As companies seek new use cases for robots in their supply chains, many will find themselves needing to integrate different robots from different vendors that perform different tasks.
The past few years have witnessed an explosion in interest in and use of robots within the supply chain. According to Gartner’s most recent “Supply Chain Technology User Wants and Needs Study”—a cross-industry, cross-company size, and cross-geography survey—a staggering 96% of respondents said they were investing, or were planning to invest, in robotics over the next two years.
Of those respondents, 7% had already fully deployed a robotics solution, and 29% were currently deploying one. Furthermore 93% of these current robot users said that they planned to expand the fleet size of their existing robot platforms, and 94% said they were pursuing additional use cases for robotics in their operations.
As a result of this interest, we believe there will be exponential growth in what we call the “intralogistics smart robots” (ISR) marketplace over the next decade. In fact, Gartner predicts that by 2028, 50% of large enterprises will have adopted some form of ISRs in their warehouse or manufacturing operations.
Currently, Gartner tracks 34 different categories of intralogistics smart robots. Among the most relevant categories to logistics leaders are six that we see companies deploying and having the most success with today. The categories include:
Basic transport—This category involves autonomous mobile robots (AMRs) designed to move goods around warehouses and plants. These trainable and intelligent robots excel at moving goods long distances and can operate through multiple shifts. By using them, companies reduce the amount of time human workers waste traveling across the warehouse.
Collaborative picking (robot to person)—For this application, a human worker and robot move through the warehouse together. The human worker picks products into bins or totes transported by the robot. This category will enhance human labor by improving picker efficiency, cycle time, and throughput. This “cobot” augmentation of human effort can leverage existing infrastructure and will be utilized in high volume/velocity picking environments such as e-commerce.
Goods to person (G2P)—For this variation, the robots deliver multiple goods on mobile storage units (MSUs) to a stationary area, where a human picks goods for multiple orders onto another MSU. When all the orders are complete, robots deliver the MSUs to packing stations. G2P robots can eliminate wasted travel time for human workers, reducing drudgery and fatigue.
Sortation robots—This category will be seen both in e-commerce and parcel-sorting environments and will improve order-fulfillment accuracy and agility while streamlining picking and packing operations. These robots can replace powered conveyors and are not bolted to the floor, meaning they are adaptable and reconfigurable on demand, with lower fixed infrastructure requirements.
Robotic picking—These robotic solutions are designed to handle the most mundane pick-and-place tasks. These solutions combine robotic arms, different forms of end effectors or grippers, and 3D vision systems, all enabled by advanced machine learning and artificial intelligence (AI). Robotic picking works particularly well in environments where the items are a consistent size and shape.
Cube robotic G2P systems—In this category, G2P robots autonomously move goods in totes or cases that are stored in a pre-built cube/grid structure. The robots also deliver these totes or cases at the appropriate time to humans at pick stations. These solutions work well for high-density and high-speed environments. For example, these applications work well in facilities with large quantities of small items that are ordered frequently. This category is scalable and adaptable and is typically delivered as a larger integrated system.
Each of these categories represents different use cases and operating models, some are designed to be stationary, others mobile; some are designed to operate alone and autonomously; while others are designed to complement human labor.
As companies seek new use cases, many will start to have different robots from different vendors performing different tasks. We believe that within the next five years more than 40% of large enterprises will have a heterogeneous fleet of ISRs in their warehouse operations. The good news is that many companies will begin to leverage ISRs in their operations. The bad news is that this creates challenges for companies. Namely, how do they integrate with and orchestrate the work of a heterogeneous fleet of robots? And how do they coordinate between different fleets?
Standardized software needed
To integrate and orchestrate the work of a fleet of heterogenous robots, companies will need standardized software that can easily unite a variety of agents and robot platforms. Gartner refers to this emerging software as “multiagent orchestration platforms.” These solutions act like intelligent middleware that integrate and orchestrate work among various business applications, heterogenous fleets of operational robots, and other automated agents like doors or elevators. These solutions will assign work to the right robots based on the characteristics of the immediate tasks and will orchestrate communication between different robot platforms and other types of automation agents. (See Figure 1.)
This type of software becomes increasingly necessary as the robotic environment becomes more complex. When companies invest in their first ISR platform, they will typically just create a one-off connection between their business applications—such as a warehouse management system (WMS)—and their robot provider’s fleet management system. This, while not optimal, works for one robot. However, as a company’s fleet of robots grows, simple point-to-point API (application programing interface) integration will not be enough. Companies will need an orchestration capability that can assign work to the right robots based on near-real-time information. These work assignments will need to take into consideration the characteristics of the activity and the capabilities of various automation agents. A multiagent orchestration platform will reduce the time, effort, and cost to onboard new robots. It will also reduce support cost, ultimately making organizations more efficient because work will be assigned to the robot best suited for the task. As a result of this need, we believe that by 2026, more than 50% of companies deploying intralogistics robots will adopt a multiagent orchestration platform.
Of course, most companies will not recognize the need for these types of solutions until they move beyond one or two robot platforms. Then, they may attempt to find a solution through their current WMS provider or their robot provider’s fleet management systems. These systems may or may not address the need for orchestration and integration across and between a variety of robot platforms. While some providers do offer these types of orchestration platforms, many ISR providers’ fleet management solutions are largely focused in and around their own robot offerings and are not true multiagent orchestration platforms. To be sure, many ISR providers are focusing more on software, as they are concerned that they will be commoditized by less expensive robot hardware. But we do not expect a universal fleet management platform that works across robot platforms any time soon, if ever. Consequently, for the foreseeable future, companies with heterogeneous fleets of robots will need a multiagent orchestration platform.
To identify the right platform capable of orchestrating and integrating their heterogenous robot fleet, companies should start by analyzing the integration requirements as their robot fleet expands beyond a single vendor. Along with that, they should study how work will be assigned to the various robots and other automation agents and determine what orchestration logic will be needed to support this simultaneously. Once they understand their orchestration and integration requirements, they should then look for the multiagent orchestration platform that best addresses their needs.
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.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."