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.
called Xanthus and Pegasus, saying the designs are intended to improve safety and efficiency for its sprawling buildings and enormous workforce.
The company has already deployed 800 of the Pegasus units to its facilities, a small portion of the 200,000 robotic drive units it operates globally, but one it intends to rapidly increase. Those robots are concentrated at the 50 robotic fulfillment centers Amazon operates among its global footprint of 175 fulfillment centers and more than 40 sort centers, the company said.
The launch comes as Amazon is investing heavily in its distribution network to support its April offer to upgrade the nationwide delivery terms of its Amazon Prime subscription service from two-day to next-day shipping.
In pursuit of ratcheting up its service speeds, Seattle-based Amazon has been a leader in the trend to automate fulfillment operations ever since it acquired the technology firm Kiva Systems LLC for $775 million in 2012, rebranded it as Amazon Robotics, and ceased selling its squat, orange units to competing DCs.Those Kiva robots raised the industry's bar for goods-to-person automation by cruising through fulfillment centers, maneuvering underneath racks of inventory, and carrying those loaded shelves to warehouses laborers who would pick and pack individual items for shipping to consumers' homes.
However, the latest units follow a different workflow pattern than Kiva, the company said at its re: MARS conference in Las Vegas this week. The Xanthus model is the company's "first major redesign of our core drive-based robot," creating a common, sled-based foundation that serves as a mobile, modular base that can carry a wide range of potential attachments, according to Amazon.
In an address from the conference stage, Amazon's vice president of robotics, Brad Porter, said the Xanthus model has a much thinner profile than the Kiva unit, with one-third the number of parts, one-half the cost, easier maintenance, and the same safety features. That versatility will allow Amazon to customize solutions to specific needs within each building and install them without significant redesign, the company said. In Las Vegas, Amazon demonstrated attachments called the Xanthus Sort Bot and Xanthus Tote Mover, while promising many more variations to follow.
Amazon's senior vice president of operations, Dave Clark, also posted a short video yesterday of some Xanthus modular drive units operating in an Amazon sort-center.
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In another development, Amazon unveiled its Pegasus drive unit, saying the product is bringing robotics to its sortation buildings for the first time. Pegasus also moves beyond the Kiva model, thanks to its ability to sort and route individual packages instead of moving tall storage pods, while maintaining the core technology of the Amazon Robotics storage floors, the company said.
The Pegasus robots also calculate the most efficient route for each drive unit to avoid traffic jams on the sortation floor, maximize throughput, improve quality control, and maximize sort density. The operation is all monitored by an Amazon employee in a new job position called the "flow control specialist," responsible for managing inbound and outbound package volume and distribution, Amazon said.
The impact of adding these robotics and new technologies to its operations network could improve both the customer experience and employees' experience, the company said. "We are always testing and trialing new solutions and robotics that enhance the safety, quality, delivery speed and overall efficiency of our operations," an Amazon spokesperson said in a statement. "Our new Pegasus drive units help to reduce sort errors, minimize damage, and speed up delivery times. The Xanthus family of drives brings an innovative design, enabling engineers to develop a portfolio of operational solutions, all off the same hardware base through the addition of new functional attachments."
Amazon's new Xanthus and Pegasus bots arrive on the logistics scene at a time when many competing retailers and third party logistics providers (3PLs) have been developing their own versions of robots designed for fast, accurate fulfillment. As opposed to Amazon's approach of privatizing its robotic development, these firms offer a wide range of models to fit nearly any size and type of operation, ranging from autonomous mobile robots (AMRs) from vendors such as Locus Robotics, Fetch Robotics, and GreyOrange to piece-picking arms from RightHand Robotics and inVia Robotics, and integrated systems and networks from Berkshire Grey and MonarchFx.
Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.
The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
October’s reading showed the fastest rate of expansion in the overall index since September of 2022, when the index hit 61.4. The results show that the industry is continuing its steady recovery from the volatility and sluggish freight market conditions that plagued the sector just after the Covid-19 pandemic, according to the LMI researchers.
“The big takeaway is that we’re continuing the slow, steady recovery,” said LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. “I think, ultimately, it’s better to have the slow and steady recovery because it is more sustainable.”
All eight of the LMI’s indices grew during the month, with the Transportation Prices index showing the most growth, at nearly 6 points higher than September, reflecting increased activity across transportation markets. Transportation capacity expanded slightly during the month, remaining just above the 50-point threshold. Rogers said more capacity will enter the market if prices continue to rise, citing idle capacity across the market due to overbuilding during the pandemic years.
“Normally we don’t have this much slack in the market,” he said. “We overbuilt in 2021, so there’s more slack available to soak up this additional demand.”
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.
Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.
“The Canadian port strike is a microcosm of many of the issues that are impacting Western economies today; protection against automation, better work-life balance, and a cost-of-living crisis,” Russell Group Managing Director Suki Basi said in a release. “Taken together, these pressures are creating a cocktail of connected risk for countries, business, individuals and entire sectors such as marine insurance, which help to mitigate cargo exposures.”
The strike is also sending ripples through neighboring U.S. ports, which are hustling to absorb the diverted cargo, according to David Kamran, assistant vice president for Moody’s Ratings.
“The recurrence of strikes at Canadian seaports is positive for U.S. ports that may gain cargo throughput, depending on the strike duration,” Kamran said in a statement. “The current dispute at Vancouver is another example of the resistance of port unions to automation and the social risk involved with implementing these technologies. Persistent disruption in Canadian port access would strengthen the competitive position of US West Coast ports over the medium-term, as shippers seek to diversify cargo away from unreliable gateways.”
The strike is also affected rail movements, according to ocean cargo carrier Maersk. CN has stopped all international intermodal shipments bound for the west coast ports of Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks. And CPKC has stopped acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Connected with the turmoil, Maersk has suspended its import and export carrier demurrage and detention clock for most affected operations. The ultimate duration of the strike is unknown, but the situation is “rapidly evolving” as talks continue between the Longshore Workers Union (ILWU 514) and the British Columbia Maritime Employers Association (BCMEA), Maersk said.
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."
In addition to its flagship Clorox bleach product, Oakland, California-based Clorox manages a diverse catalog of brands including Hidden Valley Ranch, Glad, Pine-Sol, Burt’s Bees, Kingsford, Scoop Away, Fresh Step, 409, Brita, Liquid Plumr, and Tilex.
British carbon emissions reduction platform provider M2030 is designed to help suppliers measure, manage and reduce carbon emissions. The new partnership aims to advance decarbonization throughout Clorox's value chain through the collection of emissions data, jointly identified and defined actions for reduction and continuous upskilling.
The program, which will record key figures on energy, will be gradually rolled out to several suppliers of the company's strategic raw materials and packaging, which collectively represents more than half of Clorox's scope 3 emissions.
M2030 enables suppliers to regularly track and share their progress with other customers using the M2030 platform. Suppliers will also be able to export relevant compatible data for submission to the Carbon Disclosure Project (CDP), a global disclosure system to manage environmental data.
"As part of Clorox's efforts to foster a cleaner world, we have a responsibility to ensure our suppliers are equipped with the capabilities necessary for forging their own sustainability journeys," said Niki King, Chief Sustainability Officer at The Clorox Company. "Climate action is a complex endeavor that requires companies to engage all parts of their supply chain in order to meaningfully reduce their environmental impact."
Supply chain risk analytics company Everstream Analytics has launched a product that can quantify the impact of leading climate indicators and project how identified risk will impact customer supply chains.
Expanding upon the weather and climate intelligence Everstream already provides, the new “Climate Risk Scores” tool enables clients to apply eight climate indicator risk projection scores to their facilities and supplier locations to forecast future climate risk and support business continuity.
The tool leverages data from the United Nations’ Intergovernmental Panel on Climate Change (IPCC) to project scores to varying locations using those eight category indicators: tropical cyclone, river flood, sea level rise, heat, fire weather, cold, drought and precipitation.
The Climate Risk Scores capability provides indicator risk projections for key natural disaster and weather risks into 2040, 2050 and 2100, offering several forecast scenarios at each juncture. The proactive planning tool can apply these insights to an organization’s systems via APIs, to directly incorporate climate projections and risk severity levels into your action systems for smarter decisions. Climate Risk scores offer insights into how these new operations may be affected, allowing organizations to make informed decisions and mitigate risks proactively.
“As temperatures and extreme weather events around the world continue to rise, businesses can no longer ignore the impact of climate change on their operations and suppliers,” Jon Davis, Chief Meteorologist at Everstream Analytics, said in a release. “We’ve consulted with the world’s largest brands on the top risk indicators impacting their operations, and we’re thrilled to bring this industry-first capability into Explore to automate access for all our clients. With pathways ranging from low to high impact, this capability further enables organizations to grasp the full spectrum of potential outcomes in real-time, make informed decisions and proactively mitigate risks.”