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Case Study

How AMRs Powered a Complete Warehouse Transformation in Lazada

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Efficiency Improvement

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Project Overview

Lazada, one of Southeast Asia’s largest e-commerce platforms, operates more than 47 distribution centers and caters to over 160 million active users. At its Singapore distribution center, footwear and apparel orders experience significant volume fluctuations—especially during peak promotions. To address these surges without overinvesting in underutilized infrastructure, Lazada partnered with Syrius Technology to deploy a scalable Autonomous Mobile Robot (AMR) solution. Initially, five AMRs support daily operations; during high-demand campaigns, additional units can be shipped and activated in just a few hours. This flexible approach ensures Lazada meets tight fulfillment deadlines, driving a 30%+ efficiency boost and eliminating the need for large-scale manual labor during seasonal spikes.

The Problem

Lazada’s core challenge was to handle volatile order volumes without overcommitting to large-scale automation or relying excessively on temporary labor. Traditional manual processes proved inefficient and costly, especially when orders spiked to three to five times their usual volume during major promotions.

  1. Sudden Order Surges: Demand can soar by up to five times the daily average, making it difficult to plan optimal staffing.
  2. Labor Constraints: Hiring and training temporary workers were costly and time-consuming, and inexperienced labor caused bottlenecks.
  3. Warehouse Congestion: During peak seasons, extra staff and stacked goods led to overcrowded aisles, reducing overall efficiency.
  4. Balancing ROI: Large fixed investments in automated systems were not cost-effective if utilization remained low for most of the year. Lazada needed a flexible, on-demand solution.

The Solution

Syrius Technology introduced a base fleet of five AMRs for daily operations and a scalable Robot-as-a-Service (RaaS) model for peak seasons. Additional AMRs can be delivered, unpacked, and configured within hours, leveraging existing warehouse maps and system configurations.

  • Core Fleet & RaaS Model: Five AMRs operate during normal demand, while extra units are deployed temporarily during surge periods—arriving from Syrius Technology’s local warehouse within 3–6 hours.
  • Rapid Onboarding: New AMRs share the same maps and system settings, allowing on-site activation within about an hour.
  • Minimal Facility Changes: The AMR fleet integrates seamlessly without requiring major renovations, preserving Lazada’s existing floor space and workflows.
  • Optimized Carriers: Custom trays and carriers designed specifically for footwear and apparel ensure efficient stacking and minimized SKU damage.
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A skilled Field Application Engineer from Syrius Technology is dedicated to empowering Lazada warehouse operators by providing hands-on training on the innovative FlexSwift MAX robot. This advanced training session not only equips operators with the necessary skills to effectively utilize cutting-edge technology but also underscores the critical role of automation in revolutionizing logistics processes.

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The FlexSwift MAX AMR efficiently navigates through the bustling aisles of the fulfillment center, pausing momentarily to ensure precision before seamlessly transitioning to its next picking task. This advanced automation not only enhances productivity but also ensures accuracy, making it an indispensable asset in streamlining operations and meeting customer demands swiftly.

The Results

By leveraging a flexible RaaS approach, Lazada can rapidly scale its picking capacity and drastically reduce dependence on temporary labor. The solution optimizes both daily and seasonal operations, unlocking measurable efficiency gains and cost savings.

  • 30%+ Efficiency Gain: Order processing accelerated through dynamic AMR deployment, enabling timely fulfillment even during sales peaks.
  • Reduced Staffing Burden: With fewer temporary hires needed, Lazada significantly lowered training costs and workforce churn.
  • Better Space Utilization: Streamlined workflows and fewer manual carts freed up valuable floor space, improving overall warehouse throughput.
  • Flexible Cost Structure: Lazada pays only for the additional AMRs it uses during peak seasons, ensuring near 100% utilization of rented equipment.

Where are we now

Lazada is impressed with the flexible robot system and plans to expand it to more centers.

The initial fleet of five AMRs operates daily, while Syrius Technology’s RaaS program increases the number of robots as needed to handle peak demands. Impressed by the results, Lazada is considering expanding this model to other distribution centers and is discussing how to apply the same flexible automation strategy in multiple locations.

Company Name

Services we provided:

  • End-to-end AMR deployment and configuration
  • Custom carriers and trays optimized for footware and apparel
  • Warehouse layout consulting and process realignment
  • System Integration
  • Robot-as-a-Service

 

lazada.sg