Padini Picks XTS, Huawei for Warehouse Automation

XTS Technologies Sdn. Bhd. (XTS), a specialist in the design and build of factory automation solutions, and Huawei Technologies Sdn. Bhd. (Huawei), a global provider of information and communications technology (ICT) infrastructure and smart devices, has signed a Memorandum of Understanding (MoU) with Padini Dot Com Sdn. Bhd., a subsidiary of Padini Holdings Berhad (Padini, Bursa: Main, 7052) for a warehouse automation solution using automated guided vehicles (AGVs) valued at RM1 million to be delivered within one year of a confirmed order.

Padini is a fashion retailer offering two multi-brand labels - Padini Concept Store with eight brands including Padini, Seed, Padini Authentics, PDI, P&Co, Miki, Vincci and Vincci Accessories, and Brands Outlet. Padini is a fashion retailer operating outlets stores in malls across Malaysia as well as Cambodia, Indonesia, Bahrain, Brunei, Myanmar, Oman, Qatar, Thailand and United Arab Emirates.

The warehouse automation solution enables Padini to use AGVs of the reach truck type to assist in warehouse inbound and outbound picking of goods from the current manual system in which the reach truck driver needs to search for the required products on pallets from numerous racks in different locations in the warehouse.

With AGV reach trucks, data stored within the Huawei cloud storage system enables the automated reach trucks to accurately pinpoint where the goods are for picking, with the reach trucks able to navigate its way automatically in the warehouse.

Managing Director of XTS, Xteven Teoh said, "We are proposing through this MoU to design and build the warehouse automation solution using AGVs that can assist and streamline Padini in its warehouse operations. This is also our first warehouse automation solution project utilising AGVs."

"The AGVs will replace Padini's two manual reach trucks and two drivers per floor in its warehouse operations. The AGVs will mitigate the risks of human error as time is saved from having to search for the required pallets and there is less risk of goods and other properties being damaged. It is overall more efficient and with consistent outcomes."

General Manager (Operation) of Padini, Andrew Yong, said, "The collaboration of this project with Huawei and XTS will certainly be a push to modernize the operations of the warehouse in relations to our push for IR 4.0 adoption in Padini. The scope of this project is a small portion of the operations with minimum units to be deployed in the warehouse. During this trial phase, we hope to achieve a better productivity, efficiency and safety. We hope that this trial will be able to prove better consistency in our warehouse throughput, saving time and maintaining or improving the throughput of our operations and the working environment in our warehouse. We will be looking forward to this collaboration."

Huawei Malaysia's Vice President of the Cloud and AI Business, Lim Chee Siong said, "It is always our goal at Huawei Cloud to dive into digitalisation and to provide Everything as a Service (XaaS). We will continue to innovate with local partners to offer cutting-edge technologies to support customer's digital transformation journey. We are proud to be chosen as the preferred cloud partner by XTS and serving Padini, this collaboration is just the beginning, and we will see more opportunities in future."