Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Pull up a truck to the dock door of a DC in 2021, and the lift truck that arrives to unload your pallets might have a driver behind the wheel ... or it might have a bundle of sensors. Inside the building, the hand reaching into a tote to retrieve an item for an order might be connected to a human laborer … or it might be attached to a mechanized arm. Over at the racks of stored goods, the bar-code scanner taking inventory might be wielded by a warehouse employee … or it might be mounted on a hovering drone.
Logistics robots are here to stay, and they're whirring around every corner of the DC, helping companies handle the surge of e-commerce orders triggered by the pandemic. But demand for warehouse robots began long before the coronavirus reached U.S. shores in 2020. Companies have been eyeing the technology for years, drawn by its potential on a number of fronts. In particular, they've been looking at robots as a way to compensate for labor shortages and help them train temp workers during peak season, match Amazon's shipping speed, and pack more inventory into their facilities.
All robots are not the same, though. Like the animals on a farm, bots come in all combinations of shape, size, speed, strength, and smarts. This primer on robotic technology can help "farmers" determine which of the many options best meets their needs.
AUTOMATED STORAGE AND RETRIEVAL SYSTEMS
An automated storage and retrieval system (AS/RS) can automate many warehouse processes by storing, delivering, tracking, and replenishing inventory through a computer-controlled process that automatically deposits and retrieves loads from set storage locations in a set of steel racks.
Installing an AS/RS is a long-term investment, requiring a substantial upfront cost, a dedicated area of the warehouse, and specialized racks and totes for many models. Furthermore, because each unit is designed for goods of a specific size and shape, these systems lack the flexibility to handle variation.
But once the unit is up and running, an AS/RS can deliver high throughput speeds, reducing the size of the workforce needed to move goods around the facility, eliminating fulfillment errors, and easily coping with inventory challenges like high SKU (stock-keeping unit) counts, high-value goods, or heavy items.
These AS/RS solutions come in many varieties, including models with cranes reaching between aisles to fetch racked goods, units with shuttles that glide above the storage racks or whir between them in three dimensions, and vertical storage carousels and vertical lift modules that store goods in a self-contained unit.
Benefits:
Maximize use of warehouse floor space by supporting dense inventory storage
Safely store high-value inventory and reduce inventory loss
Reduce labor costs by slashing the time needed to stock and retrieve goods
Deliver goods to employees at ergonomic workstations for high-speed fulfillment
Applications:
Parts storage and order picking applications
High-throughput operations that require fast picking, such as e-commerce or grocery
AUTOMATED GUIDED VEHICLES
Automated guided vehicles (AGVs) have roamed warehouse aisles for decades, carrying inventory along set routes demarcated by wires or magnets embedded in the concrete floor, bar-code stickers affixed to storage racks, or wireless signal beacons mounted on walls.
That system allows vehicles like self-driving tugs, forklifts, and pallet jacks to steer themselves between predetermined indoor locations and shuttle goods from point to point. Recent upgrades have added sensors like computer-vision cameras or LiDAR (light detection and ranging) technology to enhance their ability to detect obstacles and avoid collisions. But AGVs currently don't have the capability to change their routes, adapt to new workflows, or communicate with other vehicles to optimize the movement of materials.
However, vendors say the lines between AGVs and their cousins, autonomous mobile robots (AMRs), are beginning to blur. For example, advances in machine learning may soon allow AGVs to "think" their way around obstacles and handle new workflows.
Benefits:
Reduce labor requirements by moving inventory without requiring a vehicle driver
Avoid injuries caused by heavy lifting and repetitive motion
Save time that workers would have spent in manually moving goods
Applications:
Repetitive workflows that follow established routes
Contactless movement and storage
Round-the-clock, three-shift operations
AUTONOMOUS MOBILE ROBOTS
Autonomous mobile robots (AMRs) are similar to AGVs in that they can safely transport inventory around a warehouse, but they also include advanced features that greatly expand the variety and complexity of the tasks they can perform.
The chief differentiator between AMRs and AGVs is that AMRs do not require pre-installed infrastructure to navigate through a crowded warehouse. Instead, they use an array of sensors to detect, map, and memorize the facility's features, using approaches like simultaneous localization and mapping (SLAM) technology. And they do it all while avoiding obstacles with real-time reflexes; communicating with other AMRs, warehouse management systems (WMS), and other software platforms; and even collaborating with human employees on picking and fulfillment tasks.
As one of the fastest-developing types of warehouse technology, AMRs seem to gain new capabilities every year. Many models can make their own map of an unfamiliar warehouse, then share that map with other robots, enabling companies to scale up their operations by simply rolling additional AMRs onto the floor, avoiding setup and installation hassles. Other models can use cloud-based software to optimize their path through the warehouse, detecting traffic jams or blockages and choosing new routes to get the job done faster.
The progenitor of this class was a squat orange robot developed by Kiva Systems to carry racks of goods to waiting human workers in what's known as a goods-to-person workflow. The technology worked so well that it was promptly taken off the market after Amazon.com purchased the company in 2012 and took it private.
But generations of new models have followed. Some have replicated the original Kiva design, while others have added new capabilities and attachments, such as spinning table-top belts for sliding parcels on and off conveyors, and tablet computers for communicating with human workers.
Other AMRs known as autonomous picking carts—or zone picking robots—operate on a robot-to-goods model. In that workflow, they automatically meet up with warehouse associates at specific racks or aisles, provide instructions on which goods to pick and which tote to place them in, and then whisk the completed order to another staffer at a packing station.
Benefits:
Support social distancing in warehouses by shuttling between workers
Reduce travel distances for DC order pickers
Enable workers to pick far more items per shift than in manual workflows, thus helping DCs cope with labor shortages and peak-season demands
Applications:
High-volume DCs that need efficient workflows
Training new hires and temp workers through tablet computers mounted on the machine
Increasing pick accuracy by delivering clear instructions via tablet PCs
AUTONOMOUS INVENTORY BOTS
Autonomous inventory bots are essentially AMRs that count inventory on shelves instead of delivering goods to people or places. Outfitted with an array of sensors—computer vision, bar-code scanners, radio-frequency identification (RFID) readers, and more—they steer themselves around indoor facilities, constantly updating the DC's records on the quantity and location of goods. Inventory bots have also been deployed in retail and grocery stores, where inventory records are notoriously inaccurate.
Benefits:
Provide inventory counts that are more accurate than humans' counts
Avoid out-of-stock items by constantly updating records
Allow inventory counts to be conducted at any hour, such as during late-night shifts when the building is empty
Applications:
Tracking jumbled goods on retail and grocery shelves
Counting inventory in large warehouses
ROBOTIC PICKING ARMS
Robotic picking arms have long been a familiar sight in industrial factories, where they perform precision tasks in automobile assembly or electronics manufacturing operations. But they're a relatively new entrant into the world of distribution operations, where they're starting to attract interest for their potential to boost fulfillment speed and accuracy.
Each unit includes a robotic arm with multiple joints and some type of "hand," known in the business as an "end-effector." The end-effector typically includes grasping fingers, suction cups, or some combination of the two, allowing it to seize objects ranging from the heavy (boxes on a pallet) to the light (garments packed in a plastic bag or small each-picks in a tote). Robotic arms rely on computer-vision sensors and artificial intelligence (AI) to help them recognize specific items and determine the best way to grasp them.
Benefits:
Can work around the clock
Increase picking capacity
Free workers from repetitive tasks
Applications:
Receiving operations, depalletizing tasks, and placing goods on conveyors
Fulfillment tasks, such as pick, pack, and ship
Singulating cartons from a pallet onto a conveyor
DRONES
Flying drones and unmanned aerial vehicles (UAVs) are some of the latest entrants into the ranks of logistics robots, currently found mostly in pilot projects and innovation labs.
Like the birds in a forest, they vary greatly in size, speed, and capability. Some have whirring helicopter blades that allow them to hover, while other models look more like miniature propeller planes, able to soar on fixed wings.
Large warehouses might use drones indoors for inventory counting—a task they typically carry out by hovering over tall racks and scanning goods. But drones are also used out in the wider world, where they've been deployed to track trailers around truck yards, inspect infrastructure such as train tracks, and perform last-mile deliveries.
Benefits:
Provide sensor access to high warehouse racks that would otherwise be accessible only by high-reach lift trucks
Enable the delivery of small, urgently needed items such as medical supplies
Applications:
Inventory counting
Last-mile delivery of lightweight objects
ONLY THE BEGINNING
Choosing the best type of warehouse robot for your facility is a complex decision—considerations range from your budget and return on investment (ROI) goals to the condition of the building and your IT (information technology) infrastructure to labor availability in your particular market. But when you find the right solution, the benefits can be huge.
And if your perfect solution wasn't on this list, don't be discouraged. Chances are a robotics vendor somewhere is already working on a new design that will meet your needs. Recent technological advances have allowed developers to flex their creative muscle and respond to changing market conditions at almost lightning speed (think of the disinfecting bots that hit the market within weeks of the pandemic's arrival in the U.S., for example). It's safe to say robots have only just begun to find their niche in logistics.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."