Advances in robotic piece-picking technology are driving its adoption in the DC and attracting investor interest, thanks to e-commerce growth and soaring demand for more warehouses.
Victoria Kickham, an editor at large for Supply Chain Quarterly, 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 Supply Chain Quarterly's sister publication, DC Velocity.
Piece-picking robots are finding their way into more warehouses and distribution centers (DCs) these days thanks to steady improvements in the technology that are making it more attractive to a wider range of end-users. Advances in gripping technology and arm speed are making it easier to handle a broader array of items, for example, allowing companies to maximize their investment and reduce their reliance on human labor for mundane picking tasks.
The trend is part of a growing demand for industrial robots in general—a trend that is only expected to gather steam as fulfillment operations deal with rising e-commerce volumes and the labor challenges that accompany such growth. The Association for Advancing Automation (A3) tracked a 28% increase in North American robot sales last year compared to 2020; it was the strongest sales year on record, with $2 billion worth of robot units sold. Separate industry statistics valued the piece-picking robot market at more than $148 million in 2020, a figure that’s expected to surpass $3 billion by 2026, a nearly 63% compound annual growth rate.
The growth is spurring interest from the investment community as well. Earlier this year, robotic picking solutions developer RightHand Roboticslanded $66 million in venture capital funding, which the company said it will use to accelerate the development of its RightPick piece-picking solution. There’s been a steady stream of similar announcements regarding robotics-industry investments over the past year, which underscores the bullish market outlook for the technology.
“We foresee strong growth in this area,” explains A3’s President Jeff Burnstein, emphasizing e-commerce growth and a related demand to build more warehouses and DCs—all of which will need automation. “That means this segment will grow, and there will be innovation. There is a lot of venture capital [flowing] into this space as well, which shows you this will be a very aggressive market moving forward.”
Some of the most common logistics applications for piece-picking robots today are sortation and pick-and-place functions in general merchandise, apparel, and small-package operations, but experts say the opportunities are growing just as fast as the demand.
GETTING BETTER OVER TIME
There have been “massive improvements” in piece-picking technology over the past few years, according to Jake Heldenberg, senior manager for warehouse solutions sales consulting at material handling systems integrator Vanderlande. Piece-picking robots use a gripper attached to a mechanical arm for item picking and are most commonly used to pick single items from a source bin and deposit them into an outbound container. Heldenberg says grippers are able to manipulate and grasp far more items than they could just a few years ago and that arm speed has improved as well, allowing companies across many industries to meet productivity improvement goals.
“Four years ago, [robotic piece-picking solutions] could handle 60% to 70% of SKUs [stock-keeping units]. Now, they can handle 90%-plus for picking in general merchandise and fashion,” Heldenberg says. “The most successful products have been cosmetics—because they come in small boxes that are lightweight and easy to grip.”
The biggest challenge has been the robot’s vision system, but that technology is improving as well. Piece-picking robots incorporate three-dimensional (3D) cameras and software to “see” what they are doing. Robot developers are working to improve vision systems so that robots can more easily identify items of different shapes, sizes, and weights. Artificial intelligence (AI) and machine learning (ML) can help with this process by allowing the robot to “learn” and improve on its own.
“Maybe the robot is being told to pick object ‘X’ out of a bin of various objects. To do that, it has to identify object ‘X,’” Burnstein explains, adding that understanding the item’s dimensions and weight are a crucial part of that process. “Robots can learn how to do this more effectively over time through AI and machine learning.”
Vince Martinelli, head of product and marketing at RightHand Robotics, explains that AI gives the robot the cognitive skills and “understanding” of its space that allow it to function more accurately and consistently in a complex environment. He says today’s piece-picking robots are more adaptable, reliable, and faster than ever before—thanks to advances in AI, but also because developers are gaining real-world experience as their products become more widely used. Real-world applications can reveal obstacles, errors, and scenarios in which a robot may not complete a task perfectly, for instance. Developers can then use that experience to further refine the technology’s capabilities.
“Some things are hard to do in a lab,” Martinelli says. “We can’t pre-imagine every scenario. If something isn’t perfect, how do you resolve that in the field? Learning how to collect, collate, and process the data coming from the machines [helps us] relentlessly drive overall reliability and performance.”
REALIZING SUCCESS IN THE FIELD
Piece-picking technology is becoming an increasingly important part of the automation mix for parcel carrier and logistics services provider FedEx, according to Aaron Prather, senior adviser for the company’s technology research and planning team. The company uses piece-picking robots for sortation and pick-and-place operations at facilities around the world, and plans to use them for even more applications at both new and existing facilities—thanks in large part to technology advances that have spurred creativity throughout the organization. Over the past five years, the company’s FedEx Ground business has added more than 60 automated stations to its network, with nearly 150 fully automated facilities in the ground network, which affect more than 97% of package volume.
“Right now, the technology is good at picking up small packages and placing them on a [conveyor] belt to go into the system,” Prather says, explaining that robots are replacing humans at drop-off facilities and larger FedEx warehouses where parcels and small packages are sorted, scanned, and sent on to their next destination. “But each day, we’re looking at doing something else [with the technology]. There is a lot of growth in this area. There’s nowhere to go but up.”
Prather says next steps for robotic piece picking include unloading trucks—another pick-and-place application where the company could free up human labor for other activities. The idea is to apply the technology at warehouses and DCs in the network as well as at airfreight facilities, where parcels and packages must be unloaded from large containers.
“That is the next big type of application a lot of us are going after,” Prather says, adding that the robots would pick parcels and then place them on a conveyor belt or possibly an autonomous mobile robot (AMR). “If you’re in logistics, that’s something you want to solve—it’s a labor-intense activity, so it’s something that everyone wants to automate.
“There are so many interesting use cases coming up now, because the technology is getting so much better.”
He says the technology is also spurring a workforce evolution that is creating higher-level career opportunities throughout the organization. FedEx’s new “robot team leader” positions are a case in point. These are hourly jobs in which an employee oversees a group of robots and is trained to manage, monitor, troubleshoot, and address any maintenance issues that may arise.
“Some are watching a bunch of [robotic] arms; others are watching a bunch of mobile robots. They are trained on robot support,” Prather explains, emphasizing the importance of the position as well as a growing interest in it among employees. “All of them love their jobs. They get to go home and tell their kids they work with robots. But we can’t create more robot team leaders until we put more robots in.”
And that’s in the works. Most recently, FedEx installed a sorting robot at a FedEx Express facility in China that handles small inbound and outbound packages for e-commerce customers in the southern part of the country. The project followed similar sortation solutions implemented here at home last year. One example is the implementation of robot developer Berkshire Grey’s Robotic Product Sortation and Identification (RPSi) system at FedEx Ground facilities in New York, Las Vegas, and Ohio. The AI-based system autonomously picks, identifies, sorts, and collects small packages that were previously sorted by hand.
That kind of innovation will only continue, he says.
“We know going forward that our greenfield sites will have automation. We’ll design sites with this technology in mind,” Prather says. “However, it is still critical for the industry to understand there are a lot of brownfield sites we are not going to give up on. Our volume continues to grow, people are shipping like crazy, so we are still going to look at ways to automate those sites as well. The challenge will be how do we take these technologies and fit them into these brownfield sites? That’s where our creativity is going to kick in.”
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."