6.1.

Technical System & Workflow of the Automated Storage System

The automated storage system is designed to streamline last-mile package handling by
integrating robotics, AI-powered inventory management, and a user-friendly digital
interface. It ensures secure, efficient, and contactless package storage and retrieval,
solving common delivery challenges such as missed deliveries, theft, and cluttered
package areas in residential and commercial spaces.
6.1.1. Technical System Overview
The system consists of several key components that work together to automate package
handling. Storage units and smart lockers provide secure compartments for packages of
various sizes, while AI-powered inventory management optimizes space allocation and
retrieval efficiency. A robotic picking system autonomously moves packages between
storage compartments and retrieval points, ensuring seamless operation without human
intervention.
To enhance customer experience, the system is connected to a cloud-based software
platform and mobile app, which allows users to track package status in real-time and
retrieve their items using QR codes. Security is reinforced through IoT integration,
including motion sensors, cameras, and encrypted access controls to prevent unauthorized
access and theft. Furthermore, logistics API integration allows shippers and e-commerce
platforms to deposit and track deliveries automatically.
6.1.2️. Workflow of the Automated Storage System
The system follows a structured three-step workflow to handle package storage and
retrieval efficiently:
Step 1: Package Drop-Off (Inbound Process)
When a package arrives at the facility, the courier or shipper scans the package barcode at
the storage terminal. The system automatically matches the package to the recipient’s
profile and assigns an optimal storage compartment based on package size and urgency. A
robotic arm or conveyor system then transports the package to the designated locker,
ensuring an organized storage process. Once stored, the recipient immediately receives a
real-time notification with a QR code for retrieval.
Step 2: Package Storage & Tracking
After placement, the AI-powered inventory system continuously monitors package status,
optimizing space utilization by dynamically relocating packages if necessary. Security
sensors and tracking mechanisms ensure that every package is logged, monitored, and
protected from tampering or loss. Customers can check the real-time location and
estimated pickup time of their packages via the mobile app.
Step 3: Package Pickup (Outbound Process)
To retrieve a package, the customer simply scans their QR code at the pickup terminal.
The system verifies the request, and the robotic retrieval system quickly fetches the
package from storage. The package is then delivered to the designated pickup station,
allowing the customer to collect it within seconds. Once the transaction is completed, the
system updates the package status to "delivered", ensuring full traceability.
6.1.3. Key Features & Benefits of the System
The automated storage system provides numerous advantages over traditional package
handling methods. First, it offers 24/7 access, allowing customers to retrieve their
packages at their convenience. Additionally, the AI-powered automation ensures fast and
efficient processing, minimizing manual labor and human error. Real-time notifications
keep customers informed, eliminating uncertainty regarding package status.
Security is a top priority, with advanced theft prevention mechanisms such as motion
sensors, authentication protocols, and CCTV monitoring in place. Furthermore, the
system is highly scalable and modular, meaning it can be customized to fit different
locations such as apartment complexes, shopping malls, office buildings, and transit hubs.
By reducing failed deliveries and misplaced packages, the system enhances both
customer experience and logistics efficiency.
6.1.4. Integration with Logistics & E-Commerce Systems
To further improve last-mile delivery operations, the automated storage system integrates
seamlessly with logistics providers and e-commerce platforms. Through API
connectivity, shippers can directly interact with the system, automating package drop-off,
tracking, and customer notifications. Customers shopping online can also select
"Automated Storage Pickup" as a delivery option at checkout, ensuring that their
packages are sent directly to the nearest storage hub.
Additionally, AI-driven analytics help optimize package flow, predicting peak storage
demand and suggesting improvements in inventory allocation. This enhances overall
efficiency, scalability, and operational cost-effectiveness for logistics companies and
property managers.
By combining robotic automation, AI-driven tracking, and cloud-based software, this
system provides a cutting-edge, secure, and contactless solution for last-mile package
management, transforming how deliveries are handled in urban environments.
6.2. Development Status and Tasks
6.2.1. Timeline
If funding is obtained, the automated storage system will be deployed near residential
complexes to solve logistical challenges. The project will follow the timeline below:
March – May 2025  Conduct feasibility study and market
research.
 Identify and finalize partnership with
Brightpick.
 Select potential locations for warehouse
setup.
 Develop initial system architecture and
workflow.
 Prepare and submit legal documents for
business registration and operational
permits.
June – August 2025  Develop prototype model for storage
automation.
 Establish pilot warehouse for testing.
 Start software development for AI-based
warehouse management and customer
interaction system.
 Obtain necessary construction and safety
permits for warehouse setup.
September - November 2025  Perform system testing and security
enhancements.
 Integrate mobile application with
warehouse management system.
 Launch marketing initiatives and engage
early adopters.
 Secure compliance certifications and
approvals for warehouse operations.
December 2025 - February 2026  Deploy the first full-scale automated
warehouse.
 Conduct training sessions for employees
and partners.
 Optimize operations and monitor system
performance.
 Finalize contractual agreements with
logistics partners and legal entities.
March 2026 and Beyond  Expand the automated warehouse network
to more locations.
  Continuously improve the AI-based picking
and inventory system.
 Evaluate system scalability and explore
potential global expansion.
Table 6.1. Timeline
6.2.2. Completed Milestones
 Conducted feasibility study to evaluate market demand and technical viability.
 Identified and shortlisted potential locations for the automated storage facility.
 Established initial collaboration with Brightpick for technical consultation.
 Developed an initial system design and warehouse workflow.
 Created a financial model to estimate setup and operational costs.
6.3. Challenges, Risks, and Exit Plan
6.3.1. Challenges
One of the primary challenges is space constraints. Finding suitable locations near
residential areas that can accommodate an automated warehouse system is a complex
task. The storage facility must be strategically positioned for easy access while
maintaining efficiency in space utilization.
Another challenge lies in integrating the system with delivery services. The storage
system must seamlessly sync with existing logistics providers such as Shopee,
GrabExpress, and GHTK to ensure smooth package transfers. Any misalignment in
operations could lead to delays and inefficiencies.
Customer adoption is also a crucial factor. Many residents are accustomed to direct
package deliveries and may hesitate to use an automated storage facility. Effective
marketing and user education will be necessary to encourage adoption and build trust in
the system.
Moreover, regulatory compliance poses a significant challenge. The project must adhere
to local laws and logistics regulations governing automated warehousing and last-mile
delivery. Ensuring full compliance will require collaboration with regulatory bodies and
adjustments to legal frameworks if necessary.
6.3.2. Risks
A key risk associated with this automated storage system is the high initial investment.
The development and deployment of robotic automation, AI-based inventory
management, and mobile integration require substantial funding. The financial burden
includes system setup, marketing efforts, operational costs, and continuous technological
upgrades. If the projected return on investment (ROI) is not achieved within the expected
timeframe, financial instability could arise, potentially leading to operational cutbacks or
delays in system expansion. To mitigate this, a robust financial plan, phased
implementation, and contingency funding strategies should be in place.
Technical failures present another significant risk. The reliance on automated robotic
systems introduces vulnerabilities such as system malfunctions, software bugs, hardware
failures, and cybersecurity threats. Any major disruption could impact the reliability and
efficiency of the storage system, leading to customer dissatisfaction and loss of trust.
Implementing preventive maintenance, redundancy measures, and a responsive technical
support team is essential to ensure system uptime and operational continuity.
Another concern is market uncertainty and adoption rates. Since automated storage
solutions for residential deliveries are relatively new, customer demand could be
unpredictable. Some residents may be reluctant to change their existing habits, preferring
direct home deliveries over the added step of retrieving their packages from a nearby
storage hub. Variability in user adoption may affect revenue generation and long-term
sustainability. To address this, an effective customer education campaign, introductory
incentives, and partnerships with major delivery services should be employed to
encourage usage.
Regulatory and compliance challenges are also important factors. The deployment of
automated storage solutions must adhere to local zoning laws, building codes, and data
privacy regulations. Non-compliance could result in legal issues, fines, or even forced
modifications to the system. A legal and compliance team should be actively involved in
every stage of development to ensure that all necessary permits and regulations are met.
Lastly, operational scalability and adaptability must be carefully managed. The system
should be capable of expanding to different locations and adjusting to evolving logistics
demands. Failure to scale efficiently could lead to operational bottlenecks, underutilized
storage space, or inefficient routing of deliveries. Implementing a modular infrastructure,
scalable AI algorithms, and predictive logistics planning will be crucial to supporting
future expansion.
6.3.3. Exit Plan
If the system does not meet performance expectations, a structured phase-out strategy
will be implemented to minimize disruption to users and stakeholders. Instead of an
abrupt shutdown, a gradual discontinuation process will be executed, allowing existing
customers ample time to transition to alternative delivery methods. Proper
communication and support will be provided to ensure a smooth user experience during
this transition period.
Asset reallocation and repurposing will be a key component of the exit plan. The robotic
systems, AI infrastructure, and software used in the storage system can be redirected
toward alternative applications, such as fulfillment centers, warehouse automation, or
last-mile delivery hubs. By repurposing the assets, the business can recover part of the
initial investment while exploring new market opportunities.
To mitigate financial losses, a financial recovery plan will be developed. This may
include:
 Seeking alternative revenue streams, such as licensing the AI inventory
management system to third-party logistics companies or retailers.
 Forming strategic partnerships with e-commerce platforms, grocery chains, or
commercial warehousing firms that may benefit from automated storage solutions.
 Pivoting the business model by integrating additional services, such as smart
parcel lockers for office buildings, smart vending solutions, or cold storage
capabilities for perishable goods.
If a complete exit from the business is necessary, liquidation of assets will be executed
efficiently. Hardware components, robotic systems, and other physical assets can be sold
or leased to companies within the logistics and automation industry. Additionally,
proprietary software and AI models developed during the project may be sold or
integrated into other logistics operations.
Ultimately, the exit strategy aims to minimize financial risk, preserve stakeholder
interests, and ensure that valuable technological assets are effectively utilized in other
applications. By maintaining flexibility in business direction and being proactive in
response to market shifts, the project will retain the ability to pivot and adapt to new
opportunities even if the original business model does not meet expectations.
6.4. Projected Development Costs
6.4.1. Market Research and System Setup Costs
Currently, the issue of package deliveries at apartment complexes is causing many
problems, particularly with parcels being misplaced or piling up in disorderly collection
areas. To address this issue, we are launching an automated storage system, rented from
Brightpick, allowing residents to collect their packages at their convenience. The storage
facility will be located near the apartment complex for easy access.
This system requires thorough market research to evaluate demand and growth potential.
Additionally, setting up an automated storage facility involves significant investment to
ensure stable operation from the start. Therefore, the estimated cost for system setup in
the first year is 3.5 billion VND.
6.4.2. Marketing & Advertising Costs
To raise awareness and build trust in our automated storage system, we will invest in
marketing and promotional activities. The projected costs for marketing and advertising
over the first three years are as follows:
 Year 1: 250 million VND
 Year 2: 300 million VND
 Year 3: 350 million VND
These marketing efforts will include digital promotions, partnerships with delivery
companies, and outreach campaigns to introduce the service to residents.
6.4.3. Operation & Maintenance Costs
Operational and maintenance costs are crucial to ensuring the system runs smoothly,
providing the best user experience. The estimated costs are:
 Year 1: 220 million VND
 Year 2: 180 million VND
 Year 3: 310 million VND
These expenses cover hardware maintenance, software updates for warehouse
management, and general operational costs.
6.4.4. Establishment Costs
In addition to major expenses, initial setup costs such as legal procedures and site rental
must be considered, with an estimated cost of 3.8 million VND in the first year.
6.4.5. Overall Cost Summary
The total estimated investment for the first three years of developing the automated
storage system is:
 Year 1: Nearly 3.973 billion VND
 Year 2: 480 million VND
 Year 3: 660 million VND
This automated storage solution not only minimizes the risk of lost packages but also
enhances convenience for residents, creating a sustainable and scalable business model
for future expansion.
 Unit: VND

Year 1 Year 2 Year 3

Marketing & advertising 250.000.000 300.000.000 350.000.000

System Setup [Link] - -

Operation & Maintenance 220.000.000 180.000.000 310.000.000

Establishment cost 3.800.000 - -

Total [Link] 480.000.000 660.000.000

Table 6.2 Estimated development costs