In our continuing series of discussions with top supply-chain company executives, Aaron Jones of Bastian Solutions discusses the impact of the coronavirus, support for STEM education, and life as a systems integrator.
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.
Since becoming president of Bastian Solutions in 2014, Aaron Jones has led this growing material handling systems integrator through its successful transition to a subsidiary of Toyota Advanced Logistics. Jones has been with Bastian Solutions since 2010, serving as a regional manager, national director, and vice president before taking on his current role as president. He previously worked as a product design engineer at Ford Motor Co./Visteon Corp. From 1997 to 2000, he played professional baseball within the New York Yankees organization.
Jones has received several patents for Bastian Solutions in robotic applications and automated guided vehicles (AGVs). He also led three strategic acquisitions for the company in the software, consulting, and AGV functional areas. Under his leadership, Bastian Solutions has twice been recognized as one of the Best Places to Work in Indiana by the Indiana Chamber of Commerce. The Indianapolis Business Journal named Bastian Solutions the area’s largest engineering firm in 2020.
Jones holds a master’s degree in engineering management from Wayne State University in Detroit and a bachelor’s degree in mechanical engineering from Southern Illinois University, where he was an All-American baseball player. He recently spoke with DC Velocity Editorial Director David Maloney.
Q: How has the Covid-19 pandemic affected your company and customers so far?
A: The challenges we face as a company and the challenges our customers face are present every day. With that said, we’ve worked incredibly hard to put the necessary safety precautions in place for our employees and for our customers to keep projects on track. The execution and delivery of these projects has changed, but they’re still moving forward. Each is maintaining social distancing and following the necessary precautions with respect to sanitation and PPE. Securing these materials has been challenging, but a top priority for us is keeping our project teams and manufacturing employees safe.
Our next priority has been ensuring the success of current projects and supporting our customers however we can. With the pandemic, of course, there are greater global supply chain challenges, but we have worked hard to limit those—which is a significant benefit of being an independent systems integrator as opposed to relying only on our internal manufacturing. As a global integrator, we can reach out to a wide range of supply networks. If there are delivery or supply chain issues in a certain region or country, we can go to a different region to help mitigate those issues for our clients.
Q: Has the pandemic changed any plans or major initiatives slated for the remainder of the year?
A: The pandemic hasn’t changed any of our overall plans. In fact, we feel that coming out of this pandemic, there is going to be even more demand for the goods and services we provide.
While it hasn’t changed any of our plans, it has inherently delayed them for a few months. We continue to hire and expand through the pandemic, though not as quickly as we had hoped. Once we come through this pandemic, there is going to be greater demand for advanced technologies that provide supply chain visibility and agile operations, areas in which our products and services can truly help; thus, we want to continue to invest in our team and look to the future.
As for our customers, we seem to have two types at the moment: those who have invested in automation (and they sure are happy that they have invested), and those who wish they had automated their facilities before this pandemic. Our goal is to assist those companies in planning for and creating post-Covid operations to address changes in consumer behavior. For example, with most stores in the country closed, the only way to reach clients is digitally—which has made home delivery and curbside pickup imperative.
When you look at the results of the pandemic, as we rebound from the social changes we are left with, we will see a greater sense of social distancing, which goes hand in hand with automated fulfillment systems. There will be lasting changes, so we look forward to supporting our customers through it all.
Q: Bastian Solutions is now part of Toyota Advanced Logistics, which also includes Vanderlande, and is a sister company to Toyota Forklifts and Raymond under the Toyota Industries Corp. (TICO) umbrella. Have you been able to create synergies or joint projects with the other brands?
A: When you look at Toyota’s interest in acquiring Bastian Solutions and Vanderlande, its goal and mission was to provide the greatest level of full turnkey solutions in automation across the globe, which is now largely in effect.
Within TICO, we have a laser focus on global markets of all sizes. There has been very strong correlation across all the TICO companies and our customers to continue to provide our clients with the most comprehensive solutions in the world.
Fork trucks are becoming more and more a part of integrated solutions each year, thanks to their growing sophistication and expanding capabilities. The industry is at a stage where we are getting close to fully automated distribution facilities, and I think going forward, fork vehicles will be so well integrated into the automated systems that they’ll largely be viewed as another piece of equipment, like you’d look at a robot or an AS/RS crane.
Q: Last year, Bastian Solutions opened an advanced manufacturing facility in Indiana. What does that facility provide for you in terms of capabilities and capacities?
A: The primary focus of the facility is to manufacture conveyor, but our commitment to the market and our clients, first and foremost, is that we are an independent integrator. In the last 65 years, we have supplied a large variety of technologies, including a large variety of conveyor—that isn’t going to change with our strong focus on integration. This facility in Indiana provides us with a high-quality conveyor option for our clients; however, we do still leverage other trusted conveyor suppliers that we’ve integrated with for many years. We are consistently reminded that this is the advantage we provide our clients and our first commitment is to our customers. We are going to provide them with the best product available for their system, regardless of where that product comes from.
Q: Bastian Solutions has been recognized as one of the best places to work in Indiana. To what do you attribute that success?
A: We are very proud to have received this award for the second time. Based on an independent employee survey, I can attribute the success to a very keen focus on the satisfaction and feedback of our employees. We listen and look for ways to make their time at Bastian Solutions more enjoyable.
In this day and age, employees have options. Social media is a friend or enemy, depending on how companies treat their employees. Companies must be flexible, progressive, and accommodating. Our human resources team, along with our leadership team, continues to monitor feedback and working conditions, always looking for ways to excel. I look at this award as a report card for how we did this year. We continue to look for innovative ways to serve our employees and will hopefully receive the award for many years to come.
Q: In your career, you worked at Ford Motor Co. and played professional baseball in the Yankees organization. What did those experiences teach you about leadership and team building that you now apply to your role as president of Bastian Solutions?
A: I couldn’t ask for a better experience at either organization. In the mid-90s, the Yankees were leaders in attracting cultural diversification. We had around 60% of the entire organization come from outside the U.S. The cultural differences were significant, and it was a tough adjustment for some players from other countries. I had to learn to function on a diverse team. I think the biggest thing that the Yankees and professional sports taught me was a keen desire to win, but more importantly, it taught me how to lose gracefully. Playing 160 games a year and racking up 100 wins is a good team, but you still lost 60 times. Baseball and athletics at that level taught me how to succeed and fail with grace.
My time with Ford and Visteon taught me how to respect diversification not only on your teams but also by market and country. I also learned about large-scale manufacturing and supply chain. One of my first tours was of an assembly line of a major automotive factory, and it was very eye opening.
Q: You’ve been an advocate for STEM (science, technology, engineering, and math) education. Why is this critical to the future of the industry?
A: The industry is undoubtedly changing at an incredible speed. I have confidence in saying that while the job market has changed significantly over the last 20 years, the change over the next 20 years will happen at an even faster pace.
With regard to STEM and being of an engineering background, I like to encourage schools to not only consider the engineers and scientists that these programs will turn out, but even more so, the technicians. The available secure and stable jobs in the future will require a technical understanding and competence. When I encourage these schools, I emphasize that even with a great track record of producing engineers, we need to also focus on the technicians who might not go through a typical four-year or two-year degree program—we need to give them the technological background to be successful as well.
In many cases, if we put the right programs in place, a senior in high school can graduate with a two-year degree in some sort of technical field and get a really good job. The competencies required to operate automated equipment and understand sensors and PLCs [programmable logic controllers] and software programs do not require someone to write the code or to design the technology, but to understand how everything works, be able to operate it, and be a system expert.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
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."