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.
That changing landscape is forcing companies to adapt or replace their traditional approaches to product design and production. Specifically, many are changing the way they run factories by optimizing supply chains, increasing sustainability, and integrating after-sales services into their business models.
“North American manufacturers have embraced the factory of the future. Working with service providers, many companies are using AI and the cloud to make production systems more efficient and resilient,” Bob Krohn, partner at ISG, said in the “2024 ISG Provider Lens Manufacturing Industry Services and Solutions report for North America.”
To get there, companies in the region are aggressively investing in digital technologies, especially AI and ML, for product design and production, ISG says. Under pressure to bring new products to market faster, manufacturers are using AI-enabled tools for more efficient design and rapid prototyping. And generative AI platforms are already in use at some companies, streamlining product design and engineering.
At the same time, North American manufacturers are seeking to increase both revenue and customer satisfaction by introducing services alongside or instead of traditional products, the report says. That includes implementing business models that may include offering subscription, pay-per-use, and asset-as-a-service options. And they hope to extend product life cycles through an increasing focus on after-sales servicing, repairs. and condition monitoring.
Additional benefits of manufacturers’ increased focus on tech include better handling of cybersecurity threats and data privacy regulations. It also helps build improved resilience to cope with supply chain disruptions by adopting cloud-based supply chain management, advanced analytics, real-time IoT tracking, and AI-enabled optimization.
“The changes of the past several years have spurred manufacturers into action,” Jan Erik Aase, partner and global leader, ISG Provider Lens Research, said in a release. “Digital transformation and a culture of continuous improvement can position them for long-term success.”
Women are significantly underrepresented in the global transport sector workforce, comprising only 12% of transportation and storage workers worldwide as they face hurdles such as unfavorable workplace policies and significant gender gaps in operational, technical and leadership roles, a study from the World Bank Group shows.
This underrepresentation limits diverse perspectives in service design and decision-making, negatively affects businesses and undermines economic growth, according to the report, “Addressing Barriers to Women’s Participation in Transport.” The paper—which covers global trends and provides in-depth analysis of the women’s role in the transport sector in Europe and Central Asia (ECA) and Middle East and North Africa (MENA)—was prepared jointly by the World Bank Group, the Asian Development Bank (ADB), the German Agency for International Cooperation (GIZ), the European Investment Bank (EIB), and the International Transport Forum (ITF).
The slim proportion of women in the sector comes at a cost, since increasing female participation and leadership can drive innovation, enhance team performance, and improve service delivery for diverse users, while boosting GDP and addressing critical labor shortages, researchers said.
To drive solutions, the researchers today unveiled the Women in Transport (WiT) Network, which is designed to bring together transport stakeholders dedicated to empowering women across all facets and levels of the transport sector, and to serve as a forum for networking, recruitment, information exchange, training, and mentorship opportunities for women.
Initially, the WiT network will cover only the Europe and Central Asia and the Middle East and North Africa regions, but it is expected to gradually expand into a global initiative.
“When transport services are inclusive, economies thrive. Yet, as this joint report and our work at the EIB reveal, few transport companies fully leverage policies to better attract, retain and promote women,” Laura Piovesan, the European Investment Bank (EIB)’s Director General of the Projects Directorate, said in a release. “The Women in Transport Network enables us to unite efforts and scale impactful solutions - benefiting women, employers, communities and the climate.”
Oh, you work in logistics, too? Then you’ve probably met my friends Truedi, Lumi, and Roger.
No, you haven’t swapped business cards with those guys or eaten appetizers together at a trade-show social hour. But the chances are good that you’ve had conversations with them. That’s because they’re the online chatbots “employed” by three companies operating in the supply chain arena—TrueCommerce,Blue Yonder, and Truckstop. And there’s more where they came from. A number of other logistics-focused companies—like ChargePoint,Packsize,FedEx, and Inspectorio—have also jumped in the game.
While chatbots are actually highly technical applications, most of us know them as the small text boxes that pop up whenever you visit a company’s home page, eagerly asking questions like:
“I’m Truedi, the virtual assistant for TrueCommerce. Can I help you find what you need?”
“Hey! Want to connect with a rep from our team now?”
“Hi there. Can I ask you a quick question?”
Chatbots have proved particularly popular among retailers—an October survey by artificial intelligence (AI) specialist NLX found that a full 92% of U.S. merchants planned to have generative AI (GenAI) chatbots in place for the holiday shopping season. The companies said they planned to use those bots for both consumer-facing applications—like conversation-based product recommendations and customer service automation—and for employee-facing applications like automating business processes in buying and merchandising.
But how smart are these chatbots really? It varies. At the high end of the scale, there’s “Rufus,” Amazon’s GenAI-powered shopping assistant. Amazon says millions of consumers have used Rufus over the past year, asking it questions either by typing or speaking. The tool then searches Amazon’s product listings, customer reviews, and community Q&A forums to come up with answers. The bot can also compare different products, make product recommendations based on the weather where a consumer lives, and provide info on the latest fashion trends, according to the retailer.
Another top-shelf chatbot is “Manhattan Active Maven,” a GenAI-powered tool from supply chain software developer Manhattan Associates that was recently adopted by the Army and Air Force Exchange Service. The Exchange Service, which is the 54th-largest retailer in the U.S., is using Maven to answer inquiries from customers—largely U.S. soldiers, airmen, and their families—including requests for information related to order status, order changes, shipping, and returns.
However, not all chatbots are that sophisticated, and not all are equipped with AI, according to IBM. The earliest generation—known as “FAQ chatbots”—are only clever enough to recognize certain keywords in a list of known questions and then respond with preprogrammed answers. In contrast, modern chatbots increasingly use conversational AI techniques such as natural language processing to “understand” users’ questions, IBM said. It added that the next generation of chatbots with GenAI capabilities will be able to grasp and respond to increasingly complex queries and even adapt to a user’s style of conversation.
Given their wide range of capabilities, it’s not always easy to know just how “smart” the chatbot you’re talking to is. But come to think of it, maybe that’s also true of the live workers we come in contact with each day. Depending on who picks up the phone, you might find yourself speaking with an intern who’s still learning the ropes or a seasoned professional who can handle most any challenge. Either way, the best way to interact with our new chatbot colleagues is probably to take the same approach you would with their human counterparts: Start out simple, and be respectful; you never know what you’ll learn.
With the hourglass dwindling before steep tariffs threatened by the new Trump Administration will impose new taxes on U.S. companies importing goods from abroad, organizations need to deploy strategies to handle those spiraling costs.
American companies with far-flung supply chains have been hanging for weeks in a “wait-and-see” situation to learn if they will have to pay increased fees to U.S. Customs and Border Enforcement agents for every container they import from certain nations. After paying those levies, companies face the stark choice of either cutting their own profit margins or passing the increased cost on to U.S. consumers in the form of higher prices.
The impact could be particularly harsh for American manufacturers, according to Kerrie Jordan, Group Vice President, Product Management at supply chain software vendor Epicor. “If higher tariffs go into effect, imported goods will cost more,” Jordan said in a statement. “Companies must assess the impact of higher prices and create resilient strategies to absorb, offset, or reduce the impact of higher costs. For companies that import foreign goods, they will have to find alternatives or pay the tariffs and somehow offset the cost to the business. This can take the form of building up inventory before tariffs go into effect or finding an equivalent domestic alternative if they don’t want to pay the tariff.”
Tariffs could be particularly painful for U.S. manufacturers that import raw materials—such as steel, aluminum, or rare earth minerals—since the impact would have a domino effect throughout their operations, according to a statement from Matt Lekstutis, Director at consulting firm Efficio. “Based on the industry, there could be a large detrimental impact on a company's operations. If there is an increase in raw materials or a delay in those shipments, as being the first step in materials / supply chain process, there is the possibility of a ripple down effect into the rest of the supply chain operations,” Lekstutis said.
New tariffs could also hurt consumer packaged goods (CPG) retailers, which are already being hit by the mere threat of tariffs in the form of inventory fluctuations seen as companies have rushed many imports into the country before the new administration began, according to a report from Iowa-based third party logistics provider (3PL) JT Logistics. That jump in imported goods has quickly led to escalating demands for expanded warehousing, since CPG companies need a place to store all that material, Jamie Cord, president and CEO of JT Logistics, said in a release
Immediate strategies to cope with that disruption include adopting strategies that prioritize agility, including capacity planning and risk diversification by leveraging multiple fulfillment partners, and strategic inventory positioning across regional warehouses to bypass bottlenecks caused by trade restrictions, JT Logistics said. And long-term resilience recommendations include scenario-based planning, expanded supplier networks, inventory buffering, multimodal transportation solutions, and investment in automation and AI for insights and smarter operations, the firm said.
“Navigating the complexities of tariff-driven disruptions requires forward-thinking strategies,” Cord said. “By leveraging predictive modeling, diversifying warehouse networks, and strategically positioning inventory, JT Logistics is empowering CPG brands to remain adaptive, minimize risks, and remain competitive in the current dynamic market."
With so many variables at play, no company can predict the final impact of the potential Trump tariffs, so American companies should start planning for all potential outcomes at once, according to a statement from Nari Viswanathan, senior director of supply chain strategy at Coupa Software. Faced with layers of disruption—with the possible tariffs coming on top of pre-existing geopolitical conflicts and security risks—logistics hubs and businesses must prepare for any what-if scenario. In fact, the strongest companies will have scenarios planned as far out as the next three to five years, Viswanathan said.
Grocery shoppers at select IGA, Price Less, and Food Giant stores will soon be able to use an upgraded in-store digital commerce experience, since store chain operator Houchens Food Group said it would deploy technology from eGrowcery, provider of a retail food industry white-label digital commerce platform.
Kentucky-based Houchens Food Group, which owns and operates more than 400 grocery, convenience, hardware/DIY, and foodservice locations in 15 states, said the move would empower retailers to rethink how and when to engage their shoppers best.
“At HFG we are focused on technology vendors that allow for highly targeted and personalized customer experiences, data-driven decision making, and e-commerce capabilities that do not interrupt day to day customer service at store level. We are thrilled to partner with eGrowcery to assist us in targeting the right audience with the right message at the right time,” Craig Knies, Chief Marketing Officer of Houchens Food Group, said in a release.
Michigan-based eGrowcery, which operates both in the United States and abroad, says it gives retail groups like Houchens Food Group the ability to provide a white-label e-commerce platform to the retailers it supplies, and integrate the program into the company’s overall technology offering. “Houchens Food Group is a great example of an organization that is working hard to simultaneously enhance its technology offering, engage shoppers through more channels and alleviate some of the administrative burden for its staff,” Patrick Hughes, CEO of eGrowcery, said.