Building the Floor AI Runs On

Inside the AI Transformation of Parts, People & Processes

Hi, I’m Lily. I live in the world of distribution, where the gap between ambition and readiness has never been more expensive. Everyone wants AI. Not everyone is ready for it, and this week’s stories make that distinction impossible to ignore. The facilities that weren’t built for today’s automation demands, the retailers sitting on goldmines of transaction data they haven’t fully deployed, the factories still relying on robots that can’t adapt when the work gets complex. The common thread is infrastructure, the physical, operational, data foundation that either makes AI sing, or exposes every crack in the floor.

If you only read one thing this week, it is this:

DHL and Locus Robotics hit one billion warehouse picks across 40+ global facilities, nearly a decade after their 2017 partnership began. The deployment, now expanding to 5,000 AMRs, has delivered 30–180% increases in picking speed and an 80% reduction in worker training time.

What’s Working in the Field

AI Readiness Starts on the Factory Floor

AI adoption in manufacturing is hitting a physical wall. Most facilities weren't designed for the automation levels AI now demands, and the gap between digital ambition and operational reality is where implementations break down. PwC's survey of hundreds of executives finds automation set to more than double by 2030, but the winners won't be those with the most tools. Instead, they'll be those who can orchestrate them across the enterprise. The readiness gap is the real competitive risk.

DHL and Locus Robotics Hit 1 Billion Warehouse Picks

DHL Supply Chain and Locus Robotics have hit one billion warehouse picks across 40+ global facilities, a milestone built over nine years of scaled deployment. The numbers speak for themselves: up to 180% faster picking and 80% less training time for warehouse staff. With 5,000 more AMRs on the way, DHL is doubling down on what the data already proves. The bigger signal here is a shift in priorities across fulfillment operations: consistency and reliability are overtaking raw speed as the defining competitive edge, as e-commerce demand grows harder to predict.

Mind Robotics Brings AI Dexterity to the Factory Floor

Rivian founder RJ Scaringe has spun out Mind Robotics and raised $615 million to build industrial AI robots that can do tasks requiring human-like dexterity, adaptation, and physical reasoning. The company is using Rivian's own factory as its training ground, with large-scale deployment targeted by the end of 2026. Scaringe's thesis is deliberately practical: humanoid robots make headlines, but dexterous, adaptable factory robots create value.

Jefferies: Walmart and Target Are Retail's AI Supply Chain Frontrunners

Jefferies has named Walmart and Target as retail's AI supply chain frontrunners in the latest report. Walmart's 270 million weekly transactions give it a training dataset no competitor can replicate, already powering route optimization that cut 30 million delivery miles and avoided 94 million pounds of CO2. Target is backing its AI roadmap with $2 billion in FY2026 tech investment. The gains are hitting where it counts: distribution centers, inventory turns, and labor scheduling. Retailers that haven't moved are falling further behind than they realize.

What’s In My Ears

The Buzz: AI Hits the Factory Floor with Tracy Hyatt Bosman

In this episode of Supply Chain Now, Tracy Hyatt Bosman, Principal at Biggins Lacy Shapiro & Company, breaks down the economic forces and workforce dynamics reshaping manufacturing and logistics. Bosman shares how AI is being deployed on factory floors to drive productivity, quality, and resilience, while workforce availability and skills remain the top factor in manufacturing site selection. A grounded, practical listen for anyone navigating the intersection of AI adoption and real-world manufacturing strategy.

Lily’s Quick Take

The billion-pick milestone from DHL and Locus Robotics is the number of the week. But the real story is older than the number. They started in 2017. They didn't make bold proclamations or chase the latest platform. They built something, measured it, and scaled what worked. Meanwhile, factories are still wrestling with layouts that weren't designed for automation, and retailers without a data strategy are watching Walmart and Target build moats in real time. The pattern is the same everywhere: the winners didn't move faster. They moved first, and then didn't stop. In AI, consistency is the competitive weapon nobody puts on a slide deck.

Until next week—keep your systems learning!

— Lily @ InstaLILY AI