GREENWICH, Conn. - GXO Logistics, Inc. (NYSE: GXO), recognized as the world's largest pure-play contract logistics provider, has partnered with Agility Robotics to deploy humanoid robots in its logistics facilities. This groundbreaking move marks the first commercial use of bipedal robots in the industry under a Robots-as-a-Service (RaaS) agreement.
The announcement today follows a successful proof-of-concept pilot conducted in late 2023. GXO is integrating Agility's humanoid robot, known as Digit, alongside other collaborative robots (cobots) at a SPANX facility. Digit is designed to perform repetitive tasks safely alongside humans, such as moving items from cobots to conveyors.
Adrian Stoch, Chief Automation Officer at GXO, stated that the partnership with Agility Robotics aligns with their R&D philosophy of improving the working environment and optimizing operations. The integration of Digit robots is a testament to this commitment, aiming to enhance efficiency in fulfillment centers.
The RaaS agreement also includes the use of Agility Arc, a cloud-based platform for managing fleets of Digit robots. This platform is intended to streamline the deployment process and manage operations effectively.
GXO's initiative with Digit has already garnered industry recognition, with Supply & Demand Chain Executive magazine awarding the company the top prize in the 2024 Top Supply Chain Projects awards.
Peggy Johnson, CEO of Agility Robotics, expressed pride in the milestone achievement of deploying revenue-generating humanoid robots to solve real-world business challenges.
GXO Logistics operates more than 970 facilities and employs over 130,000 team members globally. The company is capitalizing on the growth of e-commerce and the increasing trend towards automation and outsourcing in logistics.
This initiative is a significant step in the evolution of warehouse automation, as GXO continues to explore additional use cases and plans to scale the use of Digit robots to meet growing demand.
The information provided in this article is based on a press release statement from GXO Logistics and Agility Robotics.
In other recent news, GXO Logistics has been making significant strides in its operations. The company announced a multi-year agreement with Agility Robotics to deploy humanoid robots, known as Digit, in its logistics operations. This marks the industry's first commercial use of such technology. In addition, GXO Logistics has been recognized by Wells Fargo (NYSE:WFC) with an Overweight rating, indicating an optimistic outlook for the company's future performance.
The company has also made substantial progress in Europe, implementing a large-scale robotics system for a major sporting goods retailer. This move is expected to enhance order processing speed and operational efficiency. Morgan Stanley (NYSE:MS) resumed coverage on GXO Logistics, assigning an Overweight rating following the successful acquisition of Wincanton.
Furthermore, GXO Logistics, in collaboration with Conair, opened Maryland's largest distribution hub, aiming to serve markets across the eastern United States. These are among the recent developments that highlight GXO Logistics' commitment to enhancing its operations and providing advanced supply chain solutions.
InvestingPro Insights
In light of GXO Logistics' innovative steps towards integrating humanoid robots into their operations, investors may find the company's financial health and stock performance to be of particular interest. According to InvestingPro data, GXO is currently trading with a market capitalization of around $5.84 billion. The company's Price to Earnings (P/E) ratio stands at 22.37 based on the last twelve months as of Q1 2024, reflecting a premium valuation in the industry.
Despite the futuristic outlook of the company's operations, GXO's stock has experienced significant volatility, with a price decrease of over 20% year-to-date as of 2024. This could be attributed to the broader market trends or specific investor sentiments towards GXO's growth prospects and current valuation levels. Notably, the company is trading near its 52-week low, which may present a potential entry point for investors who believe in the long-term prospects of the firm, especially considering that analysts predict GXo will be profitable this year.
InvestingPro Tips highlight that GXO does not pay a dividend, which might be a factor for income-focused investors to consider. However, for those more interested in growth potential, the company's revenue has grown by 7.34% over the last twelve months as of Q1 2024, signaling a positive trajectory in its financial performance.
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