NVIDIA-Powered AI Robots to Sort Online Returns in Otto Group Warehouses

NVIDIA-Powered AI Robots to Sort Online Returns in Otto Group Warehouses

German retail giant Otto Group is bringing AI-controlled robots to one of e-commerce's hardest jobs: sorting returned orders. In a new project announced on October 28, Otto Group and robotics software company Sereact will deploy ten AI-powered dual-arm systems at a logistics centre in Poland, with 15 more planned in a second phase, taking the total to 25 robots.

Returns are notoriously difficult to automate because items come back folded, crumpled or repackaged, and a large retailer's range never stops changing. Sereact's Cortex physical AI model is built for exactly that challenge: it handles objects it has never seen before, deciding in real time how to grasp each item, check its condition and route it to the right place.

The system is trained and tested using NVIDIA's physical AI tools, including Isaac Sim and Isaac Lab simulations and Cosmos world models, with new skills refined on NVIDIA Blackwell graphics processors. When a robot struggles with an item, engineers say a tested fix can now reach the warehouse floor within days rather than weeks. If the second phase succeeds, Otto Group will consider rolling the technology out across its wider logistics network.

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