In our continuing series of discussions with top supply-chain company executives, Andrea Pongolini discusses the rising use of automation, digital connectivity, and the role of automated guided vehicles in distribution operations.
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.
Andrea Pongolini has more than 20 years of experience in advanced automation solutions for the consumer goods industry. He joined E80 Group, a provider of automation and robotic solutions, in 2007 and is currently the executive vice president of sales. Based in Chicago, he leads E80 Group’s sales efforts in the NAFTA region. Pongolini has a degree in mechanical engineering from the University of Parma in Italy and has done additional study at the University of Chicago’s Booth School of Business.
Q: How would you describe the current state of the material handling industry?
A:The current state of the material handling industry is rapidly evolving, driven by a crucial need for automation. We’ve witnessed a significant shift in focus, especially in the CPG [consumer packaged goods] industries, toward total integration solutions. Companies are realizing the importance of end-to-end automation in their plants and distribution centers. This trend is a testament to the industry’s commitment to automation as a key tool for maintaining competitiveness, particularly in the face of challenges like labor shortages, inflation, and rising material costs.
Q: How are automated solutions helping customers deal with the lack of available labor?
A: Automation plays a pivotal role in addressing the shortage of available labor. It’s essential to note that automation doesn’t replace labor and humans outright; instead, it targets manual, simple, and repetitive tasks. By automating these tasks, businesses enhance efficiency, accuracy, safety, and cost-effectiveness in material handling operations, ensuring that human workers can focus on more complex and strategic aspects of their roles.
Q: What do you consider to be the most significant advancements made by robotic systems in recent years?
A: In recent years, robotic systems have made remarkable strides, particularly in the context of total integration. The integration of hardware and software has become paramount, with a focus on flexibility and digital connectivity. In addition, the rise of the internet of things (IoT) has revolutionized data collection. Businesses now demand systems that can collect and process vast amounts of data, not just for maintenance purposes but also for strategic decision-making.
Q: What factors do companies need to consider when deploying automated guided vehicles?
A: Engaging the right people within the end-user’s organization, especially during the preparation of the software function description, is crucial when deploying automated guided vehicles (AGVs). A comprehensive approach is necessary, with a focus on seamless integration into the existing workflow to automate all facility movements.
On top of that, flexibility in system design is of extreme importance when deploying AGVs. A well-designed system should be adaptable to changing needs and evolving technologies. The ability to easily reconfigure routes, tasks, and workflows as operational requirements shift ensures that AGVs continue to provide value over the long term. This flexibility extends to accommodating new products, production processes, or facility layouts, enabling seamless integration and scalability. A system that can adapt to emerging challenges and opportunities in the future is a key factor in the sustained success of AGV deployment.
Furthermore, safety remains fundamental. At E80, our laser-guided vehicle systems prioritize safety through continuous research and development.
Q: There are many companies producing automated and robotic systems. What makes E80 stand out?
A:What sets E80 apart is our unwavering commitment to total integration and automation. Unlike many providers, we don’t focus solely on isolated tasks. E80 collaborates closely with customers, examining their entire plant or distribution center comprehensively. We begin with a consultancy approach, utilizing our Smart Designer software to simulate the flows of the entire facility before installation.
Our end-to-end solutions, encompassing both software and hardware, are able to automate every single movement, not just repetitive low-value tasks, transforming manual facilities into fully automated ones. Our dedication to listening to our customers’ needs and adapting our technologies accordingly has fostered long-term partnerships and repeat business, making E80 a leader in the industry.
Q: Automation can be a significant investment. Where should companies start their automation journey, and which areas will likely offer the best return?
A: In our experience, starting with tasks that are labor-intensive or prone to human error is highly effective. In the CPG industries, initiating an automated journey from the finished-goods warehouse has proved to be the winning approach.
When possible, we also try to include automating truck loading and unloading operations, or implement fully automated layer- and case-picking systems, which can lead to significant incremental cost savings and efficiency improvements. But regardless of the application, focusing on seamless integration with existing systems, coupled with robust data management, ensures a streamlined transition and maximizes the return on investment.
Q: You have a degree in mechanical engineering. How does that background benefit you in helping customers find the right automated solutions?
A: My background in mechanical engineering equips me with a deep understanding of the technical intricacies involved in automated solutions. It allows me to bridge the gap between our cutting-edge technologies and our customers’ specific needs. By comprehensively understanding the mechanical aspects, I can effectively communicate the capabilities of our solutions to our customers. It enables me to work closely with our engineering teams, ensuring that our automated systems are not only state of the art but also precisely tailored to each customer’s unique requirements. This technical expertise forms the foundation of our customer-centric approach at E80 Group Inc.
Waves of change are expected to wash over workplaces in the new year, highlighted by companies’ needs to balance the influx of artificial intelligence (AI) with the skills, capabilities, and perspectives that are uniquely human, according to a study from Top Employers Institute.
According to the Amsterdam-based human resources (HR) consulting firm, 2025 will be the year that the balance between individual and group well-being will evolve, blending personal empowerment with collective goals. The focus will be on creating environments where individual contributions enhance the overall strength of teams and organizations, and where traditional boundaries are softened to allow for greater collaboration and inclusion.
Those were the findings of the group’s report titled "World of work trends 2025: The collective workforce.” The study was based on data drawn from the anonymized responses of 2,175 global participants of the Top Employers Institute’s HR Best Practices Survey for 2025, and 2,200 organizations from its 2024 edition.
To cope with those broad trends, the report found that companies must adopt “systems thinking,” a way of understanding how different parts of a system—whether an organization or a society—are connected and influence each other. Leaders who learn that skill can design holistic strategies that align employee needs with organizational priorities and broader societal challenges, the group said.
Toward that goal, the report highlights five trends that are reshaping and impacting the global workforce for 2025. They include:
Sustainable Workplaces - integrated partnership between society and organizations. In 2025, organizations will face growing pressure to address global challenges ranging from ethical AI use in the workplace to demographic changes like declining birth rates and an aging population. These issues are no longer isolated from business; they demand an integrated partnership between society and organizations. For example, labor shortages driven by demographic changes challenge companies to rethink their workforce strategies for future sustainability; for example, family-friendly offerings have increased substantially over the last year as employers acknowledge the reality that many more people are now responsible for aging relatives as well as young children.
New belonging – networking beyond to connect with various jobs, industries, and networks. Unlike previous generations, today’s employees change jobs and careers with greater fluidity, spanning multiple organizations over relatively short periods. This shift is reshaping the traditional, company-centered sense of belonging into a more dynamic, interconnected experience. Employees no longer expect to build lasting relationships solely within a single organization, but rather they form communities that stretch across various jobs, industries, and networks, sometimes even in public coworking spaces where the people they interact with daily may not even work for the same company. However, this fluidity offers companies a unique advantage: as employees move between organizations and interact with diverse professionals in shared spaces, they bring with them fresh ideas, innovations, and relationships that generate significant value.
Transforming experiences – “new collar” jobs. In 2025, we will see a substantial blurring of the traditional categories of “white collar” jobs—typically clerical, administrative, managerial, and executive roles—and “blue collar” jobs, which are typically found in the agriculture, manufacturing, construction, mining, or maintenance sectors. The nature of jobs once considered blue-collar has changed dramatically, thanks in no small part to advancements in technology, especially AI. Post pandemic, there seems to be a much higher demand in many places around the world for skilled trades and manual labor, coupled with a growing emphasis for needed skills over formal qualifications. This shift, sometimes described as the rise of “new collar” jobs, combines the technical expertise often associated with blue-collar work with the adaptability and digital skills needed in today’s job market.
Neuroinclusion - a competitive advantage. Organizations are also increasingly recognizing the advantages of including neurodivergent individuals in the workplace, hiring people with autism, dyslexia, dyspraxia, dyscalculia, and ADHD, as well as certain mental health conditions. In addition to bringing bringing unique perspectives and capabilities, these employees are also an important part of Diversity, Equity and Inclusion (DEI). This practice often requires companies to provide accommodation, adjustments, and support, but 2025 will bring a more radical shift, as neuroinclusivity is evolving from an afterthought to a foundational principle in workplace design, culture, and HR policies.
** AI-powered leadership - balance between human intuition and AI’s analytical power.
If 2024 marked AI’s disruption of highly skilled roles like software development and healthcare, 2025 will be the year AI reshapes the highest levels of leadership, bringing a new balance between human intuition and AI’s analytical power. In this evolving landscape, leadership is no longer an individual pursuit, but a collective effort changed by intelligent systems. AI is not just influencing mid-level roles; it is becoming a partner in the C-suite, helping leaders navigate complexity, understand team dynamics, and make strategic decisions that benefit the entire organization.
It’s probably safe to say that no one chooses a career in logistics for the glory. But even those accustomed to toiling in obscurity appreciate a little recognition now and then—particularly when it comes from the people they love best: their kids.
That familial love was on full display at the 2024 International Foodservice Distributor Association’s (IFDA) National Championship, which brings together foodservice distribution professionals to demonstrate their expertise in driving, warehouse operations, safety, and operational efficiency. For the eighth year, the event included a Kids Essay Contest, where children of participants were encouraged to share why they are proud of their parents or guardians and the work they do.
Prizes were handed out in three categories: 3rd–5th grade, 6th–8th grade, and 9th–12th grade. This year’s winners included Elijah Oliver (4th grade, whose parent Justin Oliver drives for Cheney Brothers) and Andrew Aylas (8th grade, whose parent Steve Aylas drives for Performance Food Group).
Top honors in the high-school category went to McKenzie Harden (12th grade, whose parent Marvin Harden drives for Performance Food Group), who wrote: “My dad has not only taught me life skills of not only, ‘what the boys can do,’ but life skills of morals, compassion, respect, and, last but not least, ‘wearing your heart on your sleeve.’”
The logistics tech firm incubator Zebox, a unit of supply chain giant CMA CGM Group, plans to show off 10 of its top startup businesses at the annual technology trade show CES in January, the French company said today.
Founded in 2018, Zebox calls itself an international innovation accelerator expert in the fields of maritime industry, logistics & media. The Marseille, France-based unit is supported by major companies in the sector, such as BNSF Railway, Blume Global, Trac Intermodal, Vinci, CEVA Logistics, Transdev and Port of Virginia.
To participate in that program, Zebox said it chose 10 French and American companies that are working to leverage cutting-edge technologies to address major industrial challenges and drive meaningful transformations:
Aerleum: CO2 capture and conversion technology producing cost-competitive synthetic fuels and chemicals, enabling decarbonization in hard-to-electrify sectors such as maritime and aviation. Akidaia (CES Innovation Award Winner 2024): Offline access control system offering robust cybersecurity, easy deployment, and secure operation, even in remote or mobile sites.
BE ENERGY: Innovative clean energy solutions recognized for their groundbreaking impact on sustainable energy.
Biomitech (CES Innovation Award Winner 2025): Air purification system that transforms atmospheric pollution into oxygen and biomass through photosynthesis.
Flying Ship Technologies, Corp,: Building unmanned, autonomous, and eco-friendly ground-effect vessels for efficient cargo delivery to tens of thousands of destinations.
Gazelle: Next-generation chargers made more compact and efficient by advanced technology developed by Wise Integration.
HawAI.tech: Hardware accelerators designed to enhance probabilistic artificial intelligence, promoting energy efficiency and explainability.
Okular Logistics: AI-powered smart cameras and analytics to automate warehouse operations, ensure real-time inventory accuracy, and reduce costs.
OTRERA NEW ENERGY: Compact modular reactor (SMR) harnessing over 50 years of French expertise to provide cost-effective, decarbonized electricity and heat.
Zadar Labs, Inc.: High-resolution imaging radars for surveillance, autonomous systems, and beyond.
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.”