RESEARCH TRIANGLE PARK – Lenovo, an international supply chain to deal with and demand growing for faster distribution operations, is working with Microsoft and chip firm Nvidia to unveil what is being called a “Digital Distribution Center.”

From utilization of Artificial Intelligence to Internet of Things, the centers could offer solutions to labor demands and much more.

Called DDC, the technology solution relying on an IoT web of machines, is being unveiled at a Microsoft trade show this week.

Image via Microsoft

How Lenovos DDC works.

“Through real-time scalable package detection, tracking, and validation, DDC delivers for better optimization and increased utilization of distribution centers for retail, manufacturing, and logistics operations,” says Bert Van Hoof, the partner group manager for Microsoft’s Azure (cloud) IoT.

“The solution uses multi-video stream analytics with artificial intelligence and machine learning inferencing to self-learn, optimize, and scale. Additional releases will include geofencing alerts, palletization, depalletization, and last-mile sorting.”

North Carolina is a site where huge distribution centers are being built such as the new one Amazon is constructing in Garner. The Internet giant also recently unveiled a center in Durham to enable faster delivery of packages.

Lenovo may have a solution other firms want to adopt.

Writing in a blog post, Van Hoof notes that the DDC is the partners’ effort to meet challenges and demands.

“The pace of change has never been as fast as it is now. Globally, the population is becoming more urban and income levels are rising,” he says.

Lenovo widens lead as No. 1 global PC seller; shipments jump 16%

“By 2050, nearly 70 percent of the global population will live in cities or urban areas—that’s six billion people. Consumer behavior has also materially changed over the last decade, and omnichannel retail, personalization, and demand for same day deliveries are growing. To cater to the changing landscape, urban distribution centers that stage products closer to users within large cities are on the rise to enable faster delivery and greater customization.”

To answer the challenges, Van Hoof notes:

“Within the four walls of the distribution center, picking and packing tasks account for more than 50 percent of the total labor cost of warehousing operations.

“Access to labor has become increasingly challenging, particularly in urban centers, and staffing levels shoot up five to ten-times normal levels during the holiday season.

“Space constraints and difficulty in staffing are pushing companies to look at adopting distribution center technologies that cut labor costs, optimizes the flow of products, and improves productivity and utilization of these centers.”

Thus the DDC.

Lenovo operates dual headquarters in Morrisville and Beijing. Its Data Center Group is based in RTP.

The world’s top PC producer operates distribution centers around the world.