Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
The rise of robotics is one of the fastest-growing trends in logistics, with announcements of warehouses that have invested in robots or autonomous vehicles coming almost weekly. Distribution center managers are now using robotics and advanced automated equipment to solve challenges at every stage of the material handling game.
But how exactly will all these new bots fit into the typical DC? In their rush to forge a robotic link in the supply chain, planners are still trying to predict what sort of buildings and infrastructure they will need to support the complex machines.
A century ago, architects wrestled with a similar issue when the industrial revolution brought widescale changes to residential housing design. Now that most people commute by automobile instead of horseback, modern homes have attached two-car garages instead of hay barns and stables.
So will the warehouses of 2050 look different because they're designed to accommodate squadrons of robots instead of shifts of human workers? (After all, robots don't need restrooms, but they might need extra electrical outlets.) In fact, warehouse design is already evolving to accommodate robots' needs, and experts say that a few simple changes can make all the difference.
THE BIG EMPTY BOX
The easiest way to go robotic is to start from scratch, incorporating any required features like charging stations, Wi-Fi networks, and smooth floors into the design of a brand-new building, says Doug Rabeneck, director in the operations excellence practice at business and technology consulting firm West Monroe Partners. That approach is clearly more expensive than adding robotics to an existing warehouse, but it avoids the challenges of overlaying a new robotic system onto the existing work force and systems.
Despite the expense, that approach was common 20 years ago, when early generations of automated guided vehicles (AGVs) required wire-guided controls buried in cement warehouse floors so the vehicles could follow predetermined routes like streetcars moving through a city, Rabeneck says.
More recent offerings—such as the robots developed by Amazon Robotics, Clearpath Robotics, and Locus Robotics—require less infrastructure, using unobtrusive technologies like "lidar" and vision systems for navigation instead of relying on permanent hardware like wires, magnets, or beacons. Thanks to those advances, companies are finding it easier to add robots to a warehouse, whether the building is new or old.
"Your building just needs to be a big empty box," Rabeneck says. "To retrofit it, you might need a lot of electronics and communications up on the roof, like wireless router boxes, and either a server in one corner of the facility or communications through the cloud. And you'd probably need charging stations for the units."
GETTING ROBOT-READY
In addition to wiring a building with advanced charging and communications systems, several basic details in the design and layout of a facility can affect its readiness to host material handling robots, says Tom Galluzzo, founder and CEO of Pittsburgh-based Iam Robotics.
"The name of the game is optimizing a solution to whatever your goal is, whether that's an each-picking solution or [one where machines] collaborate with the work force," Galluzzo says. But the needs of people aren't always aligned with those of the machines, he says. "For example, people usually like working in a temperature of 70 degrees, whereas robots might want it to be 50 degrees. If you're going to use both manual and robotic solutions, you need a happy medium."
Even interior design can affect the choice of robotics. For instance, people will gladly walk around on carpeting all day, but robots don't like carpets, Galluzzo says.
"We look for pristine, bare, flat concrete floors," says Galluzzo. "We've been in places with hundred-year-old wooden floors and they're really beat up. To drive robots on that would be like driving your car on cobblestones all day long."
The layout of a DC is also important, since most robots need to be insulated from the elements, not operating anywhere near a loading dock where rain or snow could blow in and affect their electronics, he says.
Finally, just as any building has features dedicated to its human workers' needs—such as a soda machine or a break room—a warehouse designed for robots would need its own "amenities." For instance, an automated DC design could call for a reinforced power grid to handle the extra charging stations and a redundant electric generator so the building doesn't shut down every time a storm knocks the power out.
Safety is another crucial consideration in a robotic fulfillment facility. Recent laptop and smartphone recalls have highlighted the potential for lithium-ion batteries to overheat and even spark fires. A lot of robots today use similar lithium-ion battery technology, which not only raises the question of fire safety but also has implications for operations where DC workers are trained to safely handle the lead-acid batteries commonly used in forklifts but not their lithium-ion counterparts.
"Lithium-ion batteries need a little more care and maintenance than lead-acid," Galluzzo says. "Because you have all that energy density [with lithium-ion], you need to be sure you have your safety precautions in line, like fire safety. What it comes down to is that you're storing more energy in a smaller package."
To address that issue and create a safer working environment, engineers are already working on a next generation of batteries designed for long life and safe operation. The new designs use lithium iron phosphate (LiFePO4) cHemiätry instead of the current lithium polymer designs, Galluzzo says.
BOOSTING STORAGE DENSITY
Once a warehouse has satisfied those basic design requirements, it might start to look a lot different inside, as the introduction of robots tends to change inventory storage patterns. A warehouse with automated storage and retrieval systems (AS/RS), for instance, can pack more inventory into a given space than one that relies on human pickers, since computer-guided retrieval vehicles can easily navigate aisles with just an inch or two of clearance, Rabeneck says.
Similarly, many goods-to-person robotic systems allow for higher-density storage than a warehouse that has to leave aisles between racks for human pickers or forklifts. But some of that advantage is lost if the bots also need a dedicated staging area to place racks of products, which can be the case in operations that use robots to deliver racks of products to a human picker for selection, says Bruce Welty, chairman and founder of warehouse automation vendor Locus Robotics Inc. and fulfillment specialist Quiet Logistics Inc. One way around that problem is to adopt a different goods-to-person strategy, using mobile robots to collect only the items needed for orders—as opposed to entire racks—and deliver them to humans at packing stations, Welty says.
Future developments in robotic technologies will doubtless continue to influence warehouse design in terms of the patterns of inventory storage, the flow of goods between work stations, and the interactions between robots and human associates.
THE ECONOMICS OF ROBOTICS
Likewise, the rise of robotics could affect the actual shape of the warehouse. For instance, a company planning to deploy rolling robots like AGVs might seek a vast one-story building, while a company planning to use robotic cranes might want a facility with extra vertical space.
When it goes to automate a facility, UPS Inc. considers each building's space, capacity, volume, and velocity of throughput, says Frank Perez, vice president of industrial engineering at UPS Global Logistics & Distribution. "Automation is a significant capital investment," Perez says. "If you're considering automation with a longer ROI [return on investment], you need to have a good growth strategy. When we evaluate real estate, if a DC is landlocked, it's a great opportunity to use automation to drive density and efficiency within the existing footprint."
If a plan calls for increasing density by creating more vertical storage, the company would choose a robotic solution such as an AS/RS, goods-to-person system, or cranes, as opposed to AGVs that are designed to roll across wide, flat spaces, he says.
Those considerations may sound pedestrian compared with the leading-edge technology that makes a robot tick, but the need to stay profitable carries a lot of weight when it comes to choosing the best type of automated material handling equipment for a facility and picking the best facility to fit the robot.
"We have just begun to scratch the surface as an industry," Iam Robotics' Galluzzo says. The same could be said about the logistics industry's evolution to include advanced robotics in buildings originally designed for people and goods.
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."