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.
When the discount online retailer Hollar announced in December that it was migrating its warehouse from California to Ohio in a bid to trim shipping and logistics costs, observers may have thought the move would hobble the firm's operations during the critical peak holiday shopping season.
However, on Jan. 7, Hollar announced that its fulfillment operations were already up and running at the new location, giving credit to its fleet of 80 mobile robots from inVia Robotics. Even while Hollar managers were still recruiting new warehouse staff, their new DC was operational and busy shipping orders of everything from toys and electronics to home, beauty, and apparel items, the company said.
The inVia Picker bots used in Hollar's fulfillment center streamline operations by enabling a goods-to-person workflow, operating alongside the facility's human workers to pick and move items, automating the fulfillment process, the company says. InVia's system uses autonomous mobile robots (AMRs) that can navigate through DCs, pick boxes off shelves, and transport them to new locations. Together, the fleet's bots function as a kind of rolling automated storage and retrieval system (AS/RS), freeing up human workers to perform complex tasks like piece picking and quality control instead of walking long distances through cavernous DCs.
InVia Picker bots operate alongside human workers to pick and move items, freeing up people to perform complex tasks like piece picking.
By lightening the load on their human co-workers, "collaborative robots" or cobots can bring about enormous efficiency gains, manufacturers say. For instance, Hollar reports that its initial deployment of inVia robots at its California warehouse last year boosted productivity 300 percent.
So does this mean that warehouses have relegated human workers to replacing robots' spent batteries and squeaky wheels, or that they've even dispensed with humans altogether?
Not at all, the experts say. While the new technology, whether it's an AMR, a cobot, or an automated guided vehicle (AGV), may be providing warehouse workers with a valuable assist in certain tasks, fulfillment centers will continue to employ large staffs of human labor for the foreseeable future, doing roughly the same work they're doing now.
ROBOTS AMPLIFY HUMAN EFFORTS IN THE DC
When robots doing the traveling, workers don't get as tired, so they're more actively engaged, and more productive, too, says Tim Sprosty of DHL Supply Chain..
To understand just how robots can ease the physical burdens of warehouse work, you need look no farther than the operations run by DHL Supply Chain, the contract logistics arm of German logistics giant Deutsche Post DHL Group. The company, which is known for its pioneering work in applying emerging technologies, has conducted a number of pilots with robots in recent years. DHL does not provide details on the specific robot models involved, but in the past, it has said it used technology from the former Rethink Robotics—which provided stationary piece-picking arms capable of sorting each-picks—and from Locus Robotics, which makes autonomous mobile robots that carry bins of goods and tablet computers, accompanying and instructing human pickers and then delivering the selected goods to the next station.
To date, the greatest impact of robots on logistics work has been to supercharge human workers by taking on some of their more onerous assignments. For example, robots often do the heavy lifting on the warehouse floor, so human workers no longer spend their days pulling a pallet jack, climbing off a forklift, or physically handling items, says Tim Sprosty, senior vice president for human resources at DHL Supply Chain.
"Associates were walking six, seven, eight miles a day as they traveled up and down the aisles," Sprosty says. "Now, there isn't the fatigue, because a robot is doing the traveling for the associate, so people don't get as tired, they're more actively engaged, and they're more productive as well." In fact, their productivity may rise to the point that companies need to adjust their labor standards, he adds.
Reducing the physical demands of warehouse work has also made it easier for employers to find workers, according to DHL. "Many warehouses have [jobs] to be filled, but not enough applicants, so there's a war for talent at the warehouse level," Sprosty says. "That is why DHL has invested time and energy in making the work easier; it helps with recruiting, not just with training and onboarding."
A NEW TWIST ON OLD JOBS
The typical DC worker on the floor won't need additional technology skills or robotics expertise to work with cobots, says DHL Supply Chain North America CIO Sally Miller.
As robotics continue to change the nature of warehouse work, it might seem inevitable that job requirements for workers would change as well. But companies that have used the cobots say no technical wizardry is required. The typical hourly worker on the floor won't need any additional technology skills or robotics expertise, according to Sally Miller, chief information officer (CIO) for DHL Supply Chain North America. In fact, many floor workers are comfortable with basic cobot technology without specific training—thanks to their use of consumer electronics like tablets and smartphones, she says. "We're seeing that with our associates about 40 years old and younger, who have grown up around technology—they understand it very fast."
And if those associates do encounter problems, DHL has a plan in place. As workers become more proficient at working alongside robots, DHL certifies its most technologically adept employees as "warehouse super-users," a role that requires them to provide the first line of tech support and answer colleagues' questions about everything from cobots to warehouse management system (WMS) software, Miller says.
While the introduction of robots may not demand much in the way of new skills for DC laborers, it could have a slightly bigger impact on their bosses. "The managers will have to understand how the technology works; they will have to be more tech-adept than they were in the past," Miller says.
Even so, the impact on managers will likely be only moderate, according to DHL. A few technicians may be needed to perform preventive maintenance, but serious repairs or software upgrades are typically handled by the robot vendors themselves, the company says.
THE HUMAN TOUCH
Robots may reduce the number of people needed at DHL Supply Chain, but there will still be a need for uniquely human skills like dexterity and decision-making, says Miller.
Given the advances in robotics capabilities over the past few years, some may wonder whether the bots will soon be putting humans in the unemployment line. At DHL, at least, the answer is a firm no. While the company acknowledges that over time, its fleet of warehouse robots may reduce the number of humans needed, it emphasizes that there will still be a need for uniquely human skills like dexterity and decision-making. Although the cobots have proved quite effective at enhancing workers' productivity, they still rely on humans for tasks like physically reaching into a bin of products and pulling out individual units, Miller points out.
"We are deploying cobots, but it's a misconception that they're going to one hundred percent replace what human employees do," Miller says. "Bots are used to reduce the travel time of associates, which will reduce the number of associates in the building, but not a hundred percent. The feedback is that [workers] like working with the bots and will be able to be more efficient and to level-load their work activity."
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.