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."
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.