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.
Ever since the founding of warehouse robotics pioneer Kiva Systems in 2003, observers have compared its rolling orange bots to various types of athletes and pop culture figures—hockey players, ballet dancers, Pac-Man from the world of video games, and even cartoon “Minions” from the “Despicable Me” movies.
But despite that focus on the bots’ physical prowess, many experts say the true strength of what we now call autonomous mobile robots (AMRs) is their intelligence. While warehouse visitors today may be entranced by the robots’ ability to move tangible goods, the magic actually lies in the software that enables AMRs to avoid collisions, analyze traffic, steer clear of bottlenecks, and show awareness of their surroundings—in a word, to think.
Once truly groundbreaking, goods-to-person automation is now “table stakes” for the AMR industry, says Jerome Dubois, co-founder and co-CEO of 6 River Systems, a Massachusetts-based robot maker that was acquired in 2019 by the e-commerce platform Shopify. “The Kiva robot itself was innovative, but it was a fairly simple device,” he says. “Software is now driving the acceleration and the value that people are realizing from robotics, with algorithms for replenishment, slotting, work assignments, and workflows.”
In Dubois’ view, the chief strength of AMRs—essentially, what enables them to accelerate the flow of goods through the warehouse—is their awareness of how inventory is stored and allocated, as opposed to their physical capabilities, such as how fast they move, how much weight they can carry, or how safely they operate.
“Back in 2017 when we launched our AMR [a collaborative robot called “Chuck”], we had three times [more] software engineers than hardware engineers. And today that number is four times,” he says. “Not that it’s easier to make the hardware, but with software, there is more potential, opportunity, doors to unlock. We love Chuck, but it doesn’t do anything without the software.”
As for what opportunities the company’s software engineers are currently exploring, it’s all about making each interaction more efficient, Dubois says.
“For any goods-to-person robot, the more work it can accomplish per hour of runtime, the more benefit you get,” he explains. “So our goal is to figure out how to get more work assigned to a Chuck as it moves from A to B to C; how many picks we can get off a shelf or from a tote at one time; or how else we can do this work so each move is as task-heavy as possible.”
PLAYING WELL WITH OTHERS
In fact, an AMR’s greatest contribution to the fulfillment workflow may lie in its ability to streamline handoffs and interactions all the way down the line. Just as AMR intelligence can enhance productivity inside a DC, it can also help speed the movement of products through a larger network that includes multiple fulfillment centers and retail stores, says Akash Gupta, co-founder and CTO of GreyOrange, an Atlanta-based warehouse automation and robotics vendor.
Today’s complex distribution networks require pinpoint-accurate visibility over inventory at every node, he explains, adding that AMRs can help meet that need by providing a constant flow of data as they move goods, count units, run analytics, and track exceptions.
“It requires lots of intelligence because before you can think about executing the work by robots, you need to communicate between nodes, and you need to support a large number of both robotic and nonrobotic devices,” Gupta says. “Maybe in 10 years, we’ll have fully autonomous warehouses, but in the next five to seven years, a large portion of DCs will use a combination of autonomous, semi-autonomous (robot-assisted), and manual operations. So the software needs to be flexible enough to send real-time feedback” to all the players, he says.
AMR intelligence can enhance productivity inside a DC and help speed the movement of products through a larger network that includes multiple fulfillment centers and retail stores, says Akash Gupta of robotics vendor GreyOrange.
That need for software flexibility also comes into play in DCs that use equipment from multiple vendors, adds Sean Elliott, CTO for software at Körber Supply Chain, a German supply chain technology solution developer. Many DCs today include robots from a variety of suppliers, each one assigned to different tasks, he says. A company might use one brand of robot to pick and palletize goods, another to move loaded pallets, and a third to load them on trucks. In that kind of operation, companies rely on software to handle the “decisioning” process, assign each robot to its own specialty, and optimize the workflow.
ROBOTS GET SELF-AWARE
Faced with that complex mission, AMRs need the ability to focus on multiple goals at once: completing their immediate job of moving goods, communicating with other robots to ensure that handoffs happen on time, and reporting the results of every step to the software that oversees the network.
If that profile sounds almost like a human employee’s job description, that’s because it is. And the comparisons don’t end there. Like humans, robots perform best when they’re “aware” of their own strengths and weaknesses in the same way human workers are, Elliott says. For instance, that might mean the AMR is able to communicate how much battery charge it has left or respond to a query about its payload capacity.
Robots focused only on lifting and moving goods would not be able to answer those questions, much less collaborate with other bots and human workers, plot routes through bustling warehouses, or generate continuous streams of inventory-tracking data.
In an industry that relied for decades on hard-working laborers with clipboards and pencils, the addition of robotic teammates with precision intelligence promises to trigger a revolution in fulfillment efficiency and operational awareness. And in appreciation of AMRs’ growing brainpower, the sector may have to abandon old comparisons to dancers and skaters, and adopt new terminology that reflects the robots’ “smarts.” Or maybe we can just hang diplomas on each robot’s frame and applaud as it rolls into the DC.
Jeremy Van Puffelen grew up in a family-owned contract warehousing business and is now president of that firm, Prism Logistics. As a third-party logistics service provider (3PL), Prism operates a network of more than 2 million square feet of warehouse space in Northern California, serving clients in the consumer packaged goods (CPG), food and beverage, retail, and manufacturing sectors.
During his 21 years working at the family firm, Van Puffelen has taken on many of the jobs that are part of running a warehousing business, including custodial functions, operations, facilities management, business development, customer service, executive leadership, and team building. Since 2021, he has also served on the board of directors of the International Warehouse Logistics Association (IWLA), a trade organization for contract warehousing and logistics service providers.
Q: How would you describe the current state of the contract warehouse industry?
A: I think the current state of the industry is strong. For those that have been focused on building good client relationships over the years, I think it’s a really exciting time. Coming out of all the challenges of the past few years, I think there’s a lot of opportunity for growth and deeper partnerships. It’s fun to see the automation and AI (artificial intelligence) integration starting to evolve [in a way that’s] similar to what we saw with WMS (warehouse management systems) in the early 2000s.
Q: You are now president of your family firm. Is it an advantage having grown up in the business as opposed to working elsewhere?
A: I definitely believe it was an advantage growing up in the business. Whether it’s working with family or someone else in the industry, there’s always an advantage when you have mentors[to guide] you. I’ve been blessed to have several mentors, some in the industry, others just in life, and I’m thankful that they were willing to mentor me and that I was willing to listen to them.
Q: What are the biggest challenges currently facing 3PLs, and how are you addressing them?
A: Labor and legislation are both tough right now. The two seem to have a lot to do with each other, and it can make it tough to find and retain people. So I think we’ll see more and more automation of processes industrywide.
Q: Third-party service providers often must handle a wide variety of products for a lot of different clients. Does this variety make it difficult to invest in automation and other new technologies?
A: It can make things more difficult when looking at certain automation, but it’s in the “difficult” that a lot of opportunities lie. It would be tough to find a single solution that fits every client’s needs, but there are always opportunities to improve in certain areas. It just takes a bit of vision and commitment, and a willingness to invest in your own long-term success.
Q: As a 3PL, what do you look for when selecting the clients you work with?
A: Quality relationships that will last a long time. When both parties are happy and working together in the same direction, everyone wins.
Q: You’ve been a board member of the International Warehouse Logistics Association since 2021. Why is your involvement with this organization important to you?
A: I think it’s important to understand what’s happening in the industry. IWLA is a great resource for staying up to date and getting a solid education when it comes to the latest logistics trends. I also think it’s important to give back and pass along what we’ve learned to those just getting started in the business. As important as it is to have a mentor, it’s just as important to mentor and help others.
“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” NRF Chief Economist Jack Kleinhenz said in a release. “September sales come amid the recent trend of payroll gains and other positive economic signs. Clearly, consumers continue to carry the economy, and conditions for the retail sector remain favorable as we move into the holiday season.”
The Census Bureau said overall retail sales in September were up 0.4% seasonally adjusted month over month and up 1.7% unadjusted year over year. That compared with increases of 0.1% month over month and 2.2% year over year in August.
Likewise, September’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.7% seasonally adjusted month over month and up 2.4% unadjusted year over year. NRF is now forecasting that 2024 holiday sales will increase between 2.5% and 3.5% over the same time last year.
Despite those upward trends, consumer resilience isn’t a free pass for retailers to underinvest in their stores by overlooking labor, customer experience tech, or digital transformation, several analysts warned.
"The 2024 holiday season offers more ‘normalcy’ for retailers with inflation cooling. Still, there is no doubt that consumers continue to seek value. Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals,” Matt Pavich, senior director of strategy & innovation at pricing optimization solutions provider Revionics, said in an email.
Nikki Baird, VP of strategy & product at retail technology company Aptos, likewise said that retailers need to keep their focus on improving their value proposition and customer experience. “Retailers aren’t just competing with other retailers when it comes to consumers’ discretionary spending. If consumers feel like the shopping experience isn’t worth their time and effort, they are going to spend their money elsewhere. A trip to Italy, a dinner out, catching the latest Blake Lively and Ryan Reynolds films — there is no shortage of ways that consumers can spend their discretionary dollars,” she said.
Editor's note:This article was revised on October 18 to correct the attribution for a quote to Matt Pavich instead of Nikki Baird.
The market for environmentally friendly logistics services is expected to grow by nearly 8% between now and 2033, reaching a value of $2.8 billion, according to research from Custom Market Insights (CMI), released earlier this year.
The “green logistics services market” encompasses environmentally sustainable logistics practices aimed at reducing carbon emissions, minimizing waste, and improving energy efficiency throughout the supply chain, according to CMI. The market involves the use of eco-friendly transportation methods—such as electric and hybrid vehicles—as well as renewable energy-powered warehouses, and advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI) for optimizing logistics operations.
“Key components include transportation, warehousing, freight management, and supply chain solutions designed to meet regulatory standards and consumer demand for sustainability,” according to the report. “The market is driven by corporate social responsibility, technological advancements, and the increasing emphasis on achieving carbon neutrality in logistics operations.”
Major industry players include DHL Supply Chain, UPS, FedEx Corp., CEVA Logistics, XPO Logistics, Inc., and others focused on developing more sustainable logistics operations, according to the report.
The research measures the current market value of green logistics services at $1.4 billion, which is projected to rise at a compound annual growth rate (CAGR) of 7.8% through 2033.
The report highlights six underlying factors driving growth:
Regulatory Compliance: Governments worldwide are enforcing stricter environmental regulations, compelling companies to adopt green logistics practices to reduce carbon emissions and meet legal requirements.
Technological Advancements: Innovations in technology, such as IoT, AI, and blockchain, enhance the efficiency and sustainability of logistics operations. These technologies enable better tracking, optimization, and reduced energy consumption.
Consumer Demand for Sustainability: Increasing consumer awareness and preference for eco-friendly products drive companies to implement green logistics to align with market expectations and enhance their brand image.
Corporate Social Responsibility (CSR): Companies are prioritizing sustainability in their CSR strategies, leading to investments in green logistics solutions to reduce environmental impact and fulfill stakeholder expectations.
Expansion into Emerging Markets: There is significant potential for growth in emerging markets where the adoption of green logistics practices is still developing. Companies can capitalize on this by introducing sustainable solutions and technologies.
Development of Renewable Energy Solutions: Investing in renewable energy sources, such as solar-powered warehouses and electric vehicle fleets, presents an opportunity for companies to reduce operational costs and enhance sustainability, driving further market growth.
A real-time business is one that uses trusted, real-time data to enable people and systems to make real-time decisions, Peter Weill, the chairman of MIT’s Center for Information Systems Research (CISR), said at the “IFS Unleashed” show in Orlando.
By adopting that strategy, they gain three major capabilities, he said in a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI.” They are:
business model agility without needing a change management program to implement it
seamless digital customer journeys via self-service, automated, or assisted multi-product, multichannel experiences
thoughtful employee experiences enabled by technology empowered teams
And according to Weill, MIT’s studies show that adopting that real-time data stance is not restricted just to digital or tech-native businesses. Rather, it can produce successful results for companies in any sector that are able to apply the approach better than their immediate competitors.
“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.”