AI Technology Drives Smart Manufacturing Transformation

Kerry Logistics in Hong Kong has deployed a fully automated AI-powered warehousing system at its Kwai Chung logistics center, investing HKD 28 million to build a “dark warehouse” that realizes fully unmanned operations for the entire process from inbound storage, picking, packaging, to outbound delivery. The system’s core consists of three main modules: an AI visual recognition module that uses 3D cameras and image recognition technology to automatically identify barcodes, dimensions, and weights of goods with an accuracy of up to 0.1 millimeters, solving problems of missed or incorrect manual scanning; an AGV (Automated Guided Vehicle) robot transport module equipped with laser navigation and obstacle avoidance systems, capable of carrying up to 500 kg of cargo, moving flexibly in narrow aisles and achieving transport efficiency four times higher than that of humans; and an intelligent scheduling algorithm module, which dynamically plans optimal paths based on the urgency of orders and storage locations, addressing the bottlenecks of traditional warehousing such as difficult item retrieval, chaotic routes, and high error rates.

Data shows that after the system went online, daily outbound order volume per warehouse increased from 800 to 2,000, picking errors dropped from 3% to 0.1%, and space utilization rose from 60% to 85%. Meanwhile, staffing was reduced by 50%, from 60 to 30 warehouse workers, saving over HKD 8 million in annual labor costs. For Hong Kong's logistics peak seasons (e.g., Christmas and New Year purchasing periods), the AI scheduling algorithm can analyze historical order data seven days in advance to predict upcoming surges, dynamically adjust storage planning and robot scheduling, and keep on-time order rates at over 99.5%. Currently, the solution has been rolled out to three more centers—Tsing Yi and Tuen Mun in Hong Kong—and is planned for expansion to Singapore, Malaysia, and other Southeast Asian markets in 2025, helping boost local warehousing efficiency by a factor of three.