DC automation strategies are increasingly intelligent and flexible, combining the newest technologies with tried-and-true conveyors for optimal performance.
Victoria Kickham, an editor at large for Supply Chain Quarterly, started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for Supply Chain Quarterly's sister publication, DC Velocity.
Demand for high-tech material handling equipment is on the rise as more companies seek to automate their distribution centers (DCs), but there’s still plenty of room for tried-and-true systems, especially conveyors and sorters. As DCs automate to accommodate growing e-commerce volumes, industry experts say flexibility and the integration of different technologies are often at the heart of a company’s automation strategy.
Omer Rashid, vice president, solutions design, for contract logistics specialist DHL Supply Chain, says demand for customized solutions is driving many of today’s automation projects, and he refers to a growing “tool belt” of options that include both traditional “bolted to the ground” equipment like conveyors and more flexible robotic technology, such as autonomous mobile robots (AMRs). In high-volume operations, where the return on investment in traditional systems tends to be high, companies are increasingly looking at ways to integrate both types of technologies.
“In some cases, [robotics are] replacing conveyors because of their flexibility, but at the same time, we haven’t seen the demand for conveyance go down,” Rashid explains, adding that equipment makers are advancing how the technologies work together, especially for picking. “In general, there is an automation tool belt that has expanded and gotten much bigger. Ultimately, having flexibility in whatever solution you put in may seem like a buzz phrase, but it’s necessary.”
It’s what’s happening in the market, he says.
Here’s a look at how demand for conveyors and sorters is shaping up in 2021, and how systems are advancing to meet changing needs.
CONVEYOR DEMAND RISES
The first few months of 2021 saw double-digit increases in demand for conveyor equipment, according to the Conveyor Equipment Manufacturers Association (CEMA), which tracks orders and shipments of bulk and unit-handling conveyor equipment monthly. Booked orders for conveyor equipment rose 24% and shipments rose 38% year over year in January, followed by a 35% increase in orders and a 39% increase in shipments in February, the group said. Booked orders for March declined year over year but were up 28% consecutively, and monthly shipments increased 63% compared with a year ago.
The statistics reflect the growing demand for both traditional and integrated material handling projects. Chris Slover, vice president of sales for systems integrator Fortna, says more and more conveyor systems are being designed to integrate with robotic picking technologies—where a conveyor system may deliver products to a robotic picking arm, for example—and even with competing technologies such as AMRs. Depending on the operation, clients may use conveyors in one part of a DC, AMRs in another, for example.
“Where you can integrate systems and use robotics—AMRs as an example—we are seeing a rise in that for sure,” says Slover, adding that many companies are looking for ways to be free of bolted-down technology where possible but still utilize more traditional systems where they work best—especially in high-throughput applications.
Slover points to advances in conveyors and sorters that allow for handling a wider array of items at varying speeds, as one example. He also notes the growing popularity of motor-driven roller (MDR) systems, in which the conveying surface is powered by independently driven motors, in zones, and that allow for the buffering or accumulation of products. MDR systems are typically quieter, more energy efficient, and easier to implement than traditional conveyor systems, he explains. They are also more expensive, but, as with most technology, the cost is coming down over time.
For many companies, the sheer volume increases they’ve seen in the past year are making cost less of an obstacle as they strive to get orders out the door even faster.
“Labor availability and the move to e-commerce [have] put [more] emphasis on … order picking and fulfillment,” Rashid adds. “Conveyance, sortation, robotics—we see an acceleration of that as a result.”
EQUIPMENT GETS SMART
The next big breakthrough in conveyor technology is likely to come in the control aspects of the systems, particularly in how the conveyor functions in relation to warehouse execution systems (WES) running in a facility. Slover says the application of artificial intelligence (AI) and machine learning to the “smarts” of a conveyor system will help optimize flows, drive even more efficiency, and improve productivity.
“How am I controlling the conveyor? That’s where I think you’ll see the most innovation,” he says.
Slover uses the example of global positioning system (GPS) technology and mapping software to illustrate his point. Drivers don’t need to consult paper maps for the best route to a given destination when they have programs like Google Maps or Waze at their fingertips to intelligently set them on the most efficient path. A box on a conveyor may benefit from the same kind of technology.
“There may be ways that the control system itself can reroute and avoid potential traffic jams, for example, or [create] a more intelligent release of work to the conveyor—or smooth out the flow of the system itself,” Slover explains, adding that such advances could help companies avoid “overautomating” to get a better return on their conveyor assets.
Rashid agrees that advances in software are likely to be the biggest changes ahead—changes that enable even greater flexibility in designing the right system for the job.
“Those advances will allow us to build bespoke solutions that are ultimately flexible for our customers’ business needs,” he says. “More and more, we’re partnering with our customers who are looking at their business one, three, five years out, and they need to look at different alternatives. Customers ask ‘My volume could go in one of three directions—what solution will give us the ability to satisfy those in a cost-effective way?’ We’re helping them build a roadmap.”
The more tools available to create the map, the better.
Leaders at American ports are cheering the latest round of federal infrastructure funding announced today, which will bring almost $580 million in Port Infrastructure Development Program (PIDP) awards, funding 31 projects in 15 states and one territory.
“Modernizing America’s port infrastructure is essential to strengthening the multimodal network that supports our nation's supply chain,” Maritime Administrator Ann Phillips said in a release. “Approximately 2.3 billion short tons of goods move through U.S. waterways each year, and the benefits of developing port infrastructure extend far beyond the maritime sector. This funding enhances the flow and capacity of goods moved, bolstering supply chain resilience across all transportation modes, and addressing the environmental and health impacts on port communities.”
Even as the new awardees begin the necessary paperwork, industry group the American Association of Port Authorities (AAPA) said it continues to urge Congress to continue funding PIDP at the full authorized amount and get shovels in the ground faster by passing the bipartisan Permitting Optimization for Responsible Transportation (PORT) Act, which slashes red tape, streamlines outdated permitting, and makes the process more efficient and predictable.
"Our nation's ports sincerely thank our bipartisan Congressional leaders, as well as the USDOT for making these critical awards possible," Cary Davis, AAPA President and CEO, said in a release. "Now comes the hard part. AAPA ports will continue working closely with our Federal Government partners to get the money deployed and shovels in the ground as soon as possible so we can complete these port infrastructure upgrades and realize the benefits to our nation's supply chain and people faster."
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
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.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”