

3. Invest in workforce training: To really get the most out of humanoid robots, you need engineers and operators who know how to integrate, maintain, and repair them. Since these robots won’t be fully self-sufficient for a while, upskilling your workforce is key. If your organization wants to pilot or deploy humanoid robots, it’s important to focus on training your engineers to manage these advanced systems. By updating your team’s skills, you’ll ensure they can effectively work with humanoid robots in your operations.

4. Augment operations: Update your processes to support automation and robotics throughout your organization. Focus on preparing your teams for these changes with change management practices to ensure they accept and effectively work with new technologies. Having clear, standard practices will help everyone collaborate and perform better together.

5. Upgrade technology infrastructure: Ensure your technology and data infrastructure can support humanoids. As these robots will need to work alongside various automation tools, having a robust platform that can orchestrate all operations together is vital. Assess your warehouse management software and other systems to determine what adjustments are necessary for successful integration.

6. Establish a strategic partner ecosystem: Gain a clear understanding of how humanoids can benefit your operations. Form partnerships with emerging humanoid vendors and integrators and engage with universities on research and development initiatives. This collaboration can help you explore the current capabilities of humanoid robots and visualize future possibilities. Forward-thinking organizations might also consider establishing an internal team to test and pilot humanoid robots within their facilities.

What’s next?

While humanoid robots aren’t a complete solution for supply chain challenges just yet, they hold great promise. They can improve flexibility and efficiency in industries dealing with labor shortages and rising costs.

By addressing these shortages and working in hazardous conditions, humanoid robots present valuable opportunities for those willing to invest in workforce upskilling, upgrading their technology, running pilot programs, and considering emerging leasing options.

And if current trends are any indication, the future of humanoid robots looks promising: the global humanoid robots market, valued at $2.43 billion in 2023, is projected to soar to $66 billion by 2032 – a staggering 26-fold increase. This growth will be driven by the robots’ capacity to enhance human capabilities rather than replace them.

Accenture’s strategic investment*