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.
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.