InPerson interview: Sean Wallingford of Swisslog Americas
In our continuing series of discussions with top supply-chain company executives, Sean Wallingford discusses the impact of robotics and software on material handling systems and how the market is dealing with parts delays.
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.
Sean Wallingford is president and CEO of Swisslog Americas, where he is responsible for growth opportunities and extending the company’s market position in the region. Wallingford was previously the president of warehouse solutions at Vanderlande Industries for North America. He also spent nearly 10 years at Honeywell Intelligrated, serving in different roles, including vice president of software product management.
Q: How would you describe the current state of the material handling market?
A: Supply chain disruptions, changing consumer behaviors, and labor continue to present challenges, although not to the extent of the last couple of years. In addition, the supply chain is changing, with increasing volumes for last-mile delivery and faster order fulfillment times creating the need to fully reshape fulfillment strategies to confront those changes. This is especially evident in the e-grocery segment, where there is an immediate need to meet growing consumer expectations for quick, easy access to groceries and food items.
This is why there’s an increased demand for space-efficient, easy-to-operate, and scalable automation technologies and solutions. Companies are exploring automation solutions and seek to harness digital technology and data to increase supply chain visibility, thereby improving the customer experience and business performance. They are using both historical and real-time (or near real-time) data to proactively anticipate changes in demand and using automation to respond.
Q: You were just named president and CEO at Swisslog Americas. What do you hope to accomplish during your tenure?
A: First, I want to ensure Swisslog continues to support our customers with the advanced automation solutions and software they need, while also setting us on a path of strong and sustainable growth. Key to this is bringing renewed focus and fresh insight on capturing additional growth opportunities in the Americas and further extending the company’s market position in the region.
We see the most potential for this growth and customer value in three main areas, which we will continue strengthen. First is our integrated solutions, including robot-based applications like our ACPaQ mixed-case palletizer. Second is standardized AS/RS applications, including our CarryPick order picking solution and AutoStore. Third is intelligent software, such as our SynQ management software. Across all of our solutions, SynQ is a key differentiator for Swisslog in the market.
Q: How has the adoption of autonomous mobile robots and articulated-arm robots changed distribution operations?
A: As companies continue to deal with labor shortages, automated warehouse solutions have provided a means for many of them to maintain productivity and efficiency levels while dealing with a reduced labor force. A number of companies are also using automation technology as a way to attract potential employees who are looking for opportunities to work with technology and want to be a part of a modern, enhanced work experience.
Automated robotic solutions support market growth and provide greater control and visibility of the supply chain. In addition, automated solutions lower operational costs and increase the speed and efficiency of distribution networks. Artificial intelligence (AI) is also making the warehouse of the future more dynamic, more agile, and more responsive. For instance, AI enables robotics to self-learn from experience, which means that robotic picking ability improves over time with enhanced picking strategies for new products.
Q: Swisslog unveiled its ACPaQ robotic system at the ProMat show in March. This technology is new to North America. What advantages does it offer?
A: Creating customized mixed pallets for individual stores from single-SKU (stock-keeping unit) pallets is one of the most important and challenging areas of successful retail warehouse operations. Swisslog’s ACPaQ automated mixed-case palletizer meets the growing demands of this application, fulfilling the task in an efficient and economical manner.
It is a scalable, robotic, and data-driven palletizing solution for fully automated order picking of mixed-case pallets that can deliver increased throughput up to 1,000 units per hour—two to three times more than traditional solutions. It is designed to grow as a company’s business grows, configurable using modules, and scalable for mid-sized and large distribution centers shipping up to 500,000 cases per day.
Q: Much of your background is in software strategy and product management. In your view, what software advancements will have the biggest impact on the industry?
A: One of the advancements is the growth of connected and intelligent systems. As solutions become more standardized, it becomes easier to leverage data (e.g., edge data, sensor data, product data, operational data) to make more insightful and effective operational decisions. This standardization is especially important for AI-enabled solutions. Maturity in solution design and software platforms will enable companies to leverage these technologies as well as information that has traditionally been more widely used outside of our industry.
Another advancement is the productization of software platforms from integrators like Swisslog. This will bring a level of standardization to software that will be more beneficial than customized software, especially in the long term. This will include increased flexibility and configurability, as well as a framework for continued evolution.
Q: Many suppliers and their customers have had difficulty getting parts for their automated systems over the past two years. Are you seeing this constraint beginning to ease?
A: Yes, we are starting to see some relief. However, it is currently not occurring consistently across the industry or across all suppliers. There are still commodity disruptions and other macro disruptions that are creating challenges for suppliers and their customers. It’s important to remember that we are in the midst of a massive shift in supply chains that has been partly driven by the supply chain disruptions of the last couple of years. A number of companies are re-evaluating their supply chain networks, with some even taking steps to nearshore and/or reshore certain operations. These types of activities will further impact the flow of supplies and products in the short term.
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.
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.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
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.