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."
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."