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."
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.