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.
Research, development, and testing of large-cargo aerial drones—those capable of carrying more than just a few pounds of freight—continues around the world, but one European company is close to making commercial delivery operations a reality.
Cargo drone airline Dronamics will provide remotely controlled drone deliveries with its Cessna-sized Black Swan aircraft for Qatar Airways Cargo, in a partnership the companies announced late last year. The deal expands the reach of both airlines and furthers Dronamics’ goal of providing middle-mile logistics service that company leaders say not only speeds delivery and reduces costs but also gives remote and underserved locations around the world access to more frequent deliveries.
“[We] connect smaller places that may not have direct transport links,” says Severina Grozeva, global communications director for London-based Dronamics, which was founded by two brothers from Bulgaria in 2014 and maintains offices in the country’s capital, Sofia. Grozeva explains that the drones can land in small, unpaved areas that are unreachable by larger aircraft. “[The drones] will land at a small airport, regional airport, airfields. Eventually, we have plans for them to land near [warehouses] and manufacturing facilities.”
She adds that the drones can get a “meaningful” amount of cargo to remote locations for subsequent delivery to homes and businesses, explaining that the middle-mile drones deliver cargo “close to the business and close to the consumer, but not in your backyard.”
Dronamics expects to begin delivering for Qatar Airways Cargo later this year—first in Greece, where they will connect Athens with customers in the country’s northern industrial area as well as the islands in the south.
COVERING MORE DISTANCE
To date, most of the headway in drone delivery has been made in last-mile logistics, delivering small orders of retail merchandise or medicine to customers’ homes. Walmart has made strides in this area, announcing in January an expansion of its drone delivery program in Texas; the service will reach nearly 2 million households in the Dallas-Fort Worth area by the end of this year. Last-mile drones have also gotten traction in health care, delivering medicines, blood samples, and vaccines to medical facilities around the world. Autonomous delivery company Ziplineexpanded its work in that area in February, in a partnership with WellSpan Health in Pennsylvania. In both cases, the solutions offer small autonomous or remotely controlled airborne vehicles capable of delivering a few pounds of cargo up to a few hundred miles.
Dronamics’ planned service is different in size and scope. The Black Swan middle-mile drone can deliver 770 pounds of cargo up to 1,550 miles. Its fuselage is maximized for freight—it has no cockpit, giving the drone a maximum storage capacity of 125 cubic feet. Essentially, it holds about the same amount as a small delivery van, Grozeva explains. Technicians control the drones via a remote cockpit. The system requires a short runway for takeoff and landing, about 1,300 feet—paved or not. The idea is that the service will eliminate the need to use multiple trucks and vans to transport freight, replacing them with a service that can get the cargo closer to the consumer, faster.
Dronamics says its drones can deliver cargo up to 80% faster, 50% cheaper, and with up to 60% lower emissions than traditional modes of transportation, including air freight. The Black Swan runs on a conventional engine, but its frame and size help make it more fuel-efficient, Grozeva says, adding that the company is working toward using sustainable fuels, including biofuel, hydrogen, and synthetic-based formulations.
The company has been testing its drones for a few years and launched its first full-scale flight in 2023. Early customers include freight forwarders and logistics service providers— Germany’s Hellmann Worldwide Logistics and global package delivery service DHL are two examples—but Grozeva says Dronamics also plans to work directly with companies and brands that move large volumes of cargo. The agreement with Qatar Airways Cargo is its first partnership with an international airline—and Dronamics claims it’s an industry first as well.
DEMOCRATIZING DELIVERY
Air freight represents a small portion of the total cargo moved around the world annually, but leaders at Dronamics say middle-mile cargo drones will help broaden that market. On top of that, they say middle-mile drones can bring next-day delivery to more people in more places around the world, which will benefit those in less-developed regions as well as those in remote areas—like the Greek islands, where many businesses and consumers receive only weekly deliveries of essential goods, via ferry, much of the year.
“There are a lot of geographies like that,” Grozeva explains. “People say to us, ‘This is a great solution for the less-developed world’ … but there is a lot of opportunity in the developed world as well.”
Dronamics refers to its business proposition as “enabling same-day delivery to everyone, everywhere.”
Although Dronamics’ work has focused on Europe to date, the company is currently testing its service through a DHL partnership in Australia and eventually plans to break into the U.S. market.
Market trends may help make those goals a reality. The delivery drone market is expected to grow considerably over the next several years, by some estimates reaching a compound annual growth rate (CAGR) of around 40% by 2030—driven largely by demand for faster, more sustainable delivery as well as advances in drone technology. Small, last-mile delivery drones will make up the bulk of the growth, but drones that can transport heavier loads are making strides as well. A 2023 report from Allied Market Research points to the integration of cargo drones into middle-mile logistics as a key trend moving forward.
“Improvements in battery technology, sensors, machine learning algorithms, and materials have enhanced the capability of cargo drones,” according to the report. “With longer flight times, heavier payloads, and greater autonomy, cargo drones have become more efficient and effective than traditional delivery methods.”
Leaders at Dronamics agree.
“[This is] still considered a niche market,” Grozeva says, emphasizing the long-term potential of middle-mile drones. “But it’s interesting in terms of what it can do to help businesses become more competitive.”
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]."