The race toward automation continues, as a rise in goods-to-person fulfillment, increased adoption of warehouse execution systems, and greater use of autonomous mobile robots top the list of material handling technology trends to watch in 2019.
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.
Warehouses and DCs will continue to implement technology-based material handling solutions in 2019 as they strive to work faster, smarter, and with fewer human resources. And though the use of futuristic technologies such as drones and augmented reality is on the horizon, most experts agree that the major trend in the year ahead will be the expanded use of more recently proven technologies—such as goods-to-person fulfillment systems—that can deliver the best return on investment (ROI).
"Everyone wants to move fast," says Norm Saenz, managing director at supply chain solutions consulting firm St. Onge, pointing to the buzz around robotics, autonomous vehicles, and similar cutting-edge technologies. "What they have to do, though, is make sure it's the right investment."
Daniel Johnson, an account executive with supply chain consulting firm Fortna, agrees, adding that the more "tried and true" automated material handling solutions make the most sense for many organizations and will become more widely used in the year ahead. He points to shuttle systems, automated truck loaders, and robotic depalletizers as examples of technologies in use and delivering an ROI for many clients today.
"Looking out to 2019, we'll see more adoption of some of those existing technologies," he says, emphasizing growth in goods-to-person picking systems in particular. "We've seen a massive return on investment there, from both a productivity and quality standpoint."
Both Saenz and Johnson predict that warehouse software implementation will rise in 2019 as well, pointing to growing demand for warehouse execution systems (WES) that improve communication and order flow throughout a facility. And in a nod to at least one "futuristic" trend, they agree that more widespread use of autonomous mobile robots is in store for 2019 too.
Here's a look at how goods-to-person picking, software implementation, and autonomous mobile robots will shape the warehouse and DC landscape in the year ahead.
GOODS-TO-PERSON ON THE RISE
A surge in e-commerce sales and the resulting need to meet omnichannel fulfillment demands is driving much of the change across the warehousing and logistics industry, and it's certainly a driver in goods-to-person fulfillment, says Marvin Logan, vice president of consulting services for systems integrator Bastian Solutions. A shift to smaller orders containing multiple stock-keeping units (SKUs) has changed the picking landscape for many organizations, he says, pushing them toward processes and technologies that can reduce a worker's travel time, improve overall productivity levels, and minimize errors. With goods-to-person fulfillment, machines retrieve products and bring them directly to the picker, eliminating the need for the worker to roam the aisles to collect items for an order. Technologies range from simple conveyor-based systems to more complex automated storage and retrieval systems (AS/RS), as well as robotic solutions. As technology advances, the goods-to-person landscape is expanding with even more choices, Logan adds.
"There are new players with new technologies that will be introduced in the next year or two, to [provide] even more options in goods-to-person for fulfillment," he explains. "We've seen a lot of it, and we'll see it pick up into next year."
Saenz agrees, emphasizing that a measured approach to implementing automated solutions often works best. For example, he says he expects to see greater use of conveyor systems in the year ahead as organizations with very basic warehouse and DC operations ease their way into automation. A natural progression often involves moving from simple racks and industrial trucks to conveyors and warehouse management software (WMS) before plunging into more advanced AS/RS types of systems, he adds.
"We think a customer should compare the more proven technology against robotics and the [more complex] offerings and decide if that's enough for them," Saenz says. "Companies definitely want to learn about the newest technology and see if it makes sense for them, but if there's a level right below that provides what you need for less [money] and [a quicker] ROI—then that's the right decision."
WES GAINS MOMENTUM
Experts say more organizations are purchasing software to manage and control warehouse and DC operations today, and that the trend will continue in 2019.
"There are still a lot of companies with legacy systems that don't provide a lot of the functionality you need today to handle different orders and more orders," Saenz explains. "You'll see a lot more legacy systems continue to turn over to the bigger WMS systems, and you'll see more on the controls side as well. All this equipment and automation needs good software to run it."
Johnson agrees and points to the growth in warehouse execution systems (WES), which help highly automated warehouses and DCs connect different systems and functions in one platform, improving communication across the entire operation. As Johnson explains, a WES "pulls" various functions from a traditional WMS, such as waving, order release, order diverting and so forth, and combines those functions with a traditional warehouse control system (WCS), which controls equipment, automation, and routing. With this additional layer of communication, he says, organizations have greater visibility across the operation and can improve the flow of orders through the warehouse.
"With the WES, I've now got a layer that's 'talking' between each piece of automation," he explains. "We will definitely see more use of that ahead."
Logan agrees, adding that the need for better software increases as companies adopt new processes for filling e-commerce and omnichannel orders. Rather than push large batches of orders to the DC for fulfillment, companies must pull orders to various parts of the warehouse or DC to fill those smaller, more diverse orders, he explains, creating a greater need for communication and visibility across the facility.
"That will increase, and the trend will continue into next year," he says.
AUTONOMOUS MOBILE ROBOTS FIND THEIR PLACE
Saenz says he expects more companies to start using "Kiva-type systems" in the warehouse and DC, referring to the compact orange robots used in Amazon.com's DCs to ferry racks of products to order pickers. (Although Amazon took the Kiva robots off the market after it acquired the parent company, Kiva Systems LLC, in 2012, other robotic developers, including GreyOrange, Swisslog, and Otto Motors, are introducing similar solutions today.) Such solutions are especially helpful in automating the picking process, resulting in greater productivity, Saenz says. Similarly, Johnson and Logan point to an increase in shuttle systems that can be used to retrieve products from storage and deliver them to the picker.
"Picking is where most of the labor is" in a distribution center or fulfillment facility, Saenz explains. "So it helps to have something that is moving around [the DC], grabbing orders for you or helping you be more productive in other ways. We will see a lot more of these types of solutions [deployed] to assist in the picking process."
Saenz, Johnson, and Logan point to an increase in labor-saving technologies such as autonomous forklifts and automated guided vehicles as well.
"[These are] drawing interest, and I'm sure we'll see more of them [in use] in the next year," Logan says. "It's happening already in Europe, and I think we'll see more here. It may not make sense if you only have one or two forklifts, but if you have a fleet, it's another story."
Saenz says he thinks the use of autonomous lift trucks will skyrocket in large operations.
"[Companies can realize] big savings there—tangible savings for the warehouse," he explains.
Looking beyond the next year, consultants say that future-focused technologies such as augmented reality (AR) and more sophisticated robotics are ripe for investment and will become the next automation wave.
"Full-picking robots, each-picking robots, [human-like] bots, and augmented reality—those are more futuristic types of automation where we are seeing a lot of investment," Johnson says.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
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.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.