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.
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."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.