Decathlon increases warehouse productivity by two times using Exotec robots at seven locations in Europe | TNW

      The largest sporting goods retailer in the world has automated seven of its warehouses in Europe with robots, and early indications show that these machines are justifying their implementation. Decathlon announced on Tuesday that its collaboration with Exotec, a French company specializing in warehouse robotics, has led to what it describes as significant productivity improvements at locations in France, the UK, Portugal, Italy, and Germany.

      The statistics are compelling. At Decathlon's warehouse in Setúbal, Portugal, the facility now processes 114,000 orders daily, a notable increase from the 57,000 orders it handled prior to automation. Additionally, a warehouse in France nearly doubled its replenishment capacity, going from 37 to 73 stores. In England's Northampton site, workers who previously walked over 10 kilometers each day now cover less than one kilometer. Furthermore, incidents related to order picking at this site have decreased by half, dropping from one for every 5,000 orders to one for every 10,000.

      These robots are not the humanoid types often seen in headlines. Exotec’s primary product, Skypod, consists of a fleet of wheeled devices comparable in shape and size to large Roombas. Each Skypod holds storage bins and can ascend specialized shelving racks up to about 14 meters, retrieving and delivering hundreds of thousands of items each day. A typical installation at Decathlon includes between 150 and 200 Skypods, complemented by automatic depalletisers, carton-opening machines, RFID tunnels, and palletisers. The entire system is managed by Deepsky, Exotec’s warehouse execution software.

      Romain Moulin, cofounder and CEO of Exotec, stated that the main benefit lies not just in speed but also in efficiency. In a traditional warehouse, shelves are stacked to around two meters to accommodate human pickers, which forces companies to acquire larger spaces as their order volumes increase. Moulin noted that the average warehouse size is about 18,000 square meters. However, with Skypods' vertical mobility, Exotec claims it can reduce this area to about 6,000 square meters without losing capacity, as the same amount of goods occupies significantly less floor space.

      This implies that retailers could either operate in smaller, more cost-effective buildings or repurpose the extra space for other uses. For Decathlon, which has over 1,800 stores and employs 101,000 people worldwide, the benefits are clear: a standardized warehouse model that can be quickly duplicated across various markets. Moulin asserted that Exotec can establish a new automated warehouse every four months.

      A common concern accompanying warehouse automation is the fate of the workers previously responsible for picking. Exotec's own data provides a partial response. At one location, the number of designated pickers decreased from 50 to 12 after the Skypods were implemented, with the other workers reassigned to tasks such as handling returns and repairs.

      Moulin presented this as an enhancement to working conditions rather than a reduction in workforce. Workers no longer walk 10 kilometers per shift, the injury rate has declined, and the facilities can manage increased throughput, requiring the reassigned employees to accommodate the higher volume of goods.

      While this perspective is favorable, it also reveals a significant underlying issue. There is a growing labor shortage in warehouse logistics across Europe, Japan, and the United States. Moulin indicated that every customer he encounters, regardless of location, struggles to recruit pickers. The warehouse robotics market, projected to be worth about $8.75 billion by 2026, is experiencing over 18% annual growth primarily due to this shortage.

      The article also highlights what Exotec is not pursuing. While companies like BMW and Amazon experiment with bipedal humanoid robots for warehouse tasks, Moulin dismissed this approach for his needs. He argued that using a humanoid to move a cart for 10 kilometers a day merely replicates the issues that automation aims to resolve. Exotec’s strategy instead focuses on specialized machines optimized for specific tasks, enhanced by AI for routing, scheduling, and inventory management.

      This represents a practical, specialized, and non-spectacular European approach to industrial robotics. Founded in 2015, Exotec achieved unicorn status in 2022 after raising $335 million with a valuation of $2 billion, backed by Goldman Sachs. Its annual revenue has grown to around €300 million, with the Skypod system implemented in over 200 customer sites globally, including Uniqlo, Carrefour, Gap, and Geodis.

      The Decathlon initiative, known as the Skyfleet program, marks its most ambitious multi-site launch to date. Whether it becomes a model for how European retail manages supply chains will depend on whether the productivity gains sustain as the system expands. For the 38 former pickers at one site who have transitioned to other roles, the answer may already be becoming clear.