In our continuing series of discussions with top supply-chain company executives, Stan Normand offers advice for starting an automation project and discusses the impacts that AI and machine learning will have on future robotic systems.
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.
Stanislas Normand is managing director of Exotec North America, where he works to drive the adoption of the company’s warehouse robotics solutions in the North American market. During his time at Exotec, Normand has held multiple positions and played a key role in the company’s rapid international expansion. He holds a master's degree in economics and finance from École Polytechnique in France.
Q: Stan, how would you describe the current state of the material handling automation market?
A: Customer demand for everything from faster year-round shipping to consistent order accuracy is expected to continue to grow despite the long and ever-changing list of challenges warehouses are facing now and in the future.
We’re seeing that the main challenges confronting brands right now are labor shortages, pressure for cost reductions, and uncertainty:
Labor shortages: Despite supply chain challenges easing up, the availability of labor is still a huge issue.
Cost reduction: In this uncertain environment, customers are increasingly looking to reduce costs to shore up against macroeconomic fluctuations.
Uncertainty:Customers increasingly are looking for flexibility because they want to be reactive to changes in their business and external factors.
Supply chain disruptions and labor shortages aren’t going away anytime soon. Since companies can’t control these mounting challenges, it’s important to focus on the control you do have, and that’s finding a solution to combat them. Warehouse robotic solutions lead the fulfillment industry in delivering the optimal mix of performance and flexibility to ensure customer order expectations are met and exceeded.
Q: What are your hopes for Exotec in the North American market now that you have been appointed managing director?
A: With the increase in demand for warehouse automation, my team and I are focused on growing our NA presence and delivering solutions that create warehouses where people work smarter, not harder, through robotics.
In March 2023, we reached a milestone of 5,000 robots built in record time—just three months after hitting the 4,000-robots milestone. This achievement is representative of Exotec's rapidly growing manufacturing capabilities and the growing demand for Exotec’s products. We have already made significant strides in making warehouse jobs less physically demanding. Exotec robots have saved warehouse workers from having to walk more than 16 million miles.
In December 2022, we officially opened Exotec’s North American headquarters in Atlanta, which supports and facilitates our growing business in North America, which is expected to represent as much as 40% of Exotec’s global business by 2025. We’re focused on growing our company in the region, which includes a goal of doubling our headcount by 2024.
Q: Your background is in economics and finance. How are you able to leverage that experience in your current role?
A: A background in economics is an asset in any industry, but particularly for a position in sales and operations. It gives you a set of tools to understand the market’s mechanisms and the drivers behind its growth, and companies can leverage that knowledge to their benefit.
With the current post-pandemic supply chain disorganization, worldwide inflation, and labor shortages, being able to understand how, despite that uncertainty, we can still leverage those challenges as business opportunities for Exotec is important for leading our business in North America.
My five years of experience with Exotec across different roles has also allowed me to develop a strong technical understanding of our products and understand how our solutions can be impactful for our customers. This helps me make quick decisions in a fast-moving and competitive environment.
Q: Does the approach to automation differ between the European and North American markets?
A: While there are differences in culture and business norms, many warehouses across the globe are facing similar challenges. They’re looking for reliability, efficiency, and adaptability in their warehouse, and robotic solutions can help to achieve that. Our solutions are equipped to adapt to any warehouse, regardless of its needs or size, so while our approach to automation does not change from region to region, our ability to customize solutions to our customers’ needs allows us to conduct impactful business across the world.
Q: What advice would you give someone looking to launch their first automation project?
A: Warehouse automation helps customers find answers for common issues within their supply chain. Those problems can range from a lack of resiliency in an unsure environment to difficulties with scaling in a fast-growing market. My advice for someone looking to build more automation into their operations is to really put effort into understanding what problem they’re looking to solve. Is it inadequate storage capacity? Is it throughput limitations? Is it labor shortages? Robotic systems provide a versatile and all-around solution for many typical operations shortcomings, but they don’t all address the same issues. So, it’s important to ensure that the selected solution will be the best fit for your specific needs.
The second piece of advice I can offer is to look for a solution that will minimize disruption to your operations. The initial automation project can be challenging for organizations that have to adapt to new technologies while also adapting to new ways of working. This often requires a strong change-management approach. With that in mind, the best solution will often be one that leverages technology to its full ability, to deliver massive improvements while implementing simple interfaces and an intuitive user experience. Shorter installation times can also be a huge plus to limit the impact of that disruption.
Q: How will the rapid developments in AI and machine learning affect future automation and robotic designs?
A: Rapid advancements in AI and machine learning have impacted many industries, and robotics is no exception. It’s easy to see how AI/ML has the potential to create more intelligent, adaptive, and effective robots. What’s hard to tell now is whether AI has a real purpose or place in warehouse robotics today, where perfection is so important. AI may not be at a place yet where it’s stable enough for business-centric use cases, like warehouse robotics.
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.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
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.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.