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.”
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."