In Person interview: Mike Futch of Tompkins Robotics
In our continuing series of discussions with top supply-chain company executives, Mike Futch discusses the current robotics industry, applications, and the future of automated designs.
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.
Mike Futch is president, CEO, and one of the founders of Tompkins Robotics. He was instrumental in bringing the company’s robotic sortation systems to the market and continues to drives much of the new application development, product conceptualization, and integration with partners. Futch also had a successful career in the U.S. Air Force and as a leader at several consulting firms. He recently spoke with David Maloney, DC Velocity’s group editorial director.
Q: WHAT IS THE CURRENT STATE OF THE ROBOTICS INDUSTRY?
A: The robotics industry is strong and continues to grow at a fast pace. The primary driver for this is growth in work-content and the shortage of labor, coupled with rapidly rising salaries. The growth in work-content is due to supply chains processing more and more individual items. As the handling of items increases and there is less case handling, the work-content goes up.
Combining that with the availability, retention, and cost of labor creates a serious shortfall for firms to meet demand. Robot solutions allow for an increase in efficiency, accuracy, and overall productivity. Robotics also allow a firm to get more work done, add capacity, and create better work environments with the same staff. The ability to integrate and develop new robotic solutions will continue and will only further accelerate adoption of robotic technologies.
Q: WHAT IS THE TIPPING POINT WHERE DISTRIBUTORS REALIZE THEY NEED TO MOVE FROM MANUAL TO AUTOMATED SYSTEMS?
A: Labor and capacity concerns have forced companies to consider automated alternatives. With the growing adoption of robotic technology, there are also proven quantifiable metrics that companies can examine to determine the business case for adopting robotic solutions. Total cost of ownership, reduction of human error and associated savings, space constraints, leveraging existing facilities, time-to-value, and return on investment (ROI) are all key performance indicators that have demonstrated improvements with robotic implementation.
In addition, the changes for the workforce are important. Removing repetitive and difficult job tasks from workers and elevating them to manage robotic fleets creates value for that workforce and the employer. Another driver for investment in automation is customer expectations and service-level demands, such as 100% accuracy, and quality and speed of delivery. As more robotic solutions are deployed, these measurable objectives will only be more prevalent for decision-makers.
Q: WHAT TYPES OF ROBOTICS APPLICATIONS ARE ATTRACTING THE MOST INTEREST FROM DISTRIBUTORS?
A: With the tremendous rise in e-commerce and direct-to-consumer purchasing habits, goods-to-person picking (GTP) and autonomous mobile robot (AMR) unit sortation have become a key focus for fulfillment and distribution centers. The deployment of automated storage and retrieval systems (AS/RS) is a major trend and can help companies cope with space and labor constraints.
Sortation systems that allow large batch picks with the sortation devices getting the items to the right order represent another major trend, and AMRs are filling that need. A new trend that is becoming prevalent is combining these solutions into a more effective and end-to-end solution for fulfillment.
Q: IN WHAT WAYS DO ROBOTICS SYSTEMS HELP COMPANIES SCALE THEIR TRANSITIONS TO AUTOMATION?
A: The most advantageous robotic solutions provide flexibility for the facility’s operations. Solutions that allow robots to be added for peak times or as a company’s operations grow give a company the ability to purchase what it needs today without sacrificing the ability to adapt for future growth. The ability to integrate robotic systems as operational needs change, implement solutions with a strong ROI, and create a better work environment for workers is necessary in today’s climate.
An example would be to add one type of system today, say, the Tompkins Robotics tSort AMR sortation system. For a company new to automation, this “point of entry” would allow it to introduce robotic technology on a limited budget, within a small space, and with minimal technical resources, training, or management requirements. Then after a few months, it could add robotic induction or a GTP solution to bring the items to sortation that would further enhance productivity and ROI. This allows the company to demonstrate efficiency and introduce robotic technology without wholesale changes or a large upfront capital investment.
Q: ARE THERE PRACTICAL LIMITS TO THE AMOUNT OF AUTOMATION CUSTOMERS SHOULD HAVE IN THEIR FACILITIES AND WHAT DETERMINES THAT?
A: The only real limits to automation are set by company leadership and not being visionary. Some leaders are fearful of change, apprehensive of new technology, or perceive robotics as a risk. However, others view robotics in their supply chain as having the potential to increase margins through lower fulfillment costs and provide strategic advantage over market competition.
The automation market has matured, and robust solutions are available. For example, robotic AS/RS systems are in approximately 1,000 sites, and the number of AMR sortation robots deployed exceeds 20,000. There are CapEx, lease, and OpEx (robots-as-a-service or RaaS) options available in the market. The perception that automation is a long journey and creates inflexibility in the supply chain is a misconception. Defining the range of the requirements anticipated for your company, researching the solutions to find the right one, and verifying that firm can deliver will allow you to select a supplier that will make the project a success. Provided you find the right fit, there should be very few limits on the ability to automate.
Q: WHAT KINDS OF ROBOTICS DESIGNS WILL WE SEE BY 2030?
A: There will be a continued push toward flexible, scalable, compatible, and modular solutions. Gone are the days of large, expensive fixed solutions that must be built for growth projections five and 10 years out. The market changes, new channels come about, dynamic and fluid things occur. We only have to look at the past 2.5 years to see dramatic evidence of this. Operators require the ability to change as market events and their customers’ needs and buying habits change.
Tompkins Robotics has always challenged our entire company, led by our product development and software teams, to provide solutions that can be moved to new facilities, expand with our customers’ needs, maintain an open API [application programming interface] software for integration with partners’ or existing customers’ systems, and develop new products and services. There will also be more of a push to move from manual and traditional automation to the world of robotic automation. The future is a fleet of robots doing the same work as humans or the fixed, inflexible systems of the past. It is not a matter of if; it is a matter of when. And now is when the change is gaining momentum. This is the future.
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.