The evolution of the warehouse and distribution center is causing a revolution in automated solutions for everything from picking to loading, as robotics R&D accelerates.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Providers of material handling solutions are feeding a growing appetite for automation in the warehouse and distribution center these days, with a special interest in robotics. Research into and development of robotics applications for everything from picking and packing to truck loading and unloading is on the rise, and the trend shows no sign of slowing down, says Crystal Parrott, vice president of the Robotics Center of Excellence at the Grand Rapids, Mich.-based systems integrator Dematic.
"It's a fascinating time to be in robotics," says Parrott, whose group works with customers to develop automated solutions that incorporate robotic bin picking and palletizing. She says advances in vision and gripping technology, computing power, and artificial intelligence are helping to propel robotics research and development, and that labor challenges, e-commerce, and omnichannel business trends are driving customers' interest in applying high-tech solutions throughout the warehouse and distribution center.
And the timing couldn't be better, as warehouses and DCs morph into fast-paced fulfillment centers that offer increasingly quick turnaround times. Finding better, more efficient ways to move products throughout the facility is at the top of just about everyone's priority list, it seems.
"The industry as a whole is going to continue to evolve," Parrott says. "And we need solutions that can help in all areas."
PICKING SYSTEMS ADVANCE
Underlying the growing interest in robotics is the sheer need to get more orders out the door faster in today's environment. Intense competition in the e-commerce sector, a rise in the number of stock-keeping units (SKUs) companies must keep on hand, and advancing technology in general are all causing companies to move toward automated warehouses and DCs, and robotics is a natural extension of that trend. A study released this spring by market researcher Allied Market Research forecasts a nearly 12-percent compound annual growth rate in the global warehouse robotics market between 2016 and 2023, reaching a market value of $5.2 billion.
Most of those solutions will be used to address e-commerce business, where demand for automation is soaring. The Allied Research report shows that e-commerce as an industry vertical accounts for the largest share of the warehouse robotics market today, followed by the automotive industry. The study also found that pick and place is the most common function performed by warehouse robotics in those environments, followed by packaging.
Parrott says labor challenges are having a considerable influence on robotics growth as well. As volume and throughput demands increase, organizations need more employees to handle the work—and those employees can be tough to come by in today's tight labor market, where unemployment is low and the need for both skilled and unskilled labor is rising across manufacturing, industrial, and retail sectors. Finding enough workers can be especially difficult for e-commerce retailers looking for seasonal warehouse help.
Robotics hold the potential to address such problems on a large scale because they can be used to perform repetitive tasks such as picking, freeing up workers for other tasks throughout the facility, Parrott explains. But the technology still has a long way to go to address the variety of products in the market with the reliability and adaptability of a human. Today's robotic picking solutions do a good job of moving products from one place to another, but further research and development will be needed before they can perform some of the more complex, precision-based tasks required in dynamic picking environments.
"At the moment, most of the piece-picking robotic applications are using end effectors with either vacuum cups or a simplistic 2/3/4 finger gripper. The robot path planning provides a centralized pick point and general extraction path to avoid collision with the bin or objects in the environment," Parrott explains. "This will work on a large number of products, [but] some products need to be picked up in a specific way and extracted [so as] not to entangle or damage other items next to them."
A top-heavy product such as a hammer, for instance, must be gripped closer to the head. Further complicating matters, the handle or nail remover portion of the head may get tangled or buried beneath other items, making the choice of which one to pick next more complex; the extraction motion from the bin will be more complex as well. Such actions require more advanced vision and path planning solutions, Parrott says.
"Additionally, most [robotic picking] applications being demonstrated [today] pick and drop the product in an order tote or container," she says. "If a large variety of products need to be [deposited] in a specific place or in a defined orientation so that they are not damaged, this requires more advanced planning on the placement side."
Parrott says she has no doubt the technology will get there, and she also points to growing investment in "mobile bots"—robots that move throughout a facility as opposed to picking arms and other stationary solutions—as another particularly hot area of research today.
"You're seeing advances in automating 'goods to person' [picking]," she says. "There is a lot of focus in this area, and we will see even more development in the years ahead."
A separate industry study underscores the point. Industry research firm Interact Analysis released a study this spring predicting that the value of the autonomous mobile robots (AMRs) market will grow to $7 billion in 2022 from $1.1 billion in 2017. The burgeoning e-commerce sector, mass personalization of goods, and a shortage of low-cost labor are driving the trend, the research firm said. Deck-load mobile robots—those that have decks or flat surfaces to transport pallets or cartons—are the most common, with 180,000 forecast to be shipped in 2022. Mobile robots with mounted arms are less commonly used, but are increasingly entering the research and development phase. Interact Analysis predicts that 12,000 of these types of robots will be sold in 2022.
Logistics is the fastest-growing vertical market for mobile robots, with revenues predicted to jump to $3 billion in 2022 from $300 million in 2017. Mobile robot use in the manufacturing sector is expected to soar as well, with revenues increasing 75 percent to more than $3 billion by 2022.
ROBOTS MOVE TO THE LOADING DOCK
Bastian's Ultra mobile robots for trailer loading and unloading are engineered for the narrow space and high reach of transport vehicles. They are being used in pilot programs this summer, with a full commercial rollout expected to start in the first quarter of 2019.
One of the newest areas for robotics is the loading dock, a place that's ripe for efficiency improvements and innovation, according to Joe Zoghzoghy, Ph.D., mobile robotics manager for material handling solutions provider Bastian Solutions. Bastian introduced its Ultra mobile robot for truck trailer loading and unloading at the Modex trade show in Atlanta this spring; the product is being used in pilot programs this summer, with a full commercial rollout expected to start in the first quarter of 2019.
Ultra robots are engineered for the narrow space and high reach of transport vehicles, ranging from extended vans to intermodal containers. The robots drive directly into the trailer, picking up as many as 20 cases per minute each, and can be integrated with a company's existing warehouse management and warehouse control systems. Zoghzoghy says this type of robotics solution directly addresses the many labor-related challenges companies face on the loading dock, including harsh temperatures and heavy lifting that leave workers prone to injury and raise a host of safety concerns, including repetitive stress injuries.
"It's hard to hire people for this type of environment," Zoghzoghy says. "It makes sense that organizations seek to solve some of these problems with automation."
Labor-related cost pressures are another concern. Increases in the minimum wage, overtime, and seasonal demands can strain budgets, giving organizations yet another reason to consider automating certain warehouse and distribution center tasks. A short payback period is crucial to making the math work on such investments, Zoghzoghy adds, noting that companies should expect a one- to two-year payback when implementing any automated or robotics solution.
As technology advances and costs come down, he says, more companies will be able to achieve that goal.
"In general, automation will be very helpful to improve efficiency, bring costs down, and create a safer environment for workers," Zoghzoghy says. "Especially as the cost of technology comes down, you'll see these solutions integrated even more."
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.