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Six Fast-Emerging Trends Impacting the Warehouse Automation Industry
- Labor shortage to continue driving significant adoption of automation technologies
- Digital twins and synthetic data modeling can close the loop between planning, training and implementation
- Businesses to accelerate path to dark warehouse
CHARLOTTE, N.C., JUNE 16, 2022 -- Warehouse and distribution centers (DCs) are grappling with a significant and ongoing labor shortage. Increased wages and benefits haven’t been enough to reverse the trend. Ever-increasing demand for faster delivery, and ongoing macro supply chain disruption add to the challenge. Warehouse safety issues also remain a problem for recruitment and retention of workers.
“Amidst a ‘perfect storm’ type of environment, warehouse and DC operators are aggressively seeking ways to digitize operations, add automation technology and integrate those technologies with software systems,” said Keith Fisher, president, Honeywell Intelligrated. “The goal is to increase efficiency, reduce the human labor requirement and create safer, more productive workplaces. As a result, we’re seeing some developing trends heading into the second half of the year.”
Specifically, Honeywell sees six trends emerging in the warehouse and DC industries.
Increasingly aggressive adoption of proven automation technologies
Moving into the second half of 2022, we’re seeing heightened interest in long-proven warehouse automation systems that pick, pack, sort and carry packages throughout the facility. There is also increasing investigation into how to integrate this automation into warehouse software systems, such as warehouse management and warehouse control systems (WCS), to extract more value from automation.
Regardless of the labor shortage or where companies currently sit on the automation spectrum, SKU proliferation, widely varying order profiles and seasonal demands are making some degree of automation a necessity. For many operations, order picking or putting are the entry point to digitalization and automation. For those further down the path, integrating these technologies into operations means trained coordination between workers, automated systems and software to drive high-speed, high-volume warehouse execution.
Newer forms of automation are being evaluated and adopted with increased urgency
There are also signals that newer forms of automation, such as robotic palletizing/depalletizing and Autonomous Mobile Robots (AMRs), are beginning a path toward significant adoption. For example, a recent Interact Analysis report showed the mobile robot market is expected to grow from $3.6 billion in 2021 to $18 billion in 2025. Honeywell is seeing surging interest as the industry begins to prioritize investment designed to increase efficiency and productivity along with employee safety and overall satisfaction by integrating automation.
AMRs provide significant productivity benefits by, for example, automating the movement of carts used to transport picked orders or returns. Instead of spending more than half the day walking, workers can park carts in pickup locations and call robots to retrieve them. Additionally, robotic palletizers and depalletizers limit the need for heavy and/or awkward lifting by humans. While these and other advanced forms of automation handle the repetitive, difficult and often time-consuming tasks, scarce labor resources can be shifted to higher-value jobs and, in-turn, increase employee satisfaction.
Persistent labor shortage, new technical skills gap becomes problematic, training required
The number of warehouses globally is forecast to rise from nearly 150,600 in 2020 to 180,000 by 2025, according to Interact Analysis. Without more automation, an additional 3.5 million warehouse workers need to be added to cover current needs and that expansion. However, a willing workforce is proving very difficult to find and competition for these resources is high.
As a result, warehouse and DC operators will look to expand automation, but this creates another fast-developing issue. Technical skills are needed to plan for, utilize, maintain and optimize warehouse automation, and they’re in short supply. Operators will aggressively look to outsource automation-related training – to train up a new army of technically skilled workers and realize far faster benefits from automation. This promises to make warehouse jobs more attractive intellectually and drive higher compensation, thus making the overall market more compelling for job seekers and those seeking upskilled career transitions.
The use of digital twins will accelerate to help automated warehouse planning
Digital twins deliver virtual representations of a physical environment – proving extremely helpful in the warehouse industry. With a digital twin, new automation technology can be tested virtually, without downtime or rearrangement of physical assets. Automation efforts can be tested, and impact can be reviewed. By using digital twins and synthetic data modeling, warehouse operators can close the loop between planning, training and implementation on the floor. With this technology, what used to equate to months of automation implementation can now be accomplished in days. In short, warehouse performance can be improved far more quickly and cost-effectively than in the past.
Human health and safety will begin to take root as a business case for automation in the new, pristine warehouse environment
Regardless of whether there are health and safety issues at a particular warehouse, the overall industry suffers from a health and safety image problem. It’s well documented that concerns in these areas are either keeping workers away from the industry entirely or causing problems with existing employee satisfaction.
Automation can help. Repetitive movement-related injuries and those due to heavy and/or awkward lifting, as well as worker fatigue, can be greatly mitigated by robotics and automation. Increased use of these technologies can lead to far fewer work-related injuries, keep workers on the job and earning for their families, and mitigate insurance premiums and worker’s compensation claims for the employer. By prioritizing happier, healthier workforces, we should see an uptick in retention and warehouse job
Accelerated dark warehouse research & development, forward-looking companies begin path
Dark warehouses promise to be nearly fully automated and autonomous, operating virtually free from human intervention – aside from planning, maintenance and ongoing optimization. They will operate 24/7/365 in no light (thus, the term dark warehouse) and in extremely cold or warm conditions, thus saving energy and related costs. They promise to help solve the labor shortage and drive incredible efficiency. However, full concepts are still at least two years away and live implementations are at least three years away. Breakthrough technologies in robotics, sensing and control, and IT are still needed. But demand is so strong that it’s beginning to drive more aggressive R&D investment to achieve these breakthroughs faster.
Meanwhile, forward-looking warehouse operators are starting the journey to dark warehouse by not only putting automation piece parts in place as described above, but also tying technologies together via software, such as Warehouse Execution Systems, allowing all the technologies to communicate.
As promising as it is, the brave new world of dark warehouses will also contribute to the developing technical skills gap referenced above. Operators will need to plan for that as well as determine what types of warehouses and industries are most appropriate for the early days of dark warehouses.
“These trends showcase a collective theme: automation is increasingly paving the way for better safety, productivity and workforce retention in the warehouse industry,” said Fisher. “From what we see, the number of operators currently using automation technology and aggressively moving to expand it looks to be growing rapidly heading into the second half of 2022. These are smart investments to help weather the current labor crisis – and help minimize the need for future capital expenditures.”
September 24th, Charlotte, NC - HTL Freight, a rising leader in the third-party logistics (3PL), is pleased to announce the acquisition of CTS Logistics, a full-service managed transportation company (4PL) headquartered in Windham, NH. This acquisition, HTL Freight’s fourth major transaction since 2021, reinforces its commitment to delivering exceptional freight solutions across North America.
CTS Logistics, known for its managed transportation and brokerage services, has built a strong reputation since its founding in 1989 by Donald Leclair. The company’s family-oriented ethos has been carried forward by Leclair’s children—Alan, Keith, Brian, and Kim Garneau—who continue to play key roles in the business.
"Our decision to partner with HTL Freight was driven by their dedication to upholding the values that have defined CTS Logistics for the past 35 years. HTL Freight’s leadership shares our commitment to integrity and service, making them the ideal partner to carry forward our family’s legacy," said Alan Leclair, President of CTS Logistics.
As part of the acquisition, Keith Leclair has been appointed as Vice-President of LTL at HTL Freight. His extensive experience and leadership will be instrumental in expanding HTL’s Less-Than-Truckload (LTL) capabilities.
Finalized in February 2024, the acquisition has since led to a close collaboration between the two companies to ensure a seamless integration of operations, systems, and cultures. This collaborative process has preserved CTS Logistics’ strengths while enhancing the combined service offerings.
Founder Donald Leclair expressed confidence in CTS Logistics’ future under HTL Freight's ownership, stating, "The collaboration between our teams over the past few months has confirmed that HTL Freight is the right partner to continue serving our clients with the level of care and dedication they’ve come to expect."
This acquisition allows HTL Freight to further expand its geographic footprint and service offerings, positioning the company as a notable player in both the 3PL and 4PL sectors. Customers will benefit from enhanced transportation solutions, including increased brokerage capabilities and more robust managed transportation services, all supported by HTL Freight’s state-of-the-art technology platform.
"We are thrilled about the growth opportunities this acquisition brings to both our customers and our organization. The addition of CTS Logistics strengthens our ability to provide comprehensive, technology-driven solutions that enhance efficiency and deliver cost savings to our shipper partners," said Onu Okebie, CEO of HTL Freight.
About HTL Freight:
Founded in 1983, HTL Freight (htlfreight.com) is a supply chain management company providing an experience rooted in service, data-driven insights, and advanced technology for both shippers and carriers. Focused on customer service, operational excellence, and partnerships, HTL's mission is to consistently exceed expectations and "Go the Distance" for its clients by delivering reliable supply chain solutions.
Abu Dhabi, United Arab Emirates – Etihad Cargo, the cargo and logistics arm of Etihad Airways, is celebrating 20 years of operations in India, a milestone that reflects the airline's ongoing commitment to the Indian market since its first flight to Mumbai on 26 September 2004. Over the years, Etihad Cargo has expanded its presence in India, now offering belly hold capacity via nonstop services between Abu Dhabi and 12 major Indian cities, with plans for further growth.
Etihad Cargo handles over 46,000 tonnes of cargo annually ex India, connecting the country to over 100 global destinations via its Abu Dhabi hub via 588 widebody and narrowbody rotations each month. To meet the needs of specific sectors, Etihad Cargo has enhanced its product range, adding new features and launching new products. Key commodities handled include electronics, including mobile phones and semiconductors, garments, pharmaceuticals, perishables, e-commerce, automobile components and courier shipments, reflecting the diversity and strength of India's manufacturing and export sectors.
The carrier's IATA CEIV Pharma-certified PharmaLife product provides precise temperature control for the safe transport of high-value pharmaceuticals, a growing market in India. Etihad Cargo is exploring additional certified pharma trade lanes with key airline partners and has implemented stringent cargo screening for US-bound shipments from major Indian hubs, including Mumbai, Bangalore, Delhi, and Hyderabad. Etihad Cargo's pharma roadshows in India, launched in 2023, have helped double PharmaLife volumes by improving connectivity and frequencies. Additionally, the introduction of Etihad Cargo's IATA CEIV Li-batt-certified SecureTech product in 2024 has supported the growth of electronics shipments.
"As Etihad Cargo celebrates two decades of successful operations in India, the carrier's commitment to its customers remains strong," said Stanislas Brun, Vice President Cargo. "Etihad Cargo's continued investment in its network, product range, infrastructure, and digitalisation efforts ensures the carrier can provide efficient, reliable air cargo solutions that meet the evolving needs of customers in India and beyond."
The airline has invested in advanced technology to enhance its operations, including the use of customer relationships and cargo management systems like Salesforce and Sales Cockpit, as well as track and trace capabilities and automated warehouse management. The ongoing enhancement of Etihad Cargo's online booking portal, which now includes options for pets and dangerous goods as well as personalised dashboards, has improved the efficiency of the booking process. Currently, 93 per cent of the bookings made in India are made directly through Etihad Cargo’s booking portal.
As Etihad Cargo looks to the future, the airline will continue to innovate and expand its operations, remaining committed to evaluating its network and adding capacity where required to support its customers in this key market. With a focus on delivering efficient and reliable cargo solutions, Etihad Cargo is dedicated to meeting the evolving needs of the Indian market and cementing its position as the air cargo partner of choice for the Indian market.
Charlotte NC, September 23, 2024 (McLeod User Conference ) – HOPTEK, a global leader in AI-driven trucking and fleet transportation solutions, has been selected by Xtreme Trucking of Wisconsin, one of the U.S.’s leading technology-first transportation and logistics providers, for its Dispatch Engine® solution, a digital platform providing instant visibility and access to the spot load market, while matching available carrier capacity across thousands of possible options. HOPTEK’s “digital twin” will provide real-time visibility and enable Xtreme to boost operational efficiency and fleet utilization, while reducing driver turnover and deadhead miles, resulting in material cost savings and profitability.
Started as a small independent operation in 2006, Xtreme Trucking was formally established in 2009 to become a quality diversified transportation provider, with a growing revenue profile and extensive coverage across the United States. Through HOPTEK’s Dispatch Engine®, Xtreme has leveraged real-time data visibility and dynamic decision-making to drive operational velocity to achieve up to a 20% increase in both Revenue per Hour and Weekly Revenue Miles per Driver – a clear competitive advantage.
Travis Nelson, President and Founder of Xtreme Trucking said: “Between supply chain complications, market shifts, and driver shortages, the past several years have been a rollercoaster ride for our industry. Selecting HOPTEK’s Dispatch Engine solution addresses several seemingly intractable challenges, enabling us to optimize fleet utilization, increase driver satisfaction, and reduce deadhead empty miles. HOPTEK’s robust visibility platform enables us to make the best available decision, even as fleets remain dynamic, and routing and load scenarios shift constantly. We at Xtreme immediately recognized the value of HOPTEK’s strategic offering to our operation and how it would support the achievement of our goals.”
Transportation and logistics are the backbone of the U.S. economy. Xtreme fuels that economic growth by delivering best-in-class operations, innovative technology solutions, and a talented workforce. The company was seeking a solution that would address very specific issues related to driver miles, route efficiency, and utilization in one platform. Achieving these goals required a unique set of capabilities. HOPTEK’s Dispatch Engine® solution closes these gaps by creating dispatchable recommendations that consider the entire fleet, at any given moment. It gets critical information to dispatchers, planners, drivers, and other stakeholders in near real-time, supercharging efficiencies and profitability.
Balaji Guntur, CEO and Co-founder of HOPTEK said: “We’re excited and honored to have been selected as a long-term partner to Xtreme Trucking. Their keen eye for innovative technologies and solutions that genuinely add measurable value attests to why the industry will view Xtreme as a trend setter and leader in small to mid-size fleet tech adoption. We believe they have selected a solution that will enable them to achieve their technology goals, while at the same time supporting their efficiency mindset and profitability targets.”
About Xtreme
Xtreme Trucking LLC delivers superior reefer transportation and dedicated services across the United States. With a leading view on technology and a modern truck and trailer fleet, we are an essential solutions provider for customers who value the integrity of their supply chain and require safe, and exceptional service. Moreover, Xtreme strives for leading on-time delivery and customer service, and as a technologically minded fleet, and remains deeply committed to promoting both customer and driver satisfaction. To find out how Xtreme Trucking Delivers, please visit: https://www.xtremetrucking.com/
About HOPTEK
HOPTEK was founded in 2021 when global strategy and management consultancy Kearney brought its transportation and tech expertise together to help transform the trucking industry. After HOPTEK’s AI-powered system helped a leading U.S. fleet solve major operational challenges and drastically boost their performance, the company opened that technology to fleets across the U.S. With transformational technology tools such as Fleet Scanner®, Freight Finder®, and Dispatch Engine®, trucking and logistics companies can actively analyze fleet performance, identify and reduce wasteful wait times, and optimize dispatching in responsive real-time. For more information, please visit: https://www.HOPTEK.ai/
About Kearney
Kearney is a leading global management consulting firm. For nearly 100 years, we have been the trusted advisor to C-suites, government bodies, and nonprofit organizations. Our people make us who we are. Driven to be the difference between a big idea and making it happen, we help our clients break through. For more information, please visit: https://www.kearney.com/
Nulogy, a leading provider in supply chain collaboration solutions, and Kinaxis, a global leader in supply chain orchestration, have announced a partnership to develop cutting-edge solutions for brand manufacturing supply chain networks worldwide.
The new partnership aims to catalyze fast-moving consumer goods (FMCG) and life science brands and their supplier networks to work together more effectively through digital transformation solutions, thereby mutually improving costs, service and revenue. Combining the supply chain orchestration capabilities of Kinaxis with the collaborative external manufacturing specialization of Nulogy will enable customers to share forecasts and order information with suppliers and receive inventory capacity information faster.
Nulogy’s purpose-built multi-enterprise platform enables greater responsiveness in the supply networks of leading FMCG and life science brands, including L’Oréal, Colgate-Palmolive, and Church & Dwight, as well as their extended suppliers and hundreds of sites around the world.
“Given the speed and volatility of today’s global market, it is more important than ever for brand manufacturers to digitally synchronize with their supplier communities in order to respond with agility,” said Jason Tham, CEO at Nulogy. “Through our partnership with Kinaxis, we look forward to collaborations that will elevate the performance of supply chain networks around the world.”
Kinaxis Maestro is the AI-infused end-to-end supply chain orchestration platform for fast, intelligent decision-making. Trusted by renowned global brands to provide agility and predictability to help navigate volatility and disruptions, Kinaxis has been a leader in supply chain planning for over 40 years.
"Our partnership with Nulogy improves visibility, control and collaboration of the upstream network of critical suppliers, like contract manufacturers and co-packers, by integrating a variety of supplier data into Maestro,” said Bill Walker, Senior Director, Partner Solutions Extensions at Kinaxis. “Giving our customers the ability to better run simulations, digitize planning and connect in suppliers.”
Learn more about the partnership at ASCM Connect on September 9, 2024. Kevin Wong, Chief Operating Officer, Nulogy; Polly Mitchell-Guthrie, Supply Chain Thought Leader, Kinaxis; and German Vizcaya Leon, VP Global Planning, Colgate-Palmolive will discuss how Nulogy and Kinaxis’s solutions in Advanced Planning & Scheduling and Supplier Collaboration have played pivotal roles in interconnecting Colgate’s network.
FOR IMMEDIATE RELEASE
Contact: Sherri Bosslet
Title: Director of Customer Relations
Phone: 937.415.1715
Email: sbosslet@daytonfreight.com
Date: September 5, 2024
Web: daytonfreight.com
ULINE AWARDED DAYTON FREIGHT FOR EXCEPTIONAL PERFORMANCE
DAYTON, Ohio – Dayton Freight Lines, Inc., a leading provider of regional less-than-truckload (LTL) transportation services, was presented the 2023 Exceptional Performance Award and the Minnesota LTL Carrier of the Year award from Uline.
The 2023 Exceptional Performance Award and the Minnesota LTL Carrier of the Year award were presented to Dayton Freight’s Milwaukee and Hudson Service Centers, respectively. Both awards were given based on the following criteria: exemplary customer service, technological innovation and lastly, partnership and dedication.
Uline, a family-owned business, is the leading distributor of shipping, industrial and packaging materials to businesses throughout North America.
Dayton Freight’s Director of Customer Relations, Sherri Bosslet quoted, “We are incredibly proud of our Service Centers in Milwaukee and Hudson WI for receiving these awards. These accolades from Uline truly demonstrate the dedication and diligence of our Dayton Freight team. We look forward to a lasting partnership for years to come.”
Founded in 1981, Dayton Freight is a private, union-free, less-than truckload (LTL) freight carrier headquartered in Dayton, Ohio. Currently ranked as the country’s 12th largest LTL company, Dayton Freight has 70 Service Centers in 14 Midwest states, served by 6,000+ employees. Offering 1 or 2 day service to thousands of cities, Dayton Freight is known for its prudent growth, operational excellence, advanced technology and an unparalleled company culture known as The Dayton Difference.
Photo Caption: Jeremy Cutchens (Dayton Freight), Shelly Hofmeister (Dayton Freight), Ed VanGrouw (Dayton Freight), Eric Dreissig (Uline), LJ Groen (Uline)