In Person interview: Mike Futch of Tompkins Robotics
In our continuing series of discussions with top supply-chain company executives, Mike Futch discusses the current robotics industry, applications, and the future of automated designs.
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.
Mike Futch is president, CEO, and one of the founders of Tompkins Robotics. He was instrumental in bringing the company’s robotic sortation systems to the market and continues to drives much of the new application development, product conceptualization, and integration with partners. Futch also had a successful career in the U.S. Air Force and as a leader at several consulting firms. He recently spoke with David Maloney, DC Velocity’s group editorial director.
Q: WHAT IS THE CURRENT STATE OF THE ROBOTICS INDUSTRY?
A: The robotics industry is strong and continues to grow at a fast pace. The primary driver for this is growth in work-content and the shortage of labor, coupled with rapidly rising salaries. The growth in work-content is due to supply chains processing more and more individual items. As the handling of items increases and there is less case handling, the work-content goes up.
Combining that with the availability, retention, and cost of labor creates a serious shortfall for firms to meet demand. Robot solutions allow for an increase in efficiency, accuracy, and overall productivity. Robotics also allow a firm to get more work done, add capacity, and create better work environments with the same staff. The ability to integrate and develop new robotic solutions will continue and will only further accelerate adoption of robotic technologies.
Q: WHAT IS THE TIPPING POINT WHERE DISTRIBUTORS REALIZE THEY NEED TO MOVE FROM MANUAL TO AUTOMATED SYSTEMS?
A: Labor and capacity concerns have forced companies to consider automated alternatives. With the growing adoption of robotic technology, there are also proven quantifiable metrics that companies can examine to determine the business case for adopting robotic solutions. Total cost of ownership, reduction of human error and associated savings, space constraints, leveraging existing facilities, time-to-value, and return on investment (ROI) are all key performance indicators that have demonstrated improvements with robotic implementation.
In addition, the changes for the workforce are important. Removing repetitive and difficult job tasks from workers and elevating them to manage robotic fleets creates value for that workforce and the employer. Another driver for investment in automation is customer expectations and service-level demands, such as 100% accuracy, and quality and speed of delivery. As more robotic solutions are deployed, these measurable objectives will only be more prevalent for decision-makers.
Q: WHAT TYPES OF ROBOTICS APPLICATIONS ARE ATTRACTING THE MOST INTEREST FROM DISTRIBUTORS?
A: With the tremendous rise in e-commerce and direct-to-consumer purchasing habits, goods-to-person picking (GTP) and autonomous mobile robot (AMR) unit sortation have become a key focus for fulfillment and distribution centers. The deployment of automated storage and retrieval systems (AS/RS) is a major trend and can help companies cope with space and labor constraints.
Sortation systems that allow large batch picks with the sortation devices getting the items to the right order represent another major trend, and AMRs are filling that need. A new trend that is becoming prevalent is combining these solutions into a more effective and end-to-end solution for fulfillment.
Q: IN WHAT WAYS DO ROBOTICS SYSTEMS HELP COMPANIES SCALE THEIR TRANSITIONS TO AUTOMATION?
A: The most advantageous robotic solutions provide flexibility for the facility’s operations. Solutions that allow robots to be added for peak times or as a company’s operations grow give a company the ability to purchase what it needs today without sacrificing the ability to adapt for future growth. The ability to integrate robotic systems as operational needs change, implement solutions with a strong ROI, and create a better work environment for workers is necessary in today’s climate.
An example would be to add one type of system today, say, the Tompkins Robotics tSort AMR sortation system. For a company new to automation, this “point of entry” would allow it to introduce robotic technology on a limited budget, within a small space, and with minimal technical resources, training, or management requirements. Then after a few months, it could add robotic induction or a GTP solution to bring the items to sortation that would further enhance productivity and ROI. This allows the company to demonstrate efficiency and introduce robotic technology without wholesale changes or a large upfront capital investment.
Q: ARE THERE PRACTICAL LIMITS TO THE AMOUNT OF AUTOMATION CUSTOMERS SHOULD HAVE IN THEIR FACILITIES AND WHAT DETERMINES THAT?
A: The only real limits to automation are set by company leadership and not being visionary. Some leaders are fearful of change, apprehensive of new technology, or perceive robotics as a risk. However, others view robotics in their supply chain as having the potential to increase margins through lower fulfillment costs and provide strategic advantage over market competition.
The automation market has matured, and robust solutions are available. For example, robotic AS/RS systems are in approximately 1,000 sites, and the number of AMR sortation robots deployed exceeds 20,000. There are CapEx, lease, and OpEx (robots-as-a-service or RaaS) options available in the market. The perception that automation is a long journey and creates inflexibility in the supply chain is a misconception. Defining the range of the requirements anticipated for your company, researching the solutions to find the right one, and verifying that firm can deliver will allow you to select a supplier that will make the project a success. Provided you find the right fit, there should be very few limits on the ability to automate.
Q: WHAT KINDS OF ROBOTICS DESIGNS WILL WE SEE BY 2030?
A: There will be a continued push toward flexible, scalable, compatible, and modular solutions. Gone are the days of large, expensive fixed solutions that must be built for growth projections five and 10 years out. The market changes, new channels come about, dynamic and fluid things occur. We only have to look at the past 2.5 years to see dramatic evidence of this. Operators require the ability to change as market events and their customers’ needs and buying habits change.
Tompkins Robotics has always challenged our entire company, led by our product development and software teams, to provide solutions that can be moved to new facilities, expand with our customers’ needs, maintain an open API [application programming interface] software for integration with partners’ or existing customers’ systems, and develop new products and services. There will also be more of a push to move from manual and traditional automation to the world of robotic automation. The future is a fleet of robots doing the same work as humans or the fixed, inflexible systems of the past. It is not a matter of if; it is a matter of when. And now is when the change is gaining momentum. This is the future.
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.