In the face of spiraling unemployment claims triggered by coronavirus shutdowns, grocery chain The Kroger Family of Companies has hired more than 100,000 workers in the past eight weeks, including those from sectors hardest hit by the economic shock of the pandemic, like restaurants, hotels, and food service distributors.
Supply chain snarls and work-from-home policies have caused spikes for essential goods like food and medical gear, while nearly idling other sectors of the economy. As a supermarket retailer, Kroger has seen a jump in demand for its products, helping drive the hiring increase.
Kroger's workforce topped 460,000 associates prior to the crisis, so its recent hiring efforts have helped provide continuous access to food and essential products during the pandemic. To handle the increase workforce, Kroger initiated an expedited hiring process in early March to shorten the time between application and employment, onboarding new hires in an average of 72 hours. Kroger also adjusted its new hire approach to focus on tasks as opposed to role-based development, allowing new hires to more quickly acclimate to their roles and expectations, the company said.
"Throughout the pandemic, Kroger's top priority has been to provide and maintain a safe environment for our associates and customers with open stores, comprehensive e-commerce solutions, and an efficiently operating supply chain," Rodney McMullen, Kroger's chairman and CEO, said in a release. "Since March, we have invested to reward our associates and safeguard our associates, customers and communities."
And in other examples of the logistics industry dedicating its assets to the coronavirus fight:
Liquid and powder coatings supplier Axalta has shifted the manufacturing capabilities of its facility in Tlalnepantla, Mexico, to produce more than 1,000 liters of hand sanitizer, which is being donated to local healthcare facilities, first responders, and other essential businesses. These efforts complement Axalta's global support of coronavirus relief efforts which include sending personal protective equipment (PPE) to hospitals in the U.S., France, Belgium, and Germany, and providing more than 5,000 seat covers to medical professionals who can use the seat covers in their own cars to reduce the risk of transmitting the coronavirus when they are visiting those diagnosed with the virus. "Several Axalta plants in Latin America, Europe, and the United States have shifted production from paint to hand sanitizer to help meet the growing need of this product in countries around the globe," Daniel Salcido, Axalta's president of Latin America North, said in a release. "Axalta has already donated thousands of liters of hand sanitizer to support the local communities where our employees live, work and raise their families. We will continue to do our part for our customers, employees and all those on the front lines of this pandemic that are helping to keep us safe."
Aerospace and defense contractor Lockheed Martin Corp. has donated cargo capacity on its corporate aircraft as an in-kind donation to support the federal government's Covid-19 response for medical transplants, helping ensure that that life-saving products from European donors would reach American patients on time. The flights help ensure the timely delivery of bone marrow and blood stem cells for transplant, a need that arose when the National Marrow Donor Program (NMDP)/Be The Match ran out of available European Union couriers to deliver life-saving cells to U.S. patients, since tens of thousands of commercial flights had been canceled during the pandemic. Lockheed Martin will be providing weekly air transport based on government medical need – flying government medical teams to the most critical, high-priority locations around the country and/or flying to support bone marrow transport to help with the government's coronavirus response.
E-commerce micro-warehousing platform provider Ohi is helping to keep restaurants in business despite social distancing policies during the pandemic. Ohi has helped the San Fransisco-based wine bar Noeteca pivot from food service into another industry, transforming their brick-and-mortar restaurant into a micro warehouse that supports delivery throughout California for e-commerce brands such as HAUS, Juneshine, and Taika Coffee. Coronavirus has significantly accelerated consumers’ desire for instantaneous commerce across all categories, and Ohi is also working with a variety of brands across the beverage, beauty, health/ wellness, and apparel/footwear spaces, enabling them to reach customers with same-day service during today's new, remote landscape, the firm said.
Less than truckload (LTL) freight management software provider Carrier Logistics Inc. (CLI) has introduced a free, artificial intelligence (AI)-based tool for determining the exact location type for a pick-up or delivery during the Covid-19 crisis. The “LOCI” tool helps clients to plan and dispatch the right driver with the right equipment by interfacing with the firm’s transportation management software (TMS). For example, the tool offers over 115 categories of locations—covering everything from “airport” to “zoo”—to provide much more detail than the classic binary choice between residential and commercial. “Right now, many carriers are servicing different customers and locations than they have in the past,” CLI President Ben Wiesen said in a release. “And we know that staff at the carriers is in a state of flux, with people covering dispatch who might not have the tribal knowledge about the customer base. And of course, we know how confusing that can be. In order to assist our clients during these turbulent times, (and even as the economy starts to open up) we are offering this emerging technology for free through June 30, 2020.”
Agility Robotics, the small Oregon company that makes walking robots for warehouse applications, has taken on new funding from the powerhouse German automotive and industrial parts supplier Schaeffler AG, the firm said today.
Terms of the deal were not disclosed, but Schaeffler has made “a minority investment” in Agility and signed an agreement to purchase its humanoid robots for use across the global Schaeffler plant network.
That newly combined entity will generate annual revenue of around $26 billion, employ a workforce of some 120,000, and serve its customers from more than 44 research & development (R&D centers and more than 100 production sites around the world. The new setup will include four business divisions: E-Mobility, Powertrain & Chassis, Vehicle Lifetime Solutions and Bearings & Industrial Solutions.
“In disruptive times, implementing innovative manufacturing solutions is crucial to be successful. Here, humanoids play an important role,” Andreas Schick, Chief Operating Officer of Schaeffler AG, said in a release. “We, at Schaeffler, will integrate this technology into our operations and see the potential to deploy a significant number of humanoids in our global network of 100 plants by 2030. We look forward to the collaboration with Agility Robotics which will accelerate our activities in this field.”
Agility makes the “Digit” product, which it calls a bipedal Mobile Manipulation Robot (MMR). Earlier this year, Agility also began deploying its humanoid robots through a multi-year agreement with contract logistics provider GXO.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”
Material handling automation provider Vecna Robotics today named Karl Iagnemma as its new CEO and announced $14.5 million in additional funding from existing investors, the Waltham, Massachusetts firm said.
The fresh funding is earmarked to accelerate technology and product enhancements to address the automation needs of operators in automotive, general manufacturing, and high-volume warehousing.
Iagnemma comes to the company after roles as an MIT researcher and inventor, and with leadership titles including co-founder and CEO of autonomous vehicle technology company nuTonomy. The tier 1 supplier Aptiv acquired Aptiv in 2017 for $450 million, and named Iagnemma as founding CEO of Motional, its $4 billion robotaxi joint venture with automaker Hyundai Motor Group.
“Automation in logistics today is similar to the current state of robotaxis, in that there is a massive market opportunity but little market penetration,” Iagnemma said in a release. “I join Vecna Robotics at an inflection point in the material handling market, where operators are poised to adopt automation at scale. Vecna is uniquely positioned to shape the market with state-of-the-art technology and products that are easy to purchase, deploy, and operate reliably across many different workflows.”
In a push to automate manufacturing processes, businesses around the world have turned to robots—the latest figures from the Germany-based International Federation of Robotics (IFR) indicate that there are now 4,281,585 robot units operating in factories worldwide, a 10% jump over the previous year. And the pace of robotic adoption isn’t slowing: Annual installations in 2023 exceeded half a million units for the third consecutive year, the IFR said in its “World Robotics 2024 Report.”
As for where those robotic adoptions took place, the IFR says 70% of all newly deployed robots in 2023 were installed in Asia (with China alone accounting for over half of all global installations), 17% in Europe, and 10% in the Americas. Here’s a look at the numbers for several countries profiled in the report (along with the percentage change from 2022).
Sean Webb’s background is in finance, not package engineering, but he sees that as a plus—particularly when it comes to explaining the financial benefits of automated packaging to clients. Webb is currently vice president of national accounts at Sparck Technologies, a company that manufactures automated solutions that produce right-sized packaging, where he is responsible for the sales and operational teams. Prior to joining Sparck, he worked in the financial sector for PEAK6, E*Trade, and ATD, including experience as an equity trader.
Webb holds a bachelor’s degree from Michigan State and an MBA in finance from Western Michigan University.
Q: How would you describe the current state of the packaging industry?
A: The packaging and e-commerce industries are rapidly evolving, driven by shifting consumer preferences, technological advancements, and a heightened focus on sustainability. The packaging sector is increasingly prioritizing eco-friendly materials to reduce waste, while integrating smart technologies and customizable solutions to enhance brand engagement.
The e-commerce industry continues to expand, fueled by the convenience of online shopping and accelerated by the pandemic. Advances in artificial intelligence and augmented reality are enhancing the online shopping experience, while consumer expectations for fast delivery and seamless transactions are reshaping logistics and operations.
In addition, with the growth in environmental and sustainability regulatory initiatives—like Extended Producer Responsibility (EPR) laws and a New Jersey bill that would require retailers to use right-sized shipping boxes—right-sized packaging is playing a crucial role in reducing packaging waste and box volume.
Q: You came from the financial and equity markets. How has that been an advantage in your work as an executive at Sparck?
A: My background has allowed me to effectively communicate the incredible ROI [return on investment] and value that right-size automated packaging provides in a way that financial teams understand. Investment in this technology provides significant labor, transportation, and material savings that typically deliver a positive ROI in six to 18 months.
Q: What are the advantages to using automated right-sized packaging equipment?
A: By automating the packaging process to create right-sized boxes, facilities can boost productivity by streamlining operations and reducing manual handling. This leads to greater operational efficiency as automated systems handle tasks with precision and speed, minimizing downtime.
The use of right-sized packaging also results in substantial labor savings, as less labor is required for packaging tasks. In addition, these systems support scalability, allowing facilities to easily adapt to increased order volumes and evolving needs without compromising performance.
Q: How can automation help ease the labor problems associated with time-consuming pack-out operations?
A: Not only has the cost of labor increased dramatically, but finding a consistent labor force to keep up with the constant fluctuations around peak seasons is very challenging. Typically, one manual laborer can pack at a rate of 20 to 35 packages per hour. Our CVP automated packaging solution can pack up to 1,100 orders per hour utilizing a fully integrated system. This system not only creates a right-sized box, but also accurately weighs it, captures its dimensions, and adds the necessary carrier information.
Q: Beyond material savings, are there other advantages for transportation and warehouse functions in using right-sized packaging?
A: Yes. By creating smaller boxes, right-sizing enables more parcels to fit on a truck, leading to significant shipping and transportation savings. This also results in reduced CO2 emissions, as fewer truckloads are required. In addition, parcels with right-sized packaging are less prone to damage, and automation helps minimize errors.
In a warehouse setting, smaller packages are easier to convey and sort. Using a fully integrated system that combines multiple functions into a smaller footprint can also lead to operational space savings.
Q: Can you share any details on the typical ROI and the savings associated with packaging automation?
A: Three-dimensional right-sized packaging automation boosts productivity significantly, leading to increased overall revenue. Labor savings average 88%, and transportation savings accrue with each right-sized box. In addition, material savings from less wasteful use of corrugated packaging enhance the return on investment for companies. Together, these typically deliver returns in under 18 months, with some projects achieving ROI in as little as six months. These savings can total millions of dollars for businesses.
Q: How can facility managers convince corporate executives that automated packaging technology is a good investment for their operation?
A: We like to take a data-driven approach and utilize the actual data from the customer to understand the right fit. Using those results, we utilize our ROI tool to accurately project the savings, ROI, IRR (internal rate of return), and NPV (net present value) that facility managers can then use to [elicit] the support needed to make a good investment for their operation.
Q: Could you talk a little about the enhancements you’ve recently made to your automated solutions?
A: Sparck has introduced a number of enhancements to its packaging solutions, including fluting corrugate that supports packages of various weights and sizes, allowing the production of ultra-slim boxes with a minimum height of 28mm (1.1 inches). This innovation revolutionizes e-commerce packaging by enabling smaller parcels to fit through most European mailboxes, optimizing space in transit and increasing throughput rates for automated orders.
In addition, Sparck’s new real-time data monitoring tools provide detailed machine performance insights through various software solutions, allowing businesses to manage and optimize their packaging operations. These developments offer significant delivery performance improvements and cost savings globally.