Using easy-to-install kits made from off-the-shelf components, Toyota converted 22 tow tractors at one of its plants into automated guided vehicles. Plans are now in the works to bring the technology to DCs.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Imagine walking into a material handling equipment maintenance and repair shop, pulling standard components off the shelf, and—with relatively little time and effort—turning an ordinary industrial tow tractor or forklift into an automatic guided vehicle (AGV).
That day isn't here just yet, but it's closer than you might think. An automation project at a Toyota auto manufacturing plant in Georgetown, Ky., has shown that it's possible to retrofit some types of manual equipment quickly and easily, earning a big return in terms of cost, labor, efficiency, and flexibility. Although the project involved a manufacturing environment, it may well serve as a prototype for bringing more AGVs to material handling environments, where they have yet to make major inroads due to their cost and complexity.
TOW TRACTOR TRANSFORMATION
Toyota Motor Manufacturing Kentucky Inc. (TMMK) makes the Camry, Venza, and Avalon models at the Georgetown facility, a 1,300-acre complex encompassing some 7.5 million square feet of manufacturing and assembly space. Like all Toyota operations, the Georgetown plant adheres to the Toyota Production System, also known as "just-in-time" or "lean" manufacturing.
Over the years, Toyota had honed production at the Georgetown plant to a high level of efficiency. But there was still room for improvement when it came to the internal movement of parts. The factory, built in 1988, is not as compact as newer facilities. As a result, workers delivering materials to the body-weld department had to drive long distances, navigating congested areas to drop flow racks and palletloads of parts at work cells. Sudden stops, complicated workflow paths, and the occasional traffic jam or collision led to product damage and delayed deliveries.
A team assigned to study the problem determined that automating the transportation of parts to the 1 million-square-foot body-weld area—in essence, taking human drivers out of the equation—would eliminate most of the delay and damage problems. Their conclusion may not be very surprising. What is surprising is the way TMMK accomplished that objective: Instead of purchasing new equipment, the factory chose to retrofit 22 of its Toyota 24-volt, AC-drive tow tractors with locally built automation kits that turned them into automatic guided vehicles.
To develop these "home-grown" AGVs, TMMK worked with two local business partners—AutoGuide, an automation specialist led by AGV innovator Paul J. Perry, and Industrial Concepts Inc. (ICI), a developer of custom machinery and control systems whose president, Tim Taylor, is a former TMMK mechanical whiz. (AutoGuide and ICI are closely allied; the two share a facility across the street from TMMK, and ICI's executives have an ownership stake in AutoGuide.)
Utilizing the same off-the-shelf devices already in use for other types of AGVs at TMMK, AutoGuide outfitted the 10,000-pound-capacity tow tractors with obstacle and guidance sensors, radio-frequency modems, RFID tag readers, and a touchscreen programmable logic controller (PLC) interface, among other technologies. All of the components are contained in a removable attachment designed by AutoGuide. Installation is a simple matter of drilling six holes in a tractor's chassis, and is the only physical change required, according to Tim Meyer, Toyota Production System solutions and AGV product manager for Toyota Material Handling U.S.A. Inc.
Flexibility was another reason TMMK chose to convert standard, manual equipment to AGVs. The stand-alone attachments can be installed either at the time of purchase or lease, or after the vehicles go into service, and they can be easily removed and reinstalled on other vehicles, Meyer explained during a tour of TMMK. Drivers can switch the tractors from automatic to manual mode simply by stepping on a pressure-sensitive mat in the driver's compartment.
NAVIGATING "SPAGHETTI JUNCTION"
Before the AGVs arrived in the body-weld department, manned tow tractors dropped off flow racks and pallets full of parts alongside each of the robotic welding cells, which were located on both sides of a wide aisle. Team members then picked up the parts they needed from racks and pallets on both sides of the aisle. The work and material flow for parts delivery to the robotic welding cells involved 16 stops, or actions, from pickup to placement in the welding robot load positions.
Today, the storage racks and pallets are gone. Now, a driverless tow tractor pulls as many as five dollies full of auto parts from the storage area to the cells, a distance of about 950 feet. Team members retrieve the parts they need from the dollies, which are positioned parallel to the cells just a few steps away, eliminating the need to cross the aisle. Once all the parts have been unloaded, the AGV returns to the storage area for more material, while another tractor with the next batch of parts arrives just when they're needed. Instead of 16 stops, there are only nine. And because the AGVs always travel the same route at the same speed, the time from pickup to arrival at the welding cells is consistent and predictable.
To get where they're going, the tow tractors follow over two miles of magnetic strip slotted into narrow troughs in the concrete floor. Their positions are tracked by RFID tags embedded in the floor.
Navigating the high-traffic body-weld department requires care and precision. The weld stations are positioned along a 300-foot "highway" with nine routes branching off and merging into it—an area known as "spaghetti junction." In addition, the tow tractors have to share the road, so to speak, with other Toyota AGVs (such as L-cart material transporters and low-profile "Mouse" tug-carts) that motor along the same magnetic guide paths. The tow tractors also cross paths with the manned vehicles that deliver partial loads and those destined for multiple drop-off sites. Drivers are required to yield to the AGVs.
To manage the movements of the automatic vehicles, TMMK's AGV implementation team worked with ICI to develop traffic-control technology that would be compatible with the guidance systems and control devices already in place for other types of AGVs. The resulting Automated Vehicle Intersection Navigational Utility (AVINU) is "the link between the AGVs and everything else that's automated," said ICI President Tim Taylor.
The wireless system communicates with the different types of AGVs, reporting each one's location, status, and performance data—information that can be viewed on any authorized computer in the facility. AVINU assigns loads to vehicles and regulates traffic at intersections; arrival at certain RFID tags triggers wireless transmission of instructions to the AGVs. The system also monitors battery status and tells the vehicles when to head over to an opportunity charger.
REACHING A BROADER AUDIENCE
Changing the way parts are delivered and reconfiguring the robotic welding cells has cut walking distances by 978 miles a year, saving five hours of walking time per shift—the equivalent of 317 work days annually, said Paul Stafford, specialist production engineering and AGV implementation lead. Furthermore, eliminating the storage pallets and flow racks opened up nearly 37 square feet of work space adjacent to each cell, freeing up space for other activities.
Because the AGVs travel the same paths at a consistent speed without so much as an inch of variation, they can safely navigate turns that would challenge human drivers—in some places, with less than six inches of clearance, according to Stafford. Congestion, collisions, sudden stops, and in-transit product damage have all been eliminated.
The labor savings have been equally impressive. The body-weld department has been able to reassign 42 people to other, more value-adding positions—including to the AGV implementation team—and nobody has been let go.
So far, the Toyota AutoGuide/AVINU project has saved TMMK more than $1 million annually, and ROI was achieved in just over one year. The payback has been substantial enough that the AGV implementation team will roll out the system elsewhere at Georgetown and will help to implement it at other Toyota auto plants.
The project foretells wider adoption of automation, not only in manufacturing but also in warehousing and distribution. In fact, AutoGuide attachments for Toyota pallet trucks and forklifts are already in the works. "I believe the automation market is limitless, although there will be challenges," Meyer said.
One of those challenges will be to convince warehouse and DC operators that automatic vehicles are not as complicated and expensive to purchase, install, and operate as they might think. That may not prove particularly difficult, however: Meyer estimates that the cost of a new, mass-produced vehicle plus the AutoGuide automation kit would be approximately one-fourth that of a custom-built traditional AGV. The fact that the AGVs are created from standard industrial vehicles and widely available, off-the-shelf components rather than proprietary controls will keep the cost down, he added.
Potential buyers will also want assurances of ready access to maintenance services for this new breed of AGVs, said Martin Boyd, vice president of product planning, marketing, and training for Toyota Material Handling U.S.A. Inc. That makes it critical to provide service for both the truck and the AGV components through the existing dealer network with its established relationships, he said.
Boyd agrees that lower-cost AGVs are poised for rapid growth. The economic downturn forced companies to look for waste, cut costs, and introduce more process efficiencies while considering how to better prepare for rapid change, he said in an interview at TMMK. Automation can help in all of those areas, and lift truck manufacturers will play a leading role in bringing it to a wider audience, he said. "We want to develop broader solutions around the customer to help them save money. We don't see automation as a competitor. We see it as an enabler."
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."