Warehouse robots provide shields against cyberthreats
As warehouses go increasingly digital, they also become more vulnerable to hackers. But makers of autonomous mobile warehouse robots say they’ve got that covered, citing the multilayered security protocols built into their systems.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
A quick look at business headlines shows that cyberthreats are one of the top challenges confronting American companies. From ransomware to customer-data leaks and intellectual property theft, hackers seem to be lurking around every corner, and they’re not sparing logistics operators.
Big names that have reportedly fended off cyberattacks in the past year include the Seattle-based freight forwarder Expeditors, German shipping group Hapag-Lloyd, Indian container handling facility the Jawaharlal Nehru Port Container Terminal (JNPCT), and German customs broker Hellmann Worldwide Logistics. The rise in cybercrime even led the White House this spring to advise companies to boost their defenses against cyberthreats and prompted the U.S. Customs and Border Protection agency to warn that such attacks could threaten critical supply chain operations in particular.
But amid the push to ward off hackers, there’s one sector that is seldom mentioned: the humble warehouse. That omission is partly a product of outdated thinking. For decades, most warehouses were simply large buildings filled to the rafters with inventory—and with very few computers to attack. But that all changed with the advent of warehouse automation. Today’s distribution center is more likely to be a humming hive of robots and other automated equipment, all connected wirelessly to warehouse management systems (WMS) and other software that could potentially be exploited by hackers.
Given these vulnerabilities, it’s no surprise that developers of automated logistics equipment are also adding “armor” to protect their technology from these threats. But adding armor is just the half of it. There are also things warehouse leaders can do to protect their data, these developers say. And the protective measures don’t have to be complicated, they add, noting that simply following some basic security principles can reduce an operation’s exposure to cyberattacks and help safeguard its customers’ data.
SAFE AND SECURE
The first wall of defense for warehouse automation systems such as autonomous mobile robots (AMRs) is having them operate within the building’s own intranet, says Nathan Cao, head of technical services for Geek +, a developer of warehouse robots and artificial intelligence (AI) products.
Although the types of devices being connected to these intranets have evolved over time, companies have successfully protected their intranets for years through industry-standard approaches such as ISO/IEC 27001, Cao says. That standard offers a set of information security management protocols defined by the International Organization for Standardization (ISO) to protect assets such as financial information, intellectual property, employee details, and information entrusted to them by third parties.
Those same industry standards are also key to protecting communications outside the building, like the data exchanged between automated equipment and various cloud platforms, says Akash Gupta, CTO and co-founder of GreyOrange Pte Ltd., another developer of AMRs and order fulfillment optimization products.
In GreyOrange’s case, the company’s cloud-based GreyMatter fulfillment optimization software exchanges data with each client’s own cloud-based platforms, such as an enterprise resource planning (ERP) or order management system. That connection happens through application programming interfaces (APIs) that are secured with industry-standard processes, Gupta says.
The GreyMatter system then hands down instructions to individual robots in the warehouses, but it sends them only relevant data like bin locations and picking sequences, instead of sensitive data such as customer names, addresses, or financial information.
6 River Systems, another provider of AMRs and fulfillment software, takes a similar approach with its “Chuck” model robots, which work collaboratively with human order pickers to optimize fulfillment operations. Those robots are designed to strictly limit the information they can exchange, the company says.
“We don’t want customer information at 6 River Systems; we only want the data to empower Chuck to path-plan, pick an item, and confirm,” says Gillan Hawkes, 6 River’s vice president of product and analytics. “It’s just metadata, like weight, dimension, and shelf location, not end-user information like a delivery address.”
To obtain that information, the 6 River robots communicate with cloud-based servers through the same hypertext transfer protocol secure (https) system that many people use for secure communication over computer networks while browsing the internet. They further protect their communication outside the building by using APIs with “encrypted tunnels,” the company says.
FINDING SAFETY IN LAYERS
Deploying these multiple layers of cyberdefenses is critical, according to Berkshire Grey, another developer of robotic order fulfillment solutions. The company says that relying on a customer’s corporate intranet alone is no guarantee of overall security, since intruders typically attempt to “punch holes” in these security systems through the very mechanisms—wireless networks and cloud connections—that enable warehouse robots to do their jobs.
For that reason, BerkshireGrey follows the same approach used by its fellow vendors, choosing to exchange only minimal, non-sensitive information with cloud platforms, says Pras Velagapudi, the company’s director of engineering. And it follows a redundant approach to security by building in multiple layers of protection.
“The best defense is one that puts up a fight even if [only a single] layer is compromised,” Velagapudi says. “We employ a multilayer approach to security: restrict information, restrict access, and encrypt data. This ensures that it is not only difficult to compromise the system, but also that if a component gets compromised, it is difficult to use that to get to sensitive information or exploit any other part of the system.”
The task of cyberdefense has never been more important than it is today, as the logistics sector adds new technology to every operation and as global unrest triggers an increase in attacks. A recent report by the cybersecurity service provider Trellix found an increase in cyber activity targeting critical infrastructure sectors during the fourth quarter of 2021, with 27% of those threats targeting transportation and shipping companies.
But suppliers of automated warehouse equipment say they are up to the challenge, applying both information technology (IT) industry standards and specific logistics-focused strategies to fend off attacks and keep fulfillment operations rolling.
The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.
The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.
The latest infusion follows the firm’s $33 million Series B round in 2022, and its move earlier in 2024 to acquire the Vancouver, Canada-based company Orderbot, a provider of enterprise inventory and distributed order management (DOM) software.
Orlando-based OneRail says its omnichannel fulfillment solution pairs its OmniPoint cloud software with a logistics as a service platform and a real-time, connected network of 12 million drivers. The firm says that its OmniPointsoftware automates fulfillment orchestration and last mile logistics, intelligently selecting the right place to fulfill inventory from, the right shipping mode, and the right carrier to optimize every order.
“This new funding round enables us to deepen our decision logic upstream in the order process to help solve some of the acute challenges facing retailers and wholesalers, such as order sourcing logic defaulting to closest store to customer to fulfill inventory from, which leads to split orders, out-of-stocks, or worse, cancelled orders,” OneRail Founder and CEO Bill Catania said in a release. “OneRail has revolutionized that process with a dynamic fulfillment solution that quickly finds available inventory in full, from an array of stores or warehouses within a localized radius of the customer, to meet the delivery promise, which ultimately transforms the end-customer experience.”
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.