DHL’s newest Americas region hub is a model of high-tech material handling systems and green energy solutions—and it’s pushing the company closer to net zero.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Company leaders say DHL Express’s newest regional hub in the Americas, opened in Atlanta this past summer, will serve as a model of innovation for its newly constructed facilities moving forward. At the heart of the project is an eco-centric design that incorporates some of the latest and greatest automated material handling technologies alongside green energy solutions.
“Our goal is to design all our new buildings to be carbon neutral, leveraging the use of state-of-the-art technologies and renewable energy to reduce electricity and heating-fuel consumption,” Cain Moodie, DHL Express’s senior vice president, Americas network operations and aviation, said in a statement to DC Velocity this past fall. “Sustainability is a key aspect of the development of facilities across the region. All new developments must go through [a] detailed assessment to identify the path toward carbon neutrality.”
And the Atlanta facility is leading the way. Located at Hartsfield-Jackson International Airport, it is one of four parcel shipment hubs in the DHL Express Americas region network. DHL invested $84.5 million in the facility, which spans 100,000 square feet and provides direct connections between 19 Southeastern U.S. cities as well as other DHL hubs around the world.
The project’s goal? Speeding domestic and international shipments while also working to reduce the company’s carbon footprint.
“The new DHL Express Atlanta hub represents a milestone in our ongoing pursuit of sustainability and technological advancement,” Mike Parra, CEO of DHL Express Americas, said in a statement announcing the hub’s opening in July. “It also exemplifies our belief in the power of international trade and recognizes the significance of Atlanta and the Southeast U.S. in the global marketplace.”
The facility is combining efficient and renewable energy sources with zero-emissions equipment and high-speed, energy-efficient material handling systems to reach those goals.
A GREEN AND AUTOMATED HUB
The new facility works much like other hubs in DHL’s network. For instance, associates handle all aspects of receiving and processing shipments for local or international delivery on site. Whether those shipments are moving by truck or aircraft, the associates ensure efficient loading and unloading of cargo, including organizing packages, palletizing shipments, and maintaining proper weight distribution for safe transportation, according to Moodie. He says the facility also handles customs clearance, explaining that in-house customs brokers work closely with U.S. Customs and Border Protection personnel to ensure a seamless clearance process and adherence to local and international trade regulations.
The difference lies in the facility’s hyper focus on energy efficiency and automation. The Atlanta hub generates up to 50% of the energy consumed on site via 65,000 square feet of rooftop solar panels, which the company says will prevent the release of 380 metric tons of carbon dioxide emissions every year. The rest of the energy consumed on site comes from renewable sources purchased via Renewable Energy Certificates (RECs) “guaranteeing zero emissions from electricity consumption,” according to DHL. The hub incorporates a slew of other eco-friendly features, including LED lighting, electric forklifts, dock seals, and rapid-rise doors—all of which help conserve energy throughout the building and reduce its environmental impact.
The Atlanta hub is a technology showplace as well. DHL partnered with several material handling specialists to create a fully automated operation that features 10 automatic bulk trailer unloaders, a network of high-tech sorter and conveyor solutions, and X-ray machines and multiscan tunnels for package scanning. At full capacity, the hub can sort up to 20,000 pieces per hour, or nearly 100,000 pieces per day, according to DHL.
The automated equipment is helping to increase capacity and speed delivery through the network, but it’s also furthering DHL’s sustainability mission. Sensors monitor all equipment to track and maintain efficiency, for example. On top of that, some of the material handling equipment in use is itself sustainable. A case in point: The facility uses two flexible cross-belt sorters—Crossorters from material handling automation company Vanderlande—that are 80% more energy efficient than conventional cross-belt sorters and are made from sustainable materials. On top of that, they’re versatile: The sorters can accommodate products ranging from very small packages all the way through to larger, bulky items, including odd-shaped packages and totes.
Network improvement metrics aren’t available yet, but company leaders say the expected energy savings alone are helping to move the company closer to its environmental sustainability objectives. Parent company DHL Group has a stated goal of achieving net-zero emissions by 2050.
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.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
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.”