I think … therefore I might be a material handling robot: interview with Ted Stinson
The days when robots were limited to a set of preprogrammed responses are over. Today’s AI-enabled bots are able to analyze, adapt, and even learn from each other, says Ted Stinson of AI software startup Covariant.
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.
Artificial intelligence is set to explode across the distribution center, according to Ted Stinson, chief operating officer of Covariant, a Berkeley, California-based startup specializing in innovative software applications. We’ve heard similar predictions for years, but Stinson is confident the time is ripe—and he’s betting his career on it. Stinson left his job as partner with the venture capital firm Amplify Partners 18 months ago to join Covariant, which he had become acquainted with while helping the company develop its first business plan. After getting to know the Covariant team, he says, he decided it was time to chart a new career course and “be part of building an extraordinary company in an industry that will be at the forefront of the next wave of industrialization.”
He may be right. In its short life, Covariant has already made a splash in the supply chain industry, having forged impressive partnerships with Knapp and ABB to integrate its artificial intelligence (AI) software with their robotics systems.
But what exactly is artificial intelligence? How does it work and compare with the way humans think and act? DC Velocity Editorial Director David Maloney recently spoke with Stinson to learn more about this promising, yet complex, technology.
Q: How do you define artificial intelligence, or AI, as it applies to supply chain applications?
A: The concept of artificial intelligence is decades old. At one level, it is meant to represent the idea that systems software is capable of adapting and interacting in the way that you and I do as humans. AI today has evolved into ways that are achieving that goal. It is based on something called deep learning, where for the first time, systems have the ability to consume and analyze extraordinary amounts of data using a new, “neural network” approach to artificial intelligence. It has allowed people to apply and achieve artificial intelligence breakthroughs that simply weren’t possible prior to the last couple of years.
Q: You mention deep learning. And then there is reinforcement learning. Can you explain what they are?
A: The idea of deep learning and reinforcement learning is to learn from experience and to reinforce a behavior through failure or success. These techniques can also be applied to software, having it learn to adapt through trial and error. If you step back and think about that, that’s a huge contrast to the way software has worked historically, where every behavior, every interaction of the software had to be preprogrammed. You would have to specifically write into your code an action you wanted the software program or a robot to take. Now, the nature of these programs is that they enable the software or robot to take a try at something, and then the act of trying is analyzed and adapted to enable the software to learn from success and learn from failure.
Q: The artificial intelligence that you’re developing is going into robotics systems, such as picking robots. Why did you choose this area for your initial deployments?
A: The Covariant ambition is to build a universal AI. We call it the Covariant Brain. It is meant to be essentially the cognitive system for a robot—the “brain” that gives it the ability to see and reason and act on the world around it. We chose to focus on warehouses initially because the logistics market offers such a great opportunity to deploy these capabilities to automate jobs that are tedious and, thus, hard to fill. Things like order picking in an e-commerce or grocery or apparel warehouse are great examples. These jobs are clearly repetitive in nature, but at the same time, every pick has a degree of variability and change, which is what makes warehouse environments so challenging.
Q: What are some of the products robots have difficulty recognizing or handling?
A: A robot system essentially has cameras as its eyes. Seeing things in boxes that come in basic colors is relatively easy. They were among the first things that were “solvable,” but what’s beyond that? What about objects with subtle variations in their shapes, things that are flexible like apparel? A human can look inside a bin or tote containing different types of white T-shirts and pretty easily identify one white T-shirt from another. But to a robot, each T-shirt looks a little different when they are all folded and placed in the bin slightly differently. All those subtle variations represent a change—small, but fundamental.
Reflections from objects are also challenging. Even the way the objects get stacked and placed in the tote can present problems. A human can move around to get a better view of the objects in a box. But with a robot, getting a clearer view of what’s inside the box presents a fundamental challenge.
Q: So, we’ve talked about the recognition problems. What about the problems robots have in picking a variety of different objects?
A: Before the advent of modern AI, it simply was not possible for a robot to handle many different types of objects. Think of an apparel company, for example, that changes its products every season, so you have tens of thousands of items that change on a three- to four-month basis.
Beyond the changing product mix, there’s the challenge of gathering objects that are difficult to pick up. One of our partners, ABB, is one of the world’s largest robotic manufacturers. When it set out to find a partner for AI about a year ago, it developed a series of 26 different tests that essentially mimic real-world conditions. One of the tests was picking rubber ducks. As you can imagine, there are relatively few ways that a typical robotic end effecter can pick up a rubber duck successfully. So, the ability to understand the process—to learn from trying to pick up a rubber duck—is an example of something that is very simple for you and me to do, but extraordinarily hard for a robot to do and requires the ability to try to learn and adapt its behavior.
Q: I would imagine too that apparel can be very difficult to pick, especially if you have a vacuum end effecter that may not be able to grab cloth easily.
A: It is, to be sure. Picking apparel is one of the challenges we’ve put a lot of effort into solving. When you pick up a piece of clothing, it changes shape, so it’s different from, say, a box. In order to pick apparel successfully, the robot needs to understand that when it picks it up an object, that object is going to change shape, and that the new shape, whatever it is, will then have a very material impact on how the robot completes its task.
Q: Just as you’d find with a claw machine at a game arcade, objects in a box may also be too close to the sides for the robot to grab it. In that case, would the robot have to figure out how to manipulate or move the object to gain better access?
A: Yes. A key aspect of how we approach our systems is there is literally infinite variability in how objects can be sitting in a bin. So, you have to have a system that can both deal with all of the known conceivable ways that these objects can be positioned, then also adapt on the fly. We have developed a couple of different proprietary techniques. There are ways in which, for new scenes, new types of environments, the robot can adapt to that environment. It goes back to the core capability of trying, learning, and adapting its behavior until it succeeds.
Q: Could you address how a robot must also learn to adjust its approach based on the product, such as when picking a fragile item?
A: The example of how much pressure a robot should exert in picking up an object is something that could only be solved in a data-driven way. When it comes to the amount of pressure that could theoretically be applied, the possibilities are literally infinite. There is no way you could write a traditional software program that accounts for every possible level of pressure. You have to have a system that can learn and adapt in order to be able to assess the right amount of pressure to apply, just as for a human, there are an incredible number of instinctual judgments that have to be made in handling an object. It is through this deep-learning based approach that we are able to essentially mimic that sort of judgment and adaptability on the fly.
Q: What goes into training the robots to handle products they haven’t encountered before? Do you have to physically manipulate a robot to train it?
A: This is actually part of the secret sauce, which is that the system does this on its own. It is able, through trial and error, to learn and adapt to things it has never seen before and do so without any human intervention or human manipulation.
The initial work of adapting the AI to a customer’s operation is built into the preliminary process that we and our partners go through with customers. The Covariant Brain essentially comes out of the box “smart,” so implementations can be surprisingly fast. Most of the time, it is quick enough that it has no material impact on an operation’s throughput.
In the very beginning, the system might encounter new things that take an extra pick or two before it learns and adapts. But it generalizes these learnings and adapts relatively quickly, so that before long, it is, for the most part, operating at the performance levels that you’re looking for in the system. That accelerated learning process is one of the key benefits unlocked by modern AI systems.
Q: So basically, when you deploy a system, you’re actually using the knowledge from other systems that have been deployed before it? The robots can draw on the experience of previous robots?
A: Yes. This is really an important concept in envisioning operations—the idea that each robot deployed after the first one learns from those around it. So collectively over time, they accelerate the learning amongst themselves. That is one of the key value propositions. So, you could have a decanting robot that is learning from the experiences of an order picking robot. That ability to share learnings is unlocked by this underlying modern AI deep-learning based approach.
Q: Is this learning done in real time?
A: As you find with people, learning happens at different levels. There is some learning that happens in the moment and other learning that happens upon what I call “reflection.” Both are aspects of how the systems improve over time.
Q: You have industry partnerships with Knapp and ABB. Could you talk about how you’re working with these companies to deploy AI robotic solutions?
A: Covariant is an AI company. Our expertise is in building software. We partner with companies that have strong domain knowledge and strong robotics capabilities. Knapp and ABB are examples of both. Knapp has been one of the pioneers in the robotics field. It was first to market with an order picking solution. It has a long history of investing to bring this capability to market, and it recognized the limitations of traditional software when it comes to solving robotic picking problems.
Knapp concluded that we had developed something that was essentially the key to unlocking the adaptability and learning capability of robotics systems used in material handling applications. We entered into a partnership last year and have now brought two different use cases to market, with several more on the horizon. Overall, I am really excited about the partnership.
Q: Could you elaborate a little on those deployments and the kinds of products being handled?
A: Obeta is a German hardware supplier, and we’re seeking to introduce robotic systems into its operations. The system that is deployed at Obeta is the first system that we and Knapp have publicly announced. What’s notable about this deployment is that it’s a system that has achieved autonomy, which we think is a really important notion.
At the end of the day, what you want as an operator is the ability to have a robotic system that performs at the same level as your traditional manual processes. No asterisks, no exceptions. It just works in the same way. Hopefully, over time, it actually works better. That for us has been the benchmark.
Q: You are obviously looking at use cases for these technologies. Are there particular applications you’re looking at?
A: Within materials handling, we’re just getting started. We and Knapp have brought to market the order picking solution. We have half a dozen or more use cases that we and Knapp and other partners are in the process of formalizing. Our goal for supply chain and material handling leaders is to show that we will deliver a roadmap for a set of use cases and stations that are going to provide substantial coverage across a modern warehouse operation. One thrust of what we are looking to do is expand within that environment.
Q: So, this might involve other types of robotic systems beyond the robotic arm?
A: Absolutely. We haven’t talked a lot about that publicly, but we tend to think of a warehouse itself as one big robot. The conveyance systems and various mechanical devices are all systems that ultimately can be optimized through AI in terms of throughput, density, and performance. Our vision is to be able to take and leverage the underlying models and the Covariant Brain to unlock those gains over time.
Q: Obviously, we’re going through some very unusual times right now with the Covid-19 crisis. I would guess that automation is top of mind for many people because of the need for social distancing and eliminating human touches. Has that changed how you go to market?
A: Our focus from a commercial perspective through Covid-19 is to be there with our partners and for our customers to help them figure out where to get started. The question I get from every supply chain leader I talk to is not “Should I deploy robotics,” but “How do I deploy it and where do I start?” Our energy has been trying to guide our prospective customers through the choices and develop a framework that lets them start in the right place and then develop a roadmap for where to go next.
Q: Have we reached the point where the technology has finally caught up with the promise of AI?
A: The technology is ready. It is here today, and at the same time, it is still at the first stage of the journey. But we’re certainly at the point where I would encourage folks to invest the time to understand the different offerings. Now is the time in the evolution of these technologies for supply chain leaders to be looking at them closely and figuring out how they might use them to enhance their operations. I really encourage folks to look past the marketing and the demos in controlled environments. Ultimately, we need to be solving the challenges in the real world. I am really optimistic but also want to encourage people to be smart shoppers as they go through and look at these different capabilities.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”