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.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
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.”