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.”
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.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."