An inside look at the robotic revolution — and what it all means for you
How is technology helping fulfillment operations boost throughput and cope with the ongoing labor shortage? Experts share their insights in this special roundtable discussion.
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.
Robotics and automation have never been hotter. And it’s not hard to see why. Squeezed by the ongoing e-commerce boom and a nationwide labor crunch, companies are finding they need these technologies to boost fulfillment speed and accuracy at a time when adding people is no longer an option.
To learn more about the current state of the robotics market as well as what lies ahead, DC Velocity Group Editorial Director David Maloney gathered experts from companies that participated in DC Velocity’s Robotics Forum at last month’s Modex show for a freewheeling discussion. Among the topics we address in Part One (Part Two will appear in our May issue) are recent advances in robotics technology, the different ways in which robots can help ease the DC labor crunch, and the future of robot design.
Roundtable Participants:
Jeff Christensen, Vice President of Product, Seegrid
Q: What do you consider to be the most significant advances in robotics technology within the past five years?
Jeff Christensen – Seegrid: The most important advancements today are in the development of intelligent autonomy technology. In order for autonomous mobile robots (AMRs) and automation solutions to gain an extremely accurate understanding of their immediate surroundings, they need to see, collect, prioritize, and interpret a higher density of real-world live information. Any single sensor when used alone has its limitations. However, robotics companies that embrace sensor fusion will have solutions that offer an enhanced ability to perceive, plan, and control movement.
Matt Kohler – Bastian Solutions: Artificial intelligence (AI)-powered vision is a game-changer for robotics. Robots have always been great at handling repeatable tasks, which has led to their widespread adoption in manufacturing, but not so much in distribution, primarily due to the wide variety of products you see in a distribution center. AI-powered vision helps fleets of robots learn how to handle the complexities involved in handling tens of thousands of SKUs and the random nature in which they are presented to robots.
Nicola Tomatis – BlueBotics: One of the biggest changes in the last five years is that automated guided vehicles have become both the fastest-growing market and the largest market in service robotics. AGVs have overtaken both industrial robots and service robots working outside of industry.
Mike Futch – Tompkins Robotics: Vision systems have made significant strides. Many picking software providers have made continual improvements in these systems. Two of the biggest hurdles that picking vision must overcome are the wide variety of items in warehouses and the unpredictability of what items are in a picking container. While human intervention is still required, picking vision has progressed to the point where the systems can economically replace or supplement manual labor in the warehouse environment.
Kevin Reader – Knapp: Developments in artificial intelligence and machine learning have rapidly enhanced the capabilities of the latest generation of more capable robots, enabling them to perform more complex order picking tasks. At a time when labor shortages have risen to an unprecedented level of concern to supply chain practitioners, this category of robotics is moving from prototype consideration to the “proven business case” category.
Divya Prakash – SICK: Simplification of user interfaces has opened up the robotics technology market to a much wider audience of end-users. Also, increased processing power enabled by GPUs (graphics processing units) and stronger CPUs (central processing units) better supports enhanced sensor capabilities.
Dan Coote – Locus Robotics: The most important advancement in robotics technology lies in how robots are able to navigate around a warehouse. The granularity of a map within a warehouse along with the bot’s ability to navigate in a complex and convoluted environment both safely and efficiently have progressed by leaps and bounds. It’s a combination of the physical hardware that goes into the bots (including LiDAR sensors) and enhancements in the back-end software tools.
Romain Moulin – Exotec: Battery technologies have improved a lot in terms of efficiency, power density, and fast charging, which has allowed for new applications in mobile robotics.
Q: How can the increased use of robotics help distribution facilities cope with labor shortages?
Matt Kohler – Bastian Solutions: We hear about labor challenges all the time, and of course, implementing robotics in a distribution facility will help reduce labor requirements. But it also allows companies to re-allocate that labor to more value-add areas of their operations. I believe that is important because it will help those employees become more engaged and [will] hopefully increase retention.
Mike Futch – Tompkins Robotics: Robots have a bigger impact than just labor replacement. Consider that today’s workforce seeks out technology. They would much prefer to work in an environment where they can interact with high-tech solutions over traditional manual processes or even traditional automation. Further, facilities are continuing to see positive impact by adding in “gamification” to their operations. Robotic solutions greatly enhance this ability.
Dan Coote – Locus Robotics: Robotics reduces the requirements for the number of warehouse workers and increases productivity among the workers that a warehouse does have. During peak season, there’s enormous demand for people, and the number of people available is dependent on where they’re located. To counteract this, bots—and specifically RaaS (robots as a service) bots—offer the option of short-term rentals, which cuts down on the number of people required and provides the ability to [meet] your peak demands by augmenting throughput with a combination of people and robots. Also, the induction, training, and speed-to-competency times decrease with robotics.
Q: How will artificial intelligence and machine learning affect future robotic designs?
Kevin Reader – Knapp: AI and machine learning solutions have the capability to impact a great many areas, from manufacturing through operations, delivery to customers, and beyond to our daily lives. But in a general context, there is consensus that the future of robotic design is not just driven by AI, but that “cloud is the enabler, data is the driver, and AI is the differentiator.”
Matt Kohler – Bastian Solutions: The biggest impact will be in the sheer number of different robotic applications that those technologies enable. But from a robotic system design standpoint, I see the biggest impact being on “end of arm tooling” (EoAT) designs. AI will be able to evaluate products presented to the robot and determine how best to handle the product. AI can tell the robot to use only certain suction cups on a particular product surface or to only clamp a product in a certain location, or it may even tell the robot to swap out its current EoAT to use a different style of EoAT to handle a particular product.
Jeff Christensen – Seegrid: Robot design will benefit from AI and machine learning as the software will increasingly take on decision-making. Industrial automation solutions will move from robots that have to do many things to robots that will be more task-specific. This specialization, along with coordinated flow and interoperability across these disparate robot types, will enable process innovation and ongoing AI-driven optimization. Not only will movement be automated through the robots, but the optimization of flow and continual improvement will also be automated.
Divya Prakash – SICK: As artificial intelligence and machine learning advance, they will allow robots to complete more complex tasks in a shorter time. In the context of increased sensor capabilities, such as being able to localize mixed parts in a bin, this will lead to more advanced robot capabilities to support the additional sensor capabilities. Seven axis arms may become more common. More advanced flexible tooling (soft grippers) will come to market. Ease of use will need to be maintained or improved.
Romain Moulin – Exotec: Artificial intelligence, coupled with new generations of sensors, allows robotics to tackle operations that once could only be done by human operators. Bin picking is still the most typical application.
Q: How has warehousing software evolved to make it easier to integrate the robots that are taking on a growing role in fulfillment operations?
Jeff Christensen – Seegrid: In the past, warehouse software interacted with automation such as AMRs and automated storage and retrieval systems (AS/RS), but had no visibility to the progress of work once it entered these systems. Tighter levels of integration through generic APIs (application programming interfaces) give today’s warehouse software much better visibility into automation and robotic technologies. This also allows for changes to either system without time-consuming and costly integration changes.
Kevin Reader – Knapp: As with most technologies these days, when it comes to warehouse and fulfillment operations, software is not stand-alone but rather, integrated across an array of areas—from overall inventory management to sequencing, order picking, device control, and daily operation. One of the most significant improvements is the development of control tower technologies that focus on warehouse and fulfillment center management and are designed to manage overall resources. Best-of-breed warehouse management systems are also being re-architected for the real-time nature of the latest technology, including goods-to-person systems, robotic palletizers, and fully robotic order picking.
Nicola Tomatis – BlueBotics: Software has improved in two key areas: human usability and machine interfacing. Warehouse software today is easier to use, while at the same time, it needs to interface with more vehicles and systems than ever before. It has improved, but a lot remains to be done.
Q: What will robotics look like by the end of the decade?
Nicola Tomatis – BlueBotics: Two trends will define this decade in robotics: ease of use and interoperability. Robotic systems will be simpler to put in place and easier to use on a day-to-day basis. We will also see more and more different types of robots—and even brands of robots—working together as interoperability becomes the default.
Romain Moulin – Exotec: More and more operations associated with picking, packing, and loading/unloading will be fully automated.
Divya Prakash – SICK: The merging of sensors and robotic systems into a more cohesive, pre-engineered application-based product will allow for more advanced applications to be solved. Rather than customizing automation to existing processes, existing processes must mold to the needs of the automation system. Some of the newer tasks being attempted with automation are complex enough that there may only be one or two ways to solve them. This contrasts with the past in robotics, where there were many ways to solve an application and customize to the user’s existing processes.
Dan Coote – Locus Robotics: By the end of the decade, it will be commonplace to have a multitude of bots performing various functions across the warehouse or [robots from] a multitude of vendors deployed within the warehouse.
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
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.
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.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”