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.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.