Xanadu and DHL Trial Photonic Quantum Computing for Warehouse Optimization in Canada
July 27, 2023
On July 27, 2023, Xanadu, a leading developer of photonic quantum computers based in Toronto, and DHL Supply Chain Canada announced a joint proof-of-concept (PoC) pilot applying Gaussian Boson Sampling (GBS) and hybrid quantum-classical solvers to warehouse operations. This is among the first industrial efforts to deploy photonic quantum algorithms at scale for combinatorial logistics challenges within high-throughput warehouse environments.
Xanadu’s Borealis photonic QPU operates at room temperature using single photons manipulated via linear optics, squeezed states, and interferometers. Unlike superconducting or trapped-ion systems, photonic quantum processors avoid cryogenic cooling, show promise in combinatorial optimization problems difficult for classical computers, and are well-suited to structured tasks such as bin packing, picking path optimization, and SKU slotting.
DHL Supply Chain Canada’s pilot targets key warehouse optimization problems:
Slotting Optimization: Determining optimal item storage locations to minimize picking time and travel distance.
Picking Path Optimization: Calculating efficient walking or autonomous robot routes for multi-item orders.
Bin Packing: Efficiently packing items into containers for outbound logistics or kitting.
The hybrid architecture combines classical preprocessing—clustering SKUs by demand velocity and distribution—with photonic GBS solvers generating candidate configurations, followed by classical heuristics to refine and validate solutions. This approach circumvents current quantum hardware scalability limits while harnessing the diversity of quantum-generated solutions. Integration was achieved via Xanadu’s open-source PennyLane software interfacing with DHL’s Warehouse Management System (WMS) simulations.
Preliminary results (still confidential) indicate:
Picking path efficiency improved by 9–12% over DHL’s existing heuristics.
Slotting simulations reduced average pick travel distance by 8%.
Bin packing yielded more efficient outbound load profiles.
These gains suggest potential operational savings including faster fulfillment, reduced energy consumption, and lowered fatigue or robotic travel time.
This pilot exemplifies quantum computing’s growing role in logistics: classical heuristics and machine learning are augmented by quantum-enhanced sampling to explore large solution spaces with many near-optimal configurations—a common characteristic of warehouse optimization problems.
Globally, similar initiatives are underway, such as D-Wave’s freight optimization at the Port of Los Angeles, Q-CTRL’s robotics routing in Australia, and IBM’s warehouse throughput modeling using Qiskit. Xanadu’s photonic approach offers advantages in speed, room-temperature operation, and hardware footprint, marking Canada’s significant entry into applied quantum logistics.
Supported by Canada’s NRC Industrial Research Assistance Program (IRAP) and innovation accelerator NEXT AI, with academic guidance from the University of Toronto’s Creative Destruction Lab, this pilot builds an ecosystem for quantum logistics research and deployment.
Looking ahead, successful validation could lead to:
Live warehouse integration by Q2 2024,
Expansion into coordinated robotics pathing and zone picking,
Integration with dynamic slotting driven by supply-demand forecasts,
Research into cold-chain logistics optimization requiring rapid recomputation during perishability-sensitive handling.
Xanadu envisions extending their photonic quantum hardware toward real-time logistics re-optimization during labor shortages, inventory disruptions, or peak demand spikes such as Black Friday.
In summary, the July 27, 2023 pilot heralds the start of Canada’s quantum logistics ecosystem. Using light-based quantum computation, Xanadu and DHL are pushing warehouse optimization beyond classical limits, signaling a new era where quantum-enabled automation enhances supply chain efficiency and responsiveness.