In our continuing series of discussions with top supply-chain company executives, Rob McKeel talks about how the economy has affected supply chain industry players and the impact of parts delays on automation projects.
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.
Rob McKeel is CEO of Fortna, a company that designs, develops, and delivers automation and intelligent software solutions. McKeel, who has been with Fortna for three years, recently oversaw the company’s merger with MHS. Before joining Fortna, he spent 27 years at GE, where he most recently served as president and CEO of GE Automation and Controls.
McKeel holds an MBA from James Madison University, a Master of Computer Science degree from the University of Virginia, and a Bachelor of Science in Electrical Engineering from North Carolina State University. He currently volunteers with the United Way of Greater Atlanta and previously served on its board of directors.
Q: How does the current economic situation affect our industry?
A: Obviously, governments around the world are looking to tame inflation and, in doing so, will slow down the world’s economy. It’s unclear yet what the ultimate outcome will be, but we are seeing many customers taking a more cautious approach. One effect will be a shift in investment from building capacity to building capability. What I mean by that is they may not invest for volume, but instead for productivity or velocity.
Our Lifecycle Performance Solutions group focuses on supporting operating facilities to keep them running optimally and provides solutions to increase capability in existing facilities.
Q: What do you feel is the current state of supply chains, and material handling in particular?
A: The situation across the global supply chain continues to accelerate toward increased use of technology to create operating leverage. The adoption of e-commerce continues to accelerate as a percentage of overall retail activity, and successful omnichannel capabilities require advanced automation.
In addition, as companies grow and look to consolidate brands, the complexity of operations geometrically increases with added requirements such as the need to provide greater variety, reduce shipping times, and expand business models, including “buy online/pick up in store” and “buy online/ship from store.” These changes require improved inventory slotting, picking, sorting, and consolidation models that drive lower cost per unit and increase throughput in the fulfillment centers. A third dimension is the need for increased resiliency to manage supply chain disruptions, leading to new network strategies.
Finally, the cost and scarcity of labor makes the case for automation even more attractive. All these challenges feed the need for intelligent software and automation solutions to ensure operational performance can outpace current and future demand.
Q: Fortna recently went through a rebranding that included combining the assets of MHS and Fortna under the Fortna banner. What synergies did this create for the market?
A: The combination of Fortna and MHS was driven by the independent growth trajectories of both companies converging and the belief that we will achieve our goals faster as a single entity than the companies would separately. Through the combination, we have assembled some of the brightest minds to solve the operational challenges of the full logistics value chain covering both parcel and distribution/fulfillment operations.
Fortna creates value at the intersection of operational challenges and solutions leveraging the full technology stack available to solve those operational challenges. Our software integrates with nearly every available industry technology, giving us full flexibility to solve the widest variety of problems in the most effective way for our customers. In addition, Fortna has the global scale and breadth to address any size challenge—from modifications or upgrades to the most complex distribution or parcel facilities. We provide our customers with peace of mind that they have a partner who cares as much about their business outcomes as they do.
Q: What are the advantages to Fortna of being part of the TH Lee portfolio, with industry brands like AutoStore,RightHand Robotics, and FourKites as sister companies?
A: TH Lee was an early entrant focusing investment in our industry and has expanded that investment potential through a dedicated automation fund across many industries. Each business in the TH Lee portfolio operates independently. Obviously, there are opportunities to meet and interact with the other portfolio entities, and we do so. Where there is business value to the two entities, such as our partnership with AutoStore, we enter into normal business relationships. We have a great partnership with AutoStore to the benefit of our customers.
Q: Many companies face long delays in getting their automation projects scheduled and completed. What are you telling your clients about the current situation?
A: It’s been an unprecedented situation since the world hit pause due to the pandemic. The global supply chain is an incredibly complicated system, and that pause caused enormous disruption. Our industry was not immune to that, and while most of the supply-related issues have been resolved, there are still several lingering effects, some of which have been further impacted by the situation in Ukraine and the energy challenges in Europe.
We are very transparent with our customers regarding where there are limitations, what alternatives exist, and what we can do to help them. Obviously, more time helps, but where there are time constraints, we use the flexibility we have in our supply partnerships to find the best answer.
Q: The need for automation continues to grow. What kinds of solutions are clients looking for, and what problems do they address?
A: We are fascinated by the amazing progress of robotics, advanced data processing, and the use of software to solve the various operating challenges our customers face. Some of these are ready for deployment, and some are in a more experimental phase.
These technology-forward solutions are solving challenges to offset a scarcity of labor or less-than-desirable operations in customers’ facilities. The advanced data processing and software solutions solve the complexity of operations and drive improved operating performance and resiliency. There are still so many exciting challenges to solve for our customers.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.
Online grocery technology provider Instacart is rolling out its “Caper Cart” AI-powered smart shopping trollies to a wide range of grocer networks across North America through partnerships with two point-of-sale (POS) providers, the San Francisco company said Monday.
Instacart announced the deals with DUMAC Business Systems, a POS solutions provider for independent grocery and convenience stores, and TRUNO Retail Technology Solutions, a provider that powers over 13,000 retail locations.
Terms of the deal were not disclosed.
According to Instacart, its Caper Carts transform the in-store shopping experience by letting customers automatically scan items as they shop, track spending for budget management, and access discounts directly on the cart. DUMAC and TRUNO will now provide a turnkey service, including Caper Cart referrals, implementation, maintenance, and ongoing technical support – creating a streamlined path for grocers to bring smart carts to their stores.
That rollout follows other recent expansions of Caper Cart rollouts, including a pilot now underway by Coles Supermarkets, a food and beverage retailer with more than 1,800 grocery and liquor stores throughout Australia.
Instacart’s core business is its e-commerce grocery platform, which is linked with more than 85,000 stores across North America on the Instacart Marketplace. To enable that service, the company employs approximately 600,000 Instacart shoppers who earn money by picking, packing, and delivering orders on their own flexible schedules.
The new partnerships now make it easier for grocers of all sizes to partner with Instacart, unlocking a modern shopping experience for their customers, according to a statement from Nick Nickitas, General Manager of Local Independent Grocery at Instacart.
In addition, the move also opens up opportunities to bring additional Instacart Connected Stores technologies to independent retailers – including FoodStorm and Carrot Tags – continuing to power innovation and growth opportunities for retailers across the grocery ecosystem, he said.