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.
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%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."