From autonomous forklifts to smart sorting robots, emerging technologies are taking hold throughout the warehouse as logistics services providers seek to boost productivity, improve safety, and respond to labor shortages.
Victoria Kickham 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 DC Velocity.
As logistics services providers struggle with accelerating consumer demand, sluggish supply lines, and labor challenges, many are moving beyond the exploratory phase of automating their warehouses and are putting systems to work. A Gartner survey of more than 500 supply chain professionals bears this out: 96% of respondents polled for its 2020 Gartner Supply Chain Technology User Wants and Needs survey said they had used or plan to use cyber-physical automation in their warehousing and manufacturing operations. These are highly automated, intelligent systems that integrate physical and software components—robotic systems are a good example. Looking ahead, the report suggests nearly every warehouse will be using a robot in some way within the next decade.
Many are already well on their way to achieving that goal. Here’s a look at how a handful of companies are using cyber-physical automation to address efficiency and labor challenges.
AUTONOMOUS FORKLIFTS IN ACTION
Contract logistics specialist DHL Supply Chain is one example of a company moving full-steam ahead to implement cyber-physical solutions. The company started to explore autonomous forklifts for its warehouses about four years ago and is now using them at locations across the U.S. The effort is part of a plan to implement a range of automated warehouse technologies, including various autonomous vehicle solutions, and serves as an example of how the company is putting some of the latest tech to work. Its autonomous high-reach fork trucks are doing 100% of pallet putaway and picking at some locations, controlled by each facility’s warehouse management system (WMS).
“[These are] fully autonomous solutions integrated with our WMS,” explains Brian Gaunt, a senior director who is responsible for innovation and robotics for DHL Supply Chain in North America. The system automates the challenging task of manually running a high-reach fork truck—which requires considerable training to operate safely and effectively. The system is helping to improve productivity while also addressing labor and safety issues, he says.
“In a challenging labor market, you can’t just hire anyone and have them do this task,” Gaunt adds. “We like to think that these systems are also making it safer in that they are taking these more challenging movements and doing them [without human intervention].”
The autonomous forklift project began as a larger testing program designed to address pallet movement in the warehouse. Looking to improve upon that process, company leaders began by investigating a range of solutions and vendors—including, but not limited to, autonomous equipment; determined where they might find the greatest value; tested some solutions; and then rolled out what worked best, where it made the most sense. The autonomous high-reach fork trucks turned out to be a prime solution for a number of locations.
“We really look at our warehouses as a series of use cases that we string together,” Gaunt says, explaining that managers may start with 20 possible use cases for pallet movement, but only end up testing and implementing a portion of them. “That’s the progression. It’s very much an iterative process.”
The autonomous forklift project will soon be rolled out on a larger scale.
“It takes a while to get familiar with [the system]. Now, we’re at a point where we’re comfortable with the handful we have, so we’re in the scaling mode, which is exactly where we want to be,” Gaunt says, adding that DHL plans to implement the forklifts at more locations nationwide.
SMART SORTING ROBOTS
Parcel carrier FedEx Ground is advancing with cyber-physical automation as well, with recent examples in New York, Ohio, and Nevada. Partnering with robotics firm Berkshire Grey, the company has implemented a robotic sortation solution for autonomous package processing—a move that’s in direct response to accelerated e-commerce activity.
The company is using Berkshire Grey’s Robotic Product Sortation and Identification (RPSi) system at a Queens, New York, facility to robotically sort the thousands of small packages that arrive daily in bulk into containers bound for other facilities across the FedEx Ground network. The artificial intelligence (AI)-based system autonomously picks, identifies, sorts, collects, and “containerizes” individual poly bags, tubes, padded mailers, and other small packages that have traditionally been sorted manually. The system requires fewer package handlers to operate, allowing FedEx to reallocate workers to other tasks in the facility. Other benefits include enhanced productivity, efficiency, and safety, as well as greater flexibility to adjust to changing package volumes and sizes, according to Ted Dengel, managing director of operations technology and innovation at FedEx Ground.
The system also addresses the tricky challenge of scanning labels. In traditional package sortation, workers have to position parcels so the label can be scanned properly. Berkshire Grey’s system uses technology that allows bar codes to be read from any angle in milliseconds, without manual intervention, according to Jessica Moran, the company’s senior vice president, parcels and 3PL businesses.
FedEx Ground’s success in Queens has prompted other implementations; the company was testing similar systems at sortation facilities in Columbus, Ohio, and Las Vegas this past fall.
SPEEDY ROBOTIC ASSISTANTS
Accelerating e-commerce was the driver for a similar sortation solution at Greek logistics and transportation services provider Athinaiki, S.A. Working with global autonomous mobile robot (AMR) developer Geek+ Robotics and systems integrator FDL, the company has deployed smart sorting robots in one of its e-commerce fulfillment warehouses, with the ultimate goal of speeding last-mile delivery to customers throughout Greece and Cyprus.
Set in a roughly 6,000-square-foot warehouse, 29 sorting robots help warehouse employees sort 1,400 to 1,500 parcels per hour. Employees put ordered goods onto sorting robots that automatically transfer the parcels to one of 104 sorting cages bound for different destinations. The AMRs travel freely through the warehouse, with no wires or fixed infrastructure, making it easy for Athinaiki to scale up or down to meet throughput demand by adjusting the number of robots and sorting destinations. The robots are controlled by a robot management system (RMS) and powered by algorithms, creating a solution that monitors robot traffic and balances each robot’s tasks to achieve maximum sorting efficiency and accuracy, according to Geek+ Robotics.
THE ROAD AHEAD
It won’t be long before some of the systems in place now will begin “thinking” for themselves. Among Gartner’s picks for top strategic technologies for 2022 are “autonomic” computing systems: self-managing physical or software systems that learn from their environments. As the company described it in a report this past October: “Unlike automated or even autonomous systems, autonomic systems can dynamically modify their own algorithms without an external software update, enabling them to rapidly adapt to new conditions in the field, much like humans can.”
The technology is already being used in complex security systems, Gartner says, and in the longer term will find its way into physical systems such as robots, drones, manufacturing machines, and smart spaces.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."