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.
Technology continues to transform the supply chain, especially on the warehouse floor, where innovations in material handling equipment are making it easier for workers to accomplish the daily tasks of moving inventory into, out of, and around facilities. Computer-enabled vision systems—which allow equipment and devices to essentially see, observe, and even understand their surroundings—are a key part of the trend. They are a central component in the robotic equipment that is quickly becoming a staple in warehouses across the country, and they can be applied in other ways to improve warehouse processes as well.
Computer-enabled vision systems are also becoming one of the industry’s hottest growth sectors. The market for computer vision systems is expected to increase nearly 20% between 2023 and 2030, according to recent data from market research firm Grand View Research, for example. And the development of vision systems powered by artificial intelligence (AI) is among the top eight strategic supply chain technology trends for 2024, according to Gartner research released earlier this year. These are advanced systems that combine 3D cameras, computer vision software, and AI pattern recognition technologies to autonomously capture, interpret, and make inferences based on the unstructured images the vision systems see in real time.
Those advances are translating into real-world results. In one recent example, industry technology provider Vimaan has developed an automated cycle-counting solution that combines computer vision and machine learning (ML) algorithms to speed and streamline inventory management in the warehouse. The system is helping warehouse managers get a better handle on the important but difficult task of regular cycle counting, with the end goal of driving higher inventory accuracy overall. Here’s how.
CYCLE COUNTING MADE EASIER
Vimaan is using its expertise in computer vision and AI to help third-party logistics service providers (3PLs), retailers, and others get a more accurate view of what’s in their warehouse. Once focused on using drone technology for cycle counting—which is the process of regularly auditing inventory to ensure recordkeeping accuracy—the company has morphed its drone solution into a new offering that company leaders say provides a better way to manage and track inventory.
“Our approach and experience with cycle counting has allowed us to gain significant insight into the shortcomings of using drones in the warehouse,” explains KG Ganapathi, Vimaan’s founder and CEO. He cites limited battery life and the inherent risk in having objects flying around warehouse workers as some of the main drawbacks.
The company’s StorTrack solution replaces the drone with a standalone hardware module (it looks like a pallet) that attaches to a piece of material handling equipment already in use at the warehouse—like a forklift, an automated guided vehicle (AGV), or even the cranes used in automated storage and retrieval systems (AS/RS)—and then captures images of the goods within the racks of a particular aisle or storage location, even densely packed ones. The images are then automatically uploaded to the facility’s warehouse management system (WMS), where they can be accessed for real-time analysis or stored in photo archives for future use.
The technology inside the StorTrack module was developed for Vimaan’s drone-based solution and works in much the same way, albeit with some improvements, according to company leaders. It combines computer vision and ML algorithms to capture and analyze data from the labels on pallets, cases, and boxes of goods. The system can read barcode data as well as label text, inspect for damage, and even identify open bays, allowing companies to maximize available storage space. The system stitches together multiple images for a complete view of the racks, pallets, and packages in the facility—creating a kind of “Google street view” of the entire warehouse, according to Ganapathi. This allows warehouse workers to easily zoom, pan, and scroll through images to spot and resolve inventory and storage utilization issues, which can improve inventory accuracy and give managers more control over stored goods.
“Warehouse managers have expressed that they would benefit from more contextual imagery that displays other goods found on a shared or nearby rack, or even on shared pallets,” Ganapathi says. “So [we] developed a solution to make that possible.”
Ganapathi says the system is easy to use as well. Warehouse associates simply pick up the hardware module with a forklift or similar piece of handling equipment, set out on their predefined path (as determined by the system’s user interface), and then follow instructions to complete the cycle count. As the module is carried down an aisle, lights illuminate the stored inventory, and the computer vision-powered camera suite captures the barcode data, reads label text, inspects for damage or problems, and even identifies inventory that might be in the wrong location.
FROM ONE WEEK TO ONE HOUR
As for potential applications, Craig Dowley, Vimaan’s vice president of marketing, says the system is ideal for any customer that requires thorough and fast cycle counting and that it is especially well suited for warehouses that store dry grocery items, high-volume industrial parts, home furnishings, medical devices, electronics, and other consumer goods.
Georgia-based luxury rug manufacturer Jaipur Living is one such customer: The company significantly improved cycle counting efficiency after implementing the StorTrack system, company leaders said in a case study on the project.
“We experienced a 40x improvement in time to scan our inventory,” said Ryan Schmid, Jaipur Living’s distribution center operation manager. “What used to take us a week to scan, now takes an hour. This has [led to] a dramatic improvement in the way we now operate in the warehouse. Before … we would have to break the aisle into sections and shut the area down for several hours. Now we get done with an entire aisle and open it up after one hour, allowing our team to have greater access to our inventory.”
Accuracy has improved as well.
“I can say without a doubt that StorTrack has almost doubled our inventory accuracy,” said Schmid, who reported that bin accuracy improved to 95% from an average of 50% within six weeks of implementing the system. “And it continues to improve each week. Additionally, our overall accuracy has improved from the low- to mid-70s to consistently reporting in the mid- to high-90s.Anybody responsible for inventory management understands the impact this will have on day-to-day operations.”
Such applications are likely to become more commonplace in the warehouse, and elsewhere, as the technology continues to advance. The Grand View research, for one, points to a widening scope for vision systems across a broad range of industries.
Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.
In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.
The five trends range from the promise of agentic AI to the struggle over which C-suite role should oversee data and AI responsibilities. At a glance, they reveal that:
Leaders will grapple with both the promise and hype around agentic AI. Agentic AI—which handles tasks independently—is on the rise, in the form of generative AI bots that can perform some content-creation tasks. But the authors say it will be a while before such tools can handle major tasks—like make a travel reservation or conduct a banking transaction.
The time has come to measure results from generative AI experiments. The authors say very few companies are carefully measuring productivity gains from AI projects—particularly when it comes to figuring out what their knowledge-based workers are doing with the freed-up time those projects provide. Doing so is vital to profiting from AI investments.
The reality about data-driven culture sets in. The authors found that 92% of survey respondents feel that cultural and change management challenges are the primary barriers to becoming data- and AI-driven—indicating that the shift to AI is about much more than just the technology.
Unstructured data is important again. The ability to apply Generative AI tools to manage unstructured data—such as text, images, and video—is putting a renewed focus on getting all that data into shape, which takes a whole lot of human effort. As the authors explain “organizations need to pick the best examples of each document type, tag or graph the content, and get it loaded into the system.” And many companies simply aren’t there yet.
Who should run data and AI? Expect continued struggle. Should these roles be concentrated on the business or tech side of the organization? Opinions differ, and as the roles themselves continue to evolve, the authors say companies should expect to continue to wrestle with responsibilities and reporting structures.
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The overall national industrial real estate vacancy rate edged higher in the fourth quarter, although it still remains well below pre-pandemic levels, according to an analysis by Cushman & Wakefield.
Vacancy rates shrunk during the pandemic to historically low levels as e-commerce sales—and demand for warehouse space—boomed in response to massive numbers of people working and living from home. That frantic pace is now cooling off but real estate demand remains elevated from a long-term perspective.
“We've witnessed an uptick among firms looking to lease larger buildings to support their omnichannel fulfillment strategies and maintain inventory for their e-commerce, wholesale, and retail stock. This trend is not just about space, but about efficiency and customer satisfaction,” Jason Tolliver, President, Logistics & Industrial Services, said in a release. “Meanwhile, we're also seeing a flurry of activity to support forward-deployed stock models, a strategy that keeps products closer to the market they serve and where customers order them, promising quicker deliveries and happier customers.“
The latest figures show that industrial vacancy is likely nearing its peak for this cooling cycle in the coming quarters, Cushman & Wakefield analysts said.
Compared to the third quarter, the vacancy rate climbed 20 basis points to 6.7%, but that level was still 30 basis points below the 10-year, pre-pandemic average. Likewise, overall net absorption in the fourth quarter—a term for the amount of newly developed property leased by clients—measured 36.8 million square feet, up from the 33.3 million square feet recorded in the third quarter, but down 20% on a year-over-year basis.
In step with those statistics, real estate developers slowed their plans to erect more buildings. New construction deliveries continued to decelerate for the second straight quarter. Just 85.3 million square feet of new industrial product was completed in the fourth quarter, down 8% quarter-over-quarter and 48% versus one year ago.
Likewise, only four geographic markets saw more than 20 million square feet of completions year-to-date, compared to 10 markets in 2023. Meanwhile, as construction starts remained tempered overall, the under-development pipeline has continued to thin out, dropping by 36% annually to its lowest level (290.5 million square feet) since the third quarter of 2018.
Despite the dip in demand last quarter, the market for industrial space remains relatively healthy, Cushman & Wakefield said.
“After a year of hesitancy, logistics is entering a new, sustained growth phase,” Tolliver said. “Corporate capital is being deployed to optimize supply chains, diversify networks, and minimize potential risks. What's particularly encouraging is the proactive approach of retailers, wholesalers, and 3PLs, who are not just reacting to the market, but shaping it. 2025 will be a year characterized by this bias for action.”
Under terms of the deal, Sick and Endress+Hauser will each hold 50% of a joint venture called "Endress+Hauser SICK GmbH+Co. KG," which will strengthen the development and production of analyzer and gas flow meter technologies. According to Sick, its gas flow meters make it possible to switch to low-emission and non-fossil energy sources, for example, and the process analyzers allow reliable monitoring of emissions.
As part of the partnership, the product solutions manufactured together will now be marketed by Endress+Hauser, allowing customers to use a broader product portfolio distributed from a single source via that company’s global sales centers.
Under terms of the contract between the two companies—which was signed in the summer of 2024— around 800 Sick employees located in 42 countries will transfer to Endress+Hauser, including workers in the global sales and service units of Sick’s “Cleaner Industries” division.
“This partnership is a perfect match,” Peter Selders, CEO of the Endress+Hauser Group, said in a release. “It creates new opportunities for growth and development, particularly in the sustainable transformation of the process industry. By joining forces, we offer added value to our customers. Our combined efforts will make us faster and ultimately more successful than if we acted alone. In this case, one and one equals more than two.”
According to Sick, the move means that its current customers will continue to find familiar Sick contacts available at Endress+Hauser for consulting, sales, and service of process automation solutions. The company says this approach allows it to focus on its core business of factory and logistics automation to meet global demand for automation and digitalization.
Sick says its core business has always been in factory and logistics automation, which accounts for more than 80% of sales, and this area remains unaffected by the new joint venture. In Sick’s view, automation is crucial for industrial companies to secure their productivity despite limited resources. And Sick’s sensor solutions are a critical part of industrial automation, which increases productivity through artificial intelligence and the digital networking of production and supply chains.