Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Advanced picking technologies that incorporate robotics and vision systems are revolutionizing the way warehouses and distribution centers pick, pack, and ship orders—allowing companies to get those orders out the door faster than ever before. Nowhere was this more evident than at the recent Modex 2020 conference and expo, a showcase of logistics and material handling solutions held in Atlanta in March. The show featured a plethora of advanced picking technologies from both industry leaders and up-and-comers that offered a clear view of how the industry continues to automate as a way to boost productivity, address labor challenges, and streamline operations. Here’s a look at just a few new and updated offerings from companies that are outside the mainstream radar, but are nonetheless working to transform picking via robotic goods-to-person, piece-picking, and pick-by-vision solutions.
ELEVATING GOODS-TO-PERSON SOLUTIONS
French logistics technology firm Exotec showcased a goods-to-person picking system that uses a fleet of mobile robots able to move in three dimensions, all while eliminating much of the infrastructure typically involved in similar automated systems. Called Skypod, Exotec’s system can be used for picking and replenishment; its Skypod robots convey and store totes containing items in racks up to 10 meters (30-plus feet) high. The robots move through the warehouse without any guiding infrastructure, and there is no mechanization in the racks, creating an open and free-flowing system designed especially for e-commerce, retail, and similar operations, according to Exotec Sales Director Gilles Baulard.
The growth of e-commerce worldwide makes this a perfect time for Exotec to move into the U.S. market, Baulard adds, noting that the company is working with a handful of integrators to establish a presence here, including Arkansas- and Tennessee-based S&H Systems. Baulard says he anticipates having two Skypod systems running in the United States by the end of 2020. The company has systems running across Europe and in Japan, and counts French grocery retailer Carrefour and Japanese apparel retailer Uniqlo among its biggest customers. Baulard adds that small systems can be up and running in as little as six weeks but notes that typical system installations run between five and eight months.
He adds that Exotec’s software, which uses computer modeling and mathematical algorithms to expedite order preparation, is a key differentiator as well.
“This is a pure goods-to-person system,” Baulard said during a demonstration of the system at Modex. “There is no batch or wave picking. The next order is the most important one.”
Baulard explains that Exotec’s software evaluates and schedules orders every two to three minutes, based on customers’ pre-set parameters and priorities. In picking operations, the robots travel to the racking structure, where they attach to the uprights and move vertically to retrieve items stored in totes. The Skypod robots then move freely to the designated picking area, where workers pick items from the totes for individual orders.
Baulard says the system is unique and differs from typical shuttle-based systems in a few key ways. For one thing, the lack of mechanization in the racks saves space and allows companies to scale up easily, adding racks as demand increases. For another, the system is designed to eliminate bottlenecks; if a robot is down, you simply take it out of the system and continue working. There’s no need for the entire system to be shut down for maintenance.
The Skypod system is also faster than a typical shuttle system, according to Baulard, who says it’s capable of moving between 800 and 900 totes per hour.
But it doesn’t have to work that fast. Baulard emphasizes that the system is versatile and designed to adjust to higher or lower volumes as needed. Along those lines, the company is developing a rental program that will allow customers to temporarily add robots to the system to accommodate peak-season demands.
FINE-TUNING THE PIECE-PICK
RightHand Robotics; RightPick2 system uses machine learning and artificial intelligence.
Robotic piece-picking solutions are gaining steam as well, and many companies displayed the latest advances they’re bringing to the table during Modex 2020. Massachusetts-based RightHand Robotics (RHR) was one of them, showcasing its RightPick2 piece-picking solution for order fulfillment. The newest iteration of the system includes RHR’s fifth-generation intelligent gripper as well as artificial intelligence (AI)-based vision processing software and machine learning. The solution, which includes a commercial robotic picking arm, picks and places individual items using a combination of gripping and suction technology.
One example of the new technology RHR is bringing to the table: a side camera that helps the robotic arm adjust to how an item is situated in a tote so that it can more accurately pick and place the item to avoid damage—just as a human would do.
“We’re developing next-level skills,” explains RHR’s Vince Martinelli, head of product and marketing. He points to the firm’s RightPick Control Center as yet another example of next-level advances. The software program integrates with any commercial warehouse management system (WMS), he explains, to help customers monitor and manage their fleet of RightPick robots. The program’s fleet management dashboard allows customers to drill down into fulfillment exceptions and then pinpoint inefficiencies such as an empty stock tote, a missing receiving tote, or items that can’t be picked through automation.
“More and more of our time is [spent] on the challenges of managing fleets of robots,” Martinelli explains, adding that RHR continues to work closely with WMS providers and integrators to ensure seamless integration into a wider range of material handling systems.
PERFECTING PICK-BY-VISION
German pick-by-vision solutions provider Picavi introduced its Picavi Cockpit business intelligence solution during the Modex conference, showcasing the system’s ability to provide a “smart guide” that can help users better manage and utilize Picavi’s “smart glasses” technology.
“With Picavi Cockpit, we are taking the next step in vision warehousing. The solution provides features for the generation of smart data as well as the uncomplicated administration and maintenance of smart glasses,” according to Johanna Bellenberg, Picavi’s director of marketing and communications.
Essentially, Picavi Cockpit is a digital enhancement to the company’s pick-by-vision system, which uses Google Glass technology to guide workers through the picking process. Wearing a pair of lightweight glasses, workers remain hands-free, receiving real-time order information via the glasses, which show them where to pick, scan, and place items. The system can also incorporate “ring scanners” for use in environments where items are hard to access or far away. Worn on the worker’s finger, the ring scanners are connected to the smart glasses via Bluetooth technology, and they likewise indicate where to pick, scan, and place items.
Picavi Cockpit takes the system to the next level by incorporating analytics and data-gathering tools that allow managers to monitor the use of the glasses and improve operations and productivity. For example, the system’s mobile device management (MDM) feature allows users to quickly and easily add new smart glasses to their fleet and make software updates to the system wirelessly. A “screen cast” function helps speed employee training by projecting the glasses’ display, in real time, onto computer monitors for simulation and practice.
The analytics function converts big data into smart data, as Picavi explains it. Essentially, sensors on the glasses collect information that can be evaluated in real time, producing customer-specific data such as picks per hour and picks per location, and tracking the movement of order pickers through the distribution center. The information is relayed via Picavi Cockpit’s dashboards so that managers can analyze and act on it.
“This gives you the ability to maximize everything,” Bellenberg explains, adding that Picavi’s goal is to support the human being’s role in the DC as much as possible.
“With automation and robotics, there is still so much to figure out—and it’s a big investment,” she says, emphasizing the importance of the human/machine connection in logistics. “We know that we process 80% of information through our eyes. [This makes] pick-by-vision an ideal combination of technology and natural movements.”
HERE TO STAY
No matter which route a company chooses, it’s clear that applying technology to the picking process is a trend that’s here to stay. DHL Supply Chain was among the many ca represented at Modex that are already using some of the newest systems and solutions on the market. The contract logistics services provider applies a range of technology solutions to picking across its 2,000 global locations, according to Tim Tetzlaff, global head of program and product for DHL’s accelerated digitalization team. He says the large labor element involved in picking makes it the perfect place to apply a wide range of solutions.
“We are working closely with many vendors, [applying] a combination of hardware and software to picking,” explains Tetzlaff, adding that DHL brings those solutions together in a “platform” that can be rolled out and applied to its various locations based on customer need.
Some customers may benefit most from wearable solutions that allow hands-free picking, while others will benefit from more advanced robotic solutions, he says. But they all benefit from a focused approach to applying technology that maximizes the picking function.
“It’s not a one-size-fits-all approach. We have to look at where we spend the most on labor” and adopt solutions that address those challenges, Tetzlaff explains.
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."