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.
Robotics and automation are playing a greater role in distribution than ever before, as supply chain professionals strive to boost efficiency and keep pace with escalating fulfillment demands. So what lies ahead for the industry? DC Velocity Group Editorial Director David Maloney recently gathered five experts from MHI’s Conveyor and Sortation Systems Industry Group to get some answers and find out what the future holds for the automation and robotics markets.
Q: Automation and robotics are red hot right now. Often, these terms are used almost interchangeably. How do you define automation and robotics as they apply to our industry?
Satyen Pathak – Designed Conveyor Systems: We do see a big difference between automation, being kind of the conventional part, and robotics, being the new art. I typically differentiate between the two by asking, How much autonomy is there? How much can it make its own decisions? That is how I distinguish between standard automation and the new robotics. We call it “cognitive robotics,” where the robots take over the decision-making, the reasoning, and so forth. That is kind of the new age, but there is kind of a blend over, and you can’t really draw a line between them.
Doug Schuchart – Beckhoff Automation: You may be limiting yourself if you think robotics is just like conveyors and sortation. It is another tool in the toolbox for automated systems. Often, robotics is working with something else. It is rare that it is just a completely stand-alone robot for an automated solution. Another way to think about it is how to blend the right mix of technologies and the new technologies that are coming at us every day.
Q: Traditionally, conveyor systems have been the go-to technology for fixed-path movement of products. Now, we have autonomous mobile robots that can perform similar tasks. Does the conveyor industry see AMRs and other robotics as a threat or as a complementary technology?
Markus Winkler – TGW: We don’t really consider it a threat. I think it is a great opportunity. I see it as something that is adding to our competencies. We are fortunate to understand these new technologies and apply them correctly to our advantage.
Tim Kraus – Intralox: The way we try to think about it is that we know that there are certain applications where a robotics solution offers a clear advantage over conveyors, sorters, or automated singulators. We try to think about how can we augment that: How can we make that work better, work faster, and work more reliably? Is there something we can do to present items to a robot to make it much more efficient and help the total solution?
Q: The pandemic-fueled e-commerce explosion has boosted demand for systems that handle parcels and smaller items. Is that affecting the types of conveyors your customers are choosing?
Jeff Brown – Mitsubishi Electric Automation Inc.: Absolutely, we see that. Everything used to be a full case. Now, it is not only moving the individual items but also factoring in the wide range of packaging that the items may come in. In addition to boxes, there are now different types of polybags that have added to the challenge. We see air-filled bags, poly, and paper envelopes. All of those things add to the mix—it is not just the item size, but how is it packaged and how that affects what the conveyor solution should look like. [Customers] are not necessarily specifying rollers or belts, but they want a solution that is going to minimize downtime and will keep up with throughput demands without package damage.
Doug Schuchart – Beckhoff Automation: We are also seeing grocery and pharmaceuticals now being handled more in e-commerce fulfillment. So, we have to accommodate an even wider spectrum of product types, along with handling requirements that differ from what we’ve seen in the traditional retail space. That expands the types of automated equipment that may be required, and that is playing into some of the equipment innovations we see in the marketplace.
Q: How have conveyor installations changed over the years, and is it easier to integrate them with robotics and other types of automation than it might have been in the past?
Markus Winkler – TGW: I think the big challenge is we need to make conveyors much, much easier and quicker to install. They are more like an integrated product. It is the power supply. It is the communication. It is the logic that comes with the conveyor, and it is the package. That is definitely driven by the changes that our customers are seeing. Now, we are challenged with implementing large integrated systems within months when before it was probably years. That is where all those modular designs come into play.
Q: The rising cost of labor is one of the main reasons why people are turning to automation. As those costs continue to rise, do you feel this will help bolster the case for automation?
Satyen Pathak – Designed Conveyor Systems: We are in a unique time in that we are coming out of a pandemic and wages are rising in order to get people to come back to work. I believe automation is in a constant change cycle. I still think robotics has a long way to go before it’s considered a tried and trusted traditional technology, the way crossbelt sorters and line sorters are. It is in its infancy. But I do see robotics growing at a higher rate.
Q: Conveyor companies are more than simply hardware suppliers. They see themselves as solution providers. How do you approach implementing these new technologies—the sensors, the IoT, the vision systems, robotics, and other kinds of automation—with the conveyors and sorters you manufacture?
Tim Kraus – Intralox: Companies have to evolve to think about the total solution. If you are just thinking about building the conveyor itself, you are going to miss what else is out there. How does it integrate? Where does it best fit? How does it work with other technologies? The whole industry naturally has to shift in that way to make sure that the solution is relevant and that it can be coupled with the right things to create a great system for our customer.
Jeff Brown – Mitsubishi Electric Automation Inc.: Customers nowadays are not just looking for a brand. They are looking for a solution that is going to meet their needs now and in the future. There used to be conveyor companies that had just their material handling equipment and you felt an obligation as a customer to keep it all one brand. But as customers evolve and they learn about technology and what is available in the marketplace, they look at what is going to be the best solution for their company and their operations.
Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.
First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).
Second, they use them often, with 61% of American shoppers buying online at least once a week. Among the most popular items are online clothing and footwear (63%), followed by consumer electronics (33%) and health supplements (30%).
Third, delivery is a crucial aspect of making the sale. Fully 94% of U.S. shoppers say delivery options influence where they shop online, and 45% of consumers abandon their baskets if their preferred delivery option is not offered.
That finding meshes with another report released this week, as a white paper from FedEx Corp. and Morning Consult said that 75% of consumers prioritize free shipping over fast shipping. Over half of those surveyed (57%) prioritize free shipping when making an online purchase, even more than finding the best prices (54%). In fact, 81% of shoppers are willing to increase their spending to meet a retailer’s free shipping threshold, FedEx said.
In additional findings from DHL, the Weston, Florida-based company found:
43% of Americans have an online shopping subscription, with pet food subscriptions being particularly popular (44% compared to 25% globally). Social Media Influence:
61% of shoppers use social media for shopping inspiration, and 26% have made a purchase directly on a social platform.
37% of Americans buy from online retailers in other countries, with 70% doing so at least once a month. Of the 49% of Americans who buy from abroad, most shop from China (64%), followed by the U.K. (29%), France (23%), Canada (15%), and Germany (13%).
While 58% of shoppers say sustainability is important, they are not necessarily willing to pay more for sustainable delivery options.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”
Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.
The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.
October’s reading showed the fastest rate of expansion in the overall index since September of 2022, when the index hit 61.4. The results show that the industry is continuing its steady recovery from the volatility and sluggish freight market conditions that plagued the sector just after the Covid-19 pandemic, according to the LMI researchers.
“The big takeaway is that we’re continuing the slow, steady recovery,” said LMI researcher Zac Rogers, associate professor of supply chain management at Colorado State University. “I think, ultimately, it’s better to have the slow and steady recovery because it is more sustainable.”
All eight of the LMI’s indices grew during the month, with the Transportation Prices index showing the most growth, at nearly 6 points higher than September, reflecting increased activity across transportation markets. Transportation capacity expanded slightly during the month, remaining just above the 50-point threshold. Rogers said more capacity will enter the market if prices continue to rise, citing idle capacity across the market due to overbuilding during the pandemic years.
“Normally we don’t have this much slack in the market,” he said. “We overbuilt in 2021, so there’s more slack available to soak up this additional demand.”
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.
Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.
“The Canadian port strike is a microcosm of many of the issues that are impacting Western economies today; protection against automation, better work-life balance, and a cost-of-living crisis,” Russell Group Managing Director Suki Basi said in a release. “Taken together, these pressures are creating a cocktail of connected risk for countries, business, individuals and entire sectors such as marine insurance, which help to mitigate cargo exposures.”
The strike is also sending ripples through neighboring U.S. ports, which are hustling to absorb the diverted cargo, according to David Kamran, assistant vice president for Moody’s Ratings.
“The recurrence of strikes at Canadian seaports is positive for U.S. ports that may gain cargo throughput, depending on the strike duration,” Kamran said in a statement. “The current dispute at Vancouver is another example of the resistance of port unions to automation and the social risk involved with implementing these technologies. Persistent disruption in Canadian port access would strengthen the competitive position of US West Coast ports over the medium-term, as shippers seek to diversify cargo away from unreliable gateways.”
The strike is also affected rail movements, according to ocean cargo carrier Maersk. CN has stopped all international intermodal shipments bound for the west coast ports of Prince Rupert, Robbank, Centerm, Vanterm, and Fraser Surrey Docks. And CPKC has stopped acceptance of all export loads and pre-billed empties destined for Vancouver ports.
Connected with the turmoil, Maersk has suspended its import and export carrier demurrage and detention clock for most affected operations. The ultimate duration of the strike is unknown, but the situation is “rapidly evolving” as talks continue between the Longshore Workers Union (ILWU 514) and the British Columbia Maritime Employers Association (BCMEA), Maersk said.
Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.
Chalfont, Pennsylvania-based Jillamy calls itself a 3PL provider with expertise in international freight, intermodal, less than truckload (LTL), consolidation, over the road truckload, partials, expedited, and air freight.
"We are excited to welcome the Jillamy freight team into the Mode Global family," Lance Malesh, Mode’s president and CEO, said in a release. "This acquisition represents a significant step forward in our growth strategy and aligns perfectly with Mode's strategic vision to expand our footprint, ensuring we remain at the forefront of the logistics industry. Joining forces with Jillamy enhances our service portfolio and provides our clients with more comprehensive and efficient logistics solutions."