We won't have androids picking eaches any time soon, but robots used in distribution centers are becoming more sophisticated and moving deeper into operations.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
The word "robot" derives from a Czech term dating back to 1920 that means something on the order of "forced labor." Our more contemporary sense of a machine capable of some intelligence and of manipulating materials comes to us more from the realm of science fiction—the thinking robots of Isaac Asimov, George Lucas, and others.
The robots that are increasingly found in modern distribution centers combine, in some sense, both of these concepts. They are capable of nearly endlessly repeating the same action, work that is pure drudgery for a human. And, largely as a result of improvements in their underlying sensors, software, and vision systems, they are becoming more sophisticated, easier to program, and capable of a wider variety of tasks.
And it's that capability for intelligent drudgery that may be at the core of why robots have a substantial future in the DC.
Earl Wohlrab, product manager for robotics systems and palletizing for Intelligrated, a maker of automated material handling systems, lays out why robots will be a good fit. "We've got a labor problem around several different issues: finding qualified people and finding people that desire to do that kind of work," he says. "Gone are the days that someone is going to retire out of a DC. Nobody wants to spend day after day in the back of a truck in an Atlanta summer. It's going to be more than a desire to use robots; we're going to be required to go to robots."
Brené Tymensky, vice president of engineering for Fortna, a supply chain and material handling consultancy, believes the future of robots in DCs is "unlimited." He foresees a day when robots in the DC interact more frequently with other machines than with humans. "We're getting closer and closer to the lights-out realm we've envisioned for many years," he says. "I don't think we'll ever get to that completely, but robots are interfacing more with the machine and less with the person."
ROBOTS "SEE" BETTER, FASTER
As for what's led to the increased presence of robots in DCs, the experts interviewed for this article agreed that it was more about technological breakthroughs and enhancements than changes in the robotic hardware itself. The robot manufacturers have already solved most of the problems around the physical handling of products, explains Dean Starovasnik, practice leader for distribution engineering design at Atlanta-based systems integrator and consultancy Peach State Integrated Technologies.
Tymensky of Fortna agrees. "The real advances have been in the software and vision systems and learning techniques," he says. Those vision system improvements—the cameras and related technology that enable robots to "see" what they are handling—allow robots to manipulate a greater variety of products than in the past, a key capability in a DC environment. Also important, he says, is the ability to retrain robots quickly as patterns in the DC change, which happens much more often than in manufacturing.
Wohlrab of Intelligrated adds that today's robots not only see better, they see faster—an attribute with major implications for DCs. "Today's systems not only offer robot vision with fine detail, they offer much higher speeds than in the past," he says. "That's what we needed to be able to survive the robust nature of the DCs. When a shipping wave comes at you, it's partially controlled pandemonium. That's a difficult environment for a robot."
But it's not just about enhancements in vision. Advances in controls have played a role as well, says Starovasnik. Today's sophisticated controls—essentially the technology that directs the robot's motions—enable the devices to handle the greater complexity demanded in distribution applications compared with manufacturing, he explains.
Larry Boroff, director of automation systems engineering for systems integrator and supply chain consultancy Forte, notes that he has seen gains from manufacturers in both mechanical systems and underlying technology. "The gripper mechanisms are getting better, and vision systems are starting to get better," he says.
BUILDING COMPLEX PALLETS
One result of these enhancements is to boost robots' capabilities in an area where they have already made great inroads in DCs—palletizing and depalletizing. It's a timely advance, as rainbow pallets (those with a variety of different items) are becoming more common, especially in retailing. Earlier generations of palletizers worked well with cartons of a uniform size. The new generation can accommodate cartons of a variety of sizes and weights.
"We're trying to right-size all the cartons, so the number of box sizes is going up," says Tymensky. "We want to optimize the palletizing, and in the past, we had to do that manually." The newest generation of palletizing robots are able to manage that variety.
Not only can today's robots handle cartons of different sizes, but they can also load them on pallets in a specific order. Starovasnik says that robotic systems from companies like Witron and Schaefer are able to build pallets to a planogram (a diagram of a store's interior indicating where products are located). That is, they add cases to pallets in the reverse order they are needed in the store aisle. That way, he explains, a worker in the store can unload from the top down while moving down the aisle, eliminating backroom sortation and thus, labor.
In addition, Starovasnik says, the pallets are built so as to reduce damage and make the best use of cube in transportation, further reducing those costs. To do that, he says, the robotic system not only has to "understand" how to build a square pallet with various-sized cartons, but it must do so in a way that accounts for carton weight (with heavy cases on the bottom) and such factors as isolating food from hazardous materials. In addition, as it builds the pallet, the robot must sense any earlier cartons that might be in its path—it must work in three dimensions. These are expensive systems, he says, but they provide considerable savings downstream.
The key to making all this work is data, says Mike Khodl, vice president of solutions development for systems supplier and integrator Dematic. "It is absolutely critical that the data repository—whether an enterprise resource planning (ERP) system or a warehouse management or warehouse control system—has knowledge of every case, including its physical footprint, weight, and crushability," he says. "Those attributes—and several others—have to be put into a cubing algorithm driven by software on how to put the pallet together." He compares the process to doing a Tetris puzzle at high speed.
WHAT'S AHEAD?
The recent advances in palletizing are just the forefront of what robots will be able to do in DCs in the years to come. Case and piece picking, taking over tasks in hazardous environments, and even packaging applications are all possibilities.
"One day, we could see a robot mosey on down into the pick aisle," Wohlrab muses. "That could be years from now, but we're not all that far away from some things." He says, for instance, that Intelligrated is looking at robots that could unload floor-loaded trucks. That technology could be as close as 12 to 24 months away, he says.
Nonetheless, Wohlrab acknowledges that the technology still has a ways to go. "We are trying to shoehorn in software from the manufacturing side," he says. He adds that costs need to fall further and that tools for programming robots need to improve before robots make greater inroads into DCs. But he expects that to happen.
Tymensky speculates that as software matures and competition among robot manufacturers increases, costs may drop in ways that make robots feasible for lower-volume operations.
James Bowes, Peach State's president and CEO, is of the same mind. "As the technology moves from the early adopter phase and the control systems become more dependable and the cost of labor continues to grow, the [technology] becomes much more affordable and attractive," he says.
As for what's ahead, Khodl says, "If I were to paint a picture of the future, we would see item-level picking with robotics come to some form of reality. I could see robotics replacing labor in goods-to-person picking operations."
To get there will require further breakthroughs in vision systems, Bowes says, and will likely apply first to operations with a high volume of similar goods. But he expects the problem will be solved.
The potential for robots in DCs is limited only by the imagination of developers and end users. "I can envision robots involved in every step from picking through cutting a custom-sized carton, packaging, and labeling," Tymensky says. "If we get to the far end of the spectrum, we might even see them doing gift wrapping. It's a repetitive process. The potential is kind of unlimited."
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
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."