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.”
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.