In our continuing series of discussions with top supply-chain company executives, Jim Lawton discusses Zebra’s entrance into the robotics industry and how robotics can scale to meet demand.
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.
Jim Lawton is vice president and general manager for robotics automation at Zebra Technologies. He works with customers to implement intelligent automation and advanced robotics to transform their operations with greater efficiency, higher productivity, and lower costs. He has experience in e-commerce, supply chain optimization, and collaborative robotics—experience that has shaped his passion for helping manufacturing, supply chain, and logistics organizations leverage technology to enhance business performance.
Lawton holds a B.S. in electrical engineering from Tufts University, an M.S. in electrical engineering and computer science from the Massachusetts Institute of Technology (MIT), and an MBA from MIT’s Sloan School of Management. He recently shared his insights with DC Velocity Group Editorial Director David Maloney.
Q. How would you describe the current state of robotics automation?
A: This is undoubtedly one of the most exciting times I’ve seen in the 10-plus years I’ve been in the market. For warehouse and fulfillment operations teams, three trends are creating real urgency for deploying robotics and automation now.
First, there are the pressures of labor—both hiring and keeping employees today and recruiting employees in the future. Second is the transformation of the warehouse into an on-demand operation where there’s a much closer connection to the end customer, with all the expectations that entails. Third, it has never been harder to forecast with any confidence what the business and economic environment will look like. For those of us working on developing solutions, innovations like collaborative robotics and cloud computing combine to create limitless opportunities to help customers solve real problems.
Q. Zebra, which has long been known for data-collection devices, mobile computing, and printing products, acquired Fetch Robotics in July 2021. Why did the company decide to expand its portfolio into autonomous mobile robots?
A: For the last couple of years, we’ve seen customers struggle to figure out the best ways for them to drive better productivity, throughput, and accuracy in their warehouses. They’re asking smart questions like: “How do I deploy automation?” “What are the best workflows to use it?” “What kind of results can I get by leveraging automation?”
Our customers have really pulled us into the journey they’re on to get more from the solutions they already have with robotics and automation. So, we’re asking ourselves how we can help them do that. With innovations in our devices, such as wearables, heads-up displays, mobile computers, and autonomous mobile robots (AMRs), operations teams can really achieve that next level of productivity they are looking from robotics and automation.
Q. You have a background in electrical engineering and computer science. How does that background help you identify potential applications for robotics automation?
A: Growing up, I loved to build things with an Erector set and Lego bricks, taking a pile of pieces and building something with them. It was that feeling, I think, that eventually got me looking at a career in manufacturing and, more specifically, operations, where I’m focused on helping operations teams turn what is fundamentally a pile of pieces into something greater than the sum of those parts.
About 10 years ago, I became interested in the ways in which software was at the heart of the innovation we have now come to expect from our devices—and what that meant for machines on a broader scale. We’ve seen advances in machine vision, perception, and artificial intelligence (AI) that allow us to do things with robots that weren’t possible five or 10 years ago. So, it’s opening up new opportunities to deploy robots in places that can add much, much more value than ever before.
Q. What are the key benefits of autonomous mobile robots in distribution facilities?
A: First, AMRs free people up from walking miles and miles in order to complete orders. That means more orders can be fulfilled and shipped every single day. Second, AMRs take the burden of tedious tasks off people, and, in doing so, contribute to a better working environment—one where [people] are more likely to stay. Third, AMRs are easy to deploy and can be configured for more than a single task, making the innovation accessible to operations of any size and fundamentally democratizing the ability to benefit from automation.
Q. What is being done to help human workers feel more comfortable working alongside collaborative robots?
A: The most successful implementations I’ve seen have been at companies that make one fundamental choice at the outset of a deployment—they include people who work on those processes every single day. Those workers understand the processes and the workflow, and they are in the best position to figure out how to bridge those two so that what ultimately gets deployed will work in the environment. That engagement goes a very long way toward dispelling fears of job loss and creates opportunities for workers to explore and recommend other places where robots can deliver value.
Q. One advantage of autonomous mobile robots is their scalability. How does that benefit customers in managing peak seasons?
A: Historically, fulfillment operations met seasonal spikes by hiring temporary workers. But this is no longer a sustainable strategy. Even outside of seasonal spikes, it does not work. For example, we have a customer that hires temporary workers to make up for the gap they have in full-time staff. They bring in new temporary workers every Monday morning, and the customer has shared that, on average, by lunchtime, 50% of those workers have quit.
AMRs make it possible to avoid that “gotcha,” because they can quickly be configured to complete the most urgent task at hand, such as picking and transporting to packaging when demand spikes, and then redeployed to another task when demand levels stabilize.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."