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.
Robotics and automation are playing a greater role in distribution than ever before, as supply chain professionals strive to boost efficiency and keep pace with escalating fulfillment demands. So what lies ahead for the industry? DC Velocity Group Editorial Director David Maloney recently gathered five experts from MHI’s Conveyor and Sortation Systems Industry Group to get some answers and find out what the future holds for the automation and robotics markets.
Q: Automation and robotics are red hot right now. Often, these terms are used almost interchangeably. How do you define automation and robotics as they apply to our industry?
Satyen Pathak – Designed Conveyor Systems: We do see a big difference between automation, being kind of the conventional part, and robotics, being the new art. I typically differentiate between the two by asking, How much autonomy is there? How much can it make its own decisions? That is how I distinguish between standard automation and the new robotics. We call it “cognitive robotics,” where the robots take over the decision-making, the reasoning, and so forth. That is kind of the new age, but there is kind of a blend over, and you can’t really draw a line between them.
Doug Schuchart – Beckhoff Automation: You may be limiting yourself if you think robotics is just like conveyors and sortation. It is another tool in the toolbox for automated systems. Often, robotics is working with something else. It is rare that it is just a completely stand-alone robot for an automated solution. Another way to think about it is how to blend the right mix of technologies and the new technologies that are coming at us every day.
Q: Traditionally, conveyor systems have been the go-to technology for fixed-path movement of products. Now, we have autonomous mobile robots that can perform similar tasks. Does the conveyor industry see AMRs and other robotics as a threat or as a complementary technology?
Markus Winkler – TGW: We don’t really consider it a threat. I think it is a great opportunity. I see it as something that is adding to our competencies. We are fortunate to understand these new technologies and apply them correctly to our advantage.
Tim Kraus – Intralox: The way we try to think about it is that we know that there are certain applications where a robotics solution offers a clear advantage over conveyors, sorters, or automated singulators. We try to think about how can we augment that: How can we make that work better, work faster, and work more reliably? Is there something we can do to present items to a robot to make it much more efficient and help the total solution?
Q: The pandemic-fueled e-commerce explosion has boosted demand for systems that handle parcels and smaller items. Is that affecting the types of conveyors your customers are choosing?
Jeff Brown – Mitsubishi Electric Automation Inc.: Absolutely, we see that. Everything used to be a full case. Now, it is not only moving the individual items but also factoring in the wide range of packaging that the items may come in. In addition to boxes, there are now different types of polybags that have added to the challenge. We see air-filled bags, poly, and paper envelopes. All of those things add to the mix—it is not just the item size, but how is it packaged and how that affects what the conveyor solution should look like. [Customers] are not necessarily specifying rollers or belts, but they want a solution that is going to minimize downtime and will keep up with throughput demands without package damage.
Doug Schuchart – Beckhoff Automation: We are also seeing grocery and pharmaceuticals now being handled more in e-commerce fulfillment. So, we have to accommodate an even wider spectrum of product types, along with handling requirements that differ from what we’ve seen in the traditional retail space. That expands the types of automated equipment that may be required, and that is playing into some of the equipment innovations we see in the marketplace.
Q: How have conveyor installations changed over the years, and is it easier to integrate them with robotics and other types of automation than it might have been in the past?
Markus Winkler – TGW: I think the big challenge is we need to make conveyors much, much easier and quicker to install. They are more like an integrated product. It is the power supply. It is the communication. It is the logic that comes with the conveyor, and it is the package. That is definitely driven by the changes that our customers are seeing. Now, we are challenged with implementing large integrated systems within months when before it was probably years. That is where all those modular designs come into play.
Q: The rising cost of labor is one of the main reasons why people are turning to automation. As those costs continue to rise, do you feel this will help bolster the case for automation?
Satyen Pathak – Designed Conveyor Systems: We are in a unique time in that we are coming out of a pandemic and wages are rising in order to get people to come back to work. I believe automation is in a constant change cycle. I still think robotics has a long way to go before it’s considered a tried and trusted traditional technology, the way crossbelt sorters and line sorters are. It is in its infancy. But I do see robotics growing at a higher rate.
Q: Conveyor companies are more than simply hardware suppliers. They see themselves as solution providers. How do you approach implementing these new technologies—the sensors, the IoT, the vision systems, robotics, and other kinds of automation—with the conveyors and sorters you manufacture?
Tim Kraus – Intralox: Companies have to evolve to think about the total solution. If you are just thinking about building the conveyor itself, you are going to miss what else is out there. How does it integrate? Where does it best fit? How does it work with other technologies? The whole industry naturally has to shift in that way to make sure that the solution is relevant and that it can be coupled with the right things to create a great system for our customer.
Jeff Brown – Mitsubishi Electric Automation Inc.: Customers nowadays are not just looking for a brand. They are looking for a solution that is going to meet their needs now and in the future. There used to be conveyor companies that had just their material handling equipment and you felt an obligation as a customer to keep it all one brand. But as customers evolve and they learn about technology and what is available in the marketplace, they look at what is going to be the best solution for their company and their operations.
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.