The evolution of the warehouse and distribution center is causing a revolution in automated solutions for everything from picking to loading, as robotics R&D accelerates.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Providers of material handling solutions are feeding a growing appetite for automation in the warehouse and distribution center these days, with a special interest in robotics. Research into and development of robotics applications for everything from picking and packing to truck loading and unloading is on the rise, and the trend shows no sign of slowing down, says Crystal Parrott, vice president of the Robotics Center of Excellence at the Grand Rapids, Mich.-based systems integrator Dematic.
"It's a fascinating time to be in robotics," says Parrott, whose group works with customers to develop automated solutions that incorporate robotic bin picking and palletizing. She says advances in vision and gripping technology, computing power, and artificial intelligence are helping to propel robotics research and development, and that labor challenges, e-commerce, and omnichannel business trends are driving customers' interest in applying high-tech solutions throughout the warehouse and distribution center.
And the timing couldn't be better, as warehouses and DCs morph into fast-paced fulfillment centers that offer increasingly quick turnaround times. Finding better, more efficient ways to move products throughout the facility is at the top of just about everyone's priority list, it seems.
"The industry as a whole is going to continue to evolve," Parrott says. "And we need solutions that can help in all areas."
PICKING SYSTEMS ADVANCE
Underlying the growing interest in robotics is the sheer need to get more orders out the door faster in today's environment. Intense competition in the e-commerce sector, a rise in the number of stock-keeping units (SKUs) companies must keep on hand, and advancing technology in general are all causing companies to move toward automated warehouses and DCs, and robotics is a natural extension of that trend. A study released this spring by market researcher Allied Market Research forecasts a nearly 12-percent compound annual growth rate in the global warehouse robotics market between 2016 and 2023, reaching a market value of $5.2 billion.
Most of those solutions will be used to address e-commerce business, where demand for automation is soaring. The Allied Research report shows that e-commerce as an industry vertical accounts for the largest share of the warehouse robotics market today, followed by the automotive industry. The study also found that pick and place is the most common function performed by warehouse robotics in those environments, followed by packaging.
Parrott says labor challenges are having a considerable influence on robotics growth as well. As volume and throughput demands increase, organizations need more employees to handle the work—and those employees can be tough to come by in today's tight labor market, where unemployment is low and the need for both skilled and unskilled labor is rising across manufacturing, industrial, and retail sectors. Finding enough workers can be especially difficult for e-commerce retailers looking for seasonal warehouse help.
Robotics hold the potential to address such problems on a large scale because they can be used to perform repetitive tasks such as picking, freeing up workers for other tasks throughout the facility, Parrott explains. But the technology still has a long way to go to address the variety of products in the market with the reliability and adaptability of a human. Today's robotic picking solutions do a good job of moving products from one place to another, but further research and development will be needed before they can perform some of the more complex, precision-based tasks required in dynamic picking environments.
"At the moment, most of the piece-picking robotic applications are using end effectors with either vacuum cups or a simplistic 2/3/4 finger gripper. The robot path planning provides a centralized pick point and general extraction path to avoid collision with the bin or objects in the environment," Parrott explains. "This will work on a large number of products, [but] some products need to be picked up in a specific way and extracted [so as] not to entangle or damage other items next to them."
A top-heavy product such as a hammer, for instance, must be gripped closer to the head. Further complicating matters, the handle or nail remover portion of the head may get tangled or buried beneath other items, making the choice of which one to pick next more complex; the extraction motion from the bin will be more complex as well. Such actions require more advanced vision and path planning solutions, Parrott says.
"Additionally, most [robotic picking] applications being demonstrated [today] pick and drop the product in an order tote or container," she says. "If a large variety of products need to be [deposited] in a specific place or in a defined orientation so that they are not damaged, this requires more advanced planning on the placement side."
Parrott says she has no doubt the technology will get there, and she also points to growing investment in "mobile bots"—robots that move throughout a facility as opposed to picking arms and other stationary solutions—as another particularly hot area of research today.
"You're seeing advances in automating 'goods to person' [picking]," she says. "There is a lot of focus in this area, and we will see even more development in the years ahead."
A separate industry study underscores the point. Industry research firm Interact Analysis released a study this spring predicting that the value of the autonomous mobile robots (AMRs) market will grow to $7 billion in 2022 from $1.1 billion in 2017. The burgeoning e-commerce sector, mass personalization of goods, and a shortage of low-cost labor are driving the trend, the research firm said. Deck-load mobile robots—those that have decks or flat surfaces to transport pallets or cartons—are the most common, with 180,000 forecast to be shipped in 2022. Mobile robots with mounted arms are less commonly used, but are increasingly entering the research and development phase. Interact Analysis predicts that 12,000 of these types of robots will be sold in 2022.
Logistics is the fastest-growing vertical market for mobile robots, with revenues predicted to jump to $3 billion in 2022 from $300 million in 2017. Mobile robot use in the manufacturing sector is expected to soar as well, with revenues increasing 75 percent to more than $3 billion by 2022.
ROBOTS MOVE TO THE LOADING DOCK
Bastian's Ultra mobile robots for trailer loading and unloading are engineered for the narrow space and high reach of transport vehicles. They are being used in pilot programs this summer, with a full commercial rollout expected to start in the first quarter of 2019.
One of the newest areas for robotics is the loading dock, a place that's ripe for efficiency improvements and innovation, according to Joe Zoghzoghy, Ph.D., mobile robotics manager for material handling solutions provider Bastian Solutions. Bastian introduced its Ultra mobile robot for truck trailer loading and unloading at the Modex trade show in Atlanta this spring; the product is being used in pilot programs this summer, with a full commercial rollout expected to start in the first quarter of 2019.
Ultra robots are engineered for the narrow space and high reach of transport vehicles, ranging from extended vans to intermodal containers. The robots drive directly into the trailer, picking up as many as 20 cases per minute each, and can be integrated with a company's existing warehouse management and warehouse control systems. Zoghzoghy says this type of robotics solution directly addresses the many labor-related challenges companies face on the loading dock, including harsh temperatures and heavy lifting that leave workers prone to injury and raise a host of safety concerns, including repetitive stress injuries.
"It's hard to hire people for this type of environment," Zoghzoghy says. "It makes sense that organizations seek to solve some of these problems with automation."
Labor-related cost pressures are another concern. Increases in the minimum wage, overtime, and seasonal demands can strain budgets, giving organizations yet another reason to consider automating certain warehouse and distribution center tasks. A short payback period is crucial to making the math work on such investments, Zoghzoghy adds, noting that companies should expect a one- to two-year payback when implementing any automated or robotics solution.
As technology advances and costs come down, he says, more companies will be able to achieve that goal.
"In general, automation will be very helpful to improve efficiency, bring costs down, and create a safer environment for workers," Zoghzoghy says. "Especially as the cost of technology comes down, you'll see these solutions integrated even more."
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.