In our continuing series of discussions with top supply-chain company executives, Matt Wicks of Honeywell Intelligrated shares insights into the fast-evolving fields of robotics and artificial intelligence.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Matt Wicks is vice president of product development at Honeywell Intelligrated. He has an engineering background and has worked in the material handling industry for more than 25 years. His expertise is in controls and software integration in manufacturing and distribution systems, but he also has extensive experience in advanced robotic solution development, including robotic solution integration. Wicks holds a bachelor's degree in electrical engineering from the University of Missouri and currently serves as second vice chair on the Robotics Industries Association's board of directors. He recently spoke with DC Velocity Editorial Director David Maloney.
Q: How do you view the current state of the supply chain industry?
A: E-commerce and e-retail fulfillment growth are pushing traditional warehouses and distribution centers to their limits and forcing retailers to rethink their fulfillment operations. Other factors such as labor availability—plus the fact that 60 percent of supply chain jobs require skills that just 20 percent of the work force possesses—make the challenges even more complex.
Q: As an expert in controls and automation, how do you see sensors and built-in analytics influencing the role played by controls and software in future material handling system designs?
A: Recent advances in these technologies are very exciting, because they're finally making it possible for robots to do jobs that were once considered beyond their capacity. In mobile robotics, for example, sensors and built-in analytics now enable robots to map and navigate their surroundings without any additional infrastructure. This not only reduces their costs, but it also makes them safe enough to operate in complex warehouse environments where they need to avoid people, fork-truck tines, and other obstacles.
At a higher level, sensors and analytics are helping many different types of robots make decisions faster and function more efficiently with less operator supervision. In a connected DC environment, robots can improve their own performance over time and even teach other types of robots.
Q: We hear a lot about how robots will be replacing workers in the future. Do you believe this will be the case, or do you feel that robots will work more collaboratively with people?
A: Frankly, the biggest threat to jobs isn't robots. It's not being able to keep up with the incredible changes we're seeing as a result of the e-commerce explosion. Automation is going to be critical to any operation that wants to remain competitive in this market. If your DC isn't deploying robotics now, it's not just the jobs of individual workers that are at risk; it's the survival of your entire operation.
That said, there are several other reasons we think workers can rest easy. For the immediate future, we see every sign that today's labor scarcity will tighten even further, even as e-commerce volume continues to grow at a brisk pace. So even if DCs start deploying robotic co-workers on a large scale, there are likely to be more jobs available in this market than there are qualified people to fill them for many years to come.
What's more encouraging, both today and further out, is that we don't foresee robots replacing people so much as improving their overall job prospects. At the World Economic Forum last year, for example, it was estimated that AI [artificial intelligence] and robotics will create almost 60 million more jobs than they destroy by the year 2022. In some cases, these jobs will involve the more collaborative approach you've suggested, with robots becoming part of the "team," if you will. We'll also see robots increasingly freeing people from uncomfortable, monotonous, or dangerous tasks, allowing them to take on more satisfying and fulfilling roles.
Q: What specific types of robotics are prime candidates for growth in distribution and manufacturing facilities and why?
A: Let's start with the "why" part of that question. Apart from the scarcity of labor, which is the first thing almost every employer mentions, the number-one concern we hear from the market is worker safety. Because of that, we see the greatest opportunities for robotics in jobs where automation can reduce or eliminate the risks of injury, overexertion, repetitive motion, and discomfort.
Honeywell Intelligrated's robotic unloader is a textbook example. Truck and trailer unloading is one of the most demanding and injury-prone jobs in the industry. There's a lot of heavy lifting, seasonal extremes of heat and cold, high turnover, absenteeism, and other challenges. By creating an automated solution that performs day in and day out in any weather, we can reduce injuries, even as we increase capacity and free up workers to perform safer, higher-value jobs.
Sorter induction is another prime candidate for robotics. It's a monotonous job for human workers that robots can perform faster and more efficiently. We also see opportunities in picking and transportation, and have invested in strategic collaborations for these areas.
Q: How will robotics and automation help to address an aging work force and the difficulty in finding skilled workers?
A: Robots and automation are key pieces in a larger puzzle, one that also includes connectivity and integration with existing solutions. As older workers continue to retire, taking a lot of their "tribal" knowledge with them, robots will enable newer workers to keep logistics operations performing at high levels without the need for a lot of training or technical skills.
Automation will also [enhance] the productivity of individual workers. With the robotic unloaders I mentioned earlier, for example, a single employee can manage up to five bays without breaking a sweat.
In addition to bridging the skills gap, robots in connected operations will be able to adapt more quickly to changing conditions, like new packaging or product types. Machine learning and AI will enable them to do more of their own problem solving without supervision. And once a single robot learns the solution to a new challenge, its training model can be pushed out to robots throughout your operation.
Q: Are there particular systems (hardware and software) that Honeywell Intelligrated plans to emphasize in the marketplace?
A: Honeywell Intelligrated has a wide solution set to support the transformations of the supply chain. Combining smart robotics with our ability to provide connected solutions via "The Connected Distribution Center" [Honeywell Intelligrated's asset- and performance-monitoring solution] will continue to be an area of focus, as they readily address the challenges we are seeing in the space. Our solutions will continue to innovate by leveraging these new technologies and delivering the highest value to our customers.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”