Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
If there were a GQ magazine for robots, the boys in the photo above could be cover material. They're strong, flexible, and have eyes to die for. They're so lifelike that an executive of Deutsche Post DHL Group, the German transport and logistics giant testing their use, referred to one in an interview as "he" before correcting himself with a chuckle.
Deutsche Post DHL chose "Baxter" and "Sawyer" because their "humanoid faces" would increase their acceptance among its distribution center workers and make the workers feel more at ease toiling alongside them, said Denis Niezgoda, project manager, innovation and trend research, for the company's customer solutions and innovation unit. "It's a simple concept," but one that has so far proved to be effective, said Niezgoda, who oversees the pilot deployment of four robots being used to execute co-packing functions at facilities in the U.S., the U.K., and the Netherlands.
If imitation is the sincerest form of flattery, flesh-and-blood types should take the next wave of robotic design as a compliment. Robotics developers, aware that direct human-machine interaction is inevitable, are creating robots with more humanlike characteristics than ever before. Within the next five to 10 years, a large number of "collaborative robots," or "cobots," will be scooting around DCs without the markers, magnets, beacons, or tracks that guide the movements of traditional industrial robots. It will become second nature for workers to take a robot by the hand (or the wrist) and walk it through the repetitive and hazardous tasks the humans used to do.
Sophisticated elastic "actuators" implanted in a robot's joint will enable its arms to detect impending contact, and to be flexible and pliable in much the same way as a human arm. Thanks to force-sensing technology that commands robots to stop whenever they touch another object, the newfangled versions don't need to be sequestered in safety cages to avoid nasty collisions, as is the case today with industrial robots. Cobots will likely be a less costly investment than their industrial brethren, partly because they will be built more efficiently, and partly because companies can do away with all of the expensive apparatus that came with supporting an industrial robot work force.
Photo courtesy of Rethink Robotics
In a backgrounder on its website, Rethink Robotics, a Boston-based startup that built Baxter and Sawyer, said its creations "can adapt to real-world variability, change applications quickly, and perform tasks like people do." The robots can be trained in minutes, and workers can take them "by the wrist" to demonstrate how the task is done, the company said. In contrast to traditional robots that need to be programmed over many hours by an engineer or consultant, virtually anyone can quickly get up to speed on Baxter and Sawyer, the company said. (Rethink Robotics executives declined to be interviewed for this story.) Niezgoda said he was fully versed on Baxter in a day or two, and then set up Sawyer without needing to refer to the instruction manual.
NO ADVANCING ARMIES
Given concerns that advances in artificial intelligence will result in the elimination of peoples' jobs, it is natural that DC workers in relatively low-skilled occupations would see cobots as threats to their livelihood. Those worries may be overblown, however. For one, no expects an armada of cobots to land overnight at the doors of DCs. Of 900 executives surveyed by the material handling industry trade group MHI for its 2016 annual industry report, more than half said robotics use would grow significantly over the next five to 10 years, but nearly three-quarters said it would take six years or longer to introduce robotics into their operations.
Autonomous equipment manufacturers emphasized that robots are designed to perform tasks that humans don't want to do, or that they shouldn't be doing. This would free up people to handle more value-added tasks, including the programming and operation of robotics systems as well as managing the robotic fleets, they said. "You could have a force multiplier, with one person marshaling 10 [machines] as opposed to one," said Jeff Christensen, vice president of products and services for Seegrid Corp., a Pittsburgh-based maker of automated guided vehicles (AGVs).
Photo courtesy of Rethink Robotics
Aldo Zini, president and CEO of Pittsburgh-based Aethon Inc., which has sold about 500 autonomous robots under the "Tug" brand, said his machines have not led customers to displace their workers and that their use has improved the value and quality of human labor. "We're enabling people to do things they couldn't do before," Zini said. "People have not been let go. They've been redeployed and, in many cases, it's enhanced the jobs that they do."
In addition, the machines help prevent injuries by reducing the amount of heavy manual work a human has to perform, Zini said. Most Tugs are currently used in hospitals. However, Aethon has expanded into the manufacturing sector, and Zini sees the DC space as a natural extension of the company's growth plans.
Niezgoda of Deutsche Post DHL said the cobots' flexibility and ease of operation makes them ideal trainees. "We want to enable our workers to supervise the robots, to take them from one task to another, and to adjust them if something isn't working," he said. "These robots are capable of doing specific tasks, and our workers are capable of teaching them."
SOCIETAL FRICTION
While managers tout a world where people can leave boring and repetitive DC tasks to robots so they can focus on more productive and enjoyable work, some are also aware of societal friction as robots assume functions once reserved for the human worker. According to Christensen, companies need to follow a multistep checklist when integrating humans and robots in the same environment. At the core, he said, is to build trust between human workers and their automated colleagues. This includes involving employees in training and automation, bringing the product into the facility before it is deployed so workers can see how it operates and the value it delivers, publishing quantifiable results of a robot's functions and how it benefits the business, and ensuring employees have complete visibility into the machines' movements so they can coordinate schedules, among other objectives, he said.
Given the trends in fulfillment, robots are only going to proliferate in the DC. As customers order more products online and demand faster deliveries, filling those orders will place more stress on supply chains. At the same time, about 90 percent of material handling relies on manual labor, and people can't work exponentially faster. Rising labor costs and a shrinking labor pool, especially as the work force ages, only add to the challenges and the need for automated solutions such as cobots to meet them.
The good news for humans is that robotics innovation is putting a new generation of collaborative machines, and the technology they possess, in the hands of people who can discover new and stimulating skills in training them. The mission for those on the vanguard of this change is to persuade their fellow humans that the outcome of the human-robot mating dance will be a good one. As the 2016 MHI report states, "While it is clear that robotics and automation will have a significant impact on supply chains within the next decade, their adoption will hinge as much on public perception as [on] the savings they create."
Parcel carrier and logistics provider UPS Inc. has acquired the German company Frigo-Trans and its sister company BPL, which provide complex healthcare logistics solutions across Europe, the Atlanta-based firm said this week.
According to UPS, the move extends its UPS Healthcare division’s ability to offer end-to-end capabilities for its customers, who increasingly need temperature-controlled and time-critical logistics solutions globally.
UPS Healthcare has 17 million square feet of cGMP and GDP-compliant healthcare distribution space globally, supporting services such as inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics.
More specifically, UPS Healthcare said that the acquisitions align with its broader mission to provide end-to-end logistics for temperature-sensitive healthcare products, including biologics, specialty pharmaceuticals, and personalized medicine. With 80% of pharmaceutical products in Europe requiring temperature-controlled transportation, investments like these ensure UPS Healthcare remains at the forefront of innovation in the $82 billion complex healthcare logistics market, the company said.
Additionally, Frigo-Trans' presence in Germany—the world's fourth-largest healthcare manufacturing market—strengthens UPS's foothold and enhances its support for critical intra-Germany operations. Frigo-Trans’ network includes temperature-controlled warehousing ranging from cryopreservation (-196°C) to ambient (+15° to +25°C) as well as Pan-European cold chain transportation. And BPL provides logistics solutions including time-critical freight forwarding capabilities.
Terms of the deal were not disclosed. But it fits into UPS' long term strategy to double its healthcare revenue from $10 billion in 2023 to $20 billion by 2026. To get there, it has also made previous acquisitions of companies like Bomi and MNX. And UPS recently expanded its temperature-controlled fleet in France, Italy, the Netherlands, and Hungary.
"Healthcare customers increasingly demand precision, reliability, and adaptability—qualities that are critical for the future of biologics and personalized medicine. The Frigo-Trans and BPL acquisitions allow us to offer unmatched service across Europe, making logistics a competitive advantage for our pharma partners," says John Bolla, President, UPS Healthcare.
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
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.
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.
He replaces Loren Swakow, the company’s president for the past eight years, who built a reputation for providing innovative and high-performance material handling solutions, Noblelift North America said.
Pedriana had previously served as chief marketing officer at Big Joe Forklifts, where he led the development of products like the Joey series of access vehicles and their cobot pallet truck concept.
According to the company, Noblelift North America sells its material handling equipment in more than 100 countries, including a catalog of products such as electric pallet trucks, sit-down forklifts, rough terrain forklifts, narrow aisle forklifts, walkie-stackers, order pickers, electric pallet trucks, scissor lifts, tuggers/tow tractors, scrubbers, sweepers, automated guided vehicles (AGV’s), lift tables, and manual pallet jacks.
"As part of Noblelift’s focus on delivering exceptional customer experiences, we are excited to have Bill Pedriana join us in this pivotal leadership role," Wendy Mao, CEO at Noblelift Intelligent Equipment Co. Ltd., the China-based parent company of Noblelift North America, said in a release. “His passion for the industry, proven ability to execute innovative strategies, and dedication to customer satisfaction make him the perfect leader to guide Noblelift into our next phase of growth.”