Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
In the early days of automated guided vehicles (AGVs), there typically was just one way the computer-controlled autonomous load carriers could find their way around the manufacturing plants where they initially were used: by following wires embedded in the floor. While revolutionary back then—load carriers could for the first time trundle around a facility without a human operator—that method was simply the first stage of a technological evolution that is not only changing the equipment itself but is also stretching the boundaries of where AGVs can go and how they're used.
In recent years, the number of navigation methods used by AGVs as they pick up, carry, and drop off their loads in factories, warehouses, and distribution centers has multiplied. But AGV manufacturers aren't done yet; they continue to tinker with existing guidance technologies and develop new ones. What follows is a brief overview of some of the navigation technologies in use today, along with a preview of what AGV users can expect in the future.
THE TRADITIONALISTS
Wires (also known as inductive guidance) and another early guidance method, magnetic tape, remain popular options, particularly for small and medium-sized operations, in part because they are relatively inexpensive and can offer a quick payback. With wire guidance, a continuous wire path is embedded in the floor. Antennas on the vehicle detect a radio signal from the wire, and encoders on the wheels calculate the distance traveled.
Magnetic tape, which also requires a continuous path, is attached to the floor with an adhesive and may require a protective coating. A sensor on the underside of the vehicle detects the magnetic field, leading the vehicle to follow the tape.
A variation on this theme is a magnetic grid, which uses magnets affixed to or embedded in the floor in a grid pattern. An onboard sensor detects the magnets, and the reference points are stored in the AGV's memory as X and Y coordinates. A gyroscope on the vehicle measures and maintains direction, and a wheel encoder calculates the distance traveled. In a magnetic grid, the guide paths can easily be changed.
Still another option is inertial navigation, where transponders are embedded in the floor. An onboard gyroscope detects slight directional changes and corrects the vehicle's travel path to keep it on course. Providers such as Daifuku's Jervis B. Webb division note that inertial guidance vehicles can operate in almost any environment, including tight aisles and extreme temperatures.
NEWER KIDS ON THE BLOCK
Who makes automated guided vehicles?
Just a few years ago, only a handful of companies were designing, making, and selling automated guided vehicles (AGVs). Today, there are quite a number of vendors and types of automated vehicles, including load carriers, load lifters, driverless forklifts, tuggers, low-profile carriers, and automated carts.
Interested in checking them out? This is by no means a comprehensive list, but the following are some of the AGV providers we've run across:
More recently developed guidance technologies rely on various ways of measuring distances, mapping, storing data, and decision making for navigation. All provide a degree of flexibility that earlier technologies couldn't offer—probably the biggest reason for the inroads AGVs are now making in warehouses and DCs. They all make it easy and fast to reprogram routes, require no (or, in the case of laser guidance, minimal) additional infrastructure, and can navigate on their own around obstacles.
Laser-guided vehicles map and store the facility layout in the vehicle's computer. A laser transmitter/receiver mounted on the vehicle detects reflective strips located at fixed reference points and measures both its distance and angle relative to the reflectors. By triangulating two reference points, the AGV can determine and update its location. AGV maker JBT Corp., for example, says its patented laser-guidance technology uses an eye-safe laser scanner that "strobes" the operating area and updates its position several times per second, resulting in highly accurate positioning. Transbotics, another AGV developer, touts laser guidance for its accuracy, reliability, security, dynamic traffic management, and short installation times.
Natural-feature guidance is a relative newcomer to the AGV scene. AGVs equipped with this type of technology record and store reference images as a map of the operating area. They then navigate by calculating their position relative to existing features—walls, racks, I-beams, doorways, stacks of pallets, and so forth—following the most efficient path, just as a human being would when walking through the facility. A major advantage of this technology is that it requires no markers, transponders, or reflectors. In addition, guide paths can easily be changed by retraining the AGV or by drawing a new route on the map. Sweden's Kollmorgen was one of the first to develop this capability, and others have followed. AutoGuide, for example, is about to introduce a low-profile AGV that measures the locations of natural features to use as reference points as it moves along its route, says Sarah Carlson, vice president of marketing and business development.
In somewhat similar fashion, the Otto Motors division of Clearpath Robotics uses simultaneous localization and mapping (SLAM) technology for its self-driving material handling vehicles—the same underlying technology used in self-driving highway vehicles, says Simon Drexler, director of industrial solutions. Otto uses laser-based "lidar" (from "light" and "radar") scanning to gather data and construct a highly detailed map of the facility floor. Once it has the reference map, it can navigate any route without a defined path or line. The vehicle is intelligent enough to plan and follow its own route, Drexler says. Once the reference map is in place, users can drag and drop location pins on the map to instruct the vehicle where to stop for pickups and dropoffs.
Vehicles that use vision-based navigation come closest to processing visual information the way a human being does. AGVs built by Seegrid, which pioneered this technology, use five pairs of stereo cameras to record the surrounding environment as an operator "trains" them by walking them through their route. The cameras take two images simultaneously, achieving binocular vision with depth perception that's similar to a human being's. This information is used to create a three-dimensional map of the surroundings every few centimeters; the images are then tied together to create a route, explains Jeff Christensen, Seegrid's vice president of products. The AGVs replay the route from their memory and follow it precisely. Changing the route is a simple matter of taking them on another "walk" with an operator.
While each navigation method has its advantages, each has some drawbacks, too. For wire guidance, the principal drawback is that paths are fixed and cannot be easily changed, since they require cutting into the floor. Magnetic tape paths are also fixed but can be changed with comparatively little time and expense. And magnetic grids can be expanded without making major alterations to the facility, though extensive layouts can get complicated.
The more technologically complex navigation systems also have some constraints. Vision-guided AGVs, for instance, need a certain level of ambient light, and their cameras and lenses aren't suited for cold environments. As with human vision, the farther away an object is, the harder it is to judge that distance. Laser and lidar users praise their accuracy, but if lasers from two vehicles point at each other, they can in effect blind each other's sensors, a phenomenon known as dazzling interference, Christensen says. Similarly, bright sunlight has been known to interrupt the images and compromise data gathering in natural-feature and vision guidance systems, Carlson says. Plus, natural-feature technology would be ineffective in environments where there are frequent changes or few permanent features or structures to navigate off of, she adds.
BLAZING NEW TRAILS
Can AGVs get any more sophisticated than they already are? The vendors we spoke with for this story believe that more advances in navigation technology are just over the horizon. For example, innovations in image-sensing technology for consumer applications will benefit AGV design, says Seegrid's Christensen. The availability of more-sensitive image sensors that provide exceptionally high-quality images in less-than-ideal conditions continues to grow. His company's vehicles, for instance, will soon be able to take high-resolution pictures in lower light because of such advances.
New developments in navigation are one reason AGVs are moving more deeply into warehousing, distribution, and supply chain applications, AutoGuide's Carlson says. She also predicts that navigation systems that allow users to control a small fleet of AGVs through an app on a tablet, mobile phone, or laptop without a large-scale traffic management software installation will make these vehicles affordable and feasible for smaller companies.
The new navigation technologies will help customers participate in and take advantage of Industry 4.0, the "fourth industrial revolution," characterized by the acquisition, analysis, and consumption of real-time operational data, says Drexler of Clearpath Robotics. "That's where I see the industry going—moving more away from the focus on hard goods and more toward the utilization of real-time data."
Advances in autonomous cars and trucks are likely to influence material handling AGVs in the future, all agree. "AGVs have been around a lot longer, but autonomous cars are a really big story in a much bigger sphere than warehousing, so there will continue to be a lot more discoveries and development in that area," Christensen says. "[Automakers] can learn something from autonomous industrial vehicles, and we can learn some things from what they're doing."
Drexler, for one, believes AGVs will have an edge over autonomous highway vehicles. "We believe the adoption rate for self-driving vehicles will accelerate faster indoors than outdoors," he says. Otto Motors, he adds, is currently on track to surpass Google's self-driving car in the number of autonomous miles driven by the end of next year.
Related story: Starting over. Read about how Calsonic Kansei North America eliminated local drayage, built a brand-new DC, and installed custom-designed automatic guided carts. The award-winning project achieved ROI well ahead of schedule.
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
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.
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."