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.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.