From autonomous forklifts to smart sorting robots, emerging technologies are taking hold throughout the warehouse as logistics services providers seek to boost productivity, improve safety, and respond to labor shortages.
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.
As logistics services providers struggle with accelerating consumer demand, sluggish supply lines, and labor challenges, many are moving beyond the exploratory phase of automating their warehouses and are putting systems to work. A Gartner survey of more than 500 supply chain professionals bears this out: 96% of respondents polled for its 2020 Gartner Supply Chain Technology User Wants and Needs survey said they had used or plan to use cyber-physical automation in their warehousing and manufacturing operations. These are highly automated, intelligent systems that integrate physical and software components—robotic systems are a good example. Looking ahead, the report suggests nearly every warehouse will be using a robot in some way within the next decade.
Many are already well on their way to achieving that goal. Here’s a look at how a handful of companies are using cyber-physical automation to address efficiency and labor challenges.
AUTONOMOUS FORKLIFTS IN ACTION
Contract logistics specialist DHL Supply Chain is one example of a company moving full-steam ahead to implement cyber-physical solutions. The company started to explore autonomous forklifts for its warehouses about four years ago and is now using them at locations across the U.S. The effort is part of a plan to implement a range of automated warehouse technologies, including various autonomous vehicle solutions, and serves as an example of how the company is putting some of the latest tech to work. Its autonomous high-reach fork trucks are doing 100% of pallet putaway and picking at some locations, controlled by each facility’s warehouse management system (WMS).
“[These are] fully autonomous solutions integrated with our WMS,” explains Brian Gaunt, a senior director who is responsible for innovation and robotics for DHL Supply Chain in North America. The system automates the challenging task of manually running a high-reach fork truck—which requires considerable training to operate safely and effectively. The system is helping to improve productivity while also addressing labor and safety issues, he says.
“In a challenging labor market, you can’t just hire anyone and have them do this task,” Gaunt adds. “We like to think that these systems are also making it safer in that they are taking these more challenging movements and doing them [without human intervention].”
The autonomous forklift project began as a larger testing program designed to address pallet movement in the warehouse. Looking to improve upon that process, company leaders began by investigating a range of solutions and vendors—including, but not limited to, autonomous equipment; determined where they might find the greatest value; tested some solutions; and then rolled out what worked best, where it made the most sense. The autonomous high-reach fork trucks turned out to be a prime solution for a number of locations.
“We really look at our warehouses as a series of use cases that we string together,” Gaunt says, explaining that managers may start with 20 possible use cases for pallet movement, but only end up testing and implementing a portion of them. “That’s the progression. It’s very much an iterative process.”
The autonomous forklift project will soon be rolled out on a larger scale.
“It takes a while to get familiar with [the system]. Now, we’re at a point where we’re comfortable with the handful we have, so we’re in the scaling mode, which is exactly where we want to be,” Gaunt says, adding that DHL plans to implement the forklifts at more locations nationwide.
SMART SORTING ROBOTS
Parcel carrier FedEx Ground is advancing with cyber-physical automation as well, with recent examples in New York, Ohio, and Nevada. Partnering with robotics firm Berkshire Grey, the company has implemented a robotic sortation solution for autonomous package processing—a move that’s in direct response to accelerated e-commerce activity.
The company is using Berkshire Grey’s Robotic Product Sortation and Identification (RPSi) system at a Queens, New York, facility to robotically sort the thousands of small packages that arrive daily in bulk into containers bound for other facilities across the FedEx Ground network. The artificial intelligence (AI)-based system autonomously picks, identifies, sorts, collects, and “containerizes” individual poly bags, tubes, padded mailers, and other small packages that have traditionally been sorted manually. The system requires fewer package handlers to operate, allowing FedEx to reallocate workers to other tasks in the facility. Other benefits include enhanced productivity, efficiency, and safety, as well as greater flexibility to adjust to changing package volumes and sizes, according to Ted Dengel, managing director of operations technology and innovation at FedEx Ground.
The system also addresses the tricky challenge of scanning labels. In traditional package sortation, workers have to position parcels so the label can be scanned properly. Berkshire Grey’s system uses technology that allows bar codes to be read from any angle in milliseconds, without manual intervention, according to Jessica Moran, the company’s senior vice president, parcels and 3PL businesses.
FedEx Ground’s success in Queens has prompted other implementations; the company was testing similar systems at sortation facilities in Columbus, Ohio, and Las Vegas this past fall.
SPEEDY ROBOTIC ASSISTANTS
Accelerating e-commerce was the driver for a similar sortation solution at Greek logistics and transportation services provider Athinaiki, S.A. Working with global autonomous mobile robot (AMR) developer Geek+ Robotics and systems integrator FDL, the company has deployed smart sorting robots in one of its e-commerce fulfillment warehouses, with the ultimate goal of speeding last-mile delivery to customers throughout Greece and Cyprus.
Set in a roughly 6,000-square-foot warehouse, 29 sorting robots help warehouse employees sort 1,400 to 1,500 parcels per hour. Employees put ordered goods onto sorting robots that automatically transfer the parcels to one of 104 sorting cages bound for different destinations. The AMRs travel freely through the warehouse, with no wires or fixed infrastructure, making it easy for Athinaiki to scale up or down to meet throughput demand by adjusting the number of robots and sorting destinations. The robots are controlled by a robot management system (RMS) and powered by algorithms, creating a solution that monitors robot traffic and balances each robot’s tasks to achieve maximum sorting efficiency and accuracy, according to Geek+ Robotics.
THE ROAD AHEAD
It won’t be long before some of the systems in place now will begin “thinking” for themselves. Among Gartner’s picks for top strategic technologies for 2022 are “autonomic” computing systems: self-managing physical or software systems that learn from their environments. As the company described it in a report this past October: “Unlike automated or even autonomous systems, autonomic systems can dynamically modify their own algorithms without an external software update, enabling them to rapidly adapt to new conditions in the field, much like humans can.”
The technology is already being used in complex security systems, Gartner says, and in the longer term will find its way into physical systems such as robots, drones, manufacturing machines, and smart spaces.
Parcel carrier and logistics provider UPS Inc. has acquired the German company Frigo-Trans and its sister company BPL, which provide complex healthcare logistics solutions across Europe, the Atlanta-based firm said this week.
According to UPS, the move extends its UPS Healthcare division’s ability to offer end-to-end capabilities for its customers, who increasingly need temperature-controlled and time-critical logistics solutions globally.
UPS Healthcare has 17 million square feet of cGMP and GDP-compliant healthcare distribution space globally, supporting services such as inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics.
More specifically, UPS Healthcare said that the acquisitions align with its broader mission to provide end-to-end logistics for temperature-sensitive healthcare products, including biologics, specialty pharmaceuticals, and personalized medicine. With 80% of pharmaceutical products in Europe requiring temperature-controlled transportation, investments like these ensure UPS Healthcare remains at the forefront of innovation in the $82 billion complex healthcare logistics market, the company said.
Additionally, Frigo-Trans' presence in Germany—the world's fourth-largest healthcare manufacturing market—strengthens UPS's foothold and enhances its support for critical intra-Germany operations. Frigo-Trans’ network includes temperature-controlled warehousing ranging from cryopreservation (-196°C) to ambient (+15° to +25°C) as well as Pan-European cold chain transportation. And BPL provides logistics solutions including time-critical freight forwarding capabilities.
Terms of the deal were not disclosed. But it fits into UPS' long term strategy to double its healthcare revenue from $10 billion in 2023 to $20 billion by 2026. To get there, it has also made previous acquisitions of companies like Bomi and MNX. And UPS recently expanded its temperature-controlled fleet in France, Italy, the Netherlands, and Hungary.
"Healthcare customers increasingly demand precision, reliability, and adaptability—qualities that are critical for the future of biologics and personalized medicine. The Frigo-Trans and BPL acquisitions allow us to offer unmatched service across Europe, making logistics a competitive advantage for our pharma partners," says John Bolla, President, UPS Healthcare.
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.
In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.
The five trends range from the promise of agentic AI to the struggle over which C-suite role should oversee data and AI responsibilities. At a glance, they reveal that:
Leaders will grapple with both the promise and hype around agentic AI. Agentic AI—which handles tasks independently—is on the rise, in the form of generative AI bots that can perform some content-creation tasks. But the authors say it will be a while before such tools can handle major tasks—like make a travel reservation or conduct a banking transaction.
The time has come to measure results from generative AI experiments. The authors say very few companies are carefully measuring productivity gains from AI projects—particularly when it comes to figuring out what their knowledge-based workers are doing with the freed-up time those projects provide. Doing so is vital to profiting from AI investments.
The reality about data-driven culture sets in. The authors found that 92% of survey respondents feel that cultural and change management challenges are the primary barriers to becoming data- and AI-driven—indicating that the shift to AI is about much more than just the technology.
Unstructured data is important again. The ability to apply Generative AI tools to manage unstructured data—such as text, images, and video—is putting a renewed focus on getting all that data into shape, which takes a whole lot of human effort. As the authors explain “organizations need to pick the best examples of each document type, tag or graph the content, and get it loaded into the system.” And many companies simply aren’t there yet.
Who should run data and AI? Expect continued struggle. Should these roles be concentrated on the business or tech side of the organization? Opinions differ, and as the roles themselves continue to evolve, the authors say companies should expect to continue to wrestle with responsibilities and reporting structures.
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.
The overall national industrial real estate vacancy rate edged higher in the fourth quarter, although it still remains well below pre-pandemic levels, according to an analysis by Cushman & Wakefield.
Vacancy rates shrunk during the pandemic to historically low levels as e-commerce sales—and demand for warehouse space—boomed in response to massive numbers of people working and living from home. That frantic pace is now cooling off but real estate demand remains elevated from a long-term perspective.
“We've witnessed an uptick among firms looking to lease larger buildings to support their omnichannel fulfillment strategies and maintain inventory for their e-commerce, wholesale, and retail stock. This trend is not just about space, but about efficiency and customer satisfaction,” Jason Tolliver, President, Logistics & Industrial Services, said in a release. “Meanwhile, we're also seeing a flurry of activity to support forward-deployed stock models, a strategy that keeps products closer to the market they serve and where customers order them, promising quicker deliveries and happier customers.“
The latest figures show that industrial vacancy is likely nearing its peak for this cooling cycle in the coming quarters, Cushman & Wakefield analysts said.
Compared to the third quarter, the vacancy rate climbed 20 basis points to 6.7%, but that level was still 30 basis points below the 10-year, pre-pandemic average. Likewise, overall net absorption in the fourth quarter—a term for the amount of newly developed property leased by clients—measured 36.8 million square feet, up from the 33.3 million square feet recorded in the third quarter, but down 20% on a year-over-year basis.
In step with those statistics, real estate developers slowed their plans to erect more buildings. New construction deliveries continued to decelerate for the second straight quarter. Just 85.3 million square feet of new industrial product was completed in the fourth quarter, down 8% quarter-over-quarter and 48% versus one year ago.
Likewise, only four geographic markets saw more than 20 million square feet of completions year-to-date, compared to 10 markets in 2023. Meanwhile, as construction starts remained tempered overall, the under-development pipeline has continued to thin out, dropping by 36% annually to its lowest level (290.5 million square feet) since the third quarter of 2018.
Despite the dip in demand last quarter, the market for industrial space remains relatively healthy, Cushman & Wakefield said.
“After a year of hesitancy, logistics is entering a new, sustained growth phase,” Tolliver said. “Corporate capital is being deployed to optimize supply chains, diversify networks, and minimize potential risks. What's particularly encouraging is the proactive approach of retailers, wholesalers, and 3PLs, who are not just reacting to the market, but shaping it. 2025 will be a year characterized by this bias for action.”