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.'"
As a contract provider of warehousing, logistics, and supply chain solutions, Geodis often has to provide customized services for clients.
That was the case recently when one of its customers asked Geodis to up its inventory monitoring game—specifically, to begin conducting quarterly cycle counts of the goods it stored at a Geodis site. Trouble was, performing more frequent counts would be something of a burden for the facility, which still conducted inventory counts manually—a process that was tedious and, depending on what else the team needed to accomplish, sometimes required overtime.
So Levallois, France-based Geodis launched a search for a technology solution that would both meet the customer’s demand and make its inventory monitoring more efficient overall, hoping to save time, labor, and money in the process.
SCAN AND DELIVER
Geodis found a solution with Gather AI, a Pittsburgh-based firm that automates inventory monitoring by deploying small drones to fly through a warehouse autonomously scanning pallets and cases. The system’s machine learning (ML) algorithm analyzes the resulting inventory pictures to identify barcodes, lot codes, text, and expiration dates; count boxes; and estimate occupancy, gathering information that warehouse operators need and comparing it with what’s in the warehouse management system (WMS).
Among other benefits, this means employees no longer have to spend long hours doing manual inventory counts with order-picker forklifts. On top of that, the warehouse manager is able to view inventory data in real time from a web dashboard and identify and address inventory exceptions.
But perhaps the biggest benefit of all is the speed at which it all happens. Gather AI’s drones perform those scans up to 15 times faster than traditional methods, the company says. To that point, it notes that before the drones were deployed at the Geodis site, four manual counters could complete approximately 800 counts in a day. By contrast, the drones are able to scan 1,200 locations per day.
FLEXIBLE FLYERS
Although Geodis had a number of options when it came to tech vendors, there were a couple of factors that tipped the odds in Gather AI’s favor, the partners said. One was its close cultural fit with Geodis. “Probably most important during that vetting process was understanding the cultural fit between Geodis and that vendor. We truly wanted to form a relationship with the company we selected,” Geodis Senior Director of Innovation Andy Johnston said in a release.
Speaking to this cultural fit, Johnston added, “Gather AI understood our business, our challenges, and the course of business throughout our day. They trained our personnel to get them comfortable with the technology and provided them with a tool that would truly make their job easier. This is pretty advanced technology, but the Gather AI user interface allowed our staff to see inventory variances intuitively, and they picked it up quickly. This shows me that Gather AI understood what we needed.”
Another factor in Gather AI’s favor was the prospect of a quick and easy deployment: Because the drones can conduct their missions without GPS or Wi-Fi, the supplier would be able to get its solution up and running quickly. In the words of Geodis Industrial Engineer Trent McDermott, “The Gather AI implementation process was efficient. There were no IT infrastructure or layout changes needed, and Gather AI was flexible with the installation to not disrupt peak hours for the operations team.”
QUICK RESULTS
Once the drones were in the air, Geodis saw immediate improvements in cycle counting speed, according to Gather AI. But that wasn’t the only benefit: Geodis was also able to more easily find misplaced pallets.
“Previously, we would research the inventory’s systemic license plate number (LPN),” McDermott explained. “We could narrow it down to a portion or a section of the warehouse where we thought that LPN was, but there was still a lot of ambiguity. So we would send an operator out on a mission to go hunt and find that LPN,” a process that could take a day or two to complete. But the days of scouring the facility for lost pallets are over. With Gather AI, the team can simply search in the dashboard to find the last location where the pallet was scanned.
And about that customer who wanted more frequent inventory counts? Geodis reports that it completed its first quarterly count for the client in half the time it had previously taken, with no overtime needed. “It’s a huge win for us to trim that time down,” McDermott said. “Just two weeks into the new quarter, we were able to have 40% of the warehouse completed.”
The less-than-truckload (LTL) industry moved closer to a revamped freight classification system this week, as the National Motor Freight Traffic Association (NMFTA) continued to spread the word about upcoming changes to the way it helps shippers and carriers determine delivery rates. The NMFTA will publish proposed changes to its National Motor Freight Classification (NMFC) system Thursday, a transition announced last year, and that the organization has termed its “classification reimagination” process.
Businesses throughout the LTL industry will be affected by the changes, as the NMFC is a tool for setting prices that is used daily by transportation providers, trucking fleets, third party logistics service providers (3PLs), and freight brokers.
Representatives from NMFTA were on hand to discuss the changes at the LTL-focused supply chain conference Jump Start 25 in Atlanta this week. The project’s goal is to make what is currently a complex freight classification system easier to understand and “to make the logistics process as frictionless as possible,” NMFTA’s Director of Operations Keith Peterson told attendees during a presentation about the project.
The changes seek to simplify classification by grouping similar items together and assigning most classes based solely on density. Exceptions will be handled separately, adding other characteristics when density alone is not enough to determine an accurate class.
When the updates take effect later this year, shippers may see shifts in the LTL prices they pay to move freight—because the way their freight is classified, and subsequently billed, could change as a result.
NMFTA will publish the proposed changes this Thursday, January 30, in a document called Docket 2025-1. The docket will include more than 90 proposed changes and is open to industry feedback through February 25. NMFTA will follow with a public meeting to review and discuss feedback on March 3. The changes will take effect July 19.
NMFTA has a dedicated website detailing the changes, where industry stakeholders can register to receive bi-weekly updates: https://info.nmfta.org/2025-nmfc-changes.
Trade and transportation groups are congratulating Sean Duffy today for winning confirmation in a U.S. Senate vote to become the country’s next Secretary of Transportation.
Once he’s sworn in, Duffy will become the nation’s 20th person to hold that post, succeeding the recently departed Pete Buttigieg.
Transportation groups quickly called on Duffy to work on continuing the burst of long-overdue infrastructure spending that was a hallmark of the Biden Administration’s passing of the bipartisan infrastructure law, known formally as the Infrastructure Investment and Jobs Act (IIJA).
But according to industry associations such as the Coalition for America’s Gateways and Trade Corridors (CAGTC), federal spending is critical for funding large freight projects that sustain U.S. supply chains. “[Duffy] will direct the Department at an important time, implementing the remaining two years of the Infrastructure Investment and Jobs Act, and charting a course for the next surface transportation reauthorization,” CAGTC Executive Director Elaine Nessle said in a release. “During his confirmation hearing, Secretary Duffy shared the new Administration’s goal to invest in large, durable projects that connect the nation and commerce. CAGTC shares this goal and is eager to work with Secretary Duffy to ensure that nationally and regionally significant freight projects are advanced swiftly and funded robustly.”
A similar message came from the International Foodservice Distributors Association (IFDA). “A safe, efficient, and reliable transportation network is essential to our industry, enabling 33 million cases of food and related products to reach professional kitchens every day. We look forward to working with Secretary Duffy to strengthen America’s transportation infrastructure and workforce to support the safe and seamless movement of ingredients that make meals away from home possible,” IFDA President and CEO Mark S. Allen said in a release.
And the truck drivers’ group the Owner-Operator Independent Drivers Association (OOIDA) likewise called for continued investment in projects like creating new parking spaces for Class 8 trucks. “OOIDA and the 150,000 small business truckers we represent congratulate Secretary Sean Duffy on his confirmation to lead the U.S. Department of Transportation,” OOIDA President Todd Spencer said in a release. “We look forward to continue working with him in advancing the priorities of small business truckers across America, including expanding truck parking, fighting freight fraud, and rolling back burdensome, unnecessary regulations.”
With the new Trump Administration continuing to threaten steep tariffs on Mexico, Canada, and China as early as February 1, supply chain organizations preparing for that economic shock must be prepared to make strategic responses that go beyond either absorbing new costs or passing them on to customers, according to Gartner Inc.
But even as they face what would be the most significant tariff changes proposed in the past 50 years, some enterprises could use the potential market volatility to drive a competitive advantage against their rivals, the analyst group said.
Gartner experts said the risks of acting too early to proposed tariffs—and anticipated countermeasures by trading partners—are as acute as acting too late. Chief supply chain officers (CSCOs) should be projecting ahead to potential countermeasures, escalations and de-escalations as part of their current scenario planning activities.
“CSCOs who anticipate that current tariff volatility will persist for years, rather than months, should also recognize that their business operations will not emerge successful by remaining static or purely on the defensive,” Brian Whitlock, Senior Research Director in Gartner’s supply chain practice, said in a release.
“The long-term winners will reinvent or reinvigorate their business strategies, developing new capabilities that drive competitive advantage. In almost all cases, this will require material business investment and should be a focal point of current scenario planning,” Whitlock said.
Gartner listed five possible pathways for CSCOs and other leaders to consider when faced with new tariff policy changes:
Retire certain products: Tariff volatility will stress some specific products, or even organizations, to a breaking point, so some enterprises may have to accept that worsening geopolitical conditions should force the retirement of that product.
Renovate products to adjust: New tariffs could prompt renovations (adjustments) to products that were overdue, as businesses will need to take a hard look at the viability of raising or absorbing costs in a still price-sensitive environment.
Rebalance: Additional volatility should be factored into future demand planning, as early winners and losers from initial tariff policies must both be prepared for potential countermeasures, policy escalations and de-escalations, and competitor responses.
Reinvent: As tariff volatility persists, some companies should consider investing in new projects in markets that are not impacted or that align with new geopolitical incentives. Others may pivot and repurpose existing facilities to serve local markets.
Reinvigorate: Early winners of announced tariffs should seek opportunities to extend competitive advantages. For example, they could look to expand existing US-based or domestic manufacturing capacity or reposition themselves within the market by lowering their prices to take market share and drive business growth.
By the numbers, global logistics real estate rents declined by 5% last year as market conditions “normalized” after historic growth during the pandemic. After more than a decade overall of consistent growth, the change was driven by rising real estate vacancy rates up in most markets, Prologis said. The three causes for that condition included an influx of new building supply, coupled with positive but subdued demand, and uncertainty about conditions in the economic, financial market, and supply chain sectors.
Together, those factors triggered negative annual rent growth in the U.S. and Europe for the first time since the global financial crisis of 2007-2009, the “Prologis Rent Index Report” said. Still, that dip was smaller than pandemic-driven outperformance, so year-end 2024 market rents were 59% higher in the U.S. and 33% higher in Europe than year-end 2019.
Looking into coming months, Prologis expects moderate recovery in market rents in 2025 and stronger gains in 2026. That eventual recovery in market rents will require constrained supply, high replacement cost rents, and demand for Class A properties, Prologis said. In addition, a stronger demand resurgence—whether prompted by the need to navigate supply chain disruptions or meet the needs of end consumers—should put upward pressure on a broad range of locations and building types.