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.
Unless you had a rich uncle, you’re probably destined to spend about 45 years of your life working. For most of us, time on the job represents about one-third of our existence, so ideally, our work lives will prove both rewarding and enjoyable.
As technology advances, the kind of work we do changes. There’s not a lot of call now for blacksmiths or wainwrights. Today’s jobs use different technologies from those that engaged our ancestors. Likewise, the jobs of tomorrow will be different from those of today, with much of the change driven by technological advancements.
Ian Kahn is a technology writer and futurist, and the founder of a consultancy known as The Futuracy. His firm provides education about the future and emerging technologies, and helps companies determine how ready they are for the future and how disruption-proof their organizations are.
Kahn was recently a guest on DC Velocity’s “Logistics Matters” podcast, where he spoke with Group Editorial Director David Maloney. What follows are some excerpts from their conversation.
Q: Will work in general be different in the future than it is today?
A: There are so many different types of work. For many people, work is about doing things and accomplishing tasks. For others, it is creative work, thinking work. So there are many different types of work. Within the logistics industry and supply chain, there is a lot of work that’s manual—it’s about moving goods from one place to another. But there is also creative work, thinking work, such as back-office work.
What’s happening right now is that work across the board is changing. Automation is taking over some tasks, although there are still many roles that are not changing, that will stay the way they are.
We keep hearing about what technology is doing and the transformation it’s creating, but we also have to ask what parts of the jobs and roles are changing? Is it changing the repetitive tasks or the creative tasks? The physical tasks or some other type of task? Automation and robotics are here, and there are some exciting things coming down the pipeline.
Q: What are some of the most influential aspects of technology that will affect supply chain jobs?
A: Right now, we’re hearing a lot about artificial intelligence and how it will change the way repetitive tasks are done and eliminate the need for human intervention. Great. I love the idea, but let’s have proof of that by creating some use cases. Let’s actually make the lives of workers better and more efficient.
There’s also robotics, autonomous cars, and self-driving trucks. Now, that part of the industry is also exciting, and maybe the truck operators, the professionals who are on the road, can get some kind of a break. Maybe they can drive shorter routes or make use of different routing strategies. That’s a promising technology that can help the industry become more efficient. But that conversation is much bigger than just having self-driving vehicles on the roads. We need the right infrastructure. We need the right transportation systems and technologies in order for that to be successful.
Then you have blockchain technology, which can fundamentally alter the way payments are made, the way customers are paying their vendors. It could address the challenge of money being stuck in escrow, where it is waiting to be paid out to someone. Technology such as blockchain can change that, but we still need to have those initial use cases.
Q: You mentioned how jobs are going to change in the future and will obviously be influenced by technology. Are our high schools, colleges, and technical schools properly preparing students for the jobs of the future?
A: I think they are partially preparing students for the future, but the challenge also for schools, universities, colleges, and training institutes is that technology is changing more rapidly than curriculums can change. Unfortunately, universities and educational institutions cannot change their curriculum every six months. We have to pay close attention to identifying the bigger trends that are changing industry.
Right now, I think there’s a need for improvement with respect to education pertaining to emerging technologies, how these technologies work. And it’s not just about teaching people how jobs are changing; it’s also about how they can use these technologies to their benefit. How their jobs can be made easier. How their jobs can become more efficient, and how they can contribute more value to the economy, to the industry, and to their employers.
Q: Will the next generation of students have to acquire different kinds of skills to prepare for future work?
A: If you look at the past, we were living in a very manual, mechanized world, where initially technology—like steam engines and electricity—was used mainly to move things. We then went to automation, which enabled large factories to produce goods at a rapid pace.
We are now living in the era of cognitive technologies, where the emphasis is on how technology is able to eliminate human error. It enables faster processing, the production of more widgets per hour, and so on and so forth.
Technology to me is different in many ways from what it was, say, 20, 30, or 50 years ago. So, the definition of what it can do has changed. People who have been in the workforce for years have a completely different relationship with their work compared with kids who are in school right now and who will be in the workforce five or 10 years from now. Their skill sets are going to be different because the world they operate and work in is going to be driven by different parameters than in the past.
The future workforce has to be more in tune with technology. They already are, right? You see kids dealing with technology really well. I feel that the future jobs are going to be less hands-on and more creative, more cognitive.
Q: Are there other skills tomorrow’s workers will need beyond what you just talked about?
A: I believe at the end of the day, we all are human. We need the skills to communicate and to work with other people and understand complexity. Right now, we’re seeing high demand for data scientists, people who can make sense of the vast amount of data that technology generates. I believe that—the data side of the industry—will be a good place to look for positions within logistics.
Communication, public relations—any channel that makes that happen—is great. Sales is always a good place to be because salespeople will always be in demand.
We know the general direction we’re headed in is, of course, specialization, and people need to keep their skills up. Don’t assume that because you’ve had a lot of training, you’re done with that. You’ve got to constantly keep learning.
Q: How will AI shape the future of work?
A: As we stand on the precipice of the AI revolution, it’s evident that the jobs landscape will undergo significant transformation. Historically, technology has always been a catalyst for change in the workplace. Consider the accounting industry: Half a century ago, accountants relied on pen, paper, and ledgers. Today, the scene is vastly different, with technologies like Excel and advanced risk management software reshaping the industry’s operations. This evolution isn’t exclusive to accounting; sectors like manufacturing, retail, and agriculture are witnessing similar technological metamorphoses. Furthermore, as technology evolves, it’s not just about jobs changing or becoming obsolete; it’s also about the birth of new roles and opportunities.
Q: Which jobs will AI impact the most? And what about the supply chain industry?
A: Jobs characterized by repetitiveness and susceptibility to human error stand to be most influenced by AI. This encompasses roles in back-office operations, content review, copywriting, paralegal tasks, marketing content creation, and even certain aspects of sales, operations, and leadership. However, it’s crucial to view AI not as a threat, but as a tool. Instead of replacing humans, AI can be harnessed to enhance human capabilities, enabling professionals to make more informed decisions, leverage personal digital assistants, and drive superior business outcomes.
For instance, within the supply chain industry, AI can revolutionize human resource functions. Imagine HR professionals being able to sift through thousands of resumes in minutes, shortlisting candidates based on precise criteria set by AI algorithms. This not only streamlines the hiring process but also ensures a higher-quality pool of candidates.
Q: How should companies integrate AI into workforce planning and job structuring?
A: AI is more than just a technological advancement; it’s a game-changer. Its unparalleled ability to automate tasks and analyze vast data sets in record time offers businesses a competitive edge. Companies should, therefore, view AI as a strategic partner. By integrating AI-driven systems, businesses can elevate their data analysis, enhancing automation and decision-making processes. As we move forward, it’s not about replacing the human touch but about augmenting it with AI’s precision and efficiency.
Sometimes, all you need is the right partner to solve your logistics problems.
In 2021, global paint supplier Sherwin Williams faced driver and hazardous material (hazmat) capacity constraints: There simply weren’t enough hazmat drivers available in its fleet to maintain the company’s 90% fleet utilization rate expectations for key partner store deliveries while also meeting growing demand for service. Those challenges threatened to become even more acute in the future, as a competing paint supply company began to scale back its operations in the Pacific Northwest, leaving Sherwin Williams with an opportunity to fill the gap.
The paint supplier needed a logistics partner that could help it overcome the shortage of hazmat drivers while also helping to manage its West Coast trailer pools, out-of-region runs, and ad-hoc freight. It also needed a solution that would meet quarterly and annual fleet budgets.
SCALING UP
Enter ITS Logistics, a third-party logistics service provider (3PL) that offers supply chain solutions for drayage, network transportation, distribution, and fulfillment across North America. ITS proposed a combined owned-asset and asset-light approach that would provide Sherwin Williams with the equivalent of 21 additional drivers. The 3PL would leverage its carrier network to overcome the shortage of hazmat capacity while also certifying its own drivers via a three-month process. Further, ITS would help manage Sherwin Williams’ trailer pools and coordinate carriers, providing the paint company with a single point of contact for transportation.
The project would address cost concerns as well: “ITS Logistics aligned its solution with Sherwin Williams’ budgetary cadence and offered a quarterly business review to align on price structure, adding a level of transparency and trust to the relationship,” according to a case study the partners released earlier this year.
The companies soon sealed the deal and launched the program.
Not long after that, Sherwin Williams began to feel the effects of the anticipated challenges in the Pacific Northwest—but the company was prepared. When the competing paint supply company shuttered its operations, causing demand for Sherwin Williams’ products to spike, ITS injected a blend of owned trailers and carrier power to alleviate equipment challenges, cover all locations and regions, and help the paint supplier scale to meet volume.
CLOSING THE GAPS
The project has helped Sherwin Williams rapidly scale its capacity, meet fleet utilization requirements, manage trailer pools, coordinate carriers, and flex to meet spikes in regional demand.
And the results speak for themselves.
“ITS integrating themselves into our fleet was instrumental in helping increase our outbound volume by 18.4 million pounds [year over year] in the last seven months of 2023,” said Ted Taxon, regional transportation manager at Sherwin Williams, in the case study. “This equated to approximately 460 truckloads of extra freight, a large portion of which ITS [handled] on an ad-hoc basis with no operational constraints or quality issues.”
The partnership also helped Sherwin Williams maintain a 90% fleet utilization rate with big box retailers—an increase from less than 70% prior to the partnership’s launch.
Robots are revolutionizing factories, warehouses, and distribution centers (DCs) around the world, thanks largely to heavy investments in the technology between 2019 and 2021. And although investment has slowed since then, the long-term outlook calls for steady growth over the next four years. According to data from research and consulting firm Interact Analysis, revenues from shipments of industrial robots are forecast to grow nearly 4% per year, on average, between 2024 and 2028 (see Exhibit 1).
EXHIBIT 1: Market forecast for industrial robots - revenuesInteract Analysis
Material handling is among the top applications for all those robots, accounting for one-third of overall robot market revenues in 2023, according to the research. That puts warehouses and DCs on the cutting edge of robotic innovation, with projects that are helping companies reduce costs, optimize labor, and improve productivity throughout their facilities. Here’s a look at two recent projects that demonstrate the kinds of gains companies have achieved by investing in robotic equipment.
FASTER, MORE ACCURATE CYCLE COUNTS
When leaders at MSI Surfaces wanted to get a better handle on their vast inventory of flooring, countertops, tile, and hardscape materials, they turned to warehouse inventory drone provider Corvus Robotics. The seven-year-old company offers a warehouse drone system, called Corvus One, that can be installed and deployed quickly—in what MSI leaders describe as a “plug and play” process. Corvus Robotics’ drones are fully autonomous—they require no external infrastructure, such as beacons or stickers for positioning and navigation, and no human operators. Essentially, all you need is the drone and a landing pad, and you’re in business.
The drones use computer vision and generative AI (artificial intelligence) to “understand” their environment, flying autonomously in both very narrow aisles—passageways as narrow as 50 inches—and in very wide aisles. The Corvus One system relies on obstacle detection to operate safely in warehouses and uses barcode scanning technology to count inventory; the advanced system can read any barcode symbol in any orientation placed anywhere on the front of a carton or pallet.
The system was the perfect answer to the inventory challenges MSI was facing. Its annual physical inventory counts required two to four dedicated warehouse associates, who would manually scan inventory to determine the amount of stock on hand. The process was both time-consuming and error-prone, and often led to inaccuracies. And it created a chain reaction of issues and problems. Fulfillment speed is one example: Lost or misplaced inventory would delay customer deliveries, resulting in dissatisfaction, returns, and unmet expectations. Productivity was also an issue: Workers were often pulled from fulfillment tasks to locate material, slowing overall operations.
MSI Surfaces began using the Corvus One system in 2021, deploying a small number of drones for daily inventory counts at its 300,000-square-foot distribution center (DC) in Orange, California. It quickly scaled up, adding more drones in Orange and expanding the system to three other DCs: in Houston; Savannah, Georgia; and Edison, New Jersey. The company plans to add more drones to the existing sites and expand the system to some of its smaller DCs as well, according to Corvus Robotics spokesperson Andrew Burer.
Those expansion plans are based on solid results: MSI’s inventory accuracy was about 80% prior to the drone implementation, but it quickly jumped to the high 90s—ultimately reaching 99%—after the company initiated the daily drone counts, according to Burer.
“We actually had an incident early on where one of the forklift drivers ran into the landing pad, rendering it inoperable for about a week while the Corvus team fixed it,” Burer recalls. “When we restarted the system, we noticed MSI’s inventory accuracy had dropped down to the 80s. But after flights resumed, accuracy quickly improved back to near perfect.” He adds that such collisions are rare as Corvus mounts landing pads high off the floor to avoid impacts but that accidents can still happen.
Overall, the system has helped speed warehouse operations in two key ways: First, the accuracy improvement means that associates no longer waste time searching for missing material in the warehouse. And second, the associates who used to conduct the physical inventory counts have been reallocated to picking and replenishment—creating a more efficient, and optimized, workforce.
A SAFER, MORE EFFICIENT WAREHOUSE
Robot maker Boston Dynamics is well-known for its Stretch and Spot industrial robots, both of which are at work in warehouses and DCs around the world. Earlier this year, Stretch made its debut in Europe, teaming up with Spot at a fulfillment center run by German retail company Otto Group. The deployment marks the first time Stretch and Spot are being used together—in a partnership designed to improve Otto Group’s warehousing operations by increasing efficiency and making warehouse work safer and more attractive to workers.
The partnership is part of a two-year project in which Boston Dynamics will deploy dozens of its warehouse robots in Otto Group’s European DCs. The first location is a fulfillment site operated by Hermes, the company’s parcel delivery subsidiary, in Haldensleben, Germany—a facility that handles as many as 40,000 cartons of goods on peak days.
At the site, Stretch—which is a mobile case-handling robot—autonomously unloads ocean containers and trailers, using its advanced perception system to pick and place boxes onto a telescoping conveyor inside the container or trailer. Spot—a quadruped robot—helps with predictive maintenance by collecting thermal data and performing acoustic and visual detection tasks throughout the facility to reduce unplanned downtime and energy costs. One of Spot’s jobs is to detect air leaks in the facility’s warehouse automation systems; future duties may include conveyor vibration detection, according to leaders at Otto Group.
Both Stretch and Spot will help the Haldensleben facility run more efficiently, especially during fall peak season when volume increases and work intensifies. The addition of Stretch addresses safety and comfort issues as well: Trailer unloading—a process that entails repeatedly lifting and moving heavy boxes inside a trailer, which can be dark, dirty, cold, and/or hot, depending on the weather—tends to be unappealing to workers. Along with reducing the amount of labor required, automating these tasks will have the added benefit for European facilities of helping them comply with EU (European Union) regulations limiting the amount of time workers can spend in those conditions.
Essentially, the robots are making life easier on the warehouse floor and for the company at large.
“Stretch is going to have a ton of benefits for customers here in the EU,” Andrew Brueckner, of Boston Dynamics, said in a recent case study on the project.
The trucking industry faces a range of challenges these days, particularly when it comes to load planning—a resource-intensive task that often results in suboptimal decisions, unnecessary empty miles, late deliveries, and inefficient asset utilization. What’s more, delays in decision-making due to a lack of real-time insights can hinder operational efficiency, making cost management a constant struggle.
Truckload carrier Paper Transport Inc. (PTI) experienced this firsthand when the company sought to expand its over the-road (OTR), intermodal, and brokerage offerings to include dedicated fleet services for high-volume shippers—adding a layer of complexity to the business. The additional personnel required for such a move would be extremely costly, leading PTI to investigate technology solutions that could help close the gap.
Enter Freight Science and its intelligent decision-recommendation and automation platform.
PTI implemented Freight Science’s artificial intelligence (AI)-driven load planning optimization solution earlier this year, giving the carrier a high-tech advantage as it launched the new service.
“As PTI tried to diversify … we found that we needed a technological solution that would allow us to process [information] faster,” explains Jared Stedl, chief commercial officer for PTI, emphasizing the high volume of outbound shipments and unique freight characteristics of its targeted dedicated-fleet customers.
The Freight Science platform allowed PTI to apply its signature high-quality service to those needs, all while handling the daily challenges of managing drivers and navigating route disruptions.
STREAMLINING PROCESSES
Dedicated fleets face challenges that evolve from day to day and minute to minute, including truck breakdowns, drivers calling in sick, and rescheduled appointment times. PTI needed a tool that allowed for a real-time view of the fleet, ultimately enabling its team to adjust truck and driver allocation to meet those challenges.
The Freight Science solution filled the bill. The platform uses advanced analytics and algorithms to give carriers better visibility into operations while automating the decision-making process. By combining streaming data, a carrier’s transportation management system (TMS), machine learning, and decision science, the solution allows carriers to deploy their fleets more efficiently while accurately forecasting future needs, according to Freight Science.
In PTI’s case, Freight Science’s software integrates with the carrier’s TMS, real-time electronic logging device (ELD) data, and other external data, feeding an AI model that generates an optimized load plan for the planner.
“We’re an integrated data analytics company for trucking companies,” explains Matt Foster, Freight Science’s president and CEO. “We’re talking about AI.”
The benefits of the real-time data are difficult to overstate.
“We’ve been able to execute in the toughest of situations because we’ve got real, live data on how long each event is actually going to take and a system to aid and even automate the decision-making process,” says Chad Borley, PTI’s operations manager. “From what traffic patterns we are battling in the morning and evening with rush hour and things like that, to the impact of additional miles to a route, or even location-specific dwell times, it’s been a huge differentiator for us.”
REALIZING RESULTS
A case in point: the collapse of Baltimore’s Francis Scott Key Bridge in March. PTI was scheduled to go live with a new dedicated account in the area just days after the collapse, which would mean rerouting and the potential for longer transit times. Instead of recalculating based on assumptions or latent data, PTI was able to reroute freight based on real-time information and analytics to give the customer timely updates.
“With the bridge going out, that changed our ability to make as many turns a day as the customer would expect,” Stedl explains. “But one of the things Freight Science could do [was to] quickly [assess] how much of an impact that traffic would have [and] what the turns [would] be based on what’s happening on the ground.
“So we were able to go back to the customer and readjust expectations in a real way that made sense, using data. Now expectations can be reset¾we’re not asking for forgiveness when there’s no reason for it.”
The system’s advanced algorithms make load planning more cost-effective and scalable as well. The platform allows PTI to monitor trucks, trailers, and driver hours in real time, recommending additional loads with remaining driver hours that would otherwise be wasted.
And they’re doing it all with much less. Stedl says tasks that used to require five people and hours of work can now be accomplished by one person in mere minutes, improving productivity and profitability while reducing labor and operational costs.
Terms of the deal were not disclosed, but Aptean said the move will add new capabilities to its warehouse management and supply chain management offerings for manufacturers, wholesalers, distributors, retailers, and 3PLs. Aptean currently provides enterprise resource planning (ERP), transportation management systems (TMS), and product lifecycle management (PLM) platforms.
Founded in 1980 and headquartered in Durham, U.K., Indigo Software provides software designed for mid-market organizations, giving users real-time visibility and management from the initial receipt of stock all the way through to final dispatch of the finished product. That enables organizations to optimize an array of warehouse operations including receiving, storage, picking, packing, and shipping, the firm says.
Specific sectors served by Indigo Software include the food and beverage, fashion and apparel, fast moving consumer goods, automotive, manufacturing, 3PL, chemicals, and wholesale / distribution verticals.
Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.
“Collaborating with owner-operators is an important component in the success of our business and the reliable service we can provide customers, which is why the network has grown tremendously in the last 25 years,” Schneider Senior Vice President and General Manager of Truckload and Mexico John Bozec said in a release. "We want to invest in tools that support owner-operators in running and growing their businesses. With Schneider FreightPower, they gain access to better load management, increasing their productivity and revenue potential.”