Home Depot acquires warehouse automation start-up Simpl Automation
Home Depot has acquired start-up Simpl Automation. Under the name Adaptiv ASRS, the company – founded in 2023 in Waltham, Massachusetts – developed a modular, AI-powered automated storage and retrieval system that works at case level. This technology is expected to enable the US DIY retailer’s distribution centres to operate faster and more efficiently in future.
The decision followed a successful pilot of the systems at Home Depot’s distribution centre in Locust Grove, Georgia. The company reports that, thanks to the use of Simpl Automation technology, picking speed has increased and staff have now less product touches. The patented system enables goods to be stored more densely. This allows Home Depot to stock a wider range of high-demand products, thereby increasing availability and enabling faster delivery.
“We’re focused on providing the best interconnected experience in home improvement by having products in stock and ready to deliver to our customers whether it’s to the home or jobsite,” explains Amit Kalra, Senior Vice President of Supply Chain at Home Depot. The decision is part of Home Depot’s supply chain innovation strategy. This includes AI-powered inventory management, automation, advanced analytics, mobile technologies and live tracking of deliveries.
Manual processes are reaching their limits
So far, Home Depot had relied less heavily on automation in its logistics operations compared to its competitors. The company supplies its more than 2,200 stores in the US via a total of over 130 large-scale, regional distribution centres. Until now, processes there have largely been manual. With increasing demands for flexibility and speed of delivery, this model is reaching its limits. The use of technology is intended to increase process efficiency and reduce reliance on labour.
Simpl Automation’s system promises to be particularly well-suited to the wide range of products stocked by Home Depot’s DIY stores. Thanks to its modular design, it is said to be easily adaptable to specific requirements. It features a vertical lift module that can be attached to existing shelving systems and is designed to enable high storage density. Machine learning is intended to help optimise picking and cycle times.
Roll-out planned to be gradual
Home Depot plans to roll out Adaptiv ASRS gradually to further distribution centres. No concrete roadmap has been disclosed yet. It remains to be seen how quickly and successfully the company can implement its strategy. The approach is not without risk. The young start-up’s technology has so far only been proven in a single pilot project. Undertaking a project on this scale requires significant investment, not only in capital but also in resources and expertise.
