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.
Autonomous mobile robots (AMRs) are increasingly common in warehouses and distribution centers (DCs) around the world—largely because their flexibility, scalability, and ease-of-use make them ideal tools for automating pick, pack, ship, and similar tasks in facilities of all sizes. And they’ve proved to be a solid choice for boosting productivity and dealing with labor shortages in recent years. In fact, these versatile tools were a buffer against slowing investments in warehouse automation last year, according to late 2023 data from market research firm Interact Analysis. The research showed a decline in demand for warehouse automation overall, driven by an 8% drop in order intake for fixed systems (defined as anything that is bolted to the floor, including conveyors and shuttles). However, in the same period, demand for mobile robotic solutions grew 38%.
You need look no further than recent industry projects to see that logistics has become a showplace of AMR innovation—and is inspiring other industries to follow suit. Robotics developer Geek+ has helped third-party logistics services provider (3PL) UPS Supply Chain Solutions implement a goods-to-person robotic picking solution that could be expanded across multiple DCs, for instance. The solution was serving customers at six UPS Supply Chain Solutions facilities as of December. And automation leader Zebra Technologies has expanded its reach into sustainable farming, working with agriculture startup Hippo Harvest to combine mobile robotics with plant science and machine learning to improve the growing of leafy greens in the startup’s Pescadero, California, greenhouse.
Here’s a look at how the virtues of the versatile AMR are helping both organizations reach their business goals.
LAUNCH POINT: LOGISTICS
Third-party logistics companies have been some of the main drivers of warehouse automation, as more retailers, brands, and online merchants outsource their rising fulfillment needs. A May 2023 report from Interact Analysis pointed to a “noticeable acceleration in the adoption of AMRs by third-party logistics providers globally,” citing growing demand for solutions that can perform both material transport and order fulfillment tasks in warehouses.
UPS Supply Chain Solutions is an example of the trend. The company was under pressure to meet growing order volumes in 2021, spurring its leaders to research robotics solutions for the 3PL’s labor-intensive fulfillment operations. Like most warehousing operations at the time, UPS Supply Chain Solutions was facing pandemic-era staffing challenges that made it difficult to meet seasonal throughput demands. Ultimately, company leaders turned to Geek+ and its AMR-based goods-to-person picking system, launching a proof-of-concept trial in the 3PL’s Bloomington, California, warehouse in March 2022 that aimed to reduce costs and boost throughput for a particular client: San Francisco-based sustainable footwear and apparel company Allbirds. The test was conducted in UPS Supply Chain Solutions warehouse space adjacent to Allbirds’ existing West Coast fulfillment operation, which continued without disruption throughout the 90-day pilot project, according to the companies.
The project team deployed 27 Geek+ shelf-to-person AMRs—small, Roomba-like robots that transport inventory racks to picking stations, eliminating the need for pickers to traverse warehouse aisles filling orders. In addition to improving worker safety, reducing labor requirements, and improving picking accuracy, this kind of automated picking typically boosts efficiency by two to three times, according to Geek+. The project was also designed with expansion in mind: As Geek+ and UPS Supply Chain Solutions went through the initial onboarding process—working out the data integration, security, networking, system communication, and other details for the Allbirds test—they also focused on developing a protocol that could be implemented throughout the 3PL’s facility network for the benefit of other clients.
“It was important to us to be able to standardize how we use Geek+ and how we could partner with them moving forward,” says David Steffey, director of industrial engineering for North American Logistics and distribution at UPS Supply Chain Solutions. “When setting up a location, we wanted to be able to essentially copy and paste from one deployment to the next. That would allow us to be more accurate, successful, and efficient with our deployments.”
The Allbirds test was so successful that the teams soon expanded the footprint, adding 70 robots and 200 racks to the system. By the end of the trial period, the teams were ready to implement the AMR solution for Allbirds at UPS Supply Chain Solutions' Ontario, California, warehouse as well as its Louisville, Kentucky, facility, serving the footwear company’s East and West Coast operations. Both were up and running in time for the 2022 peak holiday shipping season, and the results speak for themselves: Using a combined 184 robots at the two locations, the facilities handled a 160% year-over-year increase in unit throughput and saw a 400% increase in picked units per hour compared to the previous holiday peak. They also decreased labor hours 18% year over year and experienced back-to-back record days during peak.
UPS Supply Chain Solutions has since expanded the system to five other facilities, serving six additional customers. The 3PL is also using the AMRs for more tasks these days, including tote-to-person transport—which also involves the use of robotic picking arms—and for receiving inventory.
NEXT STOP: SUSTAINABLE FARMING
Software engineer and entrepreneur Eitan Marder-Eppstein was looking for a startup project that would prove personally meaningful and globally impactful when he co-founded Hippo Harvest, a California-based agriculture venture, in 2018. The company grows lettuce in sustainable greenhouse environments; its goal is to produce the healthiest possible greens in a pesticide-free environment, using less water and less land than traditional farming methods require. Advanced plant science, machine learning, and robotics are the keys to making it all work—and Hippo Harvest has partnered with the experts at Zebra Technologies since 2019 to produce real-world results.
The two companies have similar roots. Marder-Eppstein got his start at the now-defunct robotics incubator Willow Garage, which produced several robotics spinoff organizations, including Fetch Robotics, the industrial and logistics robot development company that is now part of Zebra. Although Marder-Eppstein’s post-Willow Garage projects took him in a different direction, he says it was hard to ignore the robotics revolution that Fetch and its contemporaries were spawning in logistics—and its potential to spur change elsewhere, including agriculture.
“We had seen what had happened in the warehousing and logistics space in the last 15 years,” he explains, pointing to the “oversized Roombas” roaming around warehouses across the country and around the world. “They were moving shelves around and allowing for flexibility in operations. We saw an opportunity to take that technology and move it to the greenhouse setting.”
And so they did. Hippo Harvest built a technology system that uses machine learning to determine how much water, fertilizer, and light are needed to produce its crops, which are grown in large trays in greenhouses. Inside the greenhouse, the company uses Zebra’s Freight100 AMRs to do the farm’s heavy lifting. The AMRs deliver precise levels of water and nutrients to plants, functioning as a robotic watering can, so there’s no need for plumbing in the facility. They also help harvest the plants: Much like you’d see in a fulfillment center, the AMRs travel through the greenhouse, maneuvering themselves underneath the growing trays, using a scissor lift to grasp the bottom of the tray, and then moving the trays to various stations throughout the facility.
The AMRs even help with maintenance.
“They vacuum the farm. They take crops through a harvester,” says Marder-Eppstein, comparing the AMRs to tractors on traditional farms. “[They are a] tool that increases your ability to get work done. We’re always finding new applications for the robots.”
A case in point: In its effort to eliminate the use of pesticides, Hippo Harvest began experimenting with a new disinfection technique that involved the use of UV-C light. Within a week, the company had developed an attachment for the AMR that can be used to deliver the UV-C treatment.
Matt Wicks, senior director of product management for robotics automation at Zebra, says such advances illustrate that the “sky’s the limit” when it comes to the mobile robots’ potential.
“At the end of the day, we design the product to be extendable to areas we didn’t even think about,” Wicks says, adding that Zebra’s AMRs are finding a similar home in hospitals and health-care settings, where they deliver medication to patients. “So that’s the intent of this. It’s gone further than we intended to go—and that’s good.”
Marder-Eppstein agrees, adding that Zebra’s robotic platform does more than just automate functions in the greenhouse. He says the AMRs are full partners in the productivity and plant health aspects of the operation as well, helping to collect the data that Hippo Harvest’s machine learning platform uses to evaluate and improve operations. Cameras mounted to the AMRs are used to monitor growing operations, taking 3D images of plants and processes as they move throughout the facility.
“The robots act as scouts for us. [They are] constantly collecting data” on temperature, carbon dioxide, light transmission, and humidity, Marder-Eppstein explains. “All of that feeds into a greenhouse operating system that [we are] constantly looking [to improve].”
The Hippo Harvest/Zebra partnership is now fully operational at the company’s first farm, a 150,000-square-foot greenhouse on the California coast. Thanks to the AMRs, the greenhouse is using 92% less water and 55% less fertilizer compared to a conventional produce-growing operation. Those and other advances are pushing the company further: Marder-Eppstein says he and his team plan to keep building on the current operation and eventually expand to other regions, establishing sustainable farms in close proximity to consumers.
The Zebra platform will be a key part of that mission.
“These mobile robots are more of a general-purpose computing platform than people think. It’s almost been a little shocking to see how quickly this can be adapted in other markets,” Marder-Eppstein says. “We can do [all this] because we haven’t had to spend time developing something from scratch that looks simple but isn’t. We've been able to rely on Zebra to provide the foundation on which we can build. It really has allowed us to do more with less.”
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.