In Person Interview: Jerome Dubois of 6 River Systems
In our continuing series of discussions with top supply-chain company executives, Jerome Dubois of 6 River Systems talks about robotics and how robots are revolutionizing warehouse operations.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Jerome Dubois has spent his entire career in supply chain. He is the co-CEO and co-founder of 6 River Systems (6RS), an automated solutions provider that specializes in collaborative robotic systems. He continues to lead and grow his company, which was acquired by the global e-commerce firm Shopify in 2019.
Before launching 6 River Systems, Dubois directed global sales at robotic warehouse pioneer Kiva Systems, which Amazon bought in 2012. He also spent nearly 10 years at Yantra Corp., a provider of distributed order management and supply chain fulfillment solutions that was acquired by Sterling Commerce in 2005. While at Yantra, Dubois directed application sales, managing a national team that was responsible for the retail and services industry verticals. He holds an MBA in supply chain management and finance from Northeastern University.
Q: How do you view the current state of the material handling market and robotics in particular?
A: It’s clear that the interest in robotic automation in the material handling space has grown exponentially. Companies that were once hesitant to implement robotics are now realizing the benefits and deploying solutions so they can meet the demands on their business brought on by the pandemic and the change in their customers’ expectations.
Q: You have been with companies at the forefront of robotic innovation in supply chains. What do you consider to be the most significant advances in the field?
A: As one of the early leaders in this space, we’ve helped bring significant and exciting advancements to robotic automation over the years. One of the most compelling trends we’ve witnessed is the democratization of fulfillment, which has become more evident during the pandemic. Small to medium-sized businesses (SMBs) now have more access to flexible, affordable fulfillment automation solutions that empower them to more easily scale operations and meet customer expectations.
Q: What makes robots particularly suitable for distribution applications?
A: Robots help operators better manage their cost and building throughput, while also improving the speed and accuracy of all fulfillment. For associates in the warehouse, collaborative robots ease the physical strain of the job by replacing heavy pushcarts and reducing the walking.
A less physically demanding job is also more attractive to prospective employees, expanding the potential labor pool as many warehouses are experiencing labor shortages. They also require less training time due to the reduction of risks associated with the job.
Q: Has the pandemic’s demand for social distancing increased interest in robotic systems?
A: The natural social distancing capabilities that collaborative robots provide have become an attractive benefit for fulfillment centers throughout the pandemic. In the spring of 2020, we released recommendations to our customers to further protect their employees from pathogens during the picking process. Our customers responded to this very positively since having healthy associates available was crucial to meeting the increasingly high demand that fulfillment centers have seen over the past year.
Automating long walks between induct, active picking, and takeoff areas and reducing crowding on the warehouse floor creates a base level of social distancing. By deploying collaborative robots with enhanced zoning and order allocation, warehouses are able to optimize sites for social distancing measures. We’ve worked with customers to restrict aisle traffic and set zoning rules so operators can also ensure that associates remain within their own zones while Chuck [the company’s collaborative robot] crosses from one to the next.
Q: Are there particular markets or applications that you see emerging for robotics?
A: We’ve seen emerging growth in microfulfillment centers and dark stores. Many retailers are adding smaller warehouses in locations closer to their customers. This is perfect for flexible automation solutions that can be added or removed as needed. Collaborative robots can be moved from one warehouse to another seamlessly, which makes this solution even more agile.
As BOPIS (buy online/pick up in store) and BOPAC (buy online/pick up at curb) services continue to gain popularity, collaborative robots are frequently being used for fulfillment in dark stores as well. As we’re seeing customer expectations for these options heighten, more retailers are prioritizing automation to meet the growing demand.
Q: How did you come up with the name “Chuck” for your collaborative mobile robot?
A: Since 6 River Systems was founded in Waltham, Massachusetts, the name “Chuck” is a nod to our company’s Boston roots. “Chuck” was named after the Charles River, a prominent waterway in that city that flows into Boston Harbor.
Q: How will advances in artificial intelligence affect future robotic design and applications?
A: As artificial intelligence is becoming more advanced, there will be a greater focus on the software applications for robotic automation. Prioritizing our investment in software is a major focus for 6 River Systems and is the real power behind Chuck. We are constantly making software enhancements that will enable a new generation of fully informed warehouse operators. This will create greater visibility that will unlock actionable data on both the day-to-day and big-picture operations to help make informed business decisions.
New York-based Reflex says its robot is an out-of-the-box solution that reaches operational capability within 60 minutes of deployment and ramps to become fully autonomous by learning from human demonstrations over time. The multi-purpose humanoid can transition seamlessly between repetitive tasks, from product picking to tote transfers between other kinds of automation.
Greenwich, Connecticut-based GXO will control the tests through its “operational incubator” program, which partners closely with developers to validate practical use cases using the warehouse as a real-world laboratory.
Specific to this case, GXO says it is currently co-developing an array of use cases across process paths through the pilot in an omni-channel fulfillment operation for a Fortune 100 retailer.
And the long-term objective of the agreement with Reflex is to deploy the Reflex Robot widely across GXO’s operations, easing capacity constraints and enabling GXO’s team members to take on more fulfilling roles.
Atlanta-based MyCarrierPortal, a provider of carrier onboarding and risk monitoring solutions for the trucking industry, is formally known as Assure Assist Inc.
The firm says its solutions help freight brokers and shippers quickly set up carrier requirements through an onboarding platform that gathers information on carriers and screens them for suitability to deliver loads/shipments based on the broker’s risk and compliance criteria. For example, truck carriers are screened for legitimacy, insurance compliance, and an acceptable safety record. Carriers that are onboarded to the platform are monitored on an ongoing basis to help ensure continued compliance. And if a carrier falls out of compliance, the customer is notified to take appropriate action with that carrier.
“Carrier fraud and cargo theft is an ongoing problem in the transportation industry. This acquisition is another investment to help enable improved Know-Your-Carrier (KYC) capabilities that are critical to improve supply chain performance and fraud reduction,” Dan Cicerchi, General Manager of Transportation Management at Descartes, said in a release. “We actively connect with hundreds of thousands of carriers and thousands of brokers and shippers. Many of these participants have expressed their desire for us to further extend our investments in fraud prevention. The combination of MCP and our Descartes MacroPoint FraudGuard tool presents a differentiated solution for our customers to efficiently onboard carriers while enhancing visibility and compliance, and reducing fraud risk.”
The deal will create a combination of two labor management system providers, delivering visibility into network performance, labor productivity, and profitability management at every level of a company’s operations, from the warehouse floor to the executive suite, Bellevue, Washington-based Easy Metrics said.
Terms of the deal were not disclosed, but Easy Metrics is backed by Nexa Equity, a San Francisco-based private equity firm. The combined company will serve over 550 facilities and provide its users with advanced strategic insights, such as facility benchmarking, forecasting, and cost-to-serve analysis by customer and process.
And more features are on the way. According to the firms, customers of both Easy Metrics and TZA will soon benefit from accelerated investments in product innovation. New functionalities set to roll out in 2025 and beyond will include advanced tools for managing customer profitability and AI-driven features to enhance operational decision-making, they said.
As retailers seek to cut the climbing costs of handling product returns, many are discovering that U.S. consumers shrink their spending when confronted with tighter returns policies, according to a report from Blue Yonder.
That finding comes from Scottsdale, Arizona-based Blue Yonder’s “2024 Consumer Retail Returns Survey,” a third-party study which collected responses from 1,000+ U.S. consumers in July.
The results show that 91% of those surveyed acknowledge that a lenient returns policy influences their buying decisions. Among them, Gen Z and Millennial purchasing decisions were most impacted, with 3 in 4 consumers stating that tighter returns policies deterred them from making purchases.
Of consumers who are aware of stricter returns policies, 69% state that tighter returns policies are deterring them from making purchases, which is up significantly from 59% in 2023. When asked about the tighter returns policies, 51% of survey respondents felt restrictions on returns are either inconvenient or unfair, versus just 37% saying they were fair and understandable.
“We're seeing that tighter returns policies are starting to deter consumers from making purchases, particularly among the Gen Z and Millennial generations," Tim Robinson, corporate vice president, Returns, Blue Yonder, said in a release. "Retailers have long acknowledged that they needed to tackle returns to reduce costs – the challenge now is to strike a balance between protecting their margins and maintaining a customer-friendly returns experience."
Retails have been rolling out the tighter policies because the returns process is so costly. In fact, many stores are now telling consumers to keep unwanted items to avoid the expensive and labor-intensive processes associated with shipping, sorting, and handling the goods. Almost three out of four consumers surveyed (72%) have been given this direction by a retailer.
Still, consumers say they need the opportunity to return their purchases. Consistent with last year’s survey, 75% of respondents cite the most common reason for returns is incorrect sizing. Other reasons cited by respondents include item damage at 68%, followed by changing one's mind or disliking the item (49%), and receiving the wrong product (47%).
One way retailers can meet that persistent demand is by deploying third-party returns services—such as a drop-off location or mailing service—the Blue Yonder survey showed. When asked what factors would make them use a third-party returns service, 62% of consumers said lower or no shipping fees, 60% cited the convenience of drop-off locations, 47% said faster refund processing, 39% cited assurance of hassle-free returns, and 38% said reliable tracking and confirmation of returned items.
“Where the goal is to mitigate the cost of returns, retailers should be looking for ways to do more than tightening their policies to reduce returns rates,” said Robinson. “Gathering data and automating intelligent decision-making for every return will bring costs down through more efficient transportation and reduced waste without impacting the customer experience. That data is also incredibly valuable to reduce returns rates, helping retailers to see the patterns of which items are returned, by which customer segments, and why; and to act accordingly.”
Based on a survey of 200 TIA members representing the diversity of the industry, 98% of respondents identified truckload as their most vulnerable mode. And those thieves are in search of three most commonly stolen goods—electronics, solar panels, and household goods—due to their high value and ease of resale.
Criminals commit those crimes through a variety of methods. The survey highlighted eight fraud types, including spoofing, unlawful brokerage scams, fictitious pickups, phishing, identity theft, email/virus, inbound phone calls, and text messages.
Stopping those thefts demands extra work from companies in the sector, as nearly 1 in 5 respondents indicated that they spend an entire day each quarter on fraud prevention, while 16% reported spending more than 4 hours a day, and 34% said they dedicate more than 2 hours a day to these efforts. This considerable time investment in monitoring, verifying, and responding to fraudulent activities diverts attention from other essential business operations, affecting overall productivity and increasing operational costs, TIA said.
In response, Alexandria, Virginia-based TIA also examined the critical steps the industry must take to protect itself from fraud schemes. "We are an industry under siege right now and we are not getting the support from government and law enforcement authorities to help us combat this scourge on the supply chain," Anne Reinke, president & CEO of TIA, said in a release. "When people think of fraud in the supply chain, they only see what is happening to a business, they are not seeing the trickle-down effect to consumers and economy. Fraud is a multimillion-dollar problem that needs to be addressed today."