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.'"
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."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
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.
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.