In our continuing series of discussions with top supply-chain company executives, Moiz Neemuchwala, vice president of Rite-Hite Digital Solutions, discusses labor and intelligent technologies for use on the docks.
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.
Moiz Neemuchwala leads Rite-Hite’s Digital Solutions business unit and is experienced in marketing and developing smart systems using IoT, analytics, artificial intelligence, and machine learning for applications in industrial automation. Before joining Rite-Hite, he worked for Stanley Black and Decker and Rockwell Automation. He holds an MBA from University of Chicago and an M.S. in electrical engineering from Case Western Reserve University.
Q: What drew you to Rite-Hite and material handling/logistics after having worked in engineering and tech for Rockwell and Stanley Black & Decker?
A: The supply chain logistics/material handling industry is rapidly evolving and to keep up with market forces, is primed to embrace new technologies like IoT, AI, and smart equipment. Customer expectations are evolving as dashboards, insights, and smart capabilities start becoming the norm. The want to have a 360-degree view of their operations, and predicting mishaps before they happen is the need of the hour. Rite-Hite, whose motto is “Always Looking Ahead,” is a company that has traditionally been at the forefront of industrial equipment innovation and is now adding technology to that focus. It is a perfect place for an innovator and technologist like me to have the freedom and directive to develop paradigm-changing new products and systems.
Q: How do you view the current state of the material handling market?
A: The current state is stable but growing, due to a strong construction market, new and pent-up consumer demand, and the continued growth of e-commerce. The industry will need to evolve and improve to meet this ongoing demand, so incorporating technology, automation, and intelligence within an industrial environment is the natural next step. Rite-Hite launched a new Digital Solutions business unit several years ago to address this growing need. Making equipment “smart” to enable the collection and analysis of data for improvements in safety, productivity, and energy use is a huge focus of ours. We are also hard at work identifying pain points for our customers so we can develop new ways to help them be successful.
Q: With the need to keep our trucks on the road with the many supply chain delays, how do your company’s products help in turning trucks quickly at the docks?
A: One of the biggest things we’re doing is to help distribution centers become more efficient through paperless communications. In a traditional facility, carrier schedules and notes were commonly kept on spreadsheets and/or on paper. Delays and confusion are common results of these processes. Add in radio chatter going all day long across multiple channels, and we know that communications can get garbled. In this chaotic environment, it is easy for mistakes like double-bookings to occur—leading to delays for the carrier, and detention and demurrage charges for the distribution center.
Our Dok-Vu software streamlines all of this. It consolidates those spreadsheets into a single platform so multiple people can log in simultaneously and enter information in real time, without duplicates or getting “locked from editing.” This information is not only visible in the control room, but also on the dock and in the yard. Through real-time dashboards, everyone can see which docks are open, which have loading/unloading going on, how long that loading/unloading has taken, and when it must be finished.
Q: In what ways are sensors and IoT technologies impacting the design of your systems?
A: In today’s hypercompetitive logistics landscape, insights that lead to operational efficiencies are incredibly important. Many of those insights come from data that we capture through sensors in smart equipment and analyze through IoT. From a design standpoint, sensors are everywhere. In many cases, this is for safety purposes, so we can alert workers to potential dangers they might not be aware of.
But beyond that, whenever we look at a piece of equipment, we are thinking about the data that it can capture, what that data can tell management, how that piece of equipment integrates with other equipment around it, and how that integrated system should work from a holistic standpoint. This includes ease-of-use and ergonomics for employees, cost efficiency, and, of course, safety. Currently, we make smart dock controls, smart door controls, smart fan controls, and smart safety warning systems … all of which can feed into our IoT platform. I have no doubt that this list will expand in the future.
Q: What suggestions might you give to an engineer looking to work in the material handling design field?
A: While supply chain logistics and warehouse/DC management may not have been seen as bastions of high technology in the past, that is rapidly changing. Driven by factors like market demand, e-commerce, and health and safety protocols, this industry is becoming technologically advanced at an incredible rate, and the opportunity for engineers with experience in IoT, AI, and other related disciplines is huge. Supply chain logistics is a field that will only grow in future decades, so if you want to bring your expertise here, it will almost certainly pay off in the long run.
North American manufacturers have begun stockpiling goods to buffer against the impact of potential tariffs threatened by incoming Trump Administration, building up safety stocks to guard against higher imported costs, according to a report from New Jersey business software firm GEP.
That surge in orders has sparked a jump in production, shrinking the level of spare capacity in global supply chains to its lowest level since June, the firm said in its “GEP Global Supply Chain Volatility Index.” By the numbers, that index rose to -0.20 in November, from -0.39 the month before, based on GEP’s measurement of demand conditions, shortages, transportation costs, inventories, and backlogs from its monthly survey of 27,000 businesses.
Another impact of the trend has been to trigger a surge in procurement activity by manufacturers in Asia—especially China—as new orders rebounded sharply. Only India reported a greater rise in raw material purchases than China in November. And preparations to ramp up production even further were evidenced data showing factory procurement activity across Asia rising at its fastest pace for three-and-a-half years, GEP said.
In sharp contrast, Europe's industrial recession worsened in November, in large part due to Germany's deepening manufacturing downturn. Factories in that region went deeper into retrenchment mode, as demand for inputs from manufacturers in Europe was its weakest since December 2023.
"In November, U.S. manufacturers, particularly in the consumer goods sector, increased their safety stocks to help blunt any immediate tariff increases," John Piatek, vice president, GEP, said in a release. "In contrast, Chinese manufacturers are getting busier as a result of government stimulus and growth in exports, led by automotives and technology products. Strategically, many global companies have a wait-and-hope approach, while simultaneously planning to remake their global supply chains to respond to a tariff and trade war in 2025 and beyond."
In response to booming e-commerce volumes, investors are currently building $9 billion worth of warehousing and distribution projects under construction in the U.S., with nearly 25% of the activity attributed to one company alone—Amazon.
The measure comes from a report by the Texas-based market analyst firm Industrial Info Resources (IIR), which said that Amazon is responsible for $2 billion in warehousing and distribution projects across the U.S., buoyed by the buildout of fulfillment centers--facilities that help process orders and ship products directly to end customers, ensuring deliveries of online goods from retailers to buyers.
That investment is inspired by U.S. Census Bureau data showing $300.1 billion in a preliminary estimate of U.S. retail e-commerce sales for third-quarter 2024, adjusted for seasonal variation but not for price changes, compared to $287.5 million in the first quarter, and an increase of 7.4% compared with third-quarter 2023. In addition, e-commerce sales accounted for 16.2% of total retail sales in the third quarter of this year, the report said.
Private equity firms are continuing to make waves in the logistics sector, as the Atlanta-based cargo payments and scheduling platform CargoSprint today acquired Advent Intermodal Solutions LLC, a New Jersey firm known as Advent eModal that says its cloud-based platform speeds up laden container movement at ports and intermodal hubs.
According to CargoSprint—which is backed by the private equity investment firm Lone View Capital—the move will expand the breadth of global trade that it facilitates and enhance its existing solutions for air, sea and land freight. The acquisition follows Lone View Capital’s deal just last month to buy a majority ownership stake in CargoSprint.
"CargoSprint and Advent eModal have a shared heritage as founder-led enterprises that rose to market leading positions by combining deep industry expertise with a passion for innovation. We look forward to supporting the combined company as it continues to drive efficiency in global trade,” said Doug Ceto, Partner at Lone View Capital.
Terms of the deal were not disclosed, but Parvez Mansuri, founder and former CEO of Advent eModal, will act as Chief Strategy Officer and remain a member of the board of directors of the combined company.
Advent eModal says its cloud-based platform, eModal, connects all parts of the shipping process, making it easier for ports, carriers, logistics providers and other stakeholders to move containers, increase equipment utilization, and optimize payment workflows.
Airbus Ventures, the venture capital arm of French aircraft manufacturer Airbus, on Thursday invested $10.5 million in the Singapore startup Eureka Robotics, which delivers robotic software and systems to automate tasks in precision manufacturing and logistics.
Eureka said it would use the “series A” round to accelerate the development and deployment of its main products, Eureka Controller and Eureka 3D Camera, which enable system integrators and manufacturers to deploy High Accuracy-High Agility (HA-HA) applications in factories and warehouses. Common uses include AI-based inspection, precision handling, 3D picking, assembly, and dispensing.
In addition, Eureka said it planned to scale up the company’s operations in the existing markets of Singapore and Japan, with a plan to launch more widely across Japan, as well as to enter the US market, where the company has already acquired initial customers.
“Eureka Robotics was founded in 2018 with the mission of helping factories worldwide automate dull, dirty, and dangerous work, so that human workers can focus on their creative endeavors,” company CEO and Co-founder Pham Quang Cuong said in a release. “We are proud to reach the next stage of our development, with the support of our investors and the cooperation of our esteemed customers and partners.”
Tire manufacturer Michelin has long used predictive maintenance tools to head off equipment failures, but the company recently upped its game by implementing cutting-edge robotics at its factory in Lexington, South Carolina. Managers there are using Boston Dynamics’ autonomous mobile robot (AMR) “Spot” to speed and streamline the inspection and maintenance processes—a move that is boosting productivity at the Lexington facility and for the company at large.
“Getting ahead of equipment failures is important, because it affects our production output,” Ryan Burns, an associate in the facility’s reliability and methods department, said in a case study describing the project. “If we can predict a failure and we can plan and schedule the work to fix the issue before it becomes an unplanned breakdown, then we’re able to increase our output as a company and a tire producer.”
MORE—AND BETTER—INSPECTIONS
Spot is a versatile quadruped AMR that can automate sensing and inspection tasks, and capture data—all while moving freely throughout a facility. The robot is being used around the world for maintenance-related functions, such as detecting mechanical problems and monitoring equipment for energy efficiency. At the Michelin plant, managers began by assigning Spot to inspect machinery in its tire verification (TV) area—taking over tasks previously done by in-house technicians as well as conducting additional inspections. Spot identifies issues and problems, and then conveys that information through its software program, called Orbit, which managers can access via an on-site server. From there, managers can sort through the data to detect anomalies and set alarm thresholds that will trigger a technician’s response.
“From a technician standpoint, Spot going out and doing these routes eliminates a mundane task that the humans were doing,” said Burns. “By Spot finding these anomalies and these issues, it gives the technicians more time to … [decide] how and when they’re going to fix the problem versus going out, identifying [the issue], then trying to plan and schedule everything.”
FEWER BREAKDOWNS, MORE PRODUCTIVITY
The results have been game-changing, according to Burns and his colleague Wayne Pender, the tech methods and reliability manager at the Lexington plant. As of this past fall, Spot was running seven inspection missions in the TV area, scanning about 350 points across 700 assets to detect anomalies ahead of time. The results helped generate 72 work orders in Michelin’s system—allowing the facility to avoid uncontrolled breakdowns and major production losses, according to Pender. On top of that, Spot had generated 66 air-leak work orders, identifying areas where Michelin can reduce energy consumption.
Looking ahead, the plan is to apply Spot’s talents beyond the TV area to the rest of the facility.
“Spot is a member of our maintenance team,” Burns said. “The future is to have more Spots, so that we can improve on our inspections and improve our overall output as a company here at [Lexington].”
Pender agrees: “We see Spot [as] the future. … [But] we probably need a whole dog pound or multiple Spots … to actually do what we need to do [across all of Michelin’s North American facilities].”