By Scott Simmie
Cypher Robotics, along with AI fulfillment leader GreyOrange, offered a detailed peek into the future of warehouse automation during a recent webinar hosted by Robotics 24/7.
Cypher co-founder and CEO Peter King was joined by GreyOrange CEO Akash Gupta to explore both the challenges – and advantages – of integrating automation into warehouses and other Third Party Logistics (3PL) and supply chain sectors.
So, what does that future look like?
You might picture autonomous mobile robots (AMRs) moving heavy loads from point A to point B. There could be pick and place robots grabbing specific items from inventory shelves and relocating them, or putting them in boxes. AMRs equipped with manipulator arms might be loading or unloading trucks. Other devices could be scanning existing inventory to ensure companies have accurate and realtime information on precisely what is on hand.
All of these technologies are here now – and, to varying degrees – are being implemented as companies transition toward a more efficient and cost-effective way of doing things.
But such systems involve a lot of moving parts that need to be coordinated. And when you throw actual people into the mix, along with building infrastructure, things get a lot more complicated.
Together, Cypher Robotics and GreyOrange believe they offer a solution.
Below: Captis, the signature product of Cypher Robotics, preparing to do a warehouse inventory scan
CAPTIS
We’ll dive into the webinar in a moment. First, however, it’s worth taking a look at Captis.
It’s an autonomous mobile platform that does three things, and does them all very well. With a five-hour runtime, Captis can:
- Autonomously scan inventory optically using a tethered drone attached to the AMR Captis base
- Autonomously scan inventory using RFID
- Create ultra-precise digital twins of a warehouse space
If you’ve been following Cypher Robotics, you’ll know that we formally launched Captis earlier this year at the massive Automate 2024 conference. You might also recall that its appearance created significant buzz.
And that’s because this wasn’t just some prototype – but an exhaustively tested, real-world solution.
Captis has been deployed for more than a year with a large Canadian retailer that has hundreds of huge warehouses across the country. Captis has proven itself on the warehouse floor, providing the retailer with realtime inventory updates and saving employees from the risky (and often unsatisfying) work of repeatedly manually scanning stock – some of which is 10 metres above the ground.
And while Captis runs autonomously, a fully automated warehouse might deploy several different kinds of robots. Once you started putting multiple robots and/or agents into a single location, you need an overarching software platform that can orchestrate all of these machines – while bearing in mind that human beings also share that space. The webinar, entitled Rise of the Robots: Driving Safety & Adoption with Multiagent Orchestration, focussed on exactly that.
THREE PILLARS
Watching the webinar, it became clear there are three overarching themes involved with any sound implementation of robotics into the workplace/warehouse space:
- Worker safety
- Orchestration of multiple robotic devices into a seamless single system, even with highly complex inventories
- Return on Investment
Both GreyOrange and Cypher Robotics were aligned on these pillars, with the former focussing on comprehensive software solutions and the latter on an efficient and safe device that can keep workers from repetitive and potentially dangerous tasks while offering a clear value proposition to the client.
From the GreyOrange side, a large part of the solution is its GreyMatter realtime fulfillment platform, an AI-powered software designed for multi-agent orchestration. In other words, ensuring that the right robot or agent is doing the right thing at the right time.
“GreyMatter is pretty much an automation-first warehouse execution system capable of automating…the end-to-end of the warehouse,” explained GreyOrange CEO Gupta. “We support 10 to 15 different robotic technologies on our platform that in GreyMatter is agnostic to any of these robotic technologies that you can deploy in any of the processes of the warehouse.”
Another key part of GreyMatter is what Gupta calls its Certified Ranger Network.
“It’s basically a group of robotic technologies that are…seamlessly integrated with GreyMatter. We also certify them for reliability, safety and security.” (The Cypher Robotics Captis is part of that Certified Ranger Network.)
Working in concert with all of this is a piece of mobile software created by GreyOrange called gStore.
“It’s end-to-end integration orchestration within the four walls of the stores…inventory management, store operations, Omni channel execution, customer experience, (gStore is) basically kind of bringing all of that together.”
Collectively, said Gupta, you can think of these working synergically to ensure that the “agent up-time or robotic up-time gets converted into fullfillment outcomes.”
Below: A graphic from the presentation outlining how the GreyOrange system works
FROM THE CYPHER SIDE
CEO and Co-Founder Peter King comes with the perfect background for the job. He spent 10 years in the supply chain and logistics industry, followed by 15 years in the robotics and drone sectors. Cypher Robotics, he says, “is kind of a marriage between those realms.”
Several years ago, King was approached by a massive Canadian retailer that wanted to look at an automated solution for its warehouses. The product needed to be able to count inventory autonomously (including boxes high up on racks), had to be highly accurate, and – ideally – would work with the company’s existing infrastructure. In other words, no physical changes to warehouse layout would be required.
That’s no small task. And work on what would become Captis began in 2021.
“It’s an AMR/drone combination product,” said King. “It’s both a vision-based and RFID capture system. And that product works harmoniously together to autonomously go up and down aisles counting inventory. What makes us unique is our ability to trundle up and down aisles for up to five hours collecting data, unlike some traditional methods today.”
While some companies offer drone-based solutions, they come with limitations. Batteries have to be frequently changed and run times are limited. Because the drone is tethered to the Captis base, it draws power from that base enabling vastly extended flight times. As the drone hovers above, Captis navigates autonmously down the aisles. Captis can also capture precise digital twins of any environment it’s deployed in. All of the data acquired optically by the drone – or by Captis itself in RFID or digital twin mode – is meshed real-time into the client’s Warehouse Management System (WMS).
The product formally launched in March – and has since gained considerable interest in the industry.
“We’re gaining a lot of traction and realising just how big this marketplace is,” he added.
Cypher’s main clients are retail operators with large warehouses, but the company is also moving into Third-Party Logistics (3PL) and healthcare. And, as you’ll see in a moment, has truly proven its worth with its flagship client.
Below: An overview of the Captis system, followed by a graphic illustrating how it works
CASE STUDY
Due to the extensive work Captis has been doing with a major Canadian retailer, Cypher Robotics has been able to pull together a case study that reflects the product’s ROI.
In one large facility alone, said King, “we’re anticipating that we are going to eliminate 250,000 man hours per year.”
Those are hours that largely would have been spent by people manually scanning products, an intrinsically unsatisfying task with poor job satisfaction and high attrition rates. But King emphasised those savings don’t mean jobs are being lost; rather, that employees can be transferred to more satisfying work.
“There’s a very long conversation around robots replacing workers and, in this case, we’re actually looking to shift those hours into more productive areas of the business and help this current client actually keep employees in the facilities as well.”
The Cypher solution has had other significant bottom-line benefits for this client.
Online orders that have to be cancelled because an item is out-of-stock are a huge pain point for large companies. If the inventory cycle count isn’t highly accurate, items that are unavailable can show on the web as being in stock. Those orders, which wind up being cancelled, can add up to huge potential losses. That’s because, in addition to resources spent refunding to customers, the company has lost large numbers of potential sales.
With Captis onboard, King said those unfulfilled online orders have been reduced by 50 per cent. Ensuring customers were ordering items in stock led to $7.5 million in additional annual revenue for just this one client.
What’s more, because Captis can easily track how many discontinued items are in stock, it alerts the retailer to put an emphasis on selling those items in order to clear the way for new stock.
“We’re reducing the discontinued inventory by 12 per cent, so another 1.2 million dollars in overall sales for this client,” said King. “We think that’s a big deal by allowing them to push discontinued product and make sure that they understand what areas of their business they need to focus on to eliminate that inventory.”
In addition, King said the system has enabled the client to reduce their cancelled orders – leading to roughly one million dollars in additional annual revenue. With this particular client, the system has proven its worth many times over.
But there could be more benefits down the road. Cypher Robotics is exploring with the client how to identify spare room in those massive warehouses that could be put to profitable use by leasing that space to third parties.
“One of the things you’ll see on our road map is the ability to provide fulfillment services for unused space,” said King. “So understanding how much space is in your warehouse (that could be available) to allow other organizations to access – understanding what your utilization rates are allows you to understand what inventory looks like at each of your facilities to make sure that you’re managing (space) appropriately. For this one client specifically, we can see that there’s a huge need in this industry.”
Below: Details from the Cypher Robotics case study
A CLEAR VISION
The picture is becoming pretty clear, at least for large-scale warehouses and fulfillment/3PL companies: Automation is the future.
But the key here is that this future must be carefully orchestrated. You can’t simply throw a bunch of AMRs and other automation into a facility – particularly with human beings walking around – without concerns for worker safety, including equipping those machines with the best available sensors and AI for detecting and avoiding people and other objects. Wherever possible, you also want to avoid costly infrastructure changes to accommodate these technologies.
But the bigger picture – as described in the webinar – is the importance of certifying these machines and the overarching orchestration of how all of these moving parts work together. And not only work together, but do so in the most efficient and logical way possible. Software like GreyMatter and gStore are half of this equation; robotic solutions like Captis and other complementary systems are the other half.
“As the incubator of Cypher Robotics, InDro Robotics is exceedingly proud to see the great strides this company has made in a relatively short time period,” says InDro Founder and CEO Philip Reece. “Cypher Robotics and Captis do more than count inventory and create digital twins in a highly accurate and timely fashion; they provide critical and actionable data that has proven to significantly improve the client’s bottom line. Technologies like this also play an important role in keeping employees out of potential harm’s way – and allow them to carry out more satisfying tasks.”
Interested in learning more about Cypher Robotics and Captis? You can download a deck here. And if you’d like a conversation, you can contact Cypher Robotics here.