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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."