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.
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."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.