Material handling companies focus on social distancing
From battery makers to integrators, industry firms continue to find ways to reduce human interaction in the workplace to promote health and safety during the coronavirus pandemic.
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.
Material handling companies continue to focus on social distancing strategies in warehouses and distribution centers (DCs), advancing the trend toward automation that had already been growing even before the Covid-19 pandemic hit this spring.
Faced with new labor challenges and the need to reduce human interaction within the four walls of the warehouse, companies are increasingly turning to their material handling partners for solutions, according to Mark Dumont, senior technical sales representative for Pennsylvania-based battery technology company EnerSys, which makes a range of battery and charging solutions, including for forklifts and other material handling equipment. Dumont points to growing demand for battery technology that can power automated guided vehicles (AGVs) in the workplace—a trend that’s accelerated over the past three to four months. Dumont specializes in EnerSys’ AGV business.
“There is a huge uptick in interest [in AGV technology] and in companies going into it [AGV development and manufacturing] as well,” he explained, pointing to the growing number of AGV developers in the industry over the last few years. “[Less than 10 years ago] there were probably only three or four notable companies that I would call AGV companies. Today, there are 35 to 40.”
Customer interest in such solutions is growing as well, especially since this past spring. Dumont’s colleague Tim Wittig, general manager of motive power specialty products, says EnerSys continues to add resources to its AGV-focused business to accommodate demand.
“Since Covid, we’ve seen very strong orders [for AGV battery solutions] coming in,” Wittig said. “We brought Mark [Dumont] over in 2014 to solely focus on AGVs. In the last six months, we’ve brought on another individual to focus on it as well. Their responsibilities continue to increase, and we continue to add resources to grow the business.”
Dumont and Wittig say that’s because AGVs can help companies reduce their reliance on human labor, a need that has escalated since the pandemic. Before March, it was difficult for warehouses and DCs to find workers due to the near full-employment economy; now, health and safety concerns, among other issues, are making workers think twice about returning to physical workplaces. Both trends are accelerating demand for automation—and AGVs, in particular, because they can be used to move heavy materials throughout a facility without an operator on board.
“Companies have to come up with solutions on how to do this job without hiring more people,” Dumont explained, adding that AGVs “don’t call in sick, they don’t ask for overtime, and they don’t care about breaks or holidays. [An AGV] simply does the job on a continuous basis.”
Incorporating newer battery technologies, such as thin plate pure lead (TPPL) and lithium-ion chemistries, helps as well by reducing the need for maintenance. Such solutions require less maintenance and human interaction than traditional lead-acid batteries, which require frequent change outs, watering, and long charging processes, Dumont and Wittig said.
And reducing human interaction means reducing the spread of the coronavirus.
“An autonomous piece of equipment doesn’t get a human virus—and it can’t spread that human virus to another person,” Dumont said.
EnerSys is also developing wireless charging solutions that aim to further reduce human interaction with batteries and equipment. This summer, the company announced a partnership with electric vehicle charging technology firm Blink Charging Co. to develop high-power inductive charging solutions for the broader transportation market. The solution involves a wireless transfer of energy to the device, similar to wireless smartphone charging.
Because AGVs are highly engineered solutions, battery makers such as EnerSys are often involved at the start of a project, working with equipment manufacturers and customers to develop the right power solution for the application, environment, and other factors. Dumont and Wittig say they expect demand for such projects to continue.
“The AGV business is evolving and changing; it’s a very busy time,” Wittig said. “The same thing is happening on our side of the business. With the advancement of new manufacturing techniques and new research, batteries continually get better.”
Battery and equipment makers aren’t the only ones focused on reducing human interaction in the warehouse, however. Ohio-based material handling systems integrator Vargo introduced a social distancing feature to its continuous order fulfillment execution system (COFE) this summer, aimed at reducing the number of workers that are in a pick aisle at the same time. The system’s algorithms can now be programmed to create a process in which only one person is working a pick aisle at a time, keeping workers at a minimum of one per pick aisle—or eight feet apart—in picking areas, the company said.
The feature helps warehouses and DCs maintain productivity and worker safety protocols at the same time by automating the distancing and integrating it into the overall workflow, Vargo officials said. This helps eliminate slowdowns that often occur when companies attempt to space workers apart.
“For example, if there is one worker in a specific aisle, COFE will send multiple picks to that employee to maximize the time they spend in that pick aisle,” company officials said.
The social distancing feature is available for large-volume warehouses, according to Vargo.
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.