DCs need automation, and they need it now. Conveyor manufacturers are responding with solutions designed to get systems and equipment up and running faster than ever before.
Victoria Kickham 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 DC Velocity.
Accelerating e-commerce volumes are pushing retailers, e-commerce fulfillment companies, and others to get orders out the door faster than ever before, and that often means implementing new or enhanced conveyor systems in their DCs to help speed and streamline fulfillment. Today’s fast pace of business is leaving little time for lengthy, complex equipment installations, however, increasing the need for out-of-the-box solutions that can reduce prep time and allow end-users to respond to accelerating volumes quickly.
“What we’re seeing in the market is a need to get systems ramped up very quickly,” explains Tim Kraus, product manager at conveyance and parcel automation solutions company Intralox, which serves customers in a range of industries, including logistics, food, and consumer packaged goods. “There’s a real focus on getting these systems designed, installed, and running live as quickly as possible.”
It’s a tall order, but the conveyor industry is stepping up with products, technologies, and other solutions designed to do just that. Modex 2022, the logistics and material handling industry trade show held in Atlanta this spring, provided the backdrop for companies to showcase some of their newest offerings, which include everything from pre-engineered control systems to faster product delivery platforms—all of which are aimed at providing low-hassle, high-value solutions for tackling those growing e-commerce demands.
Here’s a look at some time-saving solutions companies were touting in Atlanta earlier this year.
A PUSH TOWARD “PLUG AND PLAY”
Intralox is offering up its pre-engineered, pre-wired advanced sorter controls (ASC) as one option for meeting accelerating demand in short order. The machine control solution is available with the company’s e-commerce package sorters, which are designed to convey a variety of package types, including polybags, cartons, boxes, and large or irregular-shaped items. The pre-engineered control system eliminates the need for a systems integrator to design and install a complex system from scratch; instead, the integrator can perform a few simple configuration steps—via an interface provided with the ASC—so that the sorter is up and running immediately. The ASC also includes a built-in field bus so integrators can add devices and functionality to a system—without the extra cost, risk, and time traditionally associated with such projects.
The solution not only reduces project development time but also accelerates the go-live schedule for the end-customer, according to Kraus, who says the ASC program represents a growing trend in material handling system design.
“Anything you can do in the factory, before the system ships, to make it more plug-and-play and reduce the need for high-skilled labor is extremely valuable [from a scheduling standpoint]—many companies have focused in that direction,” Kraus explains. “With e-commerce and the need to ramp up facilities really quickly, that trend has just accelerated.”
Kraus says the underlying technology in the company’s ASC is not new; the difference is in providing a ready-to-go packaged solution.
“This provides some real value in terms of startup time and reduced risk for the systems integrator and the end-user,” he explains. “It dramatically reduces engineering [and] installation—and it gets the sorter up and running really quickly.”
Swiss material handling solutions providerInterroll Worldwide Group, which makes products for unit-load handling systems, internal logistics, and automation, is emphasizing the benefits of plug-and-play solutions via its “platform” modules, which offer pre-engineered conveyance systems that can provide a “more tailored mass approach” to the market, according to Barry Miller, the company’s vice president of sales and service for the United States. As one example, Interroll’s modular conveyor platform (MCP) comes in three standard widths, with a choice of energy-efficient drive solutions that allow users to combine pieces and parts to create a system that fits their needs. The modules are pre-assembled, which makes on-site installation faster and easier than traditional systems, Miller adds. The MCP includes independently adjustable side guides, adjustable supports, and integrated electrical conduits that can accommodate add-on components, for instance. Adjustability allows end-users to expand the system to meet future needs.
“Everyone wants something special and unique,” Miller explains, adding that Interroll’s customers are looking for a swift installation as well, especially for e-commerce–related projects. The platform approach allows the company to address those conflicting demands and get projects off the ground quickly, he says.
ADDING CAPACITY FOR QUICK DELIVERY
Some companies are focused on a more back-to-basics approach to helping customers get conveyor projects done quickly: speeding the delivery process. Arkansas-basedHytrol Conveyorhas introduced its Preferred Delivery Program (PDP), an effort designed to get its low-voltage E24 conveyor system into customers’ hands faster, according to Mitch Smith, the company’s vice president of business development. The 24-volt conveyor system deploys quickly and is a good solution for both established and startup e-commerce businesses, which have been strong growth sectors, along with parcel and third-party logistics service providers, Smith adds. The Jonesboro, Arkansas-based company added a second manufacturing facility in Fort Smith, Arkansas, last January, allowing it to expand the E24 line and speed manufacturing and shipping processes. A portion of the E24 products are part of the program, with more to be added in the future.
“The new facility is really helping our company meet growth demands—especially [those] driven by e-commerce business,” Smith says, emphasizing customers’ desire for shorter project timeframes over the past two years in particular. “This specialized delivery program is a way [for us] to offer our popular E24 products to customers that need equipment fast.”
Hytrol isn’t alone. Earlier this year, Intralox expanded its U.S. operations with a 310,000-square-foot facility at Tradepoint Atlantic, a 3,000-acre logistics center in Baltimore County, Maryland. The facility increases Intralox’s East Coast footprint by 70% and represents the Louisiana-based company’s third expansion in the region over the past three years. The growth is being driven by logistics industry demand, specifically the need for systems tailored to parcel, postal, e-commerce, and distribution customers, according to the company.
Industry leaders say they expect consumer buying habits and labor market forces will sustain those trends.
“The pandemic effect has changed the math, and it’s much easier to justify automation,” especially in last-mile facilities, Kraus says. “Part of that is increased order volume, and the other part is reduced availability of labor. Those two effects have increased demand, absolutely.”
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.