Human workers take on new roles in a world of warehouse robots
Robots have the potential to transform fulfillment operations, but for now they still have their weaknesses. People are stepping up to fill those gaps, taking on new roles like water spider, crew chief, and “human in the loop.”
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.
Stop me if you’ve heard this one before: Labor is tight, but consumer demand is booming, so warehouse and DC leaders are turning to automation to keep up with the workload. That basic scenario has been playing out for years, with automated equipment vendors providing ever-more-powerful tools to boost fulfillment rates.
The latest round of warehouse tech includes robotic picking arms, autonomous mobile robots (AMRs), and artificial intelligence (AI). Add it all up, and the resulting combination can seem like a nearly human collection of hands, legs, and brains. Some forecasts even suggest that machines will soon replace people in the distribution center, creating a “dark warehouse” that needs nothing more than a reliable power supply to operate 24/7.
But even as robots become a familiar sight in warehouses across the country, experts say human workers continue to play an important role. That’s largely a reflection of the varied nature of warehouse work. Unlike an automated assembly line, where robots perform structured and repetitive tasks, warehouses demand a significant amount of flexibility—think of today’s e-commerce fulfillment centers, where items, quantities, and packaging vary from order to order, and demands change from shift to shift.
Given those complexities, a successful robotic implementation still requires the participation of humans—whether they’re working collaboratively with the bots to pick orders, handling errors, or supervising fleets.
LEND ME A HAND
When it comes to applications that integrate people and robots, most people think of the collaborative robot, or cobot—a robot that works alongside human workers in a semiautomated process that leverages the strengths of both. An example might be an AMR that can navigate its way to an assigned warehouse rack but lacks the ability to pick individual goods efficiently—a job that is then performed by its human “collaborator,” who selects the items and deposits them into totes on the AMR.
But in many cases, the human worker’s contribution to the operation is less physical than cognitive.
Compared with robots, people are more flexible in their thinking and better at solving complex problems, says Stephen Dryer, senior global product manager for the material handling systems integrator Fortna (which recently merged with MHS Global).
“All the things that robots are not very good at will be the purview of the human,” Dryer says. “There’s a fear that robots are going to take over people’s jobs, and it is absolutely the case that robots can do certain things pretty well. But they are not efficient at higher-order tasks”—particularly ones requiring judgment calls and problem solving.
Dryer compares the current state of warehouse robotics with what’s happening in autonomous trucking. “It’s like the self-driving story; there were predictions of self-driving vehicles taking over and of people not getting jobs in trucking—or deciding not to go into the sector. But we’re not seeing that. Because with driving, you still need human brains, human eyes, human decision making,” he says.
BRINGING HUMANS INTO THE LOOP
The need for that higher-order work has driven the development of “human in the loop” (HITL) robotic systems, also known as “brains in the background” systems. As opposed to working shoulder to shoulder with a cobot to pick e-commerce orders, a person working in an HITL system serves as a supervisor. HITL systems need people for the same reason that a computer printer that can produce hundreds of copies of precisely printed pages still needs a human to clear paper jams or replace an empty ink cartridge.
In the warehouse, an employee working with HITL robots will monitor operations on the DC floor, and when a problem occurs, quickly step in to resolve the issue and avoid a systemwide work stoppage, Dryer says. For example, that worker might notice an operational logjam or a dropped package—known as an “exception event”—and get the robot back on track by resetting it to its “home” position or returning the fallen box to a picking zone, he says.
Many DCs have dubbed these robot supervisors “water spiders,” a nickname derived from their habit of darting around the building the way a water spider scurries around a pond, fixing problems for robots, says Erik Nieves, CEO and founder of the parcel-handling robotics platform Plus One Robotics.
“What people are good at is decision making, dealing with exceptions as they happen, and using our cognition and flexibility,” Nieves adds. “And the warehouse is predicated on variability, not predictability. So the lesson is, ‘Thou shalt have a human in the loop.’”
REMOTE CONTROL
The HITL concept originally grew out of cases where manufacturing facilities would assign people to repetitive tasks that were just slightly too complex for machines, termed “almost automatable,” Nieves says. “When a robot [encounters] something it doesn’t understand, a remote supervisor can step in and give it a command or show it what to do. If you can’t find a way to deal with exceptions, you are DOA, so you need to have HITL,” he says.
In Plus One’s case, that human in the loop is a “crew chief,” the company’s term for the remote supervisors who troubleshoot problems with clients’ automated systems. Available 24/7, these crew chiefs work in shifts from the company’s San Antonio headquarters, watching video feeds of warehouse robots in distant cities and putting things right—say, reorienting a confused robot—with the click of a mouse. Nieves notes that the job requires quick reactions and good judgment, making it suitable for someone with a background in computing or video gaming, but that it doesn’t require a college engineering degree.
That remote oversight allows the company to solve the majority of problems for warehouse robots, barring the rare physical problem, he says. “Occasionally a crew chief might see that a vacuum cup blew out, or a box broke open and there are DVDs all over the floor or something. Then they would alert a local person, usually staff from the maintenance department, and say ‘Cleanup in aisle 6,’” Nieves says.
Human workers play a similar role at Phantom Auto, a San Francisco-based provider of remote operation systems for forklifts. Drivers operate the vehicles from an office cubicle by viewing a live video stream from each remote-controlled lift truck, via a system that provides a 360-degree view and two-way audio. Like Plus One’s crew chiefs, they resolve the occasional physical problem inside the warehouse, known as an “edge case,” by notifying an employee in the building, says Elliot Katz, Phantom Auto’s co-founder and chief business officer.
Katz scoffs at the idea that warehouse robots will someday replace human workers entirely. “When the pandemic hit, people couldn’t go to work in close confines. And if AMRs were fully functional, that wouldn’t have been a problem. But that automation still can’t handle complex environments. There was never a better time for ‘robots to take over our jobs’ than the pandemic, when we couldn’t even go in the building. And it didn’t happen.”
As robotic technology continues to improve, autonomous platforms will take on increasingly complex tasks. But their abilities will always fall short of humans’ capacity to solve problems with creativity, Katz says. “‘Fully autonomous’ doesn’t exist. Robots are always going to be cobots,” he explains. “If and when robots start taking on [expanded roles] in larger deployments, that will just create new jobs for people as you have to have humans overseeing the operation and intervening when there’s an edge case.”
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."