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."
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."