An inside look at the robotic revolution — and what it all means for you (Part II)
How is technology helping fulfillment operations boost throughput and cope with the ongoing labor shortage? Experts share their insights in this special roundtable discussion.
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.
Robotics and automation have never been hotter. And it’s not hard to see why. Squeezed by the ongoing e-commerce boom and a nationwide labor crunch, companies are finding they need these technologies to boost fulfillment speed and accuracy at a time when adding people is no longer an option.
To learn more about the current state of the robotics market as well as what lies ahead, DC Velocity Group Editorial Director David Maloney gathered experts from companies that participated in DC Velocity’s Robotics Forum at the recent Modex show for a freewheeling discussion. Among the topics we address in Part Two (Part One ran in our April issue) are the role of “cobots” in fulfillment operations, what manufacturers are doing to extend system run times, and what tomorrow’s robots will look like.
Roundtable Participants:
Bruce Bleikamp, Director of Product Management, MHS
Brian Reinhart, Vice President of Sales, HAI Robotics
Saif Sabti, Vice President of Business Development and Strategy, SSI Schaefer
Q: What do you consider to be the most significant advances in robotics technology within the past five years?
Lior Elazary – inVia: Robotics technology has come a long way in the last five years. Robotic systems are getting more intelligent and adaptive, and the technology is becoming more precise, allowing for more tasks to be automated. At the same time, ongoing improvements in battery and motor technology have driven costs down, allowing for the adoption of robotic systems that provide a very strong ROI (return on investment) for warehouse operators. As a result, robotics can now be implemented across companies of all sizes.
Erik Nieves – Plus One Robotics: Computer vision is what’s driven adoption in the last five years. It’s what didn’t exist before—the fact that robots can deal with less-than-structured environments and still be successful. We as humans have 3D vision, two hands, and coordination. So, if robots are going to be successful in these applications, then it’s going to take that same sort of capacity in 3D vision—being able to sort, see, recognize, classify, and find objects in front of you. [This capability] is allowing for new applications for automation that would otherwise not be possible.
Fergal Glynn – 6 River Systems: Robotics have become smarter, more flexible, and more collaborative. Software advancements, coupled with AI (artificial intelligence) and machine learning, have made it easier to leverage operational data for real-time optimization and continuous improvement. Along with that, robotics hardware has evolved to be more nimble and adaptable, making robots easier to deploy across a wide range of environments.
Combined, those advancements have made it easier for robots to not only work alongside people, but also to help make those people and operations more efficient, productive, and safe.
Dan Hanrahan – Numina Group: AMRs have gone from a novelty to a proven warehouse automation technology. Customers are interested in exploring the use of robotic technologies due to the reliability [these systems have demonstrated in] use cases at Amazon and other large corporations, and now, at numerous small businesses.
Josh Cloer – Mujin: Over the past five years, robots have been given a new lens with which they can view the world. Machine vision has been around for a long time, but the latest technology—the technology that has emerged in the last five years—is certainly empowering robots to do more than ever before. The ability to digitize a large area with a large depth of field has given robots the ability to manage tasks that were previously very difficult and costly. 3D vision is one of the most critical advancements in robotics technologies because it is allowing robotics to take on some of the more variable tasks within logistics environments.
Q: What types of robots are currently in most demand for warehouse applications?
Brian Reinhart – HAI: All of them. Jokes aside, it really is any and all types of robots and really any type of automation that can help ease the burden of labor. The current labor shortages, taken together with increased customer demands regarding order time and accuracy, have placed immense pressure on warehouses and DCs. Traditional robots, advanced robots, industrial robots, and collaborative robots are all in high demand.
Lior Elazary – inVia: The impact of Covid-19 on consumer behavior, specifically the e-commerce boom, has made streamlining fulfillment center operations a top priority and has fueled the demand for goods-to-person automation. Smaller e-commerce brands, especially, feel the pressure to deliver quickly and on time to keep up with larger retailers. We see more and more 3PLs who handle their fulfillment needs turning to automation solutions. Autonomous mobile robots (AMRs) help solve today’s warehousing challenges. They are small and nimble and operate nonstop to fulfill orders with machine precision.
Carlos Fernández – AutoStore: Goods-to-person robotics has reached a level of maturity, creating high demand across all segments. That’s why there are many solutions and integrators on the market, and why delivery times to end-customers remain high. Demand for AMRs is still on the rise as well. This is definitely a trend that will continue due to the low entry barriers.
Fergal Glynn – 6 River Systems: Autonomous mobile robots (AMRs) are in high demand due to their fast return on investment and easy implementation and integration into existing warehouse layouts. They require no costly or time-consuming warehouse infrastructure updates. In addition to the benefits of increased productivity, ease of associate training, and growing influence on associate recruiting and retention, AMRs also introduce unprecedented flexibility. Robots can be rented to support seasonal peaks and can be relocated within or across fulfillment locations to meet spikes in demand.
Bruce Bleikamp – MHS: Six-axis robots can deliver productive labor-saving solutions for picking parts, cases, or layers. Linking robotic operations across the distribution center is possible with low-cost AMRs, further enhancing ROI and labor savings, and making wider adoption of robots possible. An example is an application where robotic palletizing is linked to a common stretch wrapper using AMRs.
Dan Hanrahan – Numina Group: We are seeing an interest in robotic automation for the following applications: picking, order movement, product transport, increasing storage density, and automated sortation. As an independent systems integrator, we look at what blend of technologies can generate a two- to three-year ROI through labor reduction and efficiency gains, and also provide a solution that is modular and scalable. AMR-based solutions check all the boxes. Robotics solutions are easily adapted to changing business requirements and can be picked up and moved much more easily than conveyor if a customer outgrows its facility.
Josh Cloer – Mujin: The biggest demand we’re seeing is for robotic palletizing and depalletizing systems that can manage variability and mixed-case scenarios, while collaborating with other automated systems to really improve operations. There’s also a huge need to automate the order fulfillment process for both e-commerce and traditional retail operations.
Q: How has the use of collaborative robots (cobots) affected productivity within distribution facilities?
Carlos Fernández – AutoStore: Human beings are and will continue to be a vital part of warehouse operations. In order to have an efficient working environment for both, people and bots need to collaborate well, or at least co-exist and adapt to each other. The benefit in terms of productivity is that bots can take on the tedious and repetitive tasks, so humans can focus on optimizing processes or other more complex duties. For this reason, bots also enable organizations to achieve much higher productivity while providing a better work environment for employees, leading to higher employee satisfaction and retention rates.
Erik Nieves – Plus One Robotics: Collaborative robots started out as robots that were safe to be around. That’s great—they are important and have a role to play in warehouses and distribution centers. But they are also limited.
Then the operations team says, “Hey, can it go any faster?” The answer is, “Yes, it can, if you take it out and put an industrial robot in its place.” That means you’ll need to put up a cage or a safety scanner of some type, but you will get your [target throughput] rates.
So, do collaborative robots have a role to play? Absolutely. There will be some instances where they are the best answer long term for certain applications. But I would argue that that’s the minority of cases. Effectively, cobots are a gateway drug to industrial robots in the warehouse.
Saif Sabti – SSI Schaefer: With cobots, we’re basically looking at robotic components that were meant to boost labor productivity within a distribution center. However, this still needs work. These still need to be heavily guarded and require longer training periods.
I see this perhaps going a bit further with more innovation—but for today, analysis suggests that productivity actually goes down with cobots.
Fergal Glynn – 6 River Systems: Cobots augment the work of associates, helping them to work more efficiently and accurately, while eliminating much of the work that can take a physical toll on humans. Warehouse associates push and pull a lot of weight across long distances. That impacts productivity, health and safety, and ultimately an operation’s ability to quickly ramp up to meet demand.
Josh Cloer – Mujin: Collaborative robots are a great tool for the right applications. For instance, cobots make sense anywhere that is space-constrained or where an application can be partially automated but still requires the human touch. As with any application, it is about finding the right tool for the job, and warehouse managers have more options today than ever before.
Q: What is being done to make robots easier to repair and to extend their uptime?
Brian Reinhart – HAI: Like any technology, as it evolves, it becomes more durable and predictable. Single points of failure have been engineered out of most technology platforms by now. On-board diagnostics can help predict when an electrical or mechanical component may be nearing failure. Robotic equipment has moved from a reactive maintenance and repair position to a proactive one, where we identify and resolve issues before they occur.
Lior Elazary – inVia: Advances in smart systems allow for physical calibration via software so that the physical system doesn’t need to be complex or have extremely tight tolerances.
Saif Sabti – SSI Schaefer: Battery life is the biggest issue with uptime. As this technology improves, uptime will also increase. As for repair, I think we’re looking at more preventive maintenance from data history. The more information and historical data we have, the more operations and customer service will know when something is about to go offline. This will help with planning maintenance and avoiding lost productivity.
Fergal Glynn – 6 River Systems: Cloud-based software supports both repair and uptime with warehouse and fulfillment robotics. Through software-based insights, you can monitor activity of the robot for anomalies, more easily diagnose issues, and proactively address maintenance before it impacts your operation. Specific to uptime, a robot can also be configured to automatically seek out a charger when its battery hits a certain level and then auto-charge before being deployed back out to the warehouse floor.
Bruce Bleikamp – MHS: Good system design from the early stages of a project can significantly improve system uptime. Advancements have been made with item recognition and the algorithms that are used for both item pick and placement strategies. The use of item dimensional data, coupled with intelligent algorithms that allow a more “dynamic” approach to grasping cases or items, allows for error recovery in ways previously not available.
Dan Hanrahan – Numina Group: Built-in on-board diagnostics and quick disconnect wiring harnesses with modular components are becoming a prerequisite for customers. AMRs need to have easily swappable components that can be serviced by an in-house technician or a local forklift dealer.
Q: What will robotics look like by the end of the decade?
Josh Cloer – Mujin: By 2030, robotics will no longer need to be programmed for each application. An end-user or integrator can simply choose the type of application and the appropriate hardware, and build the robot cell. From there, giving the robotics platform high-level goals and targets will be enough to deploy the system with production-level reliability.
The trends in interoperability will allow for robot arms and auxiliary material handling solutions to be integrated seamlessly without the need for bespoke software integrations, and fully autonomous warehouses and distribution centers will become commonplace.
Saif Sabti – SSI Schaefer: We’re already starting to see concepts of partial dark stores. While we’re still a few years away from a complete dark store, I believe we’ll eventually have the same for distribution centers—or at least, we’ll have “one to many” operations. Today, if a retailer or manufacturer has multiple distribution locations to run, it must have labor to support each location. I think within the next decade, we’re looking at having one centralized labor pool that will help run everything automatically from one location. There may be a very streamlined labor pool to deal with maintenance, but for the most part, you’re looking at the majority of items being picked, packed, shipped, and validated remotely.
Brian Reinhart – HAI: When a technology is evolving as quickly as robotics is, projection is always difficult. Some things to look for will be the combination of industrial and collaborative platforms, the adoption and evolution of AI, and improvements in self-monitoring and diagnostics aboard the platforms. One thing is for sure: Whichever direction the technology heads in, it will result in a reduction in labor [requirements] and cost, and improvements in performance.
Carlos Fernández – AutoStore: Robots will still keep certain roles, meaning there won’t be human-like robots capable of doing every possible job in a warehouse. But they’ll be a lot better at the tasks they’re designed to do and will be more specialized. Advanced AI will also help these technologies make better decisions.
Bruce Bleikamp – MHS: They’ll be better and possibly faster, and they’ll fit into more applications. The big changes will be in the tooling and controls surrounding the robot. We’ll see increased adoption of robots simply because of labor shortages.
We will also see robots with expanded roles in parts and case picking. We will see robots packing boxes for customer orders, including closing and labeling the boxes. So, we will see new roles, much broader application across existing roles, and adoption by more clients that at one time felt automation was only for the big companies. But it’s really for everybody.
Erik Nieves – Plus One Robotics: Culturally, we’re going to be past the whole “robots versus jobs” argument and the “Terminator” pop-culture view of robots by that time. Let’s be clear that this is an American phenomenon. If you go to Japan or Korea, nobody is afraid of robots—in part, because from the time you were a little kid, you’ve grown up with “robot boy.” He’s your hero; he’s your friend.
We grew up with Terminator. So, culturally we have a different view that’s also a generational thing. That’s going to be over and done with in 10 years, and that means we’re going to be deploying robots at a scale that’s dwarfing anything we see today.
“The past year has been unprecedented, with extreme weather events, heightened geopolitical tension and cybercrime destabilizing supply chains throughout the world. Navigating this year’s looming risks to build a secure supply network has never been more critical,” Corey Rhodes, CEO of Everstream Analytics, said in the firm’s “2025 Annual Risk Report.”
“While some risks are unavoidable, early notice and swift action through a combination of planning, deep monitoring, and mitigation can save inventory and lives in 2025,” Rhodes said.
In its report, Everstream ranked the five categories by a “risk score metric” to help global supply chain leaders prioritize planning and mitigation efforts for coping with them. They include:
Drowning in Climate Change – 90% Risk Score. Driven by shifting climate patterns and record-high temperatures, extreme weather events are a dominant risk to the supply chain due to concerns such as flooding and elevated ocean temperatures.
Geopolitical Instability with Increased Tariff Risk – 80% Risk Score. These threats could disrupt trade networks and impact economies worldwide, including logistics, transportation, and manufacturing industries. The following major geopolitical events are likely to impact global trade: Red Sea disruptions, Russia-Ukraine conflict, Taiwan trade risks, Middle East tensions, South China Sea disputes, and proposed tariff increases.
More Backdoors for Cybercrime – 75% Risk Score. Supply chain leaders face escalating cybersecurity risks in 2025, driven by the growing reliance on AI and cloud computing within supply chains, the proliferation of IoT-connected devices, vulnerabilities in sub-tier supply chains, and a disproportionate impact on third-party logistics providers (3PLs) and the electronics industry.
Rare Metals and Minerals on Lockdown – 65% Risk Score. Between rising regulations, new tariffs, and long-term or exclusive contracts, rare minerals and metals will be harder than ever, and more expensive, to obtain.
Crackdown on Forced Labor – 60% Risk Score. A growing crackdown on forced labor across industries will increase pressure on companies who are facing scrutiny to manage and eliminate suppliers violating human rights. Anticipated risks in 2025 include a push for alternative suppliers, a cascade of legislation to address lax forced labor issues, challenges for agri-food products such as palm oil and vanilla.
That number is low compared to widespread unemployment in the transportation sector which reached its highest level during the COVID-19 pandemic at 15.7% in both May 2020 and July 2020. But it is slightly above the most recent pre-pandemic rate for the sector, which was 2.8% in December 2019, the BTS said.
For broader context, the nation’s overall unemployment rate for all sectors rose slightly in December, increasing 0.3 percentage points from December 2023 to 3.8%.
On a seasonally adjusted basis, employment in the transportation and warehousing sector rose to 6,630,200 people in December 2024 — up 0.1% from the previous month and up 1.7% from December 2023. Employment in transportation and warehousing grew 15.1% in December 2024 from the pre-pandemic December 2019 level of 5,760,300 people.
The largest portion of those workers was in warehousing and storage, followed by truck transportation, according to a breakout of the total figures into separate modes (seasonally adjusted):
Warehousing and storage rose to 1,770,300 in December 2024 — up 0.1% from the previous month and up 0.2% from December 2023.
Truck transportation fell to 1,545,900 in December 2024 — down 0.1% from the previous month and down 0.4% from December 2023.
Air transportation rose to 578,000 in December 2024 — up 0.4% from the previous month and up 1.4% from December 2023.
Transit and ground passenger transportation rose to 456,000 in December 2024 — up 0.3% from the previous month and up 5.7% from December 2023.
Rail transportation remained virtually unchanged in December 2024 at 150,300 from the previous month but down 1.8% from December 2023.
Water transportation rose to 74,300 in December 2024 — up 0.1% from the previous month and up 4.8% from December 2023.
Pipeline transportation rose to 55,000 in December 2024 — up 0.5% from the previous month and up 6.2% from December 2023.
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.