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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
DAT Freight & Analytics has acquired Trucker Tools, calling the deal a strategic move designed to combine Trucker Tools' approach to load tracking and carrier sourcing with DAT’s experience providing freight solutions.
Beaverton, Oregon-based DAT operates what it calls the largest truckload freight marketplace and truckload freight data analytics service in North America. Terms of the deal were not disclosed, but DAT is a business unit of the publicly traded, Fortune 1000-company Roper Technologies.
Following the deal, DAT said that brokers will continue to get load visibility and capacity tools for every load they manage, but now with greater resources for an enhanced suite of broker tools. And in turn, carriers will get the same lifestyle features as before—like weigh scales and fuel optimizers—but will also gain access to one of the largest networks of loads, making it easier for carriers to find the loads they want.
Trucker Tools CEO Kary Jablonski praised the deal, saying the firms are aligned in their goals to simplify and enhance the lives of brokers and carriers. “Through our strategic partnership with DAT, we are amplifying this mission on a greater scale, delivering enhanced solutions and transformative insights to our customers. This collaboration unlocks opportunities for speed, efficiency, and innovation for the freight industry. We are thrilled to align with DAT to advance their vision of eliminating uncertainty in the freight industry,” Jablonski said.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.