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.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.
The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.
The latest infusion follows the firm’s $33 million Series B round in 2022, and its move earlier in 2024 to acquire the Vancouver, Canada-based company Orderbot, a provider of enterprise inventory and distributed order management (DOM) software.
Orlando-based OneRail says its omnichannel fulfillment solution pairs its OmniPoint cloud software with a logistics as a service platform and a real-time, connected network of 12 million drivers. The firm says that its OmniPointsoftware automates fulfillment orchestration and last mile logistics, intelligently selecting the right place to fulfill inventory from, the right shipping mode, and the right carrier to optimize every order.
“This new funding round enables us to deepen our decision logic upstream in the order process to help solve some of the acute challenges facing retailers and wholesalers, such as order sourcing logic defaulting to closest store to customer to fulfill inventory from, which leads to split orders, out-of-stocks, or worse, cancelled orders,” OneRail Founder and CEO Bill Catania said in a release. “OneRail has revolutionized that process with a dynamic fulfillment solution that quickly finds available inventory in full, from an array of stores or warehouses within a localized radius of the customer, to meet the delivery promise, which ultimately transforms the end-customer experience.”
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.