Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Third-party logistics provider (3PL) RK Logistics Group is scaling up its deployment of autonomous mobile robots (AMRs), saying the bots will support the firm's time-critical warehousing and distribution operations while reducing worker fatigue and boosting recruitment efforts in a tight job market.
The deployment of the new AMRs will drive additional efficiencies and productivity into fulfillment and shipping operations that support high-tech manufacturing clients, according to RK Logistics President Rock Magnan. "The real benefit of AMRs is that they relieve employees from tedious, low-value work, such as walking a cart full of items from order assembly areas to shipping, and then walking back," Magnan said in a release. "It improves the workplace experience for the employee, makes them more efficient, and frees up time for them to focus on more higher-value activity."
That is a similar approach to an announcement made Thursday by the "fast fashion" retailer Tobi that it would deploy picker robots and a cloud-based Robotics-as-a-Service (RaaS) automation system from Los Angeles-based InVia Robotics. Those robots are intended to optimize operations at the firm's Reno, Nev., warehouse for handling e-commerce fulfillment, using automation to add efficiency and accuracy, boosting DC productivity and fulfillment without disrupting operations, Tobi said.
In the latest application, RK Logistics was already using three of Fetch's HMIShelf AMRs and has now added two of the firm's CartConnect AMRs, Magnan said in an email. All five units operate at RK Logistics' largest warehouse facility, located in Livermore, Calif., and the company may add more robots as Fetch develops and improves its portfolio of models, he said. For example, RK is already looking into robots with heavier carrying capacity that can move pallets.
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The company calculates a return on investment (ROI) from deploying the robots by leasing instead of buying the units, allowing RK Logistics to easily upgrade to the latest models as they become available, he said. On that pure dollar savings basis, the robots provide a slight cost-saving contribution margin to the company, but their greatest contribution comes in improving the nature of work performed by RK Logistics' employees, he said.
"Robots relieve employees of the more physical work of moving products, which can be fatiguing," Magnan said in an email. "We therefore get more utility out of our skilled employees who are doing more value added work—such as picking and completing more orders more accurately. That's harder to calculate [as] an ROI metric, but represents a real benefit of using the robots to do the tedious, wasteful, non-value added work, such as walking a cart of orders across the warehouse to shipping (and back), and having to physically lift the boxes multiple times."
Employees save an hour or more per day by not having to walk throughout the warehouse, avoiding fatigue and allowing them to focus on more value added work. "Heavy lifting and long periods of walking are what tires the worker out. This is what the robots take over from the worker," Magnan said. "They continue to do the preferred, more intellectually challenging work they are trained to do and more of it, and less of the more tedious, tiring work of pushing parts around. It's work enrichment that translates into a more satisfied workforce."
RK Logistics deploys the robots alongside other automated sorting and storage technologies, such as eight three-story tall Vertical Lift Machines (VLMs) which house thousands of small parts, such as screws, nuts, bolts, washers and other small components, which are stored in rotating bins. The facility also has a two-story high carousel that handles reels of wire, hose, cable and other products which are awkward or difficult to handle.
The robots fit into those operations by moving completed orders from picking, kitting, and assembly areas to shipping, making workers faster and more efficient and requiring them to exert less physical energy, he said.
“ExxonMobil is uniquely placed to understand the biggest opportunities in improving energy supply chains, from more accurate sales and operations planning, increased agility in field operations, effective management of enormous transportation networks and adapting quickly to complex regulatory environments,” John Sicard, Kinaxis CEO, said in a release.
Specifically, Kinaxis and ExxonMobil said they will focus on a supply and demand planning solution for the complicated fuel commodities market which has no industry-wide standard and which relies heavily on spreadsheets and other manual methods. The solution will enable integrated refinery-to-customer planning with timely data for the most accurate supply/demand planning, balancing and signaling.
The benefits of that approach could include automated data visibility, improved inventory management and terminal replenishment, and enhanced supply scenario planning that are expected to enable arbitrage opportunities and decrease supply costs.
And in the chemicals and lubricants space, the companies are developing an advanced planning solution that provides manufacturing and logistics constraints management coupled with scenario modelling and evaluation.
“Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization, creating one of the largest supply chain operations in the world, and through this identified critical solution gaps to enable our businesses to capture additional value,” said Staale Gjervik, supply chain president, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is instrumental in providing solutions for a large and complex business like ours.”
However, that trend is counterbalanced by economic uncertainty driven by geopolitics, which is prompting many companies to diversity their supply chains, Dun & Bradstreet said in its “Q4 2024 Global Business Optimism Insights” report, which was based on research conducted during the third quarter.
“While overall global business optimism has increased and inflation has abated, it’s important to recognize that geopolitics contribute to economic uncertainty,” Neeraj Sahai, president of Dun & Bradstreet International, said in a release. “Industry-specific regulatory risks and more stringent data requirements have emerged as the top concerns among a third of respondents. To mitigate these risks, businesses are considering diversifying their supply chains and markets to manage regulatory risk.”
According to the report, nearly four in five businesses are expressing increased optimism in domestic and export orders, capital expenditures, and financial risk due to a combination of easing financial pressures, shifts in monetary policies, robust regulatory frameworks, and higher participation in sustainability initiatives.
U.S. businesses recorded a nearly 9% rise in optimism, aided by falling inflation and expectations of further rate cuts. Similarly, business optimism in the U.K. and Spain showed notable recoveries as their respective central banks initiated monetary easing, rising by 13% and 9%, respectively. Emerging economies, such as Argentina and India, saw jumps in optimism levels due to declining inflation and increased domestic demand respectively.
"Businesses are increasingly confident as borrowing costs decline, boosting optimism for higher sales, stronger exports, and reduced financial risks," Arun Singh, Global Chief Economist at Dun & Bradstreet, said. "This confidence is driving capital investments, with easing supply chain pressures supporting growth in the year's final quarter."
The firms’ “GEP Global Supply Chain Volatility Index” tracks demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses.
The rise in underutilized vendor capacity was driven by a deterioration in global demand. Factory purchasing activity was at its weakest in the year-to-date, with procurement trends in all major continents worsening in September and signaling gloomier prospects for economies heading into Q4, the report said.
According to the report, the slowing economy was seen across the major regions:
North America factory purchasing activity deteriorates more quickly in September, with demand at its weakest year-to-date, signaling a quickly slowing U.S. economy
Factory procurement activity in China fell for a third straight month, and devastation from Typhoon Yagi hit vendors feeding Southeast Asian markets like Vietnam
Europe's industrial recession deepens, leading to an even larger increase in supplier spare capacity
"September is the fourth straight month of declining demand and the third month running that the world's supply chains have spare capacity, as manufacturing becomes an increasing drag on the major economies," Jagadish Turimella, president of GEP, said in a release. "With the potential of a widening war in the Middle East impacting oil, and the possibility of more tariffs and trade barriers in the new year, manufacturers should prioritize agility and resilience in their procurement and supply chains."
The third-party logistics service provider (3PL) Total Distribution Inc. (TDI) is continuing to grow through acquisitions, announcing today that it has bought REO Processing & REO Logistics.
Terms of the deal were not disclosed, but REO Processing & REO Logistics is headquartered in West Virginia with 10 facilities across West Virginia in Parkersburg, Vienna, Huntington, Kenova, and Nitro as well as in Atlanta, GA.
Headquartered in Canton, Ohio, TDI is a wholly owned subsidiary of Peoples Services Inc. (PSI). The combined TDI and PSI businesses operate over 12 million square feet of contract and public warehouse space located in 65 facilities in eight states including Michigan, Ohio, West Virginia, New Jersey, Virginia, North Carolina, South Carolina, and Florida.
As an asset-based 3PL, the PSI network offers a range of specialized material handling and storage services including many value-added activities such as drumming, milling, tolling, packaging, kitting, inventory management, transloading, cross docking, transportation, and brokerage services.
This latest move follows a series of other acquisitions, as TDI bought D+S Distribution, Inc. and Integrated Logistics Services Inc. in May, and Swafford Trucking, Inc., Swafford Warehousing, Inc., and Swafford Transportation, Inc. in February. The company also bought Presidential Express Trucking, Inc. and Presidential Express Warehousing & Distribution, Inc. in 2023.
The freight equipment original equipment manufacturer (OEM) Wabash will use a federal grant to launch a project with the University of Delaware that will save electricity by incorporating lightweight solar panels into refrigerated trailers and truck bodies, the Indiana company said today.
The three-year project, set to begin next year in partnership with the University of Delaware’s Center for Composite Materials, is intended to play a pivotal role in making zero-emission mid-mile transportation a commercially viable option, Wabash said.
Those materials are important because batteries powering heavy trucks can weigh between 5,000 to 10,000 pounds, often limiting the payload capacity and drawing significant energy from the electrical grid when charging, the partners said.
“This project has the potential to revolutionize refrigerated transport by reducing reliance on the electrical grid and minimizing overall emissions,” Michael Bodey, director of technology discovery and innovation at Wabash, said in a release. “While many of today’s zero-emission products focus on tailpipe emissions, they still draw power from energy grids, which often rely on non-renewable sources. Our goal is to offer a truly green solution—a well-to-wheel approach—that accounts for the full life cycle of energy consumption, from production to usage.”