Pet products supplier Hagen Group boosts order picking productivity with a little help from 6 River Systems’ autonomous mobile robots and SVT Robotics’ software.
Sometimes the most difficult part of implementing automation is getting it to play nicely with your other technology solutions.
Hagen Group, a multinational manufacturer and distributor of pet products, is a case in point. In a bid to reduce its dependence on temporary labor at its Las Vegas distribution facility, Hagen had decided to implement 6 River Systems’ (6RS) “Chuck” autonomous mobile robots (AMRs)—a solution it hoped would prove easy to install as it would require no major changes to the DC’s layout. However, when Hagen tried to integrate the robots with its existing warehouse management system (WMS), it ran into a problem: The WMS lacked the built-in application programming interface (API) needed to leverage the AMRs’ full capabilities.
UPGRADING INFRASTRUCTURE
Hagen explored a number of options for solving this problem, but most of them proved unsatisfactory. For instance, the company could have integrated an API into its existing WMS or upgraded to an entirely new WMS—but both of those options would have been quite costly. Alternatively, it could have asked 6RS to change the AMRs’ standard APIs to integrate with the company’s existing WMS, but that would have reduced the AMRs’ functionality and meant additional costs in the future.
The fourth choice proved to be the most promising for Hagen—incorporating SVT Robotics’ Softbot platform. This tech-agnostic software program would be able to take Hagen’s WMS flat files (simple data files presented in table form), standardize them, and then orchestrate orders for the Chuck AMRs. The solution would require no changes to the 6RS APIs, and Hagen wouldn’t have to sacrifice any AMR functionality. Furthermore, when Hagen is ready to upgrade its WMS to a full API version, SVT Robotics will be able to seamlessly switch the AMRs over to the new system in a matter of hours.
With the Softbot platform, implementation proved to be relatively painless, according to the two companies. The few hiccups that arose during the standard integration testing shortly before the system went live were promptly resolved by SVT’s deployment team.
SOLID RESULTS
By all accounts, the integration has been an unqualified success. “The biggest milestone is that our AMRs are communicating with our WMS,” Arash Shahreva, director of operations at Hagen Group, said in a case study. “That is a bridge that was not existent before, and SVT was able to create this custom bridge for us [that] allows [for communication] between our WMS and 6 River Systems.”
The benefits didn’t end there. For instance, once the robots went live, Hagen saw a whopping 295% increase in order picking productivity. On top of that, it has seen a significant reduction in the time needed to train new-hires and a marked improvement in employee retention, as warehouse associates have found working with the AMRs to be less physically taxing than their previous jobs.
And finally, when the time comes for Hagen to make further upgrades—say, transitioning to a new WMS or implementing Chucks at additional facilities—the process promises to be quick and easy, as the integration groundwork is already in place.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.