We're likely to see more robots in DCs within the decade. But Tom Bonkenburg says the first wave will probably look a lot more like driverless forklifts than R2-D2 or C-3PO.
James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
The Boston Consulting Group recently predicted that global sales for robots would reach $67 billion by 2025, with the industrial segment being the largest component of that market.
That prediction comes as no surprise to St. Onge Co. consultant Tom Bonkenburg, the leading expert on the use of robotic systems in distribution. A mechanical engineering graduate from the Rensselaer Polytechnic Institute, Bonkenburg has been fascinated by robots since he was a kid.
That fascination led him to a career in material handling. For the past 15 years, Bonkenburg's consulting efforts have focused on supply chain and warehouse design with a strong interest in custom automation and robotics within the distribution environment. He is currently a partner in the St. Onge Co. and heads up that firm's European office.
Bonkenburg recently discussed trends in robotics with DC Velocity Editor at Large James Cooke.
Q: What's the current state of "robotics" in warehousing?
A: The current state of robotics depends on your definition of the word "robot." For many years, we have seen robotic technology in the distribution environment such as AS/RS (automated storage/retrieval systems), AGVs (automated guided vehicles), shuttle systems, transfer cars, palletizers, Kiva, Symbotic, etc. These types of systems are mature, well understood, and installed in DCs around the world. However, if your definition of "robot" includes such terms as multipurpose, adaptable for different types of jobs, redeployable, or even "humanoid," then robotics is not very common in a typical warehouse environment.
Q: Any idea of the percentage of DCs that are using robotics in their operations? A: This is a very difficult question to answer. Our research shows that 15 percent of warehouses are mechanized, and only 5 percent have true automation. Robotic systems would typically fall somewhere within these operations. The key point to note is that 80 percent of DCs are currently manual, creating a large potential opportunity for the future deployment of robotic systems if they could be made capable and affordable.
Q: What types of robotic systems are being used in warehousing, and for what purpose? A: We often see robotic systems such as pallet AS/RS and end-of-line palletizers used in high-volume finished-goods warehouses that are attached to factories. These systems tend to operate for three shifts and handle a limited range of similar SKUs (stock-keeping units) but high volumes. The "goods to picker" technologies such as shuttles are being deployed in some direct-to-consumer piece picking operations with many small orders and large SKU bases.
Q: How about humanoid robotics? How soon do you think we'll see humanlike robots in warehousing? A: Many of the traditional robotic-arm manufacturers are developing two-arm "humanlike" robots for use in assembly operations. These robots are still bolted down within an automated work cell like typical manufacturing robots. So far, few have been installed, but the interest in these new robots is very high. I believe this technology will first take hold in the manufacturing environment and then possibly move to the distribution side of the supply chain. This transition will likely take several years and will require a few more software, sensor, and cost-point breakthroughs. The good news is that several companies are investing serious money into advancing this technology.
Q: Do you know of any companies that are experimenting with humanoid robots in DCs? A: One of the most impressive humanoid robots, Robonaut, was developed by NASA in cooperation with General Motors. They have experimented in the manufacturing environment but as far as I know not in the distribution environment.
Q: There's a company called Rethink Robotics that makes a humanoid robot called "Baxter." Where does development of that technology stand and is it being used in warehouses? A: I am a big fan of Rethink Robotics and their underlying concepts. They have developed a low-cost, easy-to-use software-focused robot that works alongside human workers without fences or safety gates. Unfortunately, their first system, Baxter, is quite slow and has limited capability when it comes to warehousing and many manufacturing operations. There are rumors in the market that their second-generation robot will come out next year, and I am looking forward to seeing if future generations, such as versions three or four, would be more suited to distribution operations.
Q: Are any companies developing humanoid robots for use in warehousing? A: Rethink Robotics has focused its development energy on manufacturing pick-and-place-type applications rather than on the more complex warehouse environment. This market strategy is similar to the path taken by other companies that are currently working on dual-arm robotics. The warehousing industry needs a robotic manufacturer to take the Rethink approach but focus on the distribution side of the supply chain.
Q: What's the biggest obstacle to putting robots in warehouses—cost or technology? A: The truth is that both cost and technology are currently barriers to bringing robots into the warehouse. A few fundamental breakthroughs are necessary to both improve capability and reduce cost. The good news is that mini robotic breakthroughs are happening every year, and their frequency is increasing rapidly. The future path to commonplace robotics will depend on low-cost sensors and inexpensive but massive computing power. Anyone who used to have a rotary phone and now has an iPhone knows that those two key ingredients improve rapidly! I believe that all supply chain professionals should watch the robotics space because we will all be amazed how fast it will change.
Q: What's the biggest opportunity for using robots in warehousing? A: When looking forward to the next likely breakthroughs in robotic technology, I feel that robotic industrial trucks, similar to but more advanced than those made by Seegrid, will be the true entry point for more widespread use of robotics in the warehouse. A truly functional fully robotic forklift could find immediate application in almost any warehouse. If you look at the recent breakthroughs in self-driving cars by companies such as Google, GM, BMW, Audi, etc., it is not hard to picture this happening in the coming years.
Q: You said that robotic industrial trucks would likely be the entry point for robots. Why is that? Why are we likely to see driverless forklifts in a warehouse before humanoid robots? A: While building a fully driverless forklift will be a great challenge, developing a humanoid robot to work in a warehouse will be even more difficult. Modern forklifts offer a robust, inexpensive, and well-designed physical platform to eventually automate with computers, sensors, and vision systems. There are several large forklift manufacturers with strong sales and support networks that could possibly deploy and maintain a robot forklift fleet.
In the case of a humanoid robot, there is still no strong physical hardware platform to start with and few large companies produce them. Most humanoid robots are currently prototypes or focused on light-duty manufacturing. More robust humanoid robotic systems with large support networks need to be developed before we can even think of applying them to warehouse applications. The modern forklift has a head start over humanoid robots since it is already a hardened piece of warehouse equipment with the relatively easy task of moving standard pallets rather than the more difficult humanoid tasks that require the handling of a wide range of dissimilar items.
Q: Do you expect humanoid robots to replace warehouse workers or to work alongside human workers in warehousing? A: My personal belief is that robots will work alongside human workers. People are very, very good, and we keep making them better. Anyone who has spent more than a day in a distribution center will see that it is a very dynamic environment that requires adaptability, flexibility, quick thinking, creative problem solving, and good decision making. Similar to a WMS [warehouse management system] or a conveyor system, robots will be a tool that the smart warehouse team will use to improve its operation. At the end of the day, a supply chain is only as good as the people who work within it, and therefore, the need for talented and motivated people will never disappear.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.