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.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.
The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.
The latest infusion follows the firm’s $33 million Series B round in 2022, and its move earlier in 2024 to acquire the Vancouver, Canada-based company Orderbot, a provider of enterprise inventory and distributed order management (DOM) software.
Orlando-based OneRail says its omnichannel fulfillment solution pairs its OmniPoint cloud software with a logistics as a service platform and a real-time, connected network of 12 million drivers. The firm says that its OmniPointsoftware automates fulfillment orchestration and last mile logistics, intelligently selecting the right place to fulfill inventory from, the right shipping mode, and the right carrier to optimize every order.
“This new funding round enables us to deepen our decision logic upstream in the order process to help solve some of the acute challenges facing retailers and wholesalers, such as order sourcing logic defaulting to closest store to customer to fulfill inventory from, which leads to split orders, out-of-stocks, or worse, cancelled orders,” OneRail Founder and CEO Bill Catania said in a release. “OneRail has revolutionized that process with a dynamic fulfillment solution that quickly finds available inventory in full, from an array of stores or warehouses within a localized radius of the customer, to meet the delivery promise, which ultimately transforms the end-customer experience.”
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.