Twenty years ago, Frito-Lay relied on workers to hand stack cases of chips, nuts, and cookies in its trucks. Now, it has more colorful loading options, including the "T. Rex" and robots.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
For many companies, truck loading and unloading is one of the last frontiers of automation.
Consider the case of Frito-Lay. By the mid-90s, the snack food giant had long since automated operations inside its distribution centers. But when it came to loading trucks, the company still relied on manual processes, with workers spending their days inside trailers hand stacking cases of chips, nuts, cookies, crackers, and meats.
As for what was holding it back, Frito-Lay didn't feel it had much choice. Its loading requirements are somewhat out of the ordinary: Because cases of snack foods are relatively light—about five to seven pounds each—trailers tend to cube out before they weigh out. Although there were loading systems on the market, there was nothing available at the time that could match hand loading when it came to ensuring that every inch of the trailer cube was utilized.
Eventually, Frito-Lay decided to take things into its own hands. Working with a partner, it developed a semiautomated solution that includes a conveyor with a series of "arms" that lob cases onto a stack. Some 10 years later, the two partners took the technology to the next level, devising a fully automated loading solution that uses robots guided by sensors.
Today, half of Frito-Lay's distribution centers use one of the two solutions, with 15 semiautomated solutions in use at five sites and 10 fully automated solutions at four others. The result? Significant gains in productivity and a raft of ergonomic benefits.
REPLICATING THE TOSS
What sent Frito-Lay down this path was a need to boost productivity. The traditional labor-intensive process was becoming less and less appealing as volume ramped up—the company ships out 700 million cases each year. On top of that, the process required a lot of bending and reaching on the workers' part. So the company was eager to find an alternative, explains Andy Fisher, senior director of warehouse operations for Frito-Lay North America (US and Canada).
In 1995, the company approached integrator Wynright about automating the process. Fisher says Wynright was a natural place to turn for help. The two had worked together on a number of DC racking and conveyor projects since 1982, and over the years, the provider had offered many useful suggestions for improving Frito-Lay's operations. "They really knew our business and understood our [distribution centers'] wants and needs," he says.
The team of engineers and project managers assigned to the task kicked off the project by going straight to the source, observing workers as they built stacks by gently tossing cases on top of one another. After watching the workers load trucks, they then tried it themselves. Deepak Aurora, a 30-year veteran of Frito-Lay (now retired), who served as a technical liaison to Wynright, recalls, "We said to the operators, 'All right, you step aside, and we will load the truck, so that we [can] get a feeling for how difficult it is and what all the steps are.'"
Once it had a handle on the process, the team took up the question of how to replicate that gentle tossing action with technology, Fisher says. It determined that this could be accomplished by having the cases shoot off the end of a conveyor. To create the stack, workers would simply change the angle of the conveyor so that the cases would land in the right place, according to Aurora.
To test the concept, one member of the team actually stood inside a trailer holding a small piece of conveyor while other team members experimented with changing the conveyor's speed and angle. The team discovered that at a speed of 400 feet per minute, they were able to stack the cases quickly without causing damage to the product.
Once the two parties had settled on the general concept, Wynright designed a conveyor with a series of arms that shoot the cases out. An operator working inside the truck aims the equipment, which Frito-Lay nicknamed "T. Rex." The conveyor then rises up automatically, and the next case is lobbed on top of the first.
With the semiautomated solution, Frito-Lay could now load trucks twice as fast as it could via the manual process, says Fisher. The solution also offered ergonomic advantages, since workers no longer had to bend, reach, and stretch to position the boxes.
The solution worked so well for Frito-Lay that the two companies filed for a joint patent for the T. Rex truck loader. "Once the thing was designed and built, we looked at the concept and realized that it's really a unique application of available technologies—of how you can put together all these simple technologies and make them into one system that will do the job," Aurora recalls.
FROM DINOSAURS TO ROBOTS
While it was Frito-Lay that came to Wynright with the general concept for a loading system in 1995, 10 years later it was the other way around. This time, Wynright approached Frito-Lay with an idea for an upgrade. Wynright's idea was to take the worker out of the process and instead, use a mobile robot that would move into the trailer, build the load, and then back out again.
After seeing a computer simulation, Frito-Lay gave Wynright the go-ahead. Then, the real work began, recalls Tim Criswell, divisional president for Wynright Robotics. "We collaborated with Frito-Lay [to figure] out how to make that work in their environment under their economic conditions: how the cases would come in, what rate we would have to run at, what reliability we would have to run, those sorts of things," he says. "When we finished that, we took those things and did the detailed engineering and implementing."
The result was a sophisticated solution called a robotic truck loader (RTL), which builds half a stack outside the trailer then drives into the trailer and gently sets it on the floor. Each stack is built to half the trailer's height. After positioning the first stack, the robot places the second stack on top of it, then works its way across the trailer. Once the robot reaches the other end, the system moves it back one case length and it repeats the process.
The biggest challenge in turning the concept into reality was figuring out how to tell the robot where it was inside the trailer. "You can put a robot on a cart and drive it into the trailer, but it's never going to be in exactly the same position," says Criswell.
Wynright solved that by deploying advanced sensor technology. "We used a laser measurement system that would scan the environment and create a cloud of data points on the location of the trailer's floor and walls, and the existing cases," Criswell explains. "The system then analyzes the data, feeds that information to the robot, and off you go!"
According to Criswell, the robot can cube out the truck as well as—or better than—a person can because it's taller and has more reach. That allows the robot to gently place the final cases on the top of the stack instead of having to toss them. Believing they had another unique solution, Frito-Lay and Wynright once again filed for a joint patent.
Fisher reports that the RTLs have brought about significant productivity gains at the sites where they've been implemented, boosting case loading rates from 500 cases per labor-hour to over 1,100. The gains in this case are due to efficiency, not speed. An RTL can't load a truck any faster than a human can, but because a single operator can control three robots at once, it allows workers to be more productive, says Fisher. It was this ability for one person to operate multiple units that justified the cost of the automation for Frito-Lay, Aurora says.
A BLENDED APPROACH
It's worth noting that the introduction of the fully automated robotic truck loader did not make its semiautomated predecessor obsolete. Because the RTL only works with products that have a standard footprint, its application is limited to those DCs that handle nothing but Lay's potato chips and Doritos, which are shipped in standard-size returnable cartons. Facilities that ship cookies, crackers, nuts, or meats in addition to chips use the semiautomated solution.
Regardless of where they're deployed, both solutions have been a hit with workers, Fisher says. "The technicians appreciate that Frito-Lay is making their jobs better and that this has been accomplished without a reduction in manpower except by natural turnover," he reports. "They have really embraced the technology. Instead of standing in a trailer throwing cases for seven hours a day, they're pressing buttons and operating machinery. It's a higher-level [job] for them."
Fisher does acknowledge that he's received one complaint. "I had one guy come up to me and say, 'I have a problem. I find that I'm gaining a little bit of weight because I'm not as physically active as I used to be.' I said to him, 'Well, are you exercising?' He said, 'I think I'm going to have to start. At the end of the day, I'm not diving into my chair anymore. My energy level has really improved.'"
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.