In our continuing series of discussions with top supply-chain company executives, Chad Hartley discusses his company’s solutions for product movement, sustainability, and market investments for the new year.
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.
Chad Hartley has had a long and successful career in industrial sales and marketing. He is currently senior vice president and general manager, conveyance solutions at Regal Rexnord, a provider of power transmission and motion control products, particularly for conveyor systems. Hartley originally joined Regal Rexnord in February 2015 and worked in various positions before assuming his current role last January. Prior to that, he spent 14 years with Emerson in a variety of supply chain jobs. Hartley holds an undergraduate degree from Wright State University in Ohio and an MBA from the University of Dayton.
Q: HOW WOULD YOU DESCRIBE THE CURRENT STATE OF THE SUPPLY CHAIN?
A: While still not back to pre-pandemic norms, the supply chain is stabilizing after a few years of unprecedented challenges. Automation is becoming extremely important. Due to supply chain demands, coupled with workforce retention challenges, we’re seeing more of an openness to adopting automated conveyors [and] introducing automation through collaborative robots. Speed and efficiency, along with reliability of the systems, is what it’s all about.
Q: PEOPLE MAY NOT BE FAMILIAR WITH THE PRODUCTS OFFERED BY REGAL REXNORD. HOW WOULD YOU SUMMARIZE THE ROLE YOUR COMPANY PLAYS IN THE INDUSTRY?
A: Our purpose statement says a lot about how we think about our place in the world: Regal Rexnord Creates a Better Tomorrow with sustainable solutions that power, transmit, and control motion. That is the essence of everything we do.
Q: WAREHOUSES ARE TRYING TO REDUCE COSTS BY BECOMING MORE SUSTAINABLE. HOW HAS THIS TREND INFLUENCED REGAL REXNORD’S APPROACH TO SOLUTIONS?
A: Our technologies are at the heart of the industrial powertrain. Creating sustainable solutions alongside our industry partners is a core of what drives our technology advancement. For example, in our gearing division, Bauer Gear Motor’s Permanent Magnet Synchronous Motor technology can increase torque output with less upfront energy, and in a more compact, space-saving design. The ModSort Divert and Transfer Module is a fully electric conveying solution, running on only 24V and quiet enough to have a conversation around.
Q: WHAT ARE YOU DOING TO PROMOTE SUSTAINABILITY AT YOUR OWN COMPANY?
A: We’re very conscious of our own carbon footprint. We see a trend with our customers wanting to do business with companies that are sustainable. We have ESG initiatives in place to ensure we’re being as responsible as we can. We set a goal in 2023 to [achieve] a 10% year-over-year (YOY) reduction in our Scope 1 and 2 greenhouse gas emissions. I’m proud to share that we actually saw a 15.5% YOY reduction. We also retrofitted two manufacturing sites in Europe with solar panels and built a new facility in Mexico with energy-efficiency measures in mind.
Q: MANY COMPANIES HELD ONTO THEIR CASH IN 2024, WAITING TO SEE ABOUT THE ECONOMY AND THE ELECTION. DO YOU THINK MORE COMPANIES WILL LOOK TO UPGRADE THEIR SYSTEMS IN 2025?
A: Many of our industries have been under capital constraints for the past two to three years. I believe that this will have to change over the coming one to two years. There is a lot of pent-up demand, and as interest rates drop, this will help spur that investment.
Managing a surging tide of post-holiday returns is a daunting task for the warehouse, where staffing shortages are all too common and inventory challenges abound. The need for speed and efficiency has never been greater.
“From the warehouse perspective, [getting] inventory back to saleable condition as quickly as possible is what really matters,” says Wes Coleman, industry principal for warehousing at mobile computing and workforce automation firm Zebra Technologies. “In this day and age of challenged supply chains, this is inventory that is readily available [and] that needs to get turned and ready for sale.”
Thanks to a growing focus on reverse logistics industrywide, more warehousing and supply chain professionals are devising new strategies and applying technology to manage the complexity of the returns cycle. Those strategies include giving retail workers a bigger role in reverse logistics and investing in software and hardware solutions to automate tasks and alleviate the physical burden of restocking items in the warehouse. Both tactics are helping organizations get a better handle on all those returns.
THINKING STRATEGICALLY
More than $700 billion worth of merchandise was returned in 2023, according to the National Retail Federation—a figure that includes an estimated 8.4 billion pounds of products that ended up in landfills. Those numbers illustrate the extent of the returns problem across the supply chain, and it’s only getting worse. Accelerating e-commerce sales and the consumer behaviors that accompany them necessitate a strong returns strategy, according to reverse logistics technology company Optoro.
“Many retailers are [rightfully] focused on the buying experience. Yet critical aspects of the customer experience happen beyond the buy button,” Natalie Walkley, Optoro’s vice president of marketing, explained in a blog post about today’s challenging returns environment. “While returns avoidance seems appealing, returns will always be inevitable to some degree, so it is wise to apply the same strategic approach to curating the best returns experience.”
For many, that means taking a step back and considering the entire returns process, which begins with the customer’s initiating a return and ends with the resale or disposition of merchandise. In the middle is the crucial step of processing the return, which happens in the warehouse. Today, many organizations are engaging front-line retail workers earlier in that cycle to help streamline the overall process.
Jim Musco, industry principal for retail at Zebra Technologies, explains that the growing complexity of returns has put the issue front and center with store operations teams—many of whom are developing presorting strategies to guide the returns journey rather than simply tossing items into a bin and sending them back to a warehouse, where pick, pack, and ship associates must figure out what to do with them. Instead, retail workers are designating whether an item can be returned to the shelves or must be sent back for further processing, as one example.
“On the retail side, they are seeing that there’s some thought that has to go into that—so that [the warehouse can get returned items in and out] quicker and more efficiently,” Musco explains. “[The industry is] becoming cognizant of the fact that the front-line retail store is part of the process—whereas before we wouldn’t have thought of it in those terms.”
APPLYING TECHNOLOGY
Technology is helping to spur that thinking. In Zebra’s “17th Annual Global Shopper Study,” released in November, nearly 90% of retail associates said they believe they can provide a better customer experience when they have mobile technology tools to help simplify communication, prioritize tasks, and check prices and inventory.
Specialized software helps as well: A returns management software (RMS) platform, for example, automates and directs the returns process. A separate 2024 returns study by post-purchase and returns management platform Narvar noted that RMS systems do several key things: enforce return windows and rules; generate a return shipping label or QR code for dropoff; route the return to the appropriate dispositioning [site] based on rules and logic; and notify customers of the status of their return. Handheld devices provide added assistance—speeding processes in the store by giving associates easy access to data and allowing them to communicate in real time via instant messages and alerts.
“These types of [technologies] are working their way into the conversation,” Musco observes. “Retailers [recognize] that reverse logistics is a big part of the equation and [that] being efficient [when processing returns] matters.”
Indeed, most retailers responding to the Zebra study said they agree that technology allows workers to do their jobs better, with 75% saying they plan to increase their technology investments in 2025.
MOBILIZING ROBOTICS
The technology trend holds true in the warehouse as well.
Some warehouses are beginning to incorporate mobile robots to help with reverse logistics, in addition to the handheld and wearable devices they already use to manage the flow of items in, out, and around their facilities. Optoro’s partnership with autonomous mobile robot (AMR) maker Locus Robotics is a good example. The companies announced a deal in 2023 to provide a scalable software and robotics automation solution for high-volume retail e-commerce returns processing. The partnership integrates Optoro’s returns technology platform with the Locus AMRs, feeding the returns information to the robots, which then navigate through the warehouse to deliver returned items to human workers for putaway in a kind of reverse picking process. The system uses data science and automated real-time decision-making to determine the best path for each returned item.
The process alleviates the physical burden associated with returns as well—human workers spend less time walking up and down warehouse aisles and more time restocking, speeding the overall returns process. Locus Robotics describes the AMR-assisted returns process as follows:
Returned goods are received by the facility.
The facility reviews and sorts returned goods.
Returned goods to be put away are sent to a holding location until the task is activated in the system.
When the task is “ready,” the returned item, container, or case to be put away is scanned and placed onto the robot, which then takes it to a human near that location.
For the human worker, the display screen shows the location, license plate, item UPC (Universal Product Code), and picture for the item or carton to be put away.
The worker puts the carton or the individual units away.
The worker places the empty carton on the robot for disposal.
The robot travels to the dropoff location. Empty cartons are disposed of, and the process begins all over again with the next item(s).
The scalable solution allows warehouses to add AMRs during the busy post-holiday returns season and scale back when volume eases.
Scalability is key, whether you’re adding robotics, mobile devices, handhelds, or wearables, Zebra’s Coleman notes.
“You want some sort of scalable option that allows you to ramp up for as long as you need to,” he says, noting that warehouses see an average return rate of about 15%, which is in line with the 2023 data from NRF.
A little help on the retail side makes a difference too.
“[There needs to be] more conversation and energy [put] into making sure you’re making appropriate decisions at the point of return or in the store as opposed to just sending [an item] to the warehouse,” Musco adds. “We’re trying to be good partners to our friends in the warehousing space.”
Seventeen innovative products and solutions from eleven providers have reached the nomination round of the IFOY Award 2025, an international competition that brings together the best new material handling products for warehouses and distribution center operations.
The nominees this year come from six different countries and will compete head-to-head during a Test Camp that will be held March 26 and 27 in Dortmund, Germany. The Test Camp allows hands-on evaluation and testing of products based on engineering and operational design. In contrast to the usual display of products at a trade show, The Test Camp also allows end-users and visitors to the event the opportunity to experience these technologies hands-on as they would operate in a facility.
Award categories include integrated solutions, counter-balanced forklifts, warehouse forklifts, mobile robotic solutions, other warehouse robotics, intralogistics software, and specialized solutions for controlling operations. A startup of the year is also recognized.
The finalists include entries from aluco, EP Equipment Germany, Exotec, Geekplus Europe, HUBTEX, Interroll, Jungheinrich, Logitrans, PLANCISE, STILL and Verity.
In the “IFOY Start-up of the Year” spin-off award, Blickfeld, ecoro, enabl and Filics are in the running. These finalists were selected from all entries following six weeks of intensive work by the IFOY organization, test teams, and a jury composed of journalists who cover the logistics market. DC Velocity’s David Maloney is one of the jurors, representing the United States. Winners will be recognized at a gala to be held July 3 in Dortmund's Phoenix des Lumières.
PITTSBURGH, PA / CINCINNATI, OH –January 23, 2025 – Freespace Robotics, an innovator in autonomous robotics for material handling and logistics, today announced a strategic partnership and investment from the Automation Solutions business of Matthews International Corporation (NASDAQ:MATW), a leading provider of warehouse automation software, controls, and order fulfillment systems. This partnership combines Freespace Robotics’ groundbreaking high-density, dynamic storage cube with Matthews’ industry-leading software, unlocking transformative capabilities for warehouse and last-mile operations.
Freespace Robotics’ pioneering solution leverages advanced robotics to deliver high-turnover, small-footprint, high-rise AS/RS (Automate Storage and Retrieval System) technologies. These innovations incorporate traditionally external conveyor functions – such as sortation, sequencing, each-picking, order buffering and pre-staging – into a seamless end to end operation. Combined with Matthews robust software suite and dashboard, which unify product information and inbound and outbound material flows, the Freespace solution offers unmatched versatility across diverse industries and specialized workflows. Together the companies are poised to strengthen core processes and improve KPIs for efficiency, scalability, throughput and cost-effectiveness.
“This partnership bridges the gap between cutting-edge hardware and proven software,” said Gary Cash, Senior Vice President and General Manager of Matthews Automation. “Freespace Robotics brings next-generation automated hardware advancements that complement and extend our software’s capabilities to achieve unprecedented order management and task efficiency in warehouse operations. Over the last decade, customers have experimented with automating some or all their logistics and warehouse operations, to varying degrees. Today they are more discerning in their choices and investments. We see Freespace as delivering on the promise of greater versatility and performance with a smart systems approach and the higher ROI customers expect.”
The collaboration will emphasize software interoperability and multi-system integration driven by customer need. Together, the companies aim to address the unique challenges of fragmented cross-docking operations and meet the specialized needs and workflows in sectors like 3PL, e-commerce, food, beverage, manufacturing and industrials.
“Software innovation has outpaced hardware advancements in warehouse automation,” said Robert J. Szczerba, CEO of Freespace Robotics. “Our system closes that gap by delivering unparalleled performance, flexibility and scalability in a more sustainable solution. Matthews’ expertise and proven software enhance our system, enabling us to supercharge automation for the most demanding industries while offering a more attractive total cost of ownership.”
Key benefits of Matthews Automation’s turn-key software suite paired with Freespace Robotics’ AS/RS:
End-to-End Task Management: Seamlessly integrates with industry-standard WMS platforms like Manhattan, Oracle, and SAP to handle inventory management, order picking, and replenishment.
Scalable, Modular Design: Adapts to diverse facility configurations, uneven floors, and unconventional layouts with high-rise options up to 70 feet. The modular rack design enables vertical and horizontal expansion to meet future business requirements, unknown demands and changing product characteristics without demolition, retrofitting, or new builds.
Cost-Effective Maintenance: Robotics and components are positioned outside the cube for easy servicing, while domestically sourced parts ensure reliability, availability and resilience.
Versatile Inventory Handling: Supports standard and large trays, full cases, and individual each-picks, accommodating loads up to 100 pounds.
Sustainable Operation: Powered by rail systems, eliminating costly and fire-prone battery dependencies while reducing environmental costs, fire risk and insurance outlays.
Shipping Buffers: Optimizes operations with seamless sorting, buffering and sequencing in a single process inside the cube for timed delivery to docks
Cross-Docking Operations: Reduces labor, equipment needs, and operational footprints while improving safety on the floor.
Last-Mile Delivery Potential: A mobile version brings goods directly to drivers in dolly order, eliminating the need to enter the trucks. This offers breakthrough performance for multi-stop delivery operations, minimizing shift time, labor and fuel costs and mid-route rescheduling.
Matthews Automation Solutions joins United States Steel Corporation (NYSE:X)(“U.S. Steel”) and 3PL leader NFI Industries as corporate investors in Freespace Robotics. Matthews’ decades of expertise and 24×7 system support, paired with Freespace Robotics’ groundbreaking technology, positions this partnership to transform logistics and warehousing operations while setting new standards of efficiency, adaptability, performance and reliability.
Freespace Robotics will also showcase its solutions at the prestigious Startup Pavilion, in booth E11200SP, during ProMat 2025, North America’s largest conference and expo for material handling and logistics professionals. The event is being held March 17-20 at McCormick Place in Chicago.
ProMat attendees can find Matthews Automation’s latest advances in Warehouse Execution System software, picking systems, and print-and-apply labeling automation at booth S4355, found in Hall A of McCormick’s South Building. Matthews’ exhibit will feature these integrated technologies – including the Freespace solution – working together to provide scalable, end-to-end applications for dynamic supply chains.
About Freespace Robotics
Freespace Robotics, a spin-out company of venture studio Carnegie Foundry, is a leading innovator in autonomous robotics solutions for the logistics and warehousing industry. By combining advanced robotics, modular design, and unmatched versatility, Freespace Robotics delivers breakthrough advances that redefine how businesses approach storage, retrieval, order fulfillment and the movement of goods. Based in Pittsburgh, PA, Freespace Robotics thrives at the intersection of industrial innovation and artificial intelligence. To learn more about Freespace Robotics, please visit www.freespacerobotics.com.
That is important because the increased use of robots has the potential to significantly reduce the impact of labor shortages in manufacturing, IFR said. That will happen when robots automate dirty, dull, dangerous or delicate tasks – such as visual quality inspection, hazardous painting, or heavy lifting—thus freeing up human workers to focus on more interesting and higher-value tasks.
To reach those goals, robots will grow through five trends in the new year, the report said:
1 – Artificial Intelligence. By leveraging diverse AI technologies, such as physical, analytical, and generative, robotics can perform a wide range of tasks more efficiently. Analytical AI enables robots to process and analyze the large amounts of data collected by their sensors. This helps to manage variability and unpredictability in the external environment, in “high mix/low-volume” production, and in public environments. Physical AI, which is created through the development of dedicated hardware and software that simulate real-world environments, allows robots to train themselves in virtual environments and operate by experience, rather than programming. And Generative AI projects aim to create a “ChatGPT moment” for Physical AI, allowing this AI-driven robotics simulation technology to advance in traditional industrial environments as well as in service robotics applications.
2 – Humanoids.
Robots in the shape of human bodies have received a lot of media attention, due to their vision where robots will become general-purpose tools that can load a dishwasher on their own and work on an assembly line elsewhere. Start-ups today are working on these humanoid general-purpose robots, with an eye toward new applications in logistics and warehousing. However, it remains to be seen whether humanoid robots can represent an economically viable and scalable business case for industrial applications, especially when compared to existing solutions. So for the time being, industrial manufacturers are still focused on humanoids performing single-purpose tasks only, with a focus on the automotive industry.
3 – Sustainability – Energy Efficiency.
Compliance with the UN's environmental sustainability goals and corresponding regulations around the world is becoming an important requirement for inclusion on supplier whitelists, and robots play a key role in helping manufacturers achieve these goals. In general, their ability to perform tasks with high precision reduces material waste and improves the output-input ratio of a manufacturing process. These automated systems ensure consistent quality, which is essential for products designed to have long lifespans and minimal maintenance. In the production of green energy technologies such as solar panels, batteries for electric cars or recycling equipment, robots are critical to cost-effective production. At the same time, robot technology is being improved to make the robots themselves more energy-efficient. For example, the lightweight construction of moving robot components reduces their energy consumption. Different levels of sleep mode put the hardware in an energy saving parking position. Advances in gripper technology use bionics to achieve high grip strength with almost no energy consumption.
4 – New Fields of Business.
The general manufacturing industry still has a lot of potential for robotic automation. But most manufacturing companies are small and medium-sized enterprises (SMEs), which means the adoption of industrial robots by SMEs is still hampered by high initial investment and total cost of ownership. To address that hurdle, Robot-as-a-Service (RaaS) business models allow enterprises to benefit from robotic automation with no fixed capital involved. Another option is using low-cost robotics to provide a “good enough” product for applications that have low requirements in terms of precision, payload, and service life. Powered by the those approaches, new customer segments beyond manufacturing include construction, laboratory automation, and warehousing.
5 – Addressing Labor Shortage.
The global manufacturing sector continues to suffer from labor shortages, according to the International Labour Organisation (ILO). One of the main drivers is demographic change, which is already burdening labor markets in leading economies such as the United States, Japan, China, the Republic of Korea, or Germany. Although the impact varies from country to country, the cumulative effect on the supply chain is a concern almost everywhere.
“Our two newest products reinforce Toyota’s commitment to environmental stewardship without compromising the efficiency and power of our reliable products,” said Bill Finerty, President and CEO of Toyota Material Handling. “These two new models are impactful in many different applications, meeting the needs of all our customers and harnessing the innovation and power of our electric products.”
The Integrated Mid & Large Electric Pneumatic Forklifts are engineered to meet the most demanding heavy-duty applications, particularly in outdoor environments where robust performance is required for transporting heavy loads.
With load capacities ranging from 8,000 to 17,500 pounds, Toyota’s electric pneumatic forklifts are versatile across various applications. Each model is equipped with an integrated lithium-ion battery, delivering low maintenance and reduced downtime, and powered by a Toyota-designed electric drive system, these forklifts offer the performance of internal combustion (IC) trucks with the efficiency of electric models.
Toyota features AC drive and lift motors for advanced runtime and speed, built to excel in traditional IC environments. Innovative technologies, including a floating cabin and fully electric forklift, provide lower noise levels and reduced vibration, making this forklift model an ideal solution for industries that demand both performance and sustainability.
As a testament to Toyota’s culture of Kaizen – or continuous improvement – Toyota launched an enhanced version of its reliable Core Electric Forklift. This compact, four-wheel electric lift truck is designed for a broad range of indoor applications, with a focus on speed, efficiency and operator comfort. Suited for industries such as retail, manufacturing and food handling, the upgraded model supports load capacities of 3,000 to 6,500 pounds.
Toyota’s Core Electric Forklift delivers efficient uptime and lower energy consumption to maximize productivity and cost efficiency with improved motors and controllers. Toyota designed the new models to prioritize operator comfort with ergonomic enhancements, including larger storage compartments and USB charging features. Offering increased runtime and 34 customizable options, Toyota’s upgraded forklift provides unmatched versatility and efficiency.
Learn more about Toyota and its full line of industry-leading material handling products and solutions here.
About Toyota Material Handling
Toyota Material Handling offers material handling products and solutions, including forklifts, reach trucks, order pickers, pallet jacks, container handlers, automated guided vehicles, and tow tractors, along with aerial work platforms, fleet management services, and advanced automation engineering and design. Toyota’s commitment to quality, reliability and customer satisfaction, the hallmark of the Toyota Production System, extends throughout more than 230 locations across North America. With access to an industry-leading lineup of material handling products, Toyota dealers are uniquely positioned to help solve wide-ranging challenges in warehousing and distribution. Built for every application, Toyota can provide the most complete set of solutions for material handling, automation, energy, advanced logistics, and warehouse optimization. For more information or to learn more, visit ToyotaForklift.com