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."
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
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."