An inside look at the robotic revolution — and what it all means for you (Part II)
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 the recent Modex show for a freewheeling discussion. Among the topics we address in Part Two (Part One ran in our April issue) are the role of “cobots” in fulfillment operations, what manufacturers are doing to extend system run times, and what tomorrow’s robots will look like.
Roundtable Participants:
Bruce Bleikamp, Director of Product Management, MHS
Brian Reinhart, Vice President of Sales, HAI Robotics
Saif Sabti, Vice President of Business Development and Strategy, SSI Schaefer
Q: What do you consider to be the most significant advances in robotics technology within the past five years?
Lior Elazary – inVia: Robotics technology has come a long way in the last five years. Robotic systems are getting more intelligent and adaptive, and the technology is becoming more precise, allowing for more tasks to be automated. At the same time, ongoing improvements in battery and motor technology have driven costs down, allowing for the adoption of robotic systems that provide a very strong ROI (return on investment) for warehouse operators. As a result, robotics can now be implemented across companies of all sizes.
Erik Nieves – Plus One Robotics: Computer vision is what’s driven adoption in the last five years. It’s what didn’t exist before—the fact that robots can deal with less-than-structured environments and still be successful. We as humans have 3D vision, two hands, and coordination. So, if robots are going to be successful in these applications, then it’s going to take that same sort of capacity in 3D vision—being able to sort, see, recognize, classify, and find objects in front of you. [This capability] is allowing for new applications for automation that would otherwise not be possible.
Fergal Glynn – 6 River Systems: Robotics have become smarter, more flexible, and more collaborative. Software advancements, coupled with AI (artificial intelligence) and machine learning, have made it easier to leverage operational data for real-time optimization and continuous improvement. Along with that, robotics hardware has evolved to be more nimble and adaptable, making robots easier to deploy across a wide range of environments.
Combined, those advancements have made it easier for robots to not only work alongside people, but also to help make those people and operations more efficient, productive, and safe.
Dan Hanrahan – Numina Group: AMRs have gone from a novelty to a proven warehouse automation technology. Customers are interested in exploring the use of robotic technologies due to the reliability [these systems have demonstrated in] use cases at Amazon and other large corporations, and now, at numerous small businesses.
Josh Cloer – Mujin: Over the past five years, robots have been given a new lens with which they can view the world. Machine vision has been around for a long time, but the latest technology—the technology that has emerged in the last five years—is certainly empowering robots to do more than ever before. The ability to digitize a large area with a large depth of field has given robots the ability to manage tasks that were previously very difficult and costly. 3D vision is one of the most critical advancements in robotics technologies because it is allowing robotics to take on some of the more variable tasks within logistics environments.
Q: What types of robots are currently in most demand for warehouse applications?
Brian Reinhart – HAI: All of them. Jokes aside, it really is any and all types of robots and really any type of automation that can help ease the burden of labor. The current labor shortages, taken together with increased customer demands regarding order time and accuracy, have placed immense pressure on warehouses and DCs. Traditional robots, advanced robots, industrial robots, and collaborative robots are all in high demand.
Lior Elazary – inVia: The impact of Covid-19 on consumer behavior, specifically the e-commerce boom, has made streamlining fulfillment center operations a top priority and has fueled the demand for goods-to-person automation. Smaller e-commerce brands, especially, feel the pressure to deliver quickly and on time to keep up with larger retailers. We see more and more 3PLs who handle their fulfillment needs turning to automation solutions. Autonomous mobile robots (AMRs) help solve today’s warehousing challenges. They are small and nimble and operate nonstop to fulfill orders with machine precision.
Carlos Fernández – AutoStore: Goods-to-person robotics has reached a level of maturity, creating high demand across all segments. That’s why there are many solutions and integrators on the market, and why delivery times to end-customers remain high. Demand for AMRs is still on the rise as well. This is definitely a trend that will continue due to the low entry barriers.
Fergal Glynn – 6 River Systems: Autonomous mobile robots (AMRs) are in high demand due to their fast return on investment and easy implementation and integration into existing warehouse layouts. They require no costly or time-consuming warehouse infrastructure updates. In addition to the benefits of increased productivity, ease of associate training, and growing influence on associate recruiting and retention, AMRs also introduce unprecedented flexibility. Robots can be rented to support seasonal peaks and can be relocated within or across fulfillment locations to meet spikes in demand.
Bruce Bleikamp – MHS: Six-axis robots can deliver productive labor-saving solutions for picking parts, cases, or layers. Linking robotic operations across the distribution center is possible with low-cost AMRs, further enhancing ROI and labor savings, and making wider adoption of robots possible. An example is an application where robotic palletizing is linked to a common stretch wrapper using AMRs.
Dan Hanrahan – Numina Group: We are seeing an interest in robotic automation for the following applications: picking, order movement, product transport, increasing storage density, and automated sortation. As an independent systems integrator, we look at what blend of technologies can generate a two- to three-year ROI through labor reduction and efficiency gains, and also provide a solution that is modular and scalable. AMR-based solutions check all the boxes. Robotics solutions are easily adapted to changing business requirements and can be picked up and moved much more easily than conveyor if a customer outgrows its facility.
Josh Cloer – Mujin: The biggest demand we’re seeing is for robotic palletizing and depalletizing systems that can manage variability and mixed-case scenarios, while collaborating with other automated systems to really improve operations. There’s also a huge need to automate the order fulfillment process for both e-commerce and traditional retail operations.
Q: How has the use of collaborative robots (cobots) affected productivity within distribution facilities?
Carlos Fernández – AutoStore: Human beings are and will continue to be a vital part of warehouse operations. In order to have an efficient working environment for both, people and bots need to collaborate well, or at least co-exist and adapt to each other. The benefit in terms of productivity is that bots can take on the tedious and repetitive tasks, so humans can focus on optimizing processes or other more complex duties. For this reason, bots also enable organizations to achieve much higher productivity while providing a better work environment for employees, leading to higher employee satisfaction and retention rates.
Erik Nieves – Plus One Robotics: Collaborative robots started out as robots that were safe to be around. That’s great—they are important and have a role to play in warehouses and distribution centers. But they are also limited.
Then the operations team says, “Hey, can it go any faster?” The answer is, “Yes, it can, if you take it out and put an industrial robot in its place.” That means you’ll need to put up a cage or a safety scanner of some type, but you will get your [target throughput] rates.
So, do collaborative robots have a role to play? Absolutely. There will be some instances where they are the best answer long term for certain applications. But I would argue that that’s the minority of cases. Effectively, cobots are a gateway drug to industrial robots in the warehouse.
Saif Sabti – SSI Schaefer: With cobots, we’re basically looking at robotic components that were meant to boost labor productivity within a distribution center. However, this still needs work. These still need to be heavily guarded and require longer training periods.
I see this perhaps going a bit further with more innovation—but for today, analysis suggests that productivity actually goes down with cobots.
Fergal Glynn – 6 River Systems: Cobots augment the work of associates, helping them to work more efficiently and accurately, while eliminating much of the work that can take a physical toll on humans. Warehouse associates push and pull a lot of weight across long distances. That impacts productivity, health and safety, and ultimately an operation’s ability to quickly ramp up to meet demand.
Josh Cloer – Mujin: Collaborative robots are a great tool for the right applications. For instance, cobots make sense anywhere that is space-constrained or where an application can be partially automated but still requires the human touch. As with any application, it is about finding the right tool for the job, and warehouse managers have more options today than ever before.
Q: What is being done to make robots easier to repair and to extend their uptime?
Brian Reinhart – HAI: Like any technology, as it evolves, it becomes more durable and predictable. Single points of failure have been engineered out of most technology platforms by now. On-board diagnostics can help predict when an electrical or mechanical component may be nearing failure. Robotic equipment has moved from a reactive maintenance and repair position to a proactive one, where we identify and resolve issues before they occur.
Lior Elazary – inVia: Advances in smart systems allow for physical calibration via software so that the physical system doesn’t need to be complex or have extremely tight tolerances.
Saif Sabti – SSI Schaefer: Battery life is the biggest issue with uptime. As this technology improves, uptime will also increase. As for repair, I think we’re looking at more preventive maintenance from data history. The more information and historical data we have, the more operations and customer service will know when something is about to go offline. This will help with planning maintenance and avoiding lost productivity.
Fergal Glynn – 6 River Systems: Cloud-based software supports both repair and uptime with warehouse and fulfillment robotics. Through software-based insights, you can monitor activity of the robot for anomalies, more easily diagnose issues, and proactively address maintenance before it impacts your operation. Specific to uptime, a robot can also be configured to automatically seek out a charger when its battery hits a certain level and then auto-charge before being deployed back out to the warehouse floor.
Bruce Bleikamp – MHS: Good system design from the early stages of a project can significantly improve system uptime. Advancements have been made with item recognition and the algorithms that are used for both item pick and placement strategies. The use of item dimensional data, coupled with intelligent algorithms that allow a more “dynamic” approach to grasping cases or items, allows for error recovery in ways previously not available.
Dan Hanrahan – Numina Group: Built-in on-board diagnostics and quick disconnect wiring harnesses with modular components are becoming a prerequisite for customers. AMRs need to have easily swappable components that can be serviced by an in-house technician or a local forklift dealer.
Q: What will robotics look like by the end of the decade?
Josh Cloer – Mujin: By 2030, robotics will no longer need to be programmed for each application. An end-user or integrator can simply choose the type of application and the appropriate hardware, and build the robot cell. From there, giving the robotics platform high-level goals and targets will be enough to deploy the system with production-level reliability.
The trends in interoperability will allow for robot arms and auxiliary material handling solutions to be integrated seamlessly without the need for bespoke software integrations, and fully autonomous warehouses and distribution centers will become commonplace.
Saif Sabti – SSI Schaefer: We’re already starting to see concepts of partial dark stores. While we’re still a few years away from a complete dark store, I believe we’ll eventually have the same for distribution centers—or at least, we’ll have “one to many” operations. Today, if a retailer or manufacturer has multiple distribution locations to run, it must have labor to support each location. I think within the next decade, we’re looking at having one centralized labor pool that will help run everything automatically from one location. There may be a very streamlined labor pool to deal with maintenance, but for the most part, you’re looking at the majority of items being picked, packed, shipped, and validated remotely.
Brian Reinhart – HAI: When a technology is evolving as quickly as robotics is, projection is always difficult. Some things to look for will be the combination of industrial and collaborative platforms, the adoption and evolution of AI, and improvements in self-monitoring and diagnostics aboard the platforms. One thing is for sure: Whichever direction the technology heads in, it will result in a reduction in labor [requirements] and cost, and improvements in performance.
Carlos Fernández – AutoStore: Robots will still keep certain roles, meaning there won’t be human-like robots capable of doing every possible job in a warehouse. But they’ll be a lot better at the tasks they’re designed to do and will be more specialized. Advanced AI will also help these technologies make better decisions.
Bruce Bleikamp – MHS: They’ll be better and possibly faster, and they’ll fit into more applications. The big changes will be in the tooling and controls surrounding the robot. We’ll see increased adoption of robots simply because of labor shortages.
We will also see robots with expanded roles in parts and case picking. We will see robots packing boxes for customer orders, including closing and labeling the boxes. So, we will see new roles, much broader application across existing roles, and adoption by more clients that at one time felt automation was only for the big companies. But it’s really for everybody.
Erik Nieves – Plus One Robotics: Culturally, we’re going to be past the whole “robots versus jobs” argument and the “Terminator” pop-culture view of robots by that time. Let’s be clear that this is an American phenomenon. If you go to Japan or Korea, nobody is afraid of robots—in part, because from the time you were a little kid, you’ve grown up with “robot boy.” He’s your hero; he’s your friend.
We grew up with Terminator. So, culturally we have a different view that’s also a generational thing. That’s going to be over and done with in 10 years, and that means we’re going to be deploying robots at a scale that’s dwarfing anything we see today.
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."