David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Polaris Industries' star is shining brightly these days. In fact, business has been so good that the company is expanding its picking capabilities at its largest distribution center, located in Vermillion, S.D. The well-known maker of snowmobiles, off-road vehicles, and other sporting equipment uses this facility and a regional one in Wilmington, Ohio, to distribute parts and accessories.
For the expansion project, the company has chosen a fulfillment method that combines conveyors with split-case picking. Known as zone routing, the strategy is a form of goods-to-person order fulfillment, meaning it eliminates the need for workers to travel up and down aisles to gather items for orders. And it can be a highly efficient strategy. Zone routing often results in productivity rates of 100 to 150 line items picked per operator per hour, according to Dematic, a company that specializes in automated material handling and logistics solutions and that supplied the Polaris zone routing system.
"One reason to use conveyance and zone routing is an efficiency play, as it eliminates walking. Instead, the cartons come to you," says Paul Eickhoff, director of operations for Polaris Parts, Garments, and Accessories (PG&A) distribution.
As for how it works, zone routing is essentially a variation of pick-and-pass technology. In pick-and-pass operations, conveyors send order cartons or totes through each of the various pick zones. Workers select any items needed from their zones and pass the carton along to the picker in the next zone. What's different about zone routing is that the carton is not routed through each zone. It is diverted only to those zones that contain items required for the order. In a sense, it has the advantages of a goods-to-person system at a fraction of price. Think of this as goods-to-person "lite."
"Zone routing is an accepted technology with a good return on investment," notes Ken Ruehrdanz, manager, distribution systems market for Dematic. "You can get a lot of throughput and performance from zone routing. It works for low, medium, and high rates, and is productive while being fairly compact." For these reasons, he says, the application has caught on across a wide range of industries, including apparel, industrial supplies, food and beverages, office supplies, pharmaceuticals, medical supplies, and personal care products.
Polaris is no newcomer to zone routing; it has used the strategy at both of its facilities for some years now. In fact, the system now undergoing expansion in Vermillion dates back to 1997. The current initiative calls for additional Dematic conveyors and new racking to be installed to double the split-case picking zones to 16 from eight. The new conveyors for the system are being installed next to the old conveyors. The two will run side by side until the transition is complete. The facility is also adding new conveyors that will allow cases to be picked directly to conveyor belts.
THERE'S SLOTS TO LIKE
For Polaris, much of zone routing's appeal is its ability to handle a wide range of products. The Vermillion facility alone houses 60,000 stock-keeping units (SKUs), which range from service parts and tires to filters and accessories. That kind of variety would be difficult to accommodate in a fully automated system, such as a miniload shuttle setup.
Not so with zone routing. Zones can be configured to be as large or small as needed, depending on the products' size, how often they're ordered, and the need to situate like-products together. Plus, these systems allow items to be stored in pallet flow racks, carton flow racks, and shelving, and permit fast reconfiguration as needs change.
Zone routing also gives companies the flexibility to handle fluctuations in volume, whether they're caused by seasonal swings or simply uneven daily order patterns. For instance, at Polaris, as many as five people might be assigned to a zone during peak periods, which typically occur between 11 and 2. When activity is slow, a single worker can cover two or more zones.
To take best advantage of all of that flexibility, of course, you must have good slotting. The system must be able to keep precise track of the whereabouts of every item. And it has to be able to balance work evenly across the various zones to avoid logjams while still ensuring workers in other areas are kept busy.
At Polaris, it's a job that's never finished. "Reslotting is a daily process," acknowledges Eickhoff. "We have someone working on it full time. Off road, on road, snow, and summer—we are in a constant state of motion on our SKUs and introduce lots of new products on a regular basis."
INS AND OUTS
While zone routing has been around for a couple of decades, advancements in conveyor design have made the process even more economical and productive. Some systems now allow cartons to be introduced at different start points, eliminating the time they would otherwise spend passing by zones with no picks. "If volumes are high and order sizes are small, you don't want the cartons to have to flow through the entire system," explains Luther Webb, director of operations and solutions consulting at Intelligrated, an automated material handling technology supplier. "You can also create 'early outs' so that the carton can go to shipping from a number of the zones without passing every zone," he says.
Today's systems also employ loops so that if a traffic jam develops in one zone, incoming cartons can be routed around the zone and sent back to it later. Alternatively, control software can be deployed to direct the carton to another zone that contains the same product.
Other conveyor technology advances, such as 24-volt direct current operation, help save energy and wear on equipment components. Most zone routing systems contain sensors designed to power down sections of conveyor when no cartons are present. Plus, new designs and faster diverts allow for more efficient processing than in the past. "Conveyors and diverts now have the ability to handle higher rates," says Boyce Bonham, director of integrated systems and controls at Hytrol Conveyor Co. "In the past, we could handle rates of about 20 to 25 [diverted] cartons a minute. Better controls and equipment now allow for about 35 to 40 cartons a minute through those zones."
Since zone routing systems usually incorporate conventional conveyors and controls, implementation can often be completed in a matter of months—a big time savings over designing and installing a fully automated goods-to-person system. "It is a quick turnaround," says Bonham. "It is low risk, and a tried-and-proven technology." On top of that, the technology is highly scalable—a plus for fast-growing operations like Polaris.
As for the "brains" of the operation, most zone routing systems are overseen by a warehouse control system. Polaris, for example, uses the Dematic Sort Director, which receives pick instructions from a warehouse management system (WMS) and then transmits directions to the handling equipment. But systems can also be set up to accept order information directly from an order entry system or enterprise system, bypassing the need for a WMS altogether.
CARTON READY
When planning for the expansion of its picking system, Polaris decided to change its process to have workers pick items directly into shipping cartons rather than in-house totes. This saves the step of unloading items from the tote and repacking them in a shipping carton later in the process. But the decision also had some implications for the conveyor design. In particular, the shift meant the new conveyors had to be a bit more carton-friendly than their predecessors. For example, the rollers had to be spaced closer together than they were in previous models. In addition, the conveyors and transfer points had to be designed to convey empty (or nearly empty) cartons that have little weight to provide the necessary friction.
Polaris's new conveyors also feature accumulation areas to keep cartons from bumping up against one another. This is crucial for any zone routing application, says Intelligrated's Webb. "Accumulation allows you to pause the carton for a moment and wait for that zone to clear."
In Polaris's daily operations, bar codes attached to each carton are scanned automatically as the carton approaches a zone. If nothing from that zone is needed for the order, the carton continues its journey. But if that zone does contain a required item, a set of small belts, about the width of a car's fan belt, pop up between the conveyor's rollers to gently divert the carton to a nonpowered conveyor spur at the pick zone.
When a carton arrives at the zone, a worker stationed there scans its bar code with a radio-frequency (RF) device to find out what items are needed. (Voice and pick-to-light technology can also be used for this purpose.) Once the selections have been made, the worker deposits the carton back onto the powered conveyor system. If more items are needed to complete the order, the carton then heads to the appropriate zones; if not, it proceeds directly to shipping.
While Polaris opted to pick directly to cartons, not all operations make that choice. Some companies prefer to use totes to gather picks and repack the items later, according to Dematic's Ruehrdanz. That might be the case if the company's processes call for a worker to scan each item right before shipping for one last accuracy check or add extra protective packaging for high-value items.
It's worth noting that uses for zone routing systems aren't limited to order picking. Polaris, for instance, is also using the conveyors to feed replenishment. Workers can deposit original cartons from vendors or totes of repacked items directly onto the conveyor at the start of the zone routing system. The control system then diverts the cartons or totes to zones that require replenishment. Workers there scan the bar-code labels for directions on where in the racks to place the incoming items. Inventory systems are updated at the same time to reflect that the products are now available for orders.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
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."