Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Warehouse operators are increasingly turning to robotics and automation to speed and improve operations—especially when it comes to the labor-intensive, time-consuming process of picking. The end game is clear: cut the amount of time workers spend walking down warehouse aisles, reduce the chance of human error, and address the physical limitations and potential for worker injury inherent in manual picking processes.
To that end, robotic technology is being applied in myriad ways to help companies speed picking and get orders out the door faster and more accurately. And it’s happening everywhere. More than half a million industrial robots were installed worldwide in 2021, a 31% increase over 2020 and a 22% increase over the pre-pandemic high recorded in 2018, according to an October 2022 report from the International Federation of Robotics. Those installations bring the total number of robots in action around the world to roughly 3.5 million.
Case-handling robots, robotic picking arms, autonomous mobile robots (AMRs), and robotic shuttles are just a few examples of what you can find in action on warehouse floors these days. Here’s a look at two recent projects that have used robotics to optimize the picking process.
EASING LABOR DEMANDS VIA AUTOMATED CASE HANDLING
Health-care company Sinocare, which manufactures blood glucose meters, recently teamed up with Hai Robotics to install autonomous case-handling robot (ACR) systems in its Changsha, China, warehouse. Sinocare was looking for a way to improve both inbound and outbound storage of semifinished products at the facility, speed throughput, and integrate warehouse operations into its larger manufacturing execution system (MES). The ACR solution accomplished all of those goals, replacing Sinocare’s manual warehouse fulfillment processes with a robotic one.
The system essentially automates the storage and handling of totes containing Sinocare’s semifinished products. It incorporates double-deep storage racking to maximize space, ACRs for storing and retrieving the totes, and automated guided vehicles (AGVs) for moving the semifinished goods to a production line.
It works like this: When inbound goods are received, a robotic arm grabs the loaded totes and places them on a conveyor belt. The ACRs then retrieve the totes and deliver them to the appropriate locations on shelves in the high-density storage area. When the goods are needed for orders, an ACR retrieves the tote and transports it to a temporary storage shelf. An AGV then picks up the tote and brings it to workers on a production line. The system is controlled by Hai Robotics’ software, which is integrated into Sinocare’s MES.
Since implementing the system, Sinocare has increased its storage capacity by about 60% (to 12,000 totes from 7,500) and inbound efficiency by 33%, according to both companies. Perhaps most importantly, the manufacturer has reduced labor costs by 67% while also creating a better environment for workers—who can now track and manage the system via a technology dashboard without the strenuous work of manually picking and moving products throughout the facility.
TAMING GROWING VOLUMES IN AEROSPACE LOGISTICS
This past summer, European logistics services provider Groupe Blondel deployed a goods-to-person robotics system at its Rochefort, France, facility to support steadily growing order volumes for one of its customers, the aircraft manufacturer and aerospace giant Airbus.
Groupe Blondel provides just-in-time picking of a wide variety of parts for Airbus, serving as an interface between supplier deliveries and Airbus’ production workstations at a nearby manufacturing facility. Last year, Airbus announced plans to increase global production to nearly 1,000 aircraft annually by 2025—the company was on track to deliver nearly 700 last year—so Groupe Blondel decided to implement a robotic solution from French warehouse automation company Scallog to handle the increased demand.
The system consists of small autonomous mobile robots (AMRs)—Scallog calls them “Boby” bots—and mobile shelving, all of which can be scaled up or down to meet shifting demand. The robots are programmed to move orders directly to workers by traveling through the warehouse to the correct shelf of products, positioning themselves under the shelf, and then transporting the shelf to a picking station, where workers fill orders using a pick-to-light process—a paperless system that uses lights to indicate which items to retrieve from the shelves. The goods-to-person system is housed in a new, dedicated 7,500-square-foot warehouse that features two picking stations, six Boby robots, and 160 shelf units to accommodate 8,000 to 10,000 different parts—about half of the facility’s total parts inventory. The new facility is expected to handle 50% of the Rochefort site’s picking operations. It will ramp up to absorb 100% of picking over time in tandem with rising production speeds, according to Groupe Blondel.
The logistics services provider expects the solution to yield a threefold improvement in productivity in Rochefort, a 30% increase in storage space, and a drastic reduction in picking errors—thanks largely to the pick-to-light system, which makes picking both faster and more accurate. The solution is also serving as a precursor to more robotics and automation companywide, according to company leaders.
“Deploying the Scallog solution at the Rochefort site is proving to be a pilot project for automation with the company,” Christian Debucquet, director of Groupe Blondel’s industry business unit for western France, said in a statement describing the project. He added that the company planned to replicate the project at other facilities, starting late last year. “In the future, we expect that Scallog robotics will play a major role in our group for handling ever-larger picking volumes across every business sector.”
Those plans align with projections from the International Federation of Robotics’ October report, which forecast a nearly 10% increase in robot installations worldwide in 2022. And although installations are expected to slow as the market catches up with pandemic-related demand, average annual growth rates will remain in the mid- to upper-single-digit range over the next three years, according to the group’s forecast.
As a contract provider of warehousing, logistics, and supply chain solutions, Geodis often has to provide customized services for clients.
That was the case recently when one of its customers asked Geodis to up its inventory monitoring game—specifically, to begin conducting quarterly cycle counts of the goods it stored at a Geodis site. Trouble was, performing more frequent counts would be something of a burden for the facility, which still conducted inventory counts manually—a process that was tedious and, depending on what else the team needed to accomplish, sometimes required overtime.
So Levallois, France-based Geodis launched a search for a technology solution that would both meet the customer’s demand and make its inventory monitoring more efficient overall, hoping to save time, labor, and money in the process.
SCAN AND DELIVER
Geodis found a solution with Gather AI, a Pittsburgh-based firm that automates inventory monitoring by deploying small drones to fly through a warehouse autonomously scanning pallets and cases. The system’s machine learning (ML) algorithm analyzes the resulting inventory pictures to identify barcodes, lot codes, text, and expiration dates; count boxes; and estimate occupancy, gathering information that warehouse operators need and comparing it with what’s in the warehouse management system (WMS).
Among other benefits, this means employees no longer have to spend long hours doing manual inventory counts with order-picker forklifts. On top of that, the warehouse manager is able to view inventory data in real time from a web dashboard and identify and address inventory exceptions.
But perhaps the biggest benefit of all is the speed at which it all happens. Gather AI’s drones perform those scans up to 15 times faster than traditional methods, the company says. To that point, it notes that before the drones were deployed at the Geodis site, four manual counters could complete approximately 800 counts in a day. By contrast, the drones are able to scan 1,200 locations per day.
FLEXIBLE FLYERS
Although Geodis had a number of options when it came to tech vendors, there were a couple of factors that tipped the odds in Gather AI’s favor, the partners said. One was its close cultural fit with Geodis. “Probably most important during that vetting process was understanding the cultural fit between Geodis and that vendor. We truly wanted to form a relationship with the company we selected,” Geodis Senior Director of Innovation Andy Johnston said in a release.
Speaking to this cultural fit, Johnston added, “Gather AI understood our business, our challenges, and the course of business throughout our day. They trained our personnel to get them comfortable with the technology and provided them with a tool that would truly make their job easier. This is pretty advanced technology, but the Gather AI user interface allowed our staff to see inventory variances intuitively, and they picked it up quickly. This shows me that Gather AI understood what we needed.”
Another factor in Gather AI’s favor was the prospect of a quick and easy deployment: Because the drones can conduct their missions without GPS or Wi-Fi, the supplier would be able to get its solution up and running quickly. In the words of Geodis Industrial Engineer Trent McDermott, “The Gather AI implementation process was efficient. There were no IT infrastructure or layout changes needed, and Gather AI was flexible with the installation to not disrupt peak hours for the operations team.”
QUICK RESULTS
Once the drones were in the air, Geodis saw immediate improvements in cycle counting speed, according to Gather AI. But that wasn’t the only benefit: Geodis was also able to more easily find misplaced pallets.
“Previously, we would research the inventory’s systemic license plate number (LPN),” McDermott explained. “We could narrow it down to a portion or a section of the warehouse where we thought that LPN was, but there was still a lot of ambiguity. So we would send an operator out on a mission to go hunt and find that LPN,” a process that could take a day or two to complete. But the days of scouring the facility for lost pallets are over. With Gather AI, the team can simply search in the dashboard to find the last location where the pallet was scanned.
And about that customer who wanted more frequent inventory counts? Geodis reports that it completed its first quarterly count for the client in half the time it had previously taken, with no overtime needed. “It’s a huge win for us to trim that time down,” McDermott said. “Just two weeks into the new quarter, we were able to have 40% of the warehouse completed.”
The less-than-truckload (LTL) industry moved closer to a revamped freight classification system this week, as the National Motor Freight Traffic Association (NMFTA) continued to spread the word about upcoming changes to the way it helps shippers and carriers determine delivery rates. The NMFTA will publish proposed changes to its National Motor Freight Classification (NMFC) system Thursday, a transition announced last year, and that the organization has termed its “classification reimagination” process.
Businesses throughout the LTL industry will be affected by the changes, as the NMFC is a tool for setting prices that is used daily by transportation providers, trucking fleets, third party logistics service providers (3PLs), and freight brokers.
Representatives from NMFTA were on hand to discuss the changes at the LTL-focused supply chain conference Jump Start 25 in Atlanta this week. The project’s goal is to make what is currently a complex freight classification system easier to understand and “to make the logistics process as frictionless as possible,” NMFTA’s Director of Operations Keith Peterson told attendees during a presentation about the project.
The changes seek to simplify classification by grouping similar items together and assigning most classes based solely on density. Exceptions will be handled separately, adding other characteristics when density alone is not enough to determine an accurate class.
When the updates take effect later this year, shippers may see shifts in the LTL prices they pay to move freight—because the way their freight is classified, and subsequently billed, could change as a result.
NMFTA will publish the proposed changes this Thursday, January 30, in a document called Docket 2025-1. The docket will include more than 90 proposed changes and is open to industry feedback through February 25. NMFTA will follow with a public meeting to review and discuss feedback on March 3. The changes will take effect July 19.
NMFTA has a dedicated website detailing the changes, where industry stakeholders can register to receive bi-weekly updates: https://info.nmfta.org/2025-nmfc-changes.
Trade and transportation groups are congratulating Sean Duffy today for winning confirmation in a U.S. Senate vote to become the country’s next Secretary of Transportation.
Once he’s sworn in, Duffy will become the nation’s 20th person to hold that post, succeeding the recently departed Pete Buttigieg.
Transportation groups quickly called on Duffy to work on continuing the burst of long-overdue infrastructure spending that was a hallmark of the Biden Administration’s passing of the bipartisan infrastructure law, known formally as the Infrastructure Investment and Jobs Act (IIJA).
But according to industry associations such as the Coalition for America’s Gateways and Trade Corridors (CAGTC), federal spending is critical for funding large freight projects that sustain U.S. supply chains. “[Duffy] will direct the Department at an important time, implementing the remaining two years of the Infrastructure Investment and Jobs Act, and charting a course for the next surface transportation reauthorization,” CAGTC Executive Director Elaine Nessle said in a release. “During his confirmation hearing, Secretary Duffy shared the new Administration’s goal to invest in large, durable projects that connect the nation and commerce. CAGTC shares this goal and is eager to work with Secretary Duffy to ensure that nationally and regionally significant freight projects are advanced swiftly and funded robustly.”
A similar message came from the International Foodservice Distributors Association (IFDA). “A safe, efficient, and reliable transportation network is essential to our industry, enabling 33 million cases of food and related products to reach professional kitchens every day. We look forward to working with Secretary Duffy to strengthen America’s transportation infrastructure and workforce to support the safe and seamless movement of ingredients that make meals away from home possible,” IFDA President and CEO Mark S. Allen said in a release.
And the truck drivers’ group the Owner-Operator Independent Drivers Association (OOIDA) likewise called for continued investment in projects like creating new parking spaces for Class 8 trucks. “OOIDA and the 150,000 small business truckers we represent congratulate Secretary Sean Duffy on his confirmation to lead the U.S. Department of Transportation,” OOIDA President Todd Spencer said in a release. “We look forward to continue working with him in advancing the priorities of small business truckers across America, including expanding truck parking, fighting freight fraud, and rolling back burdensome, unnecessary regulations.”
With the new Trump Administration continuing to threaten steep tariffs on Mexico, Canada, and China as early as February 1, supply chain organizations preparing for that economic shock must be prepared to make strategic responses that go beyond either absorbing new costs or passing them on to customers, according to Gartner Inc.
But even as they face what would be the most significant tariff changes proposed in the past 50 years, some enterprises could use the potential market volatility to drive a competitive advantage against their rivals, the analyst group said.
Gartner experts said the risks of acting too early to proposed tariffs—and anticipated countermeasures by trading partners—are as acute as acting too late. Chief supply chain officers (CSCOs) should be projecting ahead to potential countermeasures, escalations and de-escalations as part of their current scenario planning activities.
“CSCOs who anticipate that current tariff volatility will persist for years, rather than months, should also recognize that their business operations will not emerge successful by remaining static or purely on the defensive,” Brian Whitlock, Senior Research Director in Gartner’s supply chain practice, said in a release.
“The long-term winners will reinvent or reinvigorate their business strategies, developing new capabilities that drive competitive advantage. In almost all cases, this will require material business investment and should be a focal point of current scenario planning,” Whitlock said.
Gartner listed five possible pathways for CSCOs and other leaders to consider when faced with new tariff policy changes:
Retire certain products: Tariff volatility will stress some specific products, or even organizations, to a breaking point, so some enterprises may have to accept that worsening geopolitical conditions should force the retirement of that product.
Renovate products to adjust: New tariffs could prompt renovations (adjustments) to products that were overdue, as businesses will need to take a hard look at the viability of raising or absorbing costs in a still price-sensitive environment.
Rebalance: Additional volatility should be factored into future demand planning, as early winners and losers from initial tariff policies must both be prepared for potential countermeasures, policy escalations and de-escalations, and competitor responses.
Reinvent: As tariff volatility persists, some companies should consider investing in new projects in markets that are not impacted or that align with new geopolitical incentives. Others may pivot and repurpose existing facilities to serve local markets.
Reinvigorate: Early winners of announced tariffs should seek opportunities to extend competitive advantages. For example, they could look to expand existing US-based or domestic manufacturing capacity or reposition themselves within the market by lowering their prices to take market share and drive business growth.
By the numbers, global logistics real estate rents declined by 5% last year as market conditions “normalized” after historic growth during the pandemic. After more than a decade overall of consistent growth, the change was driven by rising real estate vacancy rates up in most markets, Prologis said. The three causes for that condition included an influx of new building supply, coupled with positive but subdued demand, and uncertainty about conditions in the economic, financial market, and supply chain sectors.
Together, those factors triggered negative annual rent growth in the U.S. and Europe for the first time since the global financial crisis of 2007-2009, the “Prologis Rent Index Report” said. Still, that dip was smaller than pandemic-driven outperformance, so year-end 2024 market rents were 59% higher in the U.S. and 33% higher in Europe than year-end 2019.
Looking into coming months, Prologis expects moderate recovery in market rents in 2025 and stronger gains in 2026. That eventual recovery in market rents will require constrained supply, high replacement cost rents, and demand for Class A properties, Prologis said. In addition, a stronger demand resurgence—whether prompted by the need to navigate supply chain disruptions or meet the needs of end consumers—should put upward pressure on a broad range of locations and building types.