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.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.