The “series C” round was led by Toyota division Woven Capital, with additional participation from Innovation Endeavors, Norwest Venture Partners, and Qualcomm Ventures. It brings California-based Third Wave to $97 million in total capital raised.
“In an industry grappling with a severely constrained labor market and intensifying market competition, Third Wave Automation's approach of blending AI-powered autonomy with human expertise is transforming warehouse operations,” Prashant Bothra, principal at Woven Capital, who is now joining the Third Wave board, said in a release. “Third Wave’s solution provides reliable automation for vertical movement and placement of goods while optimizing labor efficiency, enhancing safety and enabling data-driven improvements.”
According to Third Wave, its Shared Autonomy Platform enables the TWA Reach line of forklifts to operate autonomously or to seek help from remote operators who can take control from the safety of their office. Specifically, the TWA Reach forklifts operate in four modes: fully autonomous, remote assist, remote operation and traditional manual operation. They are designed for high-reach applications, capable of horizontal and vertical movement of payloads, and used for end-to-end applications, from inbound, replenish and outbound tasks to all tasks in between. The platform also uses machine learning to ensure forklifts continue to adapt and improve over time.
For links and show notes, mouse over the player and click the .
Transcript
About this week's guest
Dennis Moon is chief operating officer of Roadie. He has served in executive management positions in both public and privately held companies over the past 15 years, including as executive vice president for Medovex Corp., a medical device and technology company, and chief operations officer for JCS, where he assisted in the sale of the company to a private equity fund and remained COO of the JCS Division for Correctional Healthcare Companies. As COO, his responsibilities included supervising the day-to-day operations and maintenance of over 50,000 monthly clients, over 200 city, county and state contracts, 70 physical office locations, more than 400 employees and over 1.8 million financial transactions per year.
Prior to his career in executive management, Moon served in the U.S. Army as an intelligence analyst and combat engineer with TS/SCI Clearance. He holds a bachelor’s degree from the University of Central Florida.
David Maloney, Editorial Director, DC Velocity 00:01
Delivering Halloween. Forecasting technology trends. And is pallet handling the next robotic frontier?
Pull up a chair and join us, as the editors of
DC Velocity discuss these stories, as well as news and supply chain trends, on this week's Logistics Matters podcast.
Hi, I'm Dave Maloney. I'm the group editorial director at
DC Velocity. Welcome.
Logistics Matters is sponsored by Zebra Robotics Automation. Are you tired of overpriced, underutilized autonomous mobile robot fulfillment solutions that drain your profits? It's time to switch to Zebra Robotics Automation. Their cutting-edge Zebra Symmetry fulfillment solution is engineered to reduce your cost per unit and give you that unbeatable competitive edge. Don't settle for less. Maximize your profits with Zebra. Discover the future of fulfillment at zebra.com/fulfillment.
As usual, our
DC Velocity senior editors Ben Ames and Victoria Kickham will be alone to provide their insights into the top stories of this week.
But to begin today, Halloween is just a few days away. The holiday has grown over the years to be the second or third most popular holiday, depending on which survey you trust. So, it's basically right up there with Christmas and Thanksgiving. Making sure that deliveries of all the decorations and treats get to their destinations on time is a big task, and to find out what's involved in all of that, here's Victoria with today's guest.
Victoria.
Victoria Kickham, Senior Editor, DC Velocity 01:35
Thanks, Dave. Our guest today is Dennis Moon, chiefoperating officer for crowdsourced delivery platform Roadie. Welcome Dennis.
Dennis Moon, Chief Operating Officer, Roadie 01:43
Thank you.
Victoria Kickham, Senior Editor, DC Velocity 01:45
Yeah, thanks for joining us today. I think most of our listeners are familiar with Roadie, but can you just give us a quick overview of the company and its role in the supply chain?
Dennis Moon, Chief Operating Officer, Roadie 01:54
Absolutely. We've been around since 2014. Roadie is a logistics-management and crowdsource delivery platform. We're also a UPS company, and our role in the supply chain is to offer businesses fast, flexible, and asset-light logistics solutions in the last mile.
Victoria Kickham, Senior Editor, DC Velocity 02:10
Terrific. So, as Dave said, supply chains are gearing up for this Halloween season. Retailers are busy getting orders out to people. How does demand for all those costumes, decorations, and candy affect supply chains?
Dennis Moon, Chief Operating Officer, Roadie 02:24
It really kicks off the peak season for us, and as we've been doing this for a while, it gets a little bit different every year, but what we're seeing is a lot of retailers are kicking off their peak season at the same time as Halloween. So, as we can see, and you probably have noticed, more and more sales events and promotions are kicking off earlier and earlier into the season, so I think it's really good, because we're able to take the momentum that we start for Halloween, continue it on to delivering for people right into peak, and it also really helps with that last-minute Halloween rush that a lot of people have. I would just say the other thing is that, you know, consumers, and us as consumers, we're just really getting used to following the promotions more than we are following the event, so we've been seeing that over the last couple of years.
Victoria Kickham, Senior Editor, DC Velocity 03:08
Great. Thank you. Along with all of that, so Roadie has a partnership with Spirit Halloween, which is a retailer that's certainly at the forefront of dealing with these particular peak-season challenges that are happening right now. Can you describe the partnership and how it works?
Dennis Moon, Chief Operating Officer, Roadie 03:23
Yeah, I'm really excited about this one. Spirit Halloween is North America's leading Halloween retailer, and we provide same-day delivery from spirit Halloween's online stores across the United States. So same-day's available in more than 800 Spirit Halloween retail locations, allowing their customers to receive their items quickly and conveniently, just like they would with any other delivery. But Halloween fans have access to hundreds, if not thousands of SKUs in that same-day marketplace, and we're just really excited, as I said earlier, to be able to start propelling ourselves as we enter into a really big peak season.
Victoria Kickham, Senior Editor, DC Velocity 03:59
And I think you said — how many stores are you doing this in?
Dennis Moon, Chief Operating Officer, Roadie 04:02
Eight hundred Spirit Halloween retail locations, and this is the first time they've offered it. So, it's new to them and it's new to us, so we're just really excited about the opportunity.
Victoria Kickham, Senior Editor, DC Velocity 04:09
Yeah, I'm very familiar with the store, and that sounds new to me, so... .Is Roadie working with otherretailers on similar solutions designed to help manage this Halloween demand?
Dennis Moon, Chief Operating Officer, Roadie 04:19
Yeah, you know, one of our most notable specialty retailers, and one of the bigger customers during Halloween, is the Home Depots of this world. And as everybody knows, they've got a really, really good selection of Halloween decorations that I see in my neighborhood every day, and being able to deliver some of those really big yard decorations has been super cool for us, and we've been doing a lot of it this Halloween season.
Victoria Kickham, Senior Editor, DC Velocity 04:46
So, what trends are you seeing in same-day delivery service in general? How are technology advances, for example, things like AI, affecting the industry?
Dennis Moon, Chief Operating Officer, Roadie 04:56
Yeah, you know, [I've] been doing this for a while, and just, every year, more and more retailers create or have same-day as just standard expectation for online shopping. It's pretty surprising. Going back 10 years, no one did, not many people did, and they just really didn't have it on its radar. So, the adoption rate is accelerating. Everyone feels that they must have same-day delivery to compete, and retailers have really found that just the same-day model gives them that competitive edge. It increases revenue, and it's good for them, it's good for their customers. We did a survey recently where we conducted, it found 80% of companies reported an increased revenue with same-day delivery, so it really is starting to prove itself. To answer your question about AI's impact. It's helping optimize delivery routes for us. It balances delivery capacity. We're using it all over the place, from customer support all the way to helping drivers make decisions on what's the most economical route for them, what's the best route, what's the best offer that they should make — so, just giving them all the information. And making sure that we're as transparent as possible, utilizing all the AI technology that we can behind the scenes so that drivers can make a good decision. It enables our retailers to anticipate demand. So, as we think about, we've got a bit of demand going into the Halloween season, but it's going to get really, really hectic with a compressed peak as people who follow UPS know, it came out yesterday, you know, Carol Tomé talked about it: 17 business days between Thanksgiving and Christmas. So we haven't seen that compressed of a peak since 2019, which means all of the supply chain is just going to have to really, really work well together to get things to people right before the holiday. And AI is going to be a big part of it as we implement it more and more in different facets of our business.
Victoria Kickham, Senior Editor, DC Velocity 06:47
Looking ahead to the holiday peak — we've touched on that throughout this conversation — how large a role will this crowdsource delivery model play in helping businesses manage all those last-minute holiday deliveries? Just sort of a general perspective on that?
Dennis Moon, Chief Operating Officer, Roadie 07:02
Yeah, it's a great question, and every year, we become a bigger and bigger part of it. Consumers are looking for same-day, fast deliveries,crowdsource platforms like Roadie, we play a really big part, and part of that is probably because we're seeing more and more retailers, the big retailers, need to move product closer to customers. So, there's a sense of forward distribution coming out of the brick-and-mortar stores, where, in years past, everything would come out of a distribution center somewhere else. So they've got to have the product in the store, and we've got to get it to their customers fast, which is just really, really growing every single year, especially in some of the biggest retailers that everybody knows that have the best deals when it comes to Black Friday, Cyber Monday. A vast majority of that volume is coming from the stores now, where it used to come out of their distribution centers.
Victoria Kickham, Senior Editor, DC Velocity 07:51
Dennis, anything else on this topic you want to mention as we gear up for Halloween next week, and looking further ahead to holiday peak?
Dennis Moon, Chief Operating Officer, Roadie 08:00
I would reiterate that it's going to be a short, compact, and hectic peak. As I said before, it was 27 days between Thanksgiving and Christmas, 17 business days, which we haven't seen in quite some time, and this year, more more than ever, fast delivery is going to be critical. It's going to making sure people have it in hand, they have it wrapped, they have it ready, because we don't want to leave people wondering, will my package arrive on Christmas Eve or Christmas morning? But the other thing, as I mentioned earlier, is to combat this, we're seeing a lot of retailers pull forward. We're seeing a lot of events take place prior to Black Friday, whereas it used to be Black Friday Cyber Monday, were the big Super Bowls of our year. Some things are kicking off early in November. Some things are going to have really, really good sales and events that go on all the way through the month of November and into early December, so I think the retailers are smart. They're trying to identify, they can't get everything done in that very, very condensed window, so let's go ahead and spread it out over a longer period of time. And the consumers are smart too, because they're just looking for, you know, really good deals on what they need to purchase for this peak season. So, the last thing I'll just say is that a lot of it will take place online. More and more and more of Black Friday, Cyber Monday is becoming an online event, and according to International Trade Administration, e-commerce in the U.S. is growing an annual rate of 11.22%, and the global marketplace is expected to reach 5.5 trillion by 2027, so it's just showing us the data to support that we're in the right space, and people are utilizing e-comm more and more every single year.
Victoria Kickham, Senior Editor, DC Velocity 09:35
That's certainly true. We see that, in, I think, in our work and in our lives here, so... . Thank you, Dennis, very much for joining us today. We appreciate your insight.
Dennis Moon, Chief Operating Officer, Roadie 09:45
Thank you guys for having me. Have a great day.
Victoria Kickham, Senior Editor, DC Velocity 09:47
Thank you. We've been talking with Dennis Moon of Roadie. Back to you, Dave.
David Maloney, Editorial Director, DC Velocity 09:51
Thank you, Dennis and Victoria. Now let's take a look at some of the other supply chain news from the week, and Ben, you wrote this week about a forecast for technology trends. What can you tell us?
Ben Ames, Senior News Editor, DC Velocity 10:05
That's right. You know, as we near the end of the year, many experts throughout the logistics sector take this chance to make some forecasts and predictions for 2025 that may seem like a long way away, but we're halfway through the fourth quarter already, so now's the time to plan, and one of the first ones that I saw came this week from Forrester, the technology analyst group. Forrester pointed out that 2024, to no surprise, has been a particularly challenging year for companies, especially in asset-intensive industries like manufacturing and transportation. That's because those asset-intensive industries and businesses quickly feel the pain when energy prices rise, when raw materials become harder to access, or when borrowing money for capital projects becomes more expensive. And all of those conditions arose in 2024, so that forced some of those leaders — again in manufacturing and transportation — to focus even more than usual, on managing the costs and improving efficiency, to find that balance point. All this was According to researcher Paul Miller, who's vice president and principal analyst at Forrester.
David Maloney, Editorial Director, DC Velocity 11:16
Well Ben, there certainly were a lot of supply chain disruptions this past year. Did the report say whether they felt 2025 would be any easier on supply chains?
Ben Ames, Senior News Editor, DC Velocity 11:27
Well, it did say, and unfortunately they are forecasting that it will not be all that much smoother. Forrester's latest forecast doesn't anticipate any dramatic improvement in the global macroeconomic situation for 2025, but it does anticipate several ways that companies will probably adapt. So, for 2025, Forrester predicts that over 25% of the big last-mile service and delivery fleets over in Europe will have become electric across the continent. So, between the different nations, they are analyzing parcel delivery firms, utility companies, even local governments that operate large fleets of small vans over relatively short distances, and so, for all those sorts of applications, electrification is an opportunity both to manage costs and to lower carbon emissions. In a second analysis of what we were likely to see, they said that probably less than 5% of the robots that we see in factories and warehouses will be walking. We might have seen a lot of recent headlines — I've written some of them myself — about some rise in two-legged robots that are now able to be designed. Forrester says that the compelling use cases for two-legged robots are less obvious than supporters suggest. Specifically, they said that those kind of robots, they might have a wow factor, but they probably don't have the best form factor for addressing the industry's dull, dirty, and dangerous tasks, which, that's a frequent way of describing the type of assignments that go to robots. And finally, that the third look forward at 2025, Forrester said that car makers, automakers are going to make significant cuts to their digital divisions, sort of admitting defeat after having invested billions of dollars industrywide to try to build the capability to design all those connected platforms and digital features that we see in modern vehicles. Instead, the future of mobility will be underpinned by sort of ecosystems of various technology providers. So, it won't — a vehicle won't necessarily be reliant on the same large automaker that made the car itself to also make the digital platforms on the inside of it.
David Maloney, Editorial Director, DC Velocity 13:53
But those really do look like some interesting trends. I guess we'll see how it all plays out in the coming year.
Ben Ames, Senior News Editor, DC Velocity 13:59
Yeah, absolutely I hadn't thought of the car one. I think we all touch base with that, probably daily, and it's interesting to try to figure out who's making the stuff.
David Maloney, Editorial Director, DC Velocity 14:09
Certainly is. Thank you. Ben.
Ben Ames, Senior News Editor, DC Velocity 14:11
Glad to.
David Maloney, Editorial Director, DC Velocity 14:12
And Victoria, as robots continue to make inroads into our distribution centers, there's one area that's just now getting a little bit of love from those robots. Can you give us the details?
Victoria Kickham, Senior Editor, DC Velocity 14:23
Absolutely, yes. So, I recently wrote about the continuing trend toward implementing warehouse robotics and discovered that there's a bit of a shift happening in where many warehouses are applying the latest technologies. A lot of companies have been focused on applying robotics to picking tasks as a way to handle accelerating e-commerce orders.We saw this trend really gain steam leading up to 2020, and then, of course, during the pandemic years. Many of those early automation gains are bearing fruit, so some companies are shifting their automation focus behind those picking lines, so to speak, and applying robotics to bulk handling, particularly pallets. I spoke to a handful of robotics vendors recently about the reasons behind this trendand what they are seeing in terms of how warehouses are using pallet-handling robots.
David Maloney, Editorial Director, DC Velocity 15:09
Victoria, what's driving that shift to moving towards more bulk handling?
Victoria Kickham, Senior Editor, DC Velocity 15:14
Well, one reason is that this is a labor-intensive process. Bulk items like pallets are moved by people with human-operated equipment, for the most part, and there are a lot of different movements of pallets throughout the warehouse. Workers are often moving them up and down, side to side, from receiving to storage, from storage to shipping, and so forth. So it's an area that's ripe for automation in many ways. But it's difficult to automate all of those pallet moves within a warehouse, so the trick is finding the processes within your facility that make the most sense to automate. Some facilities may benefit from using AGVs or AMRs to transport pallets between destinations; others could apply forklift AGVs to move pallets in and out of storage; and there are also robotic pallet shuttles, which can move pallets into and out of dense storage racking as part of a larger system. Now, all of these productshave been around for a while, but there's much research and development going on, making them better, smarter, more effective, and also in developing pallet-handling robotics that work in concert as a system. Really, what I learned is that this is very much about relieving pressure on labor and keeping goods flowing through the warehouse.
David Maloney, Editorial Director, DC Velocity 16:24
Yeah, because of those labor needs — and I think that's going to be still a growing problem — we will see more robots plying their trade and handling those heavy loads. It just makes a lot of sense.
Victoria Kickham, Senior Editor, DC Velocity 16:33
It certainly does.
David Maloney, Editorial Director, DC Velocity 16:35
Thank you, Victoria,
Victoria Kickham, Senior Editor, DC Velocity 16:36
You're welcome.
David Maloney, Editorial Director, DC Velocity 16:38
We encourage listeners to go to dcvelocity.com for more on these and other supply chain stories. Also check out the podcast Notes section for some direct links to read more about the topics that we discussed today.
And we'd like to thank our guest, Dennis Moon of Roadie, for being with us today. We welcome your comments on this topic and our other stories. You can email us at
podcast@agilebme.com.
We also encourage you to subscribe to
Logistics Matters at your favorite podcast platform. Our new episodes are uploaded on Fridays.
Speaking of subscribing, check out our sister podcast series,
Supply Chain in the Fast Lane. We have a 10-episode series currently playing on the state of logistics. Check out Supply Chain in the Fast Lane wherever you get your podcasts.
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Logistics Matters is sponsored by Zebra Robotics Automation. Are you tired of overpriced, underutilized autonomous mobile robot fulfillment solutions that drain your profits? It's time to switch to Zebra Robotics Automation. Their cutting-edge Zebra Symmetry fulfillment solution is engineered to reduce your cost per unit and give you that unbeatable competitive edge. Don't settle for less. Maximize your profits with Zebra. Discover the future of fulfillment at zebra.com/fulfillment.
We'll be back again next week with another edition of
Logistics Matters. Be sure to join us. Until then, have a great week.
Robotic technology has been sweeping through warehouses nationwide as companies seek to automate repetitive tasks in a bid to speed operations and free up human labor for other activities. Many of those implementations have been focused on picking tasks, a trend driven largely by the need to fill accelerating e-commerce orders. But as the robotic-picking market matures and e-commerce growth levels off, the robotic revolution is shifting behind the picking lines, with many companies investing in pallet-handling robots as a way to keep efficiency gains coming.
“Earlier in this decade and the previous decade, we [saw] a lot of [material handling] transformation around e-commerce and the handling of goods to order,” explains Josh Kivenko, chief marketing officer and senior vice president at Vecna Robotics, which provides autonomous mobile robots (AMRs) for pallet handling and logistics operations. “Now we’re talking about pallets—moving material in bulk behind that line.”
Kivenko explains that whether items are being packaged and shipped directly to a customer’s home address or moved as finished goods to a shipping bay for store delivery, those items are first moved in bulk in some way, often by human hands and with human-operated equipment. He describes warehouses as chaotic environments in which humans move pallets and cartons in multiple ways—up and down, side to side, from receiving to storage, from storage to shipping, or via cross-docking. Automation can help bring order to that chaos.
“What we’re trying to do is relieve some of the pressure [on the] humans [doing] this work,” Kivenko says of companies that develop pallet-handling robotic technologies. “At the end of the day, we’re trying to automate some of those flows, relieve labor pressure, save costs, and keep the goods flowing.”
But automated pallet handling isn’t right for every situation, so it’s important to understand the warehouse conditions required and the protocols and best practices needed to make it a win. Here are some guidelines for applying pallet-handling robots and gaining the most from your investment.
FIRST, UNDERSTAND THE TECHNOLOGY
Pallet-handling robots fall into four general categories, explains Rich O’Connor, vice president of storage and automation for Raymond West Group, a business unit of lift truck manufacturer The Raymond Corp. They include:
Palletizing/depalletizing robots, which are used to load or unload items onto and off of pallets, usually with the use of a robotic arm for picking and placing. Today, these systems are being increasingly integrated with automated storage and retrieval systems (AS/RS) to further streamline pallet handling in the warehouse, O’Connor explains.
Autonomous guided vehicles (AGVs) and autonomous mobile robots (AMRs), which are used to transport pallets within the warehouse. Often outfitted with lift decks or conveyors, or designed to tug or tow items, these robots move pallets from point A to B within a facility. AGVs, which often follow a marked guide-path or wire in the floor, have been around for many years, but the advent of high-performance guidance and vision systems is allowing them more flexibility today, O’Connor says. AMRs are self-guided vehicles that use software and sensors to navigate their way through the warehouse.
Forklift AGVs and AMRs, which can move products both horizontally, from place to place, and vertically, into and out of storage racks. They come in various styles—including stackers, counterbalanced trucks, reach trucks, and even very narrow aisle (VNA) vehicles for use in densely packed warehouses. These vehicles are more complex than those used only for horizontal transport, O’Connor explains. They must be “highly integrated” into the facility’s warehouse management system (WMS) or warehouse execution system (WES) so that they know precisely where to retrieve and deliver pallets within the facility.
Robotic pallet shuttles, which move pallets into, out of, and within dense storage racking. The Raymond Corp. describes such a system as “a standalone, automated deep-lane pallet storage system that utilizes self-powered shuttle carriages to move pallets toward the back or front in a racking channel. Shuttles are motor driven and travel along rails within a storage lane.”
O’Connor and others say that no matter which of these technologies you’re investing in, it’s important to remember that they are all part of a larger system designed to optimize operations throughout the warehouse.
“The expanding role of all these different styles working together is what’s amazing today,” O’Connor says.
SECOND, ENSURE THE TECHNOLOGY IS A FIT
Kivenko, of Vecna, also emphasizes the importance of pallet-handling robots working in concert, particularly AMRs and AGVs.
“The magic isn’t just that the robots are autonomous and driving by themselves. The magic is multiple robots—when you have a [whole integrated] system [in place],” he says. “[It’s] how the fleet operates autonomously and optimizes itself for continuous improvement. That’s where the exponential gains are. [It’s] not just about automating what a worker does; it’s about automating a system.”
But you can’t install these systems in just any warehouse and expect magic. Kivenko and others point to certain conditions that enable the best robotic pallet-handling outcomes, especially when it comes to transportation-based and forklift-type AMRs and AGVs.
“The robots that I sell are large-load machines with very expensive technology,” Kivenko explains. “They move material, generally, in larger facilities. And in order for them to produce a return [on investment]—because that’s the name of the game here—they have to be higher-velocity facilities.”
He says pallet-handling robots work best in large facilities running multiple shifts, usually more than five days a week. Wider aisles allow the equipment to move more freely through the facility and at higher speeds, to optimize efficiency and productivity. Strong Wi-Fi networks and clean, dry environments also help keep equipment running at top performance.
O’Connor agrees that pallet-handling robots are best suited to facilities with multishift operations, where they can ease labor constraints and boost productivity. And he says many customers are willing to extend the typical two- to three-year ROI period to five years in order to achieve those gains. But there is even more to it than that. O’Connor’s colleague John Rosenberger says customers must first step back and analyze their processes to ensure that, even if they have the right facility for pallet-handling AMRs or AGVs, they are moving material in the most efficient way to begin with.
“Many times, we find that the processes in place [are inefficient],” says Rosenberger, who is director of iWarehouse Gateway and global telematics for The Raymond Corp. He emphasizes the importance of analyzing existing data—from an equipment telematics system or similar—to determine the best path toward automation.
“Do you have congestion zones now?” he asks. “They’ll still exist if you automate [those processes exactly].”
THIRD, MAKE SIMPLICITY A PRIORITY
Another basic rule of thumb when implementing pallet-handling robotics: Keep it simple.
Andy Lockhart, director of strategic engagement for global warehouse and logistics process automation company Vanderlande, says that when designing a pallet-handling robotics system, “you want to minimize the processes you [automate]. When you can create [an automated system] that focuses on one task—for example, AMRs delivering pallets from a high-bay [storage rack] directly to the palletizing cell—you can do that efficiently and effectively. When you ask the AMR to do this and this and this … you are adding risk of failure.”
Lockhart’s colleague Jake Heldenberg advises customers to first test their target processes via pilot programs within the warehouse or DC. Heldenberg is Vanderlande’s head of solution design, warehousing, North America.
“If AGVs or AMRs for pallet handling are interesting [to a customer], the best thing to do is pilot one or two in an existing DC,” he says, explaining that the process can help companies troubleshoot, understand integration timelines, and gauge ROI. But pilot programs can add expense to a project, making it unaffordable for some.
“If that’s the case, then the best advice is work with a vendor who has experience integrating [the technology],” Heldenberg says. “Use their experience to benefit your business. You won’t have the same hiccups and challenges you would with a less-experienced vendor.”
Mega-retailer Amazon says its newest fulfillment center, located in Shreveport, Louisiana, uses 10 times more robots than previous warehouse designs, and relies on artificial intelligence (AI) to direct the eight different models deployed in its bustling operation.
“Over the years, we’ve built and scaled the world’s largest fleet of industrial robotics that ease tasks for employees and improve operational safety while creating hundreds of thousands of new jobs along the way,” the company said in a blog post Wednesday. “For the first time, we have introduced technology solutions in all key production areas at the site, meaning our employees will work alongside our growing fleet of robotic systems seamlessly in a way that wasn’t possible until now.”
The Shreveport site spans five floors and more than 3 million square feet—equivalent to 55 football fields—making it one of Amazon's largest sites. It will employ 2,500 employees once it’s fully ramped up.
The technology at the center of the huge building is called Sequoia, a “multilevel containerized inventory system” that can hold more than 30 million items, making it five times bigger than Amazon’s first deployment of that system in Houston, Texas.
As inventory and packages move through the facility, Robin, Cardinal, and Sparrow—an AI-powered trio of robotic arms—sort, stack, and consolidate millions of items and customer orders. The latest version of Sparrow uses computer vision and AI systems that give it the versatility to handle over 200 million unique products of all different shapes, sizes, and weights.
And Proteus, which Amazon calls its “first fully autonomous mobile robot,” navigates carts of packages to the site’s outbound dock so they can be loaded into trucks, while safely moving around employees in open spaces. The remaining three robot models include larger AMRs called Hercules and Titan and a packaging automation system that creates custom-sized packages to fit each order’s dimensions.
Although the increased automation allows the facility to handle more orders than older sites, Amazon insists it is not replacing workers’ jobs. “As we deploy this new generation of robotics across our network, we expect our headcount to continue to grow and we’re really excited by how this technology also creates more opportunities for skilled jobs. In fact, our next-generation fulfillment centers and sites with advanced robotics will require 30% more employees in reliability, maintenance, and engineering roles,” the company said.
According to Amazon, it trains workers for skilled jobs by helping them earn certifications through a corporate “Career Choice program” and a “mechatronics and robotics apprenticeship” that provides hourly wages up to 40% higher than entry-level roles.
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.
In 2021, DC Velocity reported on a proposed California state regulation that would require most forklift fleets to switch to zero-emission (ZE) trucks over a period of years. Three years later, in a public hearing on June 27, 2024, the California Air Resources Board (CARB) unanimously approved a revised version of that proposal. The regulation will require most fleets to phase in ZE forklifts between 2028 and 2038. Restrictions on the purchase and sale of certain new forklifts with internal combustion (IC) engines kick in much earlier, in 2026.
The forklift mandate is designed to comply with Gov. Gavin Newsom’s Executive Order N-79-20, which requires off-road vehicle fleets in California to transition to zero-emission models by 2035 “where feasible.” The 70-page regulation approved in June applies to certain categories of large spark ignition (LSI) forklifts fueled by propane, natural gas, or gasoline (diesel-powered forklifts are exempt). They include all Class IV forklifts, and Class V forklifts with a rated capacity of 12,000 pounds or less. CARB estimates that some 89,000 LSI forklifts will be phased out under the new rule.
The regulation includes some exemptions, deadline extensions, and limitations aimed at mitigating its short-term impact on fleet costs and productivity. But while support for the ultimate goal—reducing greenhouse gas emissions and associated health hazards for California residents—is widespread, forklift makers, dealers, end-users, and fuel suppliers remain worried about the mandate’s consequences for their businesses.
A COMPLICATED TIMELINE
A detailed timeline for phasing out the targeted forklifts can be found in the transcript of CARB’s presentation at the public hearing, but the following summarizes the most important dates:
Beginning in 2026, manufacturers cannot make or sell targeted categories of LSI forklifts in California, and end-users cannot purchase or lease them. There are some exceptions: For instance, dealers and manufacturers may sell model year (MY) 2025 inventory through the end of 2026; they can sell MY 2026, 2027, and 2028 Class V trucks to rental agencies; and they can sell LSI models to customers whose trucks have been exempted or who have obtained a deadline extension from CARB.
From Jan. 1, 2028, through Dec. 31, 2037, existing targeted forklifts must be phased out by model year and can be replaced only with zero-emission equipment. According to CARB staff, no forklift will have to be phased out before it is at least 10 years old. The compliance deadlines are staggered based on fleet size, truck class, capacity, and application:
For large fleets (more than 25 forklifts, including ZE trucks), phaseout of Class IV trucks with capacity ratings of 12,000 pounds or less begins in 2028 for MY 2018 and older. Additional deadlines based on model year occur in 2031, 2033, and 2035. For small fleets (25 forklifts or less) and trucks used in agricultural crop preparation, the deadlines run from 2029 to 2038. Phaseout of Class IV forklifts with capacities exceeding 12,000 pounds begins in 2035 for large fleets and in 2038 for small fleets and crop-prep applications.
For all fleets, Class V trucks rated for 12,000 pounds or less begin phaseout in 2030 for MY 2017 and older. Additional deadlines based on model year are 2033, 2035, and 2038; the 2038 deadline also applies to rental agencies for some model years. The required phaseout does not apply to Class V forklifts rated for 12,000 pounds and above, but fleets that voluntarily replace them with electrics of the same or greater capacity may postpone the replacement of an equal number of other LSI forklifts until 2038.
To limit the financial impact on end-users, the required turnover of targeted LSI forklifts on the first compliance date only is capped: for large fleets, at 50% of their total number of targeted trucks, and for small fleets and trucks used in crop prep, at 25%.
The rule includes several exemptions in addition to that for diesel-powered models. Businesses can run low-use trucks (those operated for fewer than 200 hours per year) until 2030, and a “microbusiness” can keep one low-use forklift indefinitely. Dedicated emergency equipment and forklifts being held for out-of-state delivery are also exempt. Importantly for California’s agriculture-heavy economy, CARB set exemptions for in-field use for agriculture and forestry, where building a charging infrastructure generally isn’t feasible.
Fleets may apply for a deadline extension if they encounter “significant delays” in the delivery of ZE forklifts, in electrical infrastructure construction or upgrades, or in site electrification, or because no ZE forklifts currently available can meet their needs. In the last-mentioned case, an LSI truck that has reached the end of its useful life well before its phaseout date may be replaced with a newer LSI model, which then inherits the older forklift’s phaseout date. The onus is on fleets to apply for and justify exemptions and extensions, most of which must be renewed annually. If circumstances have changed—for example, if new ZE models could meet an end-user’s performance requirements—then the exemption would not be renewed.
STAKEHOLDERS AIR THEIR CONCERNS
Over the past three years, CARB sought stakeholders’ input through public workshops; meetings with fleet operators, forklift manufacturers and dealers, rental agencies, fuel providers, and related industry groups; and site visits. In addition, two rounds of public comments elicited hundreds of submissions.
Among the groups providing ongoing feedback was the Industrial Truck Association (ITA), which represents industrial truck manufacturers and suppliers of parts and accessories in the U.S., Canada, and Mexico. In a series of discussions with CARB staff and in written public comments, ITA focused on five major problem areas, according to ITA President Brian Feehan. The group’s key points can be summarized as follows:
1. The organization asked CARB to replace the model year-based ban on sales and phaseouts with a more flexible “fleet average” approach that would allow fleet owners to determine how best to reduce emissions over time and to decide which trucks to eliminate when.
2. Late in the regulatory process, CARB had asserted that electric forklifts can replace Class IV (cushion-tire) trucks with capacities above 12,000 pounds. ITA disagreed, arguing that those forklifts should be excluded because very few or no viable electric substitutes exist for many of the applications where they are used.
3. The proposed rule said no new LSI trucks of any model year could be sold in California after Jan. 1, 2026, which would potentially leave dealers with unsold prior-model-year inventory.
4. OEMs will be required to annually report detailed information for each LSI forklift sold into the state. ITA said that would unnecessarily duplicate much of the information CARB already receives from forklift dealers and fleet operators.
5. ITA and other industry groups argued that a provision prohibiting end-users from purchasing a diesel forklift to replace an LSI truck was illegal because it in effect regulated diesel forklift emissions—something the federal Clean Air Act prohibits states from doing.
At the June 27 board meeting, meanwhile, fleet operators said the rule would add excessive cost because two to three high-priced electrics would be needed to replace each LSI model eliminated. They also questioned the feasibility of providing battery charging infrastructure on construction sites and in agricultural fields, and whether utilities will be able to meet demand for increased capacity. Agriculture and small-business representatives asked for more generous caps on the percentage of trucks that must be replaced by the first compliance deadline, or for caps to apply to every compliance deadline, not just the first one.
Providers of propane fuel—most of them family-owned small and medium-sized companies—were vocal, well-organized, and passionate. They warned of job losses and potentially having to close their businesses altogether. They reiterated their longstanding argument that propane is a low-emission fuel, and therefore propane-powered forklifts should be considered “part of the solution, not the problem.” Following the board’s decision to approve the regulation, the Western Propane Gas Association (WPGA) issued a statement slamming it as “costly, infeasible, and flawed.” WPGA charged that CARB’s estimates of the number of forklifts and businesses that would be affected—as well as its estimates of the costs of adding electrical infrastructure and replacing existing equipment—are too low. The group is instead supporting an alternative proposal that it says will meet the state’s air-quality goals with less disruption and expense.
CARB RESPONDS
During the public hearing, CARB’s staff pushed back at some of those criticisms. First, they said, the propane industry’s estimate of the number of affected forklifts relies on an incorrect methodology and is much too high. Staffers and two of the board members also said that, in their view, enough high-performance, battery-powered forklifts are now on the market that replacements are technically feasible for most applications. And they calculated that over the long term, the total cost of ownership for electric models will be lower than for their lower-priced IC counterparts.
CARB staff further reminded attendees that the exemptions and deadline extensions built into the final regulation were designed to address some of the very concerns being raised in the meeting. While that is true, nobody got everything they asked for. For example, CARB agreed that dealers could sell MY 2025 forklifts through Dec. 31, 2026, but it rejected ITA’s “fleet average” concept and denied ITA’s request to exclude Class IV trucks with capacities over 12,000 pounds. The agency dropped its prohibition against replacing LSI trucks with diesel-powered models but retained a requirement that fleet operators and rental agencies report that activity.
GET READY FOR THE FUTURE
The approved regulation will now move through state and then federal administrative and legal checks. Because the regulation relates to emissions from off-road vehicles, which are covered by the preemption provisions of the federal Clean Air Act, CARB must seek authorization from the U.S. Environmental Protection Agency (EPA) to fully implement the rule. Without that authorization, California will not be able to enforce the law. While authorization is likely, the timing is uncertain—meaning it’s possible the regulation could become effective but not yet enforceable.
Once the regulation is in force, almost everyone who touches a forklift in California will be affected in some way. Many fleet operators’ costs, and potentially their productivity, will change as they replace their LSI forklifts with a larger number of electrics and retrain their employees on the new equipment. The small and medium-sized businesses that make up much of the propane service industry may have to find new markets to replace forklift customers. Battery makers and distributors will profit from increased demand for their products.
Industrial truck manufacturers and dealers, meanwhile, will need to prepare for a decline in the number of LSI trucks sold and concurrent growth in demand for ZE trucks. While there are bound to be some costly burdens—they might, for example, have to move inventory out of California, revise the product mix on production lines and in showrooms, and retrain employees—they say they are up to the challenge.
One such company is Mitsubishi Logisnext Americas, which encompasses five brands serving a wide range of applications: Mitsubishi forklift trucks, Cat lift trucks, Rocla AGV Solutions, UniCarriers Forklifts, and Jungheinrichwarehouse and automation products. Some of those brands will be impacted more than others. Mitsubishi and Cat, for instance, are widely known for their heavy-duty, IC engine models favored by industries like construction, lumber, and manufacturing. Both brands have developed rugged, heavy-duty electrics that are already in service. “We have worked closely with our Cat lift truck and Mitsubishi forklift truck customers to transition their fleets to electric trucks,” says Mike Brown, director of energy solutions. “While the applications they serve and the loads that they are handling may not be changing, these customers do need to contend with significant changes in how they power their fleets.”
Brown expressed confidence that zero-emission equipment will increasingly be able to handle difficult jobs. “Options do exist in the market and will continue to expand to include features and performance historically reserved only for engine-powered trucks,” he notes, “but it will take some time before the industry can meet the full range of requirements for these tougher applications.” As part of that evolution, forklift providers, customers, and utilities will have to work together to ensure sufficient power capacity is available when and where needed, he adds.
On the dealer side, there’s Raymond West, which operates Raymond Corp. Solutions and Support Centers in California and several other Western states plus Alaska. Vice President of Sales Juan Flores believes the new regulation could have a “very positive” sales and revenue impact in California, especially for Class I electrics.
Raymond West sells and services electric forklifts exclusively, but it currently supports the conveyors, racking, and automated systems for some customers that have LSI trucks in their fleets. Flores says his company is well-positioned to help them make a successful transition to ZE forklifts. “We … can analyze current fuel consumption and then simulate the electric equipment fuel sources that support the application’s energy requirements,” he says. Power studies can generate the data needed to make decisions about which path to take. A dealer, he continues, may be able to demonstrate that the total cost for electrics and associated technology, combined with the reduction in equipment maintenance, is actually lower than for LSI forklifts. And dealers can go “beyond the forklift,” such as by recommending renewable energy sources in the warehouse to mitigate any increased demand on the grid or by helping eligible customers take advantage of carbon and energy credits.
Implementation of CARB’s forklift mandate is just a couple years away. For fleet managers wondering how to comply without breaking the bank, collaborating now with forklift dealers and OEMs who can help them understand the regulations, plan for change, and manage their fleets for compliance may be the smartest move they can make.