Growing up … and up and up: interview with Sam Bertram
Warehouse-based “vertical farms” could help ease world hunger and solve some sticky supply chain problems in the process, says entrepreneur Sam Bertram.
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.
The production and distribution of the food we eat each day presents some of the world’s biggest supply chain challenges. Some foods travel thousands of miles to market. Think of the banana you may have eaten today that came from Central or South America.
Many foods need to be kept refrigerated or frozen throughout their lengthy journeys, making the trips extraordinarily costly. The process is wasteful as well. Because many fresh fruits and vegetables have short shelf lives, a significant portion will spoil before ever reaching the consumer.
As our world continues to urbanize, it will be increasingly difficult to feed growing populations far from the farms that produce our food. That’s where vertical farming comes in. Growing plants in warehouses located close to urban areas can provide fresher food that requires fewer resources, isn’t dependent on climate or weather, and minimizes travel distance, a proposition that could eventually make it much easier to feed growing populations.
That’s the vision of Sam and John Bertram, two brothers from Melbourne, Australia, who originally came to California on college tennis scholarships. After completing their engineering studies, they looked for a venture where they could direct their talents. They found it in vertical farming. In 2017, the Bertram brothers co-founded
a Silicon Valley firm that has developed an automated indoor farming technology “stack,” enabled by proprietary robotics, cultivation, and AI (artificial intelligence) innovations. Sam serves as chief executive officer and John is chief technology officer.
Last year, the company opened its first commercial farm in a warehouse near San Jose. The farm, which operates under the company’s Willo direct-to-consumer brand, offers a subscription-based service whereby members are provided with a portion of the farm to grow herbs and vegetables of their choice and then have them delivered to their homes—what Willo calls “personalized farming.” DC Velocity Editorial Director David Maloney recently spoke with Sam about his operation and the supply chain implications of vertical farming.
Q: Can you describe the concept behind a vertical farm and what your farm looks like?
A: Absolutely. Vertical farming just means that you’re using the “third dimension”—you are no longer growing in just two dimensions [like a traditional outdoor farm]. We use a cultivation technique called “vertical plane aeroponics.” So, the plants actually grow out of thin air. There is no soil. Instead, a hydroponic nutrient-infused mix is misted onto the roots that serves all of the functions of soil. Rather than using sunlight, LED lights provide the plant with energy for photosynthesis. When you look at any of the dozens of walls—or “columns,” as we call them—within our facility, you see plants growing out of a two-story, double-sided wall.
So, you can imagine how a warehouse in an urban location could be used as a vertical farm. Usually, warehouses have relatively high ceilings, so that allows you to increase your density and plant production.
Q: How did you and your brother become interested in vertical farming?
A: In 2016, my brother and I came across a statistic that said that 1.1 billion people began this millennium malnourished. That’s an astronomically depressing figure when you think about the sheer number of people who don’t know where their next meal is coming from. Our desire to make an impact led us to found our first company, OnePointOne.
We looked at traditional farming and greenhouse farming, both of which are very mature industries, with tens of billions of dollars’ worth of R&D going into them each year. But in both categories, operations are fundamentally limited by the fact that the growers can’t control the plants’ environment. That was something that vertical farming solved. With vertical farming, you gain complete control of the plant’s entire experience—and, by extension, its taste, texture, shelf life, nutrient composition, appearance, and aroma. It is very powerful, and that is very pertinent to this conversation as it applies to the supply chain.
Q: And I’d guess the problems with more traditional farming aren’t going away, right?
A: No. They are only going to become worse. You have to think about a growing population, a decrease in arable land, and a massive increase in consumption of fresh water. Finding farm labor is also difficult. The average age of laborers in Salinas and Monterey, California, is between 52 and 56, and there’s no generation of farm workers coming up behind them nor any automation technology ready to fill the gap.
Q: What are some of the supply chain issues that vertical farming can address?
A: One would be energy consumption. Fresh food on average travels 2,000 miles to get to the end-consumer in the United States. Imagine the amount of energy that is required to move those plants and to keep them cold both in the truck and inside the retail store. It is astronomical. Most of the energy consumed in this model is actually in distribution and not production. Now, consider how much less energy would be required if the food were grown only 20 to 50 miles away.
But the main value proposition of vertical farms to the consumer is freshness. Leafy greens don’t last an hour if you leave them outside. They also experience significant nutrient loss when they travel long distances through the supply chain. Besides that, we can ensure that the plants in our facility never exceed their “chill points,” which greatly improves overall product quality and shelf life.
Q: What are some of the environmental benefits of vertical farming?
A: When you use aeroponics, the roots are getting exactly what they need all the time. We use zero pesticides, of course. We still apply nutrients, but obviously they’re in a far, far lower concentration than the fertilizer required on a farm. We use around 99% less water, with zero runoff and environmental contamination. That really matters when you consider the fact that 70% of fresh-water consumption around the world is for agriculture. We use, depending on the crop, around 250 times less land than a traditional farm does. That is really a function of the fact that we can grow year-round, grow plants twice as fast, and utilize the third dimension.
Q: What steps did you take to develop your farm?
A: The first thing we focused on was developing a technology that could produce food at a low-enough cost that it would make sense to deploy it around the world. We knew that labor was the number-one cost factor and that electrical efficiency was second. We knew we would have to develop our own farming technology and infrastructure to grow the plants, the software to operate the facility and automate many of the cultivation processes, and then the robotic equipment that manages the logistics of the farm: the inspection of the crops, the movement of different subsystems within the farm, and so forth.
We started the business three and a half years ago. We spent the first two and a half years developing the technology, and then in the first half of 2020, we built our first commercial farm. We call it Farm One, and it is located in a 6,000-square-foot warehouse in San Jose.
Q: Let’s talk about your business model. Willo’s members basically rent space within your farm on a subscription basis and decide what they want to have grown in that space?
A: That is exactly right. Basically, people will interact and control their farm shares through a mobile application. On a month-to-month basis, they can increase or decrease the size of their farm share, or “field,” by adding or subtracting beds, which are areas within the farm where specific crops are cultivated. The customers control what they want grown for them.
Q: What kinds of crops are grown in your farm?
A: We started with the leafy greens—the kales, the arugulas, the spinaches, the basils, the micro greens. They are productive plants and highly nutritious. We have also grown potatoes, strawberries, blackberries, blueberries, and cauliflower. We plan to continually introduce new categories of fruits, vegetables, and medicinal plants to our list of selections.
Q: How often do you make deliveries?
A: It depends on the subscription. It could be once a week or once every two weeks.
Q: What do the robots you developed do in the facility?
A: These robots handle the high-frequency, low-complexity tasks. That’s what robots are very, very good at. For example, our robots handle the planting of the seeds, the movement of the plants throughout the facility, and the visual inspection of the plants with high-resolution cameras. The next functions we will automate include the movement of lights around the facility, the cleaning of the infrastructure, the sampling of tissue, and the pollination of plants within the facility. So, eventually, we will have automated every single operation within the vertical farm through a single fleet of robots.
We are also automating the processes of harvesting and packaging, using off-the-shelf robots for both of these functions.
Q: How many robots do you have operating in the facility and how do they work?
A: Today, we have three robots that are operational inside of the facility, and the next facility will have something on the order of 11.
The vertical farm is two stories tall, and at the top of that vertical farm is what is called a heat island—it’s where all the heat rises up from the LED lights and from the plants as they generate heat. That all sits in about a four-foot area on top of the facility, and it is where the robots operate as well.
The robots travel around the facility on rails, and each carries a different “payload” that can be lowered to perform different functions, such as moving the plants, inspecting the plants, or moving the lights. We designed these robots so that their payloads can be dropped 40 feet or more, but we also built them in such a way that the distance could easily be extended. That is one of the best parts about our system—its ability to physically scale up, out, and side to side.
We have also developed our robotics system to be extremely modular, which gives us a lot of redundancy. If something goes wrong with one of these robots, it is not like a conveyor belt, where you have a single point of failure.
Q: How do you control all of this automated equipment?
A: We have an in-house software suite that monitors conditions to make sure the setpoints are perfect. The software manages all of the environmental input that the plant experiences, such as light, temperature, humidity, air flow, water flow rates, water pressures, droplet sizes, nutrient composition, PH levels, electrical conductivity … the list goes on and on.
Q: And you have plans to expand this technology to additional locations?
A: That is correct. We sold out the first farm in a matter of weeks. We will soon build a second facility, which will be located in Santa Clara, about eight minutes up the road. It will be a little bit over 10 times the size of our current facility and will offer significantly more in the way of production capacity. From there, we plan to expand to other cities.
Q: With your goal of alleviating world hunger, could your technology be deployed anywhere in the world?
A: That is the aim, but it won’t happen overnight. First of all, as with electric cars, this starts at a low-volume, high-price level, which is exactly where vertical farming must exist in the market today. As we continue to optimize operations within the farms themselves, production costs per pound will drop.
In our opinion, though, there are a number of other ventures where this technology could potentially be a significant disruptor. For instance, our technology allows us to analyze crops in ways that could lead to genetic breakthroughs with respect to feeding more of those 1.1 billion people who began this millennium malnourished, and help us grow plants for medicines and vaccines to keep those same people healthy. There is nothing in the world that would drive me harder as a human being than the idea of turning those two prospects into reality.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."