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.
There’s no question that robots have eased many logistics headaches of the pandemic age. They’ve helped distribution centers in every sector handle a surging tide of e-commerce orders with greater speed, efficiency, and accuracy than “old-fashioned” manual operations ever could.
Yet as impressive as those achievements may be, users say they fail to tell the whole story. Sure, robotic systems can help handle inventory, but they can also boost another crucial metric—worker retention rates—by creating a better workplace for the human employees around them, several recent case studies show.
Experts say adding robots to the warehouse floor can allow companies to balance the need for speed with the need to retain the pickers, packers, and drivers who keep e-commerce operations flowing. A DC with robots offers benefits like shorter walking distances, lighter lifting loads, and digital dashboards that show progress toward goals. In that environment, workers tend to stay with an employer longer, companies say. And with industry watchers forecasting it will be decades before warehouses become truly “lights out” operations that require no human intervention, human labor will remain critical for logistics at every level.
MAKING PICKING EASIER
For an example, just look to Liberty Hardware Mfg. Corp., a High Point, North Carolina-based company that makes products like bath hardware, shower doors, and cabinet hardware. The business sells its home décor products through home centers as well as mass retail and direct-to-consumer channels.
In 2019, Liberty saw its e-commerce volumes begin to explode—a trend that extended through the pandemic year and into 2021. At the same time, customers were becoming more demanding, first pushing for 24-hour deliveries (in place of the standard 48 hours) and later, for same-day service, says Miles Poole, Liberty’s vice president for operations and planning.
To meet the rising demand, the company increased staffing at its 680,000-square-foot DC in Winston-Salem, North Carolina, which operates three shifts a day, seven days per week. But that wasn’t enough. So it turned to 6 River Systems, an autonomous mobile robot (AMR) vendor that is a division of e-commerce platform Shopify Inc. In March, the retailer began using 16 of 6 River’s “Chuck” model collaborative robots, or cobots, to help it handle e-commerce direct-to-consumer orders. Liberty says the switch from manual processes to “Chuck”-assisted operations has allowed it to ship more of its orders the same day they are received while keeping up with the demands of rising order volumes.
Oh, and one more thing: Turnover at Liberty’s DC has plummeted to 3% from 25% since the robots arrived, the company says. In a video about the project, warehouse workers report that the Chuck bots save them time and energy because the robots automatically sort order lists by picking zones, prioritize rush orders, and move inventory carts with motors, instead of worker muscle. As a bonus, worker training can now be completed in 30 minutes—a major improvement over the multiple-day training sessions required in the past.
RING FOR THE BUTLER
A similar story is playing out in Goodyear, Arizona, a Phoenix suburb where contract logistics services provider GXO Logistics Inc. is preparing to open a 715,000-square-foot distribution center that will serve as the West Coast operations hub for clothing retailer Abercrombie & Fitch Co. once it becomes fully operational late this year.
According to GXO, the new facility will house e-commerce, omnichannel, and product returns operations for the retailer. It also says the highly automated facility will feature automated carts, artificial intelligence (AI)-based analytics, and goods-to-person robots from automation specialist GreyOrange. The robots, GreyOrange’s “Butler” model, will be paired with “mobile stocking units” (MSUs)—portable shelves about four feet high that are loaded with multiple SKUs (stock-keeping units)—which the bots will ferry to workers waiting at fulfillment stations.
Based on GXO’s experience at other distribution centers, this combination of technologies can boost fulfillment speeds and volumes while simultaneously taking pressure off the people working alongside the machines.
“Before these robots were available, employees had to get trained on location, kind of like how you learn your way around a grocery store, and then they had to learn how to pick, and then how to get efficient at it. So, it could take a couple of months to go from ‘good’ to ‘top efficiency,’” says Bill Fraine, GXO’s chief commercial officer. “But the cobot already knows where all the inventory is; workers just scan their ID card and it takes them for a walk. And it requires less labor because in the past, they would be manually pushing a cart, which would get heavier as they moved through their pick path. The automated carts are much easier.”
In addition to cutting training time and boosting efficiency, GXO believes the robots will help create a more satisfying work environment, thereby reducing turnover, according to Fraine.
“In today’s world, we focus on how to maintain a long-term workforce, because turnover causes inefficiency and mistakes. We need to stay ahead of that,” he says. “Our [aim] is to be the employer of choice. You have to be a great employer, not just an employer that pays well. You have to make the work enjoyable, rewarding, and fulfilling, because they have choices; workers can go anywhere tomorrow and get a different job.”
As for GXO’s choice of robots, Fraine notes that his company doesn’t see the GreyOrange robots it selected for the Goodyear site as a “one size fits all” solution. Rather, the company works with clients to determine which technologies best match their specific needs, he says. He notes that at its other facilities, GXO might install robots from any of four or five other cobot vendors in its stable or choose from even-newer products it is still testing in pilot programs.
“It’s all about finding the right automation and the right process,” Fraine says. “Coming in and automating a bad process just means you have robots running around doing inefficient work. So we work with customers before applying technology solutions, whether it’s omnichannel, returns, or e-commerce.”
ROBOTS RIDE THE ECONOMIC WAVE
Inspired by robots’ performance to date, more companies are looking to warehouse technology as a way to stay afloat in an era of soaring e-commerce demand and chronic labor shortages. That interest has spurred an uptick in new orders for robots, analysts say. For example, robot orders in the second quarter of 2021 were up 67% over the same period in 2020, indicating that demand for automation is returning to pre-Covid levels as North American companies get back to business, according to the Association for Advancing Automation (A3).
“With the big increases in automation sales and favorable economic conditions in the U.S. manufacturing sector throughout much of 2021, it’s clear users have accelerated their orders for robotics and other forms of advanced technologies,” A3 President Jeff Burnstein said in a release. “While companies have long realized that automation increases efficiencies, expands production, and empowers human employees to do more valuable tasks, the pandemic helped even more industries realize those benefits. By automating—either for the first time or expanding on how they use automation—companies will be better prepared to handle any upcoming issues that [could] impact their business.”
And as more companies integrate robots into their operations, they’re finding the bots’ value isn’t limited to their goods-handling capability. It also lies in their ability to create a better workplace—thereby helping to define a future where workers and cobots complement each other’s strengths.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”