In Person interview: Andreas Boedenauer of Agilox North America
In our continuing series of discussions with top supply-chain company executives, Andreas Boedenauer discusses the autonomous mobile robot market and the swarm technology that makes their deployments and operations extremely efficient.
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.
Andreas Boedenauer is the CEO of Agilox North America. He has more than 25 years of experience in the IT, telecommunications, electrical engineering, and factory automation sectors and has spent most of his career in international business, with an emphasis in helping companies enter overseas markets. Boedenauer joined autonomous mobile robotics company Agilox North America in 2019 and is based in Atlanta. He previously served as president of The Executive Consulting Inc., a firm that advises European companies looking to enter the North American market, and as the co-founder of The Scotty Group, a European-based telecommunications and technology company.
Q: How would you describe the current state of the automation and robotics markets?
A: The automation and robotics markets are experiencing rapid growth, particularly within the smart AGV (automatic guided vehicle), IGV (intelligent guided vehicle), and AMR (autonomous mobile robot) sectors. This is fueled by continuous innovation and the introduction of new applications.
Q: Have higher interest rates affected investments in new technologies, such as AMRs?
A: While higher interest rates have impacted investments, particularly in the mid-sized manufacturing sector, large enterprises with high production outputs and around-the-clock operations are less affected due to their ability to achieve a short-term return on investment (ROI).
Q: You have spent most of your career in the tech sector. What would you say is the most important technological advance you’ve seen, and why is it significant?
A: Digitization remains a pivotal force in technological innovation, most notably in the automotive industry. Where cars once relied on a handful of analog devices, they now have 50 to 100 sensors and 30 to 50 electronic control units (ECUs), all interconnected via a CAN bus system that oversees every vehicle function.
This transformation is mirrored in autonomous mobile robots. Equipped with industrial PCs, these intelligent machines exemplify the leap from analog to digital—gaining significant computational capabilities that align with Moore’s Law [the observation by Intel co-founder Gordon Moore that the number of transistors on an integrated circuit will double every two years with minimal rise in cost]. Moreover, the advent of artificial intelligence (AI) promises to accelerate technological advancements, surpassing the pace set by Moore’s Law.
Q: What will it take for automated forklifts to dominate the lift truck market?
A: Customers evaluating the switch to automation prioritize factors like ease of integration into existing workflows, the need for only minimal adjustments, and the capacity for rapid modification to system configurations, such as stations and routes. Scalability also plays a crucial role, enabling fleets to adjust seamlessly to fluctuating demands.
In particular, the transition from manual forklifts to fork-based AMRs is streamlined when integration is straightforward, leveraging decentralized fleet management to enhance reliability and simplify expansion. This minimizes commissioning efforts while maintaining compatibility with existing infrastructure like load carriers and conveyors.
Above all, a consistent commitment to innovation, coupled with product stability, flexibility, and adaptability to diverse operational environments, positions IGV/AMR providers at the forefront of the industry, ready to lead the market into the future.
Q: Can you describe how your systems use “swarm” technologies and explain their advantages?
A: Swarm technology in AMRs operates on a foundation of collective intelligence, where information is exchanged across a fleet, enabling individual AMRs to fulfill work orders autonomously. This system allows for dynamic navigation within an operational area rather than fixed routes, offering the agility to adapt to immediate environmental changes or challenges.
This adaptability is crucial, as it enables route alteration in real time to maintain workflow continuity. A critical advantage of swarm-based systems is their resilience; the fleet is designed without a single point of failure. Should any AMR become unavailable, the system redistributes tasks among the remaining units, ensuring uninterrupted operations.
Moreover, the shared intelligence within the swarm network facilitates optimal task allocation, considering variables such as each vehicle’s charge level, proximity to the objective, and potential pathway obstructions. This collaborative approach ensures that the most suitable AMR is selected for each task, maximizing efficiency and resource utilization.
Q: Can you talk about how your systems allow your users to scale operations for growth and peak periods?
A: Swarm technology enhances fleet scalability by allowing the addition of new vehicles without the need for individual commissioning. Once the initial setup is complete, new vehicles can autonomously adapt by learning from the established fleet, embodying a “plug & perform” ethos.
This capability means that increases in workload, whether from growth or seasonal peaks, can be accommodated by simply adding more vehicles. Conversely, when demand wanes, vehicles can be reallocated to different clusters or locations, ensuring operational flexibility and efficiency across various sites.
Q: Your plug & play technologies allow customers to operate your systems the same day they receive them. How can such quick deployments be an advantage for their operations?
A: The essence of efficiency in system integration lies in minimizing downtime, which is especially critical for customers operating in fast-paced and continuous, 24/7 environments. Quick and seamless integration directly translates to cost savings and operational continuity, which is invaluable in such demanding contexts. Time is money!
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."