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.
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
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.
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.