Innovative logistics automation by Otto Group and NVIDIA

 

Otto Group, the well-known German retail company, has launched a new project in early 2026 with computing giant NVIDIA. The project aims to improve Otto Group’s supply chain operations via intelligent robotics. For this purpose, NVIDIA will deploy a system called the Robotic Coordination Layer at Otto Group’s 120 logistics locations.

 

 

What is the Robotic Coordination Layer

Essentially an intelligent virtual communication and navigation system, the Robotic Coordination Layer is powered by a real-time 3D development platform, NVIDIA Omniverse, including AI-driven robot developing and testing application Isaac Sim.

 

Deploying the Robotic Coordination Layer creates an AI-assisted digital twin of Otto Group’s logistics centers, where logistics professionals can simulate and train robots to fulfill various tasks by themselves and in cooperation with each other.

 

 

Stationary robots positioned beside an assembly line, picking up boxes

 

 

This will significantly enhance the performance of all robots deployed across various stations of Otto Group’s supply chain and increase its overall efficiency. The project includes both stationary and mobile robots that are capable of autonomous action, coordinating their work to achieve maximum efficiency.

 

 

Implementation of the project

The Hermes Fulfilment Logistics Center in Löhne has been chosen for the location of the first full-scale implementation of the project. Once the kinks are ironed out and the system is fully operational, further rollout will begin across the entire network.

 

In the long term, the Robotic Coordination Layer will serve as a central operating system, connecting and managing all robotic and other automated assets in the entire warehouse ecosystem.

 

Sources report that the implementation requires a significant investment, in the range of double-digit million euros, proving Otto Group’s commitment to cutting-edge digital development and automation.

 

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Risks for brands

Although the cooperation between Otto Group and NVIDIA focuses on Otto Group’s internal operations, there are a few indirect risks your brand should be aware of.

 

• Inventory data exposure. The Robotic Coordination Layer creates a digital twin of inventory information at Otto Group’s logistics centers. This includes SKU-level proprietary product details and sales patterns that can be highly sensitive for your brand. A potential data leak could expose this information to your competitors or even fraudsters, which could have disastrous effects for your brand.
   
• Third-party access. A similar issue could arise on NVIDIA’s end. Any unauthorized data sharing via NVIDIA integrations would be highly problematic for your sensitive brand information.
   
• Robot-orchestrated picking. Diminishing human oversight at Otto Group’s warehouses could increase fake and lookalike products getting picked for order fulfillment instead of your genuine products.

 

Conclusion

Automation and AI-assisted logistics promise seamless, faster, and more efficient e-Commerce order fulfilment processes. However, the lack of human oversight increases the risk of fraud, while the rising number of integrations creates vulnerabilities for data breaches.

 

If you’re worried about the safety of your IP rights, contact us and discover how best to protect them in today’s rapidly changing e-Commerce environment!