From traditional to high-tech, goods-to-person picking systems are quickly becoming table stakes for operating in a fast-paced environment marked by tight labor capacity.
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.
Labor challenges and productivity demands have long been pushing business leaders to adopt automated solutions for their warehouses and distribution centers, a trend that accelerated during the Covid-19 pandemic and that shows no signs of abating as 2022 gets underway. Goods-to-person (GTP) picking systems are among the most popular and easiest ways to automate, as both traditional and more advanced systems can yield results quickly and put companies well on their way to meeting their operational goals.
Recent studies attest to those benefits.Gartner research from 2021 predicted that demand for robotic GTP systems would quadruple through 2023, largely to deal with labor challenges. Such systems address the need for social distancing by moving goods from one person to another—and doing it so efficiently that they increase productivity and improve storage density along the way, according to Gartner.
“While the social distancing aspect is an imminent benefit, robotic GTP systems will provide value long after the pandemic is over,” Gartner Analyst Dwight Klappich said in an April 2021 Gartner.com article. “This technology is advanced and economical, and can easily be tailored to work in every kind of warehouse environment.”
But what exactly are GTP systems—robotic or otherwise—and how do they work? Here’s a back-to-basics look at some of the types of GTP technology available today and the benefits they can bring to material handling operations.
DETERMINING WHAT’S RIGHT FOR YOU
Essentially, goods-to-person picking systems deliver items to an operator, so that the operator doesn’t have to travel between locations in a facility. They can be used in retail operations, in warehouses and fulfillment centers, in point-of-use applications in manufacturing and packaging operations, and, increasingly, for merchandise returns. E-commerce fulfillment centers are seeing among the highest rates of GTP adoption, driven mainly by the accelerated growth of online buying since the spring of 2020. The situation was especially acute in the grocery market, where demand for microfulfillment systems—highly automated, small-footprint systems located close to the end-consumer—has skyrocketed over the past two years, according to Kevin Reader, vice president of marketing for logistics solutions provider Knapp. Up-to-the-minute ordering and expectations of fast delivery are driving the need.
“In an environment that’s constantly demanding later order windows during the day and next-day delivery—there’s not much of an option,” Reader says, emphasizing the growth in demand for GTP systems in general. “[This technology] is becoming almost table stakes.”
GTP systems fall into two general categories: 1) Traditional systems such as horizontal or vertical carousels, which present items to pickers in a warehouse or DC operation, as well as vertical lift modules (VLMs), which take advantage of a facility’s ceiling height to store and present items to workers; and 2) More advanced, high-density solutions, including shuttle-based systems and automated storage and retrieval systems (AS/RS), which deliver products to a worker at a pick station. Some advanced solutions also use autonomous mobile robots (AMRs) to deliver products to workers.
Logistics solutions providers work with customers to select the best type of system for their particular application.
Determining the best system hinges on the particular “use case” in the market, according to Laura Bickle, senior offering manager for Honeywell Intelligrated’s warehouse execution software (WES). Use cases can include e-commerce order fulfillment, retail or store fulfillment, omnichannel and combination applications, buffer systems (which accumulate units for grouping, such as for palletization and cartonization), and inventory management. Bickle explains that at Honeywell, GTP stations can be used for multiple functions, including picking items for orders, putting away inventory (for example, replenishing an AS/RS by decanting items from vendor cases into plastic totes that are stored in the AS/RS), and conducting inventory cycle counts.
And although each use case is different, there are some guiding principles for determining the best system for a particular organization.
“There are several factors that need to be considered,” according to Bickle. “What type of products are in the system? How much space is available? What is the density? What is the desired throughput? How are orders to be filled—retail or e-commerce? How many different zones is product coming from, and is buffering needed?”
Bruce Bleikamp, director of product management for material handling solutions provider MHS, agrees, emphasizing that data is the most important part of developing a solution—lots of data.
“We like to look at the orders,” Bleikamp explains. “We typically ask for a year’s worth of data. What are they moving? How many? How is it packaged? … These are things we have to understand. So we ask for a lot of data.”
Reader, of Knapp, adds that it’s also important to understand the role existing software plays in an organization, along with overarching business considerations, and the ebb and flow of orders through the facility.
“Understanding all those elements and the interplay with machine capacity is really critical to making these systems work effectively,” he says.
BENEFITS: WHAT TO EXPECT
Productivity improvement is the primary benefit of installing a GTP system, as these systems allow more picks per operator and help boost overall facility throughput. This is especially beneficial in a tight labor market, Bleikamp points out.
“Everyone is struggling with the ability to get labor,” he says, especially in the warehouse and DC, where picking tasks often involve heavy lifting, lots of walking, and repetitive actions that can lead to stress and injuries. “It’s hard to get people [for those positions], so you have to do more with the resources you have. Automating helps with that.”
Chris Steiner, Americas vice president of solution development for logistics solutions provider Dematic, adds that reducing workers’ travel time through a facility drastically increases performance levels. In a manual operation, a worker typically picks about 100 pieces per hour; reducing travel time via automation can increase that volume up to 700 or more per hour, he says.
“The most expensive parts of the fulfillment supply chain are the first 100 yards and the last mile,” Steiner explains. “[Goods-to-person picking systems] help eliminate that first 100 yards.”
Although labor optimization is key, order quality is “the next frontier” when it comes to benefits and improvements, Steiner adds. Because inventory is tracked, presented, and typically confirmed by the automated system, order fulfillment accuracy skyrockets. What’s more, the controlled environment typically means less product damage and fewer errors. Assisted by the system, workers are less fatigued and make fewer mistakes—all in a better working environment.
“Generally, [these systems] are ergonomic in nature, so it’s a good working environment, which helps with quality [and] employee retention,” Steiner adds.
ALWAYS EVOLVING: WHAT’S NEXT?
As technology evolves, GTP systems are becoming more high-tech and driven by advanced software systems and controls. Reader says there’s been an increase in demand for GTP systems of all types, but particularly in systems that include robotic picking—those that use robotics to automate tasks that require manipulating individual items, as opposed to automating transportation through a facility. Such systems require artificial intelligence (AI), vision systems, cloud technology, and the like to automate the complex tasks of selecting products for an order.
Steiner adds that there’s also growing interest in collaborative robotic solutions—in which robots work alongside associates for picking and related tasks—as well as goods-to-robot solutions, or a combination of both, depending on the organization’s needs and goals. He says many customers are looking to create the right mix of solutions that justify the investment in advanced technology.
“[Customers will] mix robotic picking … with goods-to-person picking,” using robotic picking for steady, non-peak demands, and adding workers during busier periods, he says.
Whatever the mix or level of automation, the experts say demand for GTP systems and their more advanced and evolving counterparts is only set to accelerate over the next few years.
“It’s almost a perfect storm of macro-economic drivers that are driving the need for increased efficiency in the fulfillment space,” Steiner adds, circling back to the labor shortage and supply chain delays that have plagued companies over the past year or so. “But I think it’s consumer behavior that has changed the most. … From the beginning of the pandemic, e-commerce [saw] about eight years’ worth of growth in three months and [that] has continued; it hasn’t leveled off. That has created a significant space of demand that is affecting the [service level agreements] of our customers to their customers, and, in turn, continues to drive the need for increased investment in this type of technology.”
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
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.”