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."
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."