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Photo courtesy of Boston Dynamics
“Spotting” issues and staying ahead of the curve
Dec 16, 2024
Tire manufacturer Michelin has long used predictive maintenance tools to head off equipment failures, but the company recently upped its game by implementing cutting-edge robotics at its factory in Lexington, South Carolina. Managers there are using Boston Dynamics’ autonomous mobile robot (AMR) “Spot” to speed and streamline the inspection and maintenance processes—a move that is boosting productivity at the Lexington facility and for the company at large.
“Getting ahead of equipment failures is important, because it affects our production output,” Ryan Burns, an associate in the facility’s reliability and methods department, said in a case study describing the project. “If we can predict a failure and we can plan and schedule the work to fix the issue before it becomes an unplanned breakdown, then we’re able to increase our output as a company and a tire producer.”
MORE—AND BETTER—INSPECTIONS
Spot is a versatile quadruped AMR that can automate sensing and inspection tasks, and capture data—all while moving freely throughout a facility. The robot is being used around the world for maintenance-related functions, such as detecting mechanical problems and monitoring equipment for energy efficiency. At the Michelin plant, managers began by assigning Spot to inspect machinery in its tire verification (TV) area—taking over tasks previously done by in-house technicians as well as conducting additional inspections. Spot identifies issues and problems, and then conveys that information through its software program, called Orbit, which managers can access via an on-site server. From there, managers can sort through the data to detect anomalies and set alarm thresholds that will trigger a technician’s response.
“From a technician standpoint, Spot going out and doing these routes eliminates a mundane task that the humans were doing,” said Burns. “By Spot finding these anomalies and these issues, it gives the technicians more time to … [decide] how and when they’re going to fix the problem versus going out, identifying [the issue], then trying to plan and schedule everything.”
FEWER BREAKDOWNS, MORE PRODUCTIVITY
The results have been game-changing, according to Burns and his colleague Wayne Pender, the tech methods and reliability manager at the Lexington plant. As of this past fall, Spot was running seven inspection missions in the TV area, scanning about 350 points across 700 assets to detect anomalies ahead of time. The results helped generate 72 work orders in Michelin’s system—allowing the facility to avoid uncontrolled breakdowns and major production losses, according to Pender. On top of that, Spot had generated 66 air-leak work orders, identifying areas where Michelin can reduce energy consumption.
Looking ahead, the plan is to apply Spot’s talents beyond the TV area to the rest of the facility.
“Spot is a member of our maintenance team,” Burns said. “The future is to have more Spots, so that we can improve on our inspections and improve our overall output as a company here at [Lexington].”
Pender agrees: “We see Spot [as] the future. … [But] we probably need a whole dog pound or multiple Spots … to actually do what we need to do [across all of Michelin’s North American facilities].”
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AAFA urges ILA and USMX to resolve dockworker contract feud
Dec 13, 2024
As another potential strike looms at East and Gulf coast ports, nervous retailers are calling on dockworkers union the International Longshoremen's Association (ILA) to reach an agreement with port management group the United States Maritime Alliance (USMX) before their current labor contract expires on January 15.
The latest call for a quick solution came from the American Apparel & Footwear Association (AAFA), which cheered President-elect Donald Trump for his published comments yesterday indicating that he supports the 45,000 dockworkers’ opposition to increased automation for handling shipping containers.
In response, AAFA’s president and CEO, Steve Lamar, issued a statement urging both sides to avoid the major disruption to the American economy that could be caused by a protracted strike. "We urge the ILA to formally return to the negotiating table to finalize a contract with USMX that builds on the well-deserved tentative agreement of a 61.5 percent salary increase. Like our messages to President Biden, we urge President-elect Trump to continue his work to strengthen U.S. docks — by meeting with USMX and continuing work with the ILA — to secure a deal before the January 15 deadline with resolution on the issue of automation,” Lamar said.
The deadline approaches after the dockworkers’ three-day strike in October ended with a promise to return to the negotiating table in three months. That agreement brought temporary relief on the doorstep of the annual winter holiday peak season. But although it comes after the holidays, a January strike could also be damaged because it would come at nearly the same time as the annual spike in shipments following Asia’s Lunar New Year, according to ITS Logistics’ monthly “US Port/Rail Ramp Freight Index.”
While the East and Gulf ports are currently seeing a normal December calm post retail peak and prior to the Lunar New Year, the U.S. West Coast ports are still experiencing significant import volumes, the ITS report said. That high volume may be the result of inventory being pulled forward due to market apprehension about potential tariffs that could come with the beginning of the Trump administration, as well as retailers already compensating for the potential port strike.
“The volumes coming from Asia on the trans-Pacific trade routes are not overwhelming the supply of capacity as spot rates at origin are not being pushed higher,” Paul Brashier, Vice President of Global Supply Chain for ITS Logistics, said in a release. “For the time being, everything seems balanced. That said, if the US West Coast continues to be a release valve for a potential ILA strike supply chain disruption, there is a high risk that both West Coast Port and Rail operations could become overwhelmed.”
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Logility said to be seeking corporate buyers
Dec 13, 2024
The Atlanta-based supply chain software vendor Logility is declining to comment about reports that the company might be sold, following a call from certain shareholders to take the company private.
Logility Supply Chain Solutions Inc., which was known as American Software Inc. until October 1 this year, says it delivers prescriptive demand, inventory, manufacturing, and supply planning tools. That tech helps to provide executives the confidence and control to increase margins and service levels, while delivering sustainable supply chains, the company says.
The pressure to sell is coming from 2717 Partners LP, a San Francisco-based investment firm that sent a public letter this week to the company’s board of directors, calling for it “to explore strategic alternatives, including a sale of Logility.”
In 2717’s view, Logility is undervalued in public markets, and its stock has underperformed in comparison to “comparable companies” including Descartes Systems Group, Kinaxis, Manhattan Associates, SPS Commerce, and Tecsys. Its stock value has also lagged in comparison to “proxy peers” such as Agilysys, Aspen Technology, Asure Software, E2open, eGain, and PROS Holdings, 2717 said.
In response, Logility is currently working with an investment bank to gauge takeover interest from potential buyers, according to published reports.
The company itself is not talking about that process. In a press release on Thursday, Logility issued a press statement in response to recent market rumors and media reports. “In accordance with its standing policy, Logility has no comment to make concerning any market rumors or speculation,” the company said.
Just last year, Logility acquired the Belgian firm Garvis, a provider of artificial intelligence (AI)-based forecasting tools for demand planning and stock optimization. That deal followed previous acquisitions including Starboard Solutions Corp., Halo Business Intelligence, and AdapChain Inc.
The company has also seen corporate change in recent months, rebranding to its current name in October and announcing a new chairman of the board in February after the company’s co-founder, executive chairman and treasurer—James C. Edenfield—resigned his seat.
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Lessons from the ultimate last-mile delivery expert: interview with Dasher the reindeer
Dec 13, 2024
2024 has been quite a year. In addition to the usual challenges, supply chain leaders have had to contend with two major wars, several devastating hurricanes and storms, dock strikes, a rail strike, a freight recession, an uneven economy, and an election cycle unlike any other. That’s a lot packed into one year.
We can all use a chance to catch our breath. As the holidays approach, we at DC Velocity thought it would be fun to take a more whimsical approach to this month’s ThoughtLeader Q&A and interview Dasher the reindeer.
Dasher made his debut as one of eight named reindeer in Clement C. Moore’s classic 1823 poem, “A Visit from St. Nicholas.” As we all know from the poem, Dasher and his fellow magical reindeer—Dancer, Prancer, Vixen, Comet, Cupid, Donner, and Blitzen—provide crucial transportation support for the Jolly Old Elf’s Christmas Eve mission, pulling the sleigh full of toys for delivery to children around the world. What many people might not realize is that Dasher is also a supply chain expert. His duties require him to keep up with the latest trends in distribution and logistics to assure that the gifts all get delivered on time, to the right address, and damage-free.
So in the spirit of the holidays, we used a bit of magic ourselves in the form of generative artificial intelligence (GenAI) to conduct a personal interview with this very important reindeer. You may ask why we didn’t choose Rudolph. Simply put, he is both a copyrighted character and much too much of a celebrity these days to bother with the likes of us.
As we close out this rather tumultuous year, we hope you will get some joy from reading this fictional interview with a beloved courier.
Q: Thank you for joining us today, Dasher. It’s a pleasure to have you here to discuss some of the supply chain challenges that affect Christmas deliveries. How are you doing this holiday season?
A: Thank you for having me! I’m doing well, though the holiday season has certainly brought its own set of challenges this year. There’s always a bit of magic in the air, but the realities of the supply chain have been a hot topic.
Q: Let’s dive right in. Can you tell us about some of the specific challenges you’ve faced with deliveries this year?
A: Sure! One of the biggest challenges has been the delays in shipping routes, particularly through the Red Sea. It’s a critical pathway for many goods that we rely on for Christmas supplies, including toys and decorations. When there are disruptions in that region—whether due to geopolitical tensions or natural events—it impacts the entire supply chain.
Q: What kinds of delays are we talking about?
A: Well, shipping times have increased significantly. For instance, shipments that used to take a few weeks now can stretch into months. This means that the toys and gifts that Santa relies on for Christmas Eve deliveries are arriving late, which creates a ripple effect throughout our operations.
Q: Has the increase in ocean shipping costs contributed to these challenges as well?
A: Definitely. Shipping costs have soared this year, mainly due to a combination of high demand and limited capacity. When ocean freight rates spike, it puts pressure on everyone involved—from manufacturers to retailers to us at the North Pole. We have to be strategic about which items to prioritize, and that can be a difficult decision when so many children are counting on their Christmas gifts.
Q: How are you and Santa managing these increased costs?
A: We’ve had to get creative. Santa has always believed in the spirit of giving, but now we’re also focusing on efficiency. This includes sourcing materials locally whenever possible and optimizing our delivery routes.
Q: Have you encountered any other world situations that have impacted your operations?
A: Certainly. The effects of the pandemic have lingered longer than we hoped. Labor shortages at ports and in the shipping industry have resulted in fewer hands to move goods. And then there are the fluctuations in the supply of raw materials. If the materials for toys aren’t available, that affects production timelines and, ultimately, our ability to deliver gifts on time.
Q: That’s a lot to navigate. How do you maintain morale among your team members during such challenging times?
A: Communication is key. We’ve worked hard to keep spirits high at the North Pole. We remind everyone why we do this—it’s about bringing joy to children all over the world. Regular team meetings, festive gatherings, and a strong emphasis on teamwork have helped us push through. Plus, everyone loves a good challenge!
Q: It must be heartwarming to see all those efforts come together. How do you ensure that Santa is kept informed about these supply chain challenges?
A: Santa is very hands-on. We have daily briefings where we discuss updates on shipments, toy production timelines, and any other issues that arise. He’s always willing to brainstorm solutions, and he has a knack for inspiring us to think outside the box. We’ve had to adjust our strategies more frequently than ever, and Santa’s leadership makes a big difference.
Q: With all these logistical challenges, do you think there’s a chance some children might not receive their gifts on time?
A: Unfortunately, yes. We do our best to ensure that everyone gets their presents, but this year, we’ve had to communicate with parents in some cases about potential delays. It’s heartbreaking, but we always remind everyone that the spirit of Christmas is about togetherness and love, not just gifts.
Q: That’s a beautiful perspective. Given the unpredictability of the supply chain, do you have any backup plans in place?
A: Absolutely. We have contingency plans for various scenarios. For example, we stocked up on popular items earlier than usual and created a priority list for deliveries. We also maintain close relationships with our partners to quickly adapt if something goes awry. Flexibility is crucial in this environment.
Q: Speaking of flexibility, has technology played a role in easing these challenges?
A: Technology has been a game-changer. We use sophisticated tracking systems to monitor shipments in real time, which helps us make informed decisions quickly. Plus, data analytics allow us to anticipate trends and shifts in demand, so we can prepare better for the unexpected.
Q: That’s impressive! With so many changes happening, do you foresee any long-term shifts in how you operate during the holiday season?
A: Definitely. We’re learning valuable lessons this year that will shape our operations in the future. We’re likely to focus even more on local sourcing and sustainable practices. The pandemic has made us all rethink supply chain resilience and how we can reduce our dependence on long-distance shipping.
Q: That’s a proactive approach. As you prepare for Christmas Eve, do you have any particular strategies to ensure that the night goes smoothly despite these challenges?
A: We’ve always had a well-rehearsed plan for Christmas Eve. This year, we’re building in some extra buffer time for potential delays. We’ll also rely heavily on our network of helper elves, who have been trained to adapt quickly. Rudolph’s shiny nose will guide us through any weather issues, and we’ll adjust our routes as needed.
Q: It sounds like you’re ready for anything! Looking ahead, do you think the global situation will stabilize, allowing for smoother operations in the future?
A: I hope so! It’s hard to predict exactly how things will unfold, but I believe that industries will adapt and evolve. The challenges we’ve faced have pushed us to innovate, and I think that will serve us well moving forward. With resilience and teamwork, we can navigate whatever comes our way.
Q: Wise words, Dasher. Before we wrap up, do you have any messages for children who may be worried about their gifts this year?
A: Absolutely! To all the children out there: Remember that the true magic of Christmas comes from love, kindness, and togetherness. Gifts are wonderful, but they’re not everything. Whether you find something under the tree or not, what matters most is the spirit of the season. Keep believing, and we’ll do our best to spread joy!
Q: That’s a lovely message. Thank you for sharing your insights with us today, Dasher. We wish you, Santa, and the entire team at the North Pole the best of luck this holiday season!
A: Thank you! It’s been a pleasure. And remember, no matter the challenges, the spirit of Christmas will always shine bright!
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Photo courtesy of Amazon
“Smart” vans speed package delivery
Dec 13, 2024
Amazon package deliveries are about to get a little bit faster—thanks to specially outfitted delivery vans and the magic of AI.
Last month, the mega-retailer introduced its Vision-Assisted Package Retrieval (VAPR)solution, an AI (artificial intelligence)-powered system designed to cut the time it takes drivers to retrieve packages from the back of the van.
According to Amazon, VAPR kicks in when the van arrives at a delivery location, automatically projecting a green “O” on all packages that will be delivered at that stop and a red “X” on all other packages. Not only does that allow the driver to find the right package in seconds, the company says, but it also eliminates the need to organize packages by stop, read and scan labels, and manually check the customer’s name and address to ensure they have the right parcels. As Amazon puts it, “[Drivers] simply have to look for VAPR’s green light, grab, and go.”
The technology combines artificial intelligence (AI) with Amazon Robotics Identification (AR-ID), a form of computer vision originally developed to help fulfillment centers speed up putaway and picking operations. Linked to the van’s delivery route navigation system, AR-ID replaces the need for manual barcode scanning by using specially designed light projectors and cameras mounted inside the van to locate and decipher multiple barcodes in real time, according to the company.
In field tests, VAPR reduced perceived physical and mental effort for drivers by 67% and saved more than 30 minutes per route, Amazon says. The company now plans to roll out VAPR in 1,000 Amazon electric delivery vans from Rivian by early 2025.
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