FedEx chooses partnerships over proprietary tech for its automation strategy

In a rapidly evolving landscape of warehouse automation, FedEx is opting for collaboration over in-house development. While competitors like Amazon are busy building their own robotic fleets, FedEx has identified strategic partnerships as the optimal path to enhance its automation capabilities. The company's recent alliance with Berkshire Grey, a robotics firm under SoftBank, exemplifies this strategy, focusing on the creation of robots designed to handle repetitive and hazardous tasks. The partnership has led to the development of "Scoop," a robot engineered for bulk package unloading, which will soon be tested in FedEx warehouses through a pilot program. Although these robots won't be deployed at every unloading site, FedEx is optimistic about scaling their use if initial results are promising. Stephanie Cook, the director of advanced technology and innovation at FedEx, emphasized that bulk unloading is among the most physically demanding jobs in their facilities, making it a prime candidate for automation. In previous attempts to automate this task, FedEx encountered challenges in finding suitable robotic solutions. Cook noted, "There’s nothing that is off-the-shelf that we recognize will work for our needs," highlighting the complexities involved. The collaboration with Berkshire Grey was viewed as a necessary multi-year journey rather than a quick fix. O.P. Skaaksrud, vice president of advanced technology and innovation at FedEx, explained that while bulk unloading does require robots to make decisions, the complexity is lower compared to other tasks that require precise handling of individual packages. He pointed out that the variety and mix of packages complicate the automation of single-item picking, making Scoop's design more suitable for the job. FedEx's approach prioritizes automating the most physically taxing and dangerous jobs, allowing human workers to shift towards higher-skilled roles. Although the company does develop some technology in-house, such as the FedEx SenseAware systems for package tracking, Skaaksrud noted that robotics development is a more intricate challenge best tackled through partnerships. FedEx's collaboration with Berkshire Grey is just one aspect of its broader automation strategy. The company has engaged with various automation-focused partners, including Dexterity, a robotics startup known for its human-like robot capabilities, and Nimble, which specializes in fully autonomous warehouses. Furthermore, FedEx has explored autonomous deliveries in partnership with Aurora Innovation and Nuro, although not all of these collaborations have been successful. Despite the fast pace of automation advancements, FedEx is committed to a careful approach, ensuring that any technology introduced serves to enhance the workforce's safety and productivity. As Cook stated, the primary focus remains on the individuals working within the warehouses, necessitating that technology is designed to facilitate their roles rather than replace them. While humanoid robots garner significant attention, FedEx is cautious about their application, prioritizing practicality and clear return on investment in its automation endeavors.