Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
If there were a GQ magazine for robots, the boys in the photo above could be cover material. They're strong, flexible, and have eyes to die for. They're so lifelike that an executive of Deutsche Post DHL Group, the German transport and logistics giant testing their use, referred to one in an interview as "he" before correcting himself with a chuckle.
Deutsche Post DHL chose "Baxter" and "Sawyer" because their "humanoid faces" would increase their acceptance among its distribution center workers and make the workers feel more at ease toiling alongside them, said Denis Niezgoda, project manager, innovation and trend research, for the company's customer solutions and innovation unit. "It's a simple concept," but one that has so far proved to be effective, said Niezgoda, who oversees the pilot deployment of four robots being used to execute co-packing functions at facilities in the U.S., the U.K., and the Netherlands.
If imitation is the sincerest form of flattery, flesh-and-blood types should take the next wave of robotic design as a compliment. Robotics developers, aware that direct human-machine interaction is inevitable, are creating robots with more humanlike characteristics than ever before. Within the next five to 10 years, a large number of "collaborative robots," or "cobots," will be scooting around DCs without the markers, magnets, beacons, or tracks that guide the movements of traditional industrial robots. It will become second nature for workers to take a robot by the hand (or the wrist) and walk it through the repetitive and hazardous tasks the humans used to do.
Sophisticated elastic "actuators" implanted in a robot's joint will enable its arms to detect impending contact, and to be flexible and pliable in much the same way as a human arm. Thanks to force-sensing technology that commands robots to stop whenever they touch another object, the newfangled versions don't need to be sequestered in safety cages to avoid nasty collisions, as is the case today with industrial robots. Cobots will likely be a less costly investment than their industrial brethren, partly because they will be built more efficiently, and partly because companies can do away with all of the expensive apparatus that came with supporting an industrial robot work force.
Photo courtesy of Rethink Robotics
In a backgrounder on its website, Rethink Robotics, a Boston-based startup that built Baxter and Sawyer, said its creations "can adapt to real-world variability, change applications quickly, and perform tasks like people do." The robots can be trained in minutes, and workers can take them "by the wrist" to demonstrate how the task is done, the company said. In contrast to traditional robots that need to be programmed over many hours by an engineer or consultant, virtually anyone can quickly get up to speed on Baxter and Sawyer, the company said. (Rethink Robotics executives declined to be interviewed for this story.) Niezgoda said he was fully versed on Baxter in a day or two, and then set up Sawyer without needing to refer to the instruction manual.
NO ADVANCING ARMIES
Given concerns that advances in artificial intelligence will result in the elimination of peoples' jobs, it is natural that DC workers in relatively low-skilled occupations would see cobots as threats to their livelihood. Those worries may be overblown, however. For one, no expects an armada of cobots to land overnight at the doors of DCs. Of 900 executives surveyed by the material handling industry trade group MHI for its 2016 annual industry report, more than half said robotics use would grow significantly over the next five to 10 years, but nearly three-quarters said it would take six years or longer to introduce robotics into their operations.
Autonomous equipment manufacturers emphasized that robots are designed to perform tasks that humans don't want to do, or that they shouldn't be doing. This would free up people to handle more value-added tasks, including the programming and operation of robotics systems as well as managing the robotic fleets, they said. "You could have a force multiplier, with one person marshaling 10 [machines] as opposed to one," said Jeff Christensen, vice president of products and services for Seegrid Corp., a Pittsburgh-based maker of automated guided vehicles (AGVs).
Photo courtesy of Rethink Robotics
Aldo Zini, president and CEO of Pittsburgh-based Aethon Inc., which has sold about 500 autonomous robots under the "Tug" brand, said his machines have not led customers to displace their workers and that their use has improved the value and quality of human labor. "We're enabling people to do things they couldn't do before," Zini said. "People have not been let go. They've been redeployed and, in many cases, it's enhanced the jobs that they do."
In addition, the machines help prevent injuries by reducing the amount of heavy manual work a human has to perform, Zini said. Most Tugs are currently used in hospitals. However, Aethon has expanded into the manufacturing sector, and Zini sees the DC space as a natural extension of the company's growth plans.
Niezgoda of Deutsche Post DHL said the cobots' flexibility and ease of operation makes them ideal trainees. "We want to enable our workers to supervise the robots, to take them from one task to another, and to adjust them if something isn't working," he said. "These robots are capable of doing specific tasks, and our workers are capable of teaching them."
SOCIETAL FRICTION
While managers tout a world where people can leave boring and repetitive DC tasks to robots so they can focus on more productive and enjoyable work, some are also aware of societal friction as robots assume functions once reserved for the human worker. According to Christensen, companies need to follow a multistep checklist when integrating humans and robots in the same environment. At the core, he said, is to build trust between human workers and their automated colleagues. This includes involving employees in training and automation, bringing the product into the facility before it is deployed so workers can see how it operates and the value it delivers, publishing quantifiable results of a robot's functions and how it benefits the business, and ensuring employees have complete visibility into the machines' movements so they can coordinate schedules, among other objectives, he said.
Given the trends in fulfillment, robots are only going to proliferate in the DC. As customers order more products online and demand faster deliveries, filling those orders will place more stress on supply chains. At the same time, about 90 percent of material handling relies on manual labor, and people can't work exponentially faster. Rising labor costs and a shrinking labor pool, especially as the work force ages, only add to the challenges and the need for automated solutions such as cobots to meet them.
The good news for humans is that robotics innovation is putting a new generation of collaborative machines, and the technology they possess, in the hands of people who can discover new and stimulating skills in training them. The mission for those on the vanguard of this change is to persuade their fellow humans that the outcome of the human-robot mating dance will be a good one. As the 2016 MHI report states, "While it is clear that robotics and automation will have a significant impact on supply chains within the next decade, their adoption will hinge as much on public perception as [on] the savings they create."
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]."