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.”
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."