David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
When consumer products giant Amway decided to move its Midwest fulfillment operations to a building on its main campus in Ada, Mich., managers saw their chance for a clean sweep. From the outset, they rejected the idea of replicating the setup of the retailer's former regional facility, located just a few miles away. Instead, they would use the opportunity to redesign the fulfillment process and introduce more automation.
What prompted the move was a change in the retailer's operations. The old building had been a dual-purpose facility, used for shipping both catalog orders and orders from Amway's "Independent Business Owners," or IBOs—the local folks nationwide who market Amway products to their friends and neighbors. But the retailer had recently shut down the catalog business, making the old process obsolete. At that point, the company decided it would be better served by shifting fulfillment to a 600,000-square-foot facility that had formerly supported manufacturing.
Although the move offered an opportunity to start with a clean slate, the design team also faced some challenges. One of the big questions involved the conveyors that would be used to whisk items through the facility (95 percent of Amway's products are conveyable). The company was hoping to improve on the system at the old facility, which had featured eight miles of conveyor belt. In particular, it was looking for units that would be quieter and more energy-efficient than their predecessors. It also wanted models that would provide better accumulation and gapping.
There were other requirements as well. The system would have to be capable of accommodating wide fluctuations in volume. Amway's orders rise sharply during the last week of each month, as its IBOs push to meet their goals. During peak periods, as many as 24,000 cartons move through the facility each day. That number is expected to jump to well over 30,000 when the full ramp-up is completed.
Then there was the matter of wide variations in product weights and sizes. Since its founding in 1959 as a seller of household cleaners, Amway has expanded and diversified into such product lines as nutritional supplements, jewelry and accessories, and health and beauty aids. That meant the conveyors selected would have to be capable of transporting anything from an empty carton weighing a few ounces up to an order weighing 50 pounds.
ON A ROLL
With the help of Bastian Solutions, a systems design and integration firm that also acts as a distributor for Hytrol Conveyor Co., Amway found the solution it was seeking. The system the two partners came up with features not just one type of conveyor, but a combination of roller, belt, spiral, curved, incline, gravity, accumulating, and trash conveyors that serve just about every area of the DC. The conveyors in the new system, most of which were supplied by Hytrol, are equally capable of gently handling a big box of dog food as a carton containing a single tube of lipstick.
"We have a wide range of conveyors. There is a purpose behind every type," explains Paul Slack, senior engineer. "Within a line, we go smoothly from one type to another—whatever is best to do the job."
Rollers are employed for basic transport in this extensive network (there are over 400,000 total rollers found within the system's conveyors). Belt conveyors are used in areas for accumulating, weighing, and scanning, among others. The system has 36 scanners arrayed along its various paths.
Among the workhorses of the system are Hytrol's E24 modular conveyors, which provide zero pressure accumulation and gapping with the added benefit of plug-and-play connectivity. That makes them easy to install and later reconfigure. Their 24-volt design also provides efficient, quiet operation. Rollers shut down when there is no product present to convey.
JUST SKIP IT
Another benefit of Amway's new conveyor design is that it can accommodate zone skipping. In the old building, orders had to pass through all pick zones whether the zones contained items needed for the order or not. In the new facility, that's no longer necessary. Under the current setup, the facility's RedPrairie warehouse management system is able to route cartons so they bypass zones that do not contain any picks.
The conveyors serve a pick-to-belt area, where full cases are selected; a split case area; and a pick-to-combine area, where small-carton items and split-case items are consolidated into a single outbound carton to save on shipping. Picking in these areas is directed by a combination of pick-to-light and pick-by-voice technologies, with both systems supplied by Bastian.
DIVERSIONARY TACTICS
Bastian also provided several ZIPline zero pressure accumulation conveyors that feature a "tacky," or rough-surfaced, belt that allows for quick acceleration and deceleration without product slippage. These are deployed in areas where product is to be inserted or diverted. In all, the system at Amway features 51 total conveyor diverts.
Among those diverts is a section that feeds three French-made packaging systems from B+ Equipment and its American partner, Sealed Air Corp. These machines "right size" cartons by folding down the top edges to meet the height of the tallest item in the carton. The system then glues a lid onto the box.
In addition to routing items to the various picking areas, the conveyors also serve document insertion areas, the print-and-apply applicators, and the packaging area. In-line scales built into the conveyors also perform weight verification at several stages along the conveyor journey to assure that true weight matches expected weight.
Once all products have been packaged, the cartons enter a 4-to-1 sawtooth merge that lines them up for sorting via a narrow-belt sorter. Wheels at the 16 diverts pop up at a 30-degree angle between the conveying bands of the sorter to nudge products down spurs to awaiting docks. This unit is able to sort 90 cartons a minute, serving four pallet build areas and 12 shipping lanes. Cartons are floor loaded onto trailers aided by a telescoping extendible conveyor supplied by Adjustoveyor.
Editor's note: The facility described in this story is featured in "Move it!," a new Web-based TV series that takes viewers inside the operations of leading companies and introduces them to the people, cutting-edge technologies, and strategies that make it all work. To view the episode and see Amway's conveyors in action, visit www.moveitshow.com.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."