DHL Supply Chain and D-Wave Trial Quantum Annealing for Warehouse Routing Efficiency
April 22, 2021
From Last Mile to Last Meter: Quantum Routing Inside Warehouses
As e-commerce volume surged in 2020–2021, DHL Supply Chain—responsible for some of the world's busiest fulfillment centers—faced an acute challenge: ensuring fast, conflict-free movement of thousands of orders per hour across complex warehouse layouts.
In April 2021, DHL partnered with D-Wave Systems, a Canadian leader in quantum annealing, to prototype a quantum-enhanced routing system. The goal: accelerate and streamline AGV and picker routing across constrained warehouse zones, where frequent path recalculations and traffic bottlenecks slow fulfillment rates.
This approach shifts the spotlight from macro-logistics (e.g., port scheduling, long-haul routing) to micro-logistics optimization, where the complexity of navigation within facilities often goes underappreciated.
Quantum Annealing Meets Intra-Warehouse Traffic
The DHL-D-Wave pilot focuses on using quantum annealing, a quantum computing technique particularly suited for solving combinatorial optimization problems such as the shortest path problem, traveling salesman problem (TSP), and graph coloring.
In warehouse operations, these map directly to:
Dynamic route assignment for AGVs
Real-time collision avoidance
Workforce path optimization under varying workloads and zones
Key Parameters Modeled:
AGV battery life constraints
Time windows for order fulfillment
Avoidance of high-traffic choke points
Aisle width and obstacle clearance
Variable zone priorities based on order urgency
These variables were encoded into QUBO (Quadratic Unconstrained Binary Optimization) models and run on D-Wave’s Advantage quantum processor via the Leap cloud service.
Results from the Pilot Phase
The pilot testbed, conducted in one of DHL’s major European fulfillment hubs in Germany, targeted a specific high-density storage zone with frequent AGV congestion. Over a two-week period, DHL and D-Wave collected the following results:
13–15% reduction in total AGV transit time compared to classical routing heuristics.
22% decrease in AGV idle time, particularly during peak load conditions.
Notably, the quantum annealing approach consistently found more efficient paths in scenarios with multiple conflicting agents, something classical solvers struggled to resolve in real time.
While these gains may appear incremental, they scale significantly in high-volume environments. Even a 5% gain in AGV throughput can unlock millions in annual fulfillment capacity.
Why Quantum Annealing Was Chosen
DHL's decision to work with D-Wave—rather than gate-based quantum systems—was strategic. Annealing-based machines like D-Wave’s are:
Commercially available now, with scalable access via cloud.
Tailored for combinatorial problems, which dominate warehouse routing.
Faster for near-term applications, where quantum advantage can be found in hybrid systems.
According to DHL Supply Chain’s Head of Innovation Europe, Marco Stoll:
“Quantum annealing gives us an early opportunity to solve logistics problems that classical systems struggle with during dynamic rerouting. This isn’t future-gazing—it’s a near-term accelerator for warehouse efficiency.”
Building the Quantum Warehouse Stack
The system architecture built during the pilot combined:
Data Capture Layer: Live telemetry from AGVs, warehouse layout maps, real-time SKU pick rates, and congestion indicators.
QUBO Model Generator: Developed by D-Wave engineers and DHL analysts to encode routing challenges into quantum-annealable structures.
Hybrid Solver Stack: Combined D-Wave’s quantum annealer with classical pre- and post-processing layers to refine solution quality.
Visualization Interface: Integrated with DHL’s existing warehouse management system (WMS) to allow human operators to override or validate quantum-suggested paths.
This architecture reflects a hybrid quantum-classical model, expected to dominate near-term industrial quantum applications.
Expanding the Use Case: From AGVs to Humans
Beyond AGV routing, DHL is also exploring human picker path optimization. In sprawling fulfillment centers, pickers walk several kilometers per shift. Minor improvements in route planning can yield significant ergonomic and throughput gains.
Quantum-optimized picker routing could:
Reduce walking distances by clustering orders more effectively.
Adapt routes dynamically as priorities shift during a shift.
Integrate with robotics to synchronize human-machine workflows.
This focus on “last-meter logistics” differentiates DHL’s quantum strategy from others pursuing broader network-level optimizations.
Collaboration and Ecosystem Benefits
The pilot benefited from strong collaboration between:
D-Wave Systems: Providing annealing access and QUBO engineering support.
DHL Supply Chain's Applied Analytics Unit: Translating operational challenges into optimization variables.
RWTH Aachen University: Providing academic oversight and simulation validation.
The use of D-Wave’s Leap hybrid platform also made it possible to test dozens of daily scenarios at scale without investing in physical quantum hardware—demonstrating a quantum-as-a-service (QaaS) model with fast deployment potential.
Next Steps: Toward Scaled Deployment
Following the April 2021 success, DHL Supply Chain laid out a phased roadmap:
Q3 2021: Expand pilots to North American facilities with higher AGV density.
2022: Integrate quantum routing module into select WMS and AGV control systems.
2023 and beyond: Extend use cases to multi-warehouse networks and cross-docking logistics.
DHL also expressed interest in quantum-enhanced facility layout planning and inventory zoning decisions, both of which involve hard optimization problems well-suited for annealing systems.
The Broader Signal: Quantum for Operational Efficiency
This project signals a shift from conceptual quantum logistics to operational quantum logistics. Rather than focus on abstract future potential, DHL and D-Wave have shown that real performance improvements are already possible with today’s quantum resources—especially when applied to well-scoped, high-impact micro-problems.
As fulfillment expectations continue to rise and labor availability fluctuates, quantum-powered routing may soon become a standard part of the logistics tech stack—especially in facilities with high AGV and robotic throughput.
Conclusion: Optimizing the Unseen
While shipping routes and delivery drones capture headlines, most logistics friction still happens inside the warehouse. With their April 2021 pilot, DHL and D-Wave demonstrated how quantum annealing can remove hidden inefficiencies and improve operational flow where it matters most—inside the fulfillment center.
As quantum hardware matures and hybrid solvers become easier to deploy, the “quantum warehouse” could become a global benchmark for how logistics firms unlock value from next-generation technologies.