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.”
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.