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Mobile Robots: How Do They Reduce Error Costs?
Autonomous mobile robots (AMRs) stand to save companies in many ways. The most widely talked about and reported on is labor costs. While the savings in labor costs is huge, AMRs also offer large savings on error costs.
Autonomous mobile robots (AMRs) stand to save companies in many ways. The most widely talked about and reported on is labor costs. While the savings in labor costs is huge, AMRs also offer large savings on error costs.
The cost of an error is often overlooked or underestimated, but it shouldn’t be ignored, and it certainly doesn’t need to be taken as a given that errors should be expected. While some sources state that picking error rates range from 1%–3% at a cost of $50–$300 per error, or an 11%–13% hit on overall profitability, only you can determine how it’s effecting your business. But when you consider the cost of a picking error, it’s imperative that all factors are taken into consideration when determining the cost of said error.
In the best of scenarios, the error is corrected before it’s shipped out. In this case, “only” time and manpower are wasted. Time that could be spent in fulfilling more shipments and labor costs on the extra people needed to review each order to ensure errors are caught.
But what if that shipment makes it through the final check and is only noticed when the customer opens their package to be surprised with a pair of shoes one size too small? Just about every time, the customer will be wanting to return the item, and sometimes exchange it for the correct size. If the customer wants to exchange the pair of shoes, now at the very least, the company adds on the time and labor costs associated with receiving the item, picking the correct size, and finally shipping it again. On top of that, customer service reps are being paid to help the customer in hope they didn’t lose their business.
This brings us to the last, worst case, and often likely scenario. The customer, for whatever reason, chooses to return the shoes, look elsewhere, and loses trust in the company’s ability to fulfill their demands. Now, the company is spending money on all the same things as in the previous scenario without any revenue from the purchase. Not only is the company shelling out money for nothing, but it also takes a hit on its reputation, thus losing out on potential future sales from the customer and anyone they speak to about their experience with the company.
Errors, particularly picking and sorting errors, can become a thing of the past if we continue to upgrade operations with the best technology available to us. Right now, one of the easiest ways to address these issues is with AMRs.
How AMRs Reduce Errors
AMRs reduce error rates both directly and indirectly. At their most basic, AMRs aid the workers by always going to the correct place for every pick. Now the employee only needs to think about which good is the correct pick for that particular order and they need only look at their handheld device or a screen directly on the AMR for confirmation. Some AMRs are equipped with barcode scanners, or other similar scanning technology, for the worker to scan each item as they go. In this way the worker knows right away if they’ve made a mistake and can quickly correct it on the go, thus eliminating the chance of it being caught later and needing to go back and find the correct item.
Indirectly, through the sheer volume that each employee can now get through, AMRs free up workers’ time, allowing them to focus on other and more important tasks. Current employees can be repurposed to help in customer service, quality assurance, etc. to add value to the customer experience. Furthermore, workers no longer need to haul heavy objects from one place to another or walk long distances over and over. With a more energetic workforce that can stay alert throughout the day, the error rate will naturally decrease.
Does it Actually Work?
The world’s largest cosmetics company was facing complicated picking processes that led to high error rates at its Suzhou warehouse in China. The warehouse mainly deals in B2B fulfillment requiring large pallet and case-picking workflows, shipping out a daily average of over 25,000 boxes in a picking area of about 53,800 square feet. In order to simplify the process and increase accuracy, the company decided to go with a ForwardX Max solution. After the solution was implemented, the warehouse is processing over 20,000 orders per day with 99.99% accuracy and 100% of the orders are going out on time.
DHL partner, SF Supply Chain China, has a distribution warehouse that handles about 1,000 SKUs and serves over 400 stores. Prior to implementing AMRs, the warehouse used traditional manual picking methods with paper pick lists and manual carts. Employees covered large distances every day, and the error rate led to significant financial loss. In late 2019, the warehouse decided it was time to make a change. They chose a ForwardX Flex solution consisting of 5 Flex-300 S AMRs with custom built racking and f(x) Fleet Manager to serve about 100 stores to start. After only 2 months, the results were obvious. The warehouse introduced 15 more AMRs to bring the total to 20 serving over 400 stores. SF Supply Chain China reduced its error rate by a whopping 90%.
Don’t Accept Errors as the Norm
Even a relatively small rate of errors at 1% can have large, lasting effects on profitability. AMRs can work together with your existing workforce to bring your error rates down by a considerable amount. Consumers trust brands and businesses that deliver on their promises. With ecommerce, the most basic expectation is that the right item is delivered on time. In the traditional brick and mortar shop, it’s that the item they’re looking for is there. Let picking, sorting, and shipping errors become a thing of the past for your operations, and don’t miss out on the profits that come with being trusted.
Learn how ForwardX Robotics can make your operations faster, stronger, smarter at www.forwardx.com.
Los Angeles, CA, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Warp, a tech-powered network of cross-docks and carriers offering various vehicle sizes, announced that 2025 it will extend its solutions and services to the U.S. government. Warp aims to modernize government freight logistics with machine-learning-driven planning, optimized network strategies, and flexible solutions to create efficient, cost-effective, and sustainable supply chain transportation.
Focused on optimizing every load, every time, Warp employs machine learning (ML), artificial intelligence (AI), and groundbreaking consolidation techniques to blur the traditional lines of freight shipping by combining the best elements of LTL, FTL, and parcel delivery. Using its homogenous fleet including cargo vans, sedans, box trucks, and 53-foot trailers, Warp facilitates carrier injections, inbound vendor consolidation, pool point distribution, zone-skipping, store replenishment, and national retail distribution for some of the world’s largest shippers.
Unlike traditional FTL carriers, Warp offers per-pallet rates, ensuring customers pay only for what they use. Similarly, unlike traditional LTL carriers, Warp eliminates challenges such as unpredictable pricing, freight class adjustments, reweighs, and rebills. In the process of becoming an official government contractor, Warp will strategically align its technology, teams, and network to meet government needs while identifying opportunities for collaboration.
Many shippers that Warp has helped were previously paying for full truckloads without fully utilizing the space. Additionally, shippers relying on LTL services before switching to Warp often faced hidden fees, surprise surcharges, and unexpected rate adjustments. Our research indicates that these challenges are even more widespread in U.S. government transportation contracts.
“Partnering with Warp will save the government millions of dollars through reduced empty miles, shipment consolidation, route optimization, and scalable logistics—all without requiring government-owned infrastructure,” said Warp Co-founder and CEO Daniel Sokolovsky. “This is something we’ve been working on for quite some time, and we’re thrilled to showcase Warp’s capabilities and innovative logistics solutions on a national scale,” said Warp Co-founder and CRO Troy Lester.
About Warp Warp is a technology-enabled leader in middle-mile logistics, focused on creating efficient, scalable solutions for high-density, high-demand supply chains. By connecting shippers, carriers, and warehouses through an integrated platform, Warp delivers innovative freight technology solutions that prioritize efficiency, sustainability, and customer satisfaction. With a suite of tech-driven offerings, including real-time tracking, cross-docking, and route optimization, Warp provides unmatched reliability, visibility, and transformative impact in logistics and supply chain management.
For more information on how Warp can enhance your logistics network, visitwww.weareWarp.com.
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Toyota Material Handling and Toyota Material Handling MidSouth partner to donate 5,000-pound-capacity pneumatic forklift at Concrete Industry Management’s annual charity auction.
The forklift’s winning bid of $40,000 significantly contributed to the auction’s total proceeds of $2.15 million, supporting CIM’s mission to address the growing demand for skilled professionals in the concrete industry. Offered at five universities, CIM equips students with technical, communication and management expertise, preparing them for successful careers in a rapidly evolving industry. Proceeds from the auction are used to assist CIM in funding higher education programs that offer degrees in concrete industry management.
“Toyota is proud of our dealership, Toyota Material Handling MidSouth, for their commitment to philanthropy and the future development of our industry and workforce,” said Bill Finerty, President and CEO of Toyota Material Handling. “We are extremely proud to partner with MidSouth on this forklift donation. With Toyota’s local and national involvement, we hope to highlight the incredible impact of the Concrete Industry Management’s annual charity auction.”
“Toyota embodies the belief in supporting local communities and the future of others,” said Nick Edwards, TMH MidSouth Sales Manager. “TMH Midsouth is grateful for the opportunity to support a new generation that shapes the communities and industries we serve.”
This donation builds on Toyota’s legacy of giving back. Previously, TMH MidSouth has supported regional non-profit food banks, Goodwill Industries and flood victims of East Tennessee, further solidifying Toyota’s commitment to creating a positive and lasting impact in the communities it serves.
By supporting programs like CIM, Toyota reaffirms its commitment to strengthening communities and empowering future professionals and supporting education programs that pave the way for tomorrow’s workforce.
Learn more about Toyota Material Handling’s philanthropic initiatives here.
About Toyota Material Handling
Toyota Material Handling offers material handling products and solutions, including forklifts, reach trucks, order pickers, pallet jacks, container handlers, automated guided vehicles, and tow tractors, along with aerial work platforms, fleet management services, and advanced automation engineering and design. Toyota’s commitment to quality, reliability and customer satisfaction, the hallmark of the Toyota Production System, extends throughout more than 230 locations across North America. With access to an industry-leading lineup of material handling products, Toyota dealers are uniquely positioned to help solve wide-ranging challenges in warehousing and distribution. Built for every application, Toyota can provide the most complete set of solutions for material handling, automation, energy, advanced logistics, and warehouse optimization. For more information or to learn more, visit ToyotaForklift.com.
About Toyota Material Handling MidSouth
Toyota Material Handling MidSouth is a full-service dealer for Toyota Material Handling North America, the leading forklift manufacturer. With locations across Tennessee, Kentucky, Georgia, and Alabama, TMH MidSouth delivers comprehensive material handling solutions, including new and pre-owned equipment, rentals, warehouse supplies, and maintenance services. Committed to enhancing efficiency and productivity, TMH MidSouth provides businesses with reliable, innovative solutions backed by the trusted quality and performance of Toyota forklifts. For more information, visit TMHMidsouth.com.
JACKSONVILLE, Fla., Jan. 27, 2025 /PRNewswire/ -- 2,750 miles away from Silicon Valley, Matthew Chang, founder of Chang Robotics, today announced his next business venture: TheChang Robotics Fund. The Fund is targeting a $50M raise to address the numerous needs and market opportunities the Chang Robotics engineering team identified in their daily operations by investing in disruptive technologies designed to confront the industry's most urgent challenges—from labor shortages to energy efficiency to environmental remediation. By utilizing innovative intellectual property and the engineering and management expertise of Chang Robotics, the Fund seeks to scale its targeted innovations into impactful, transformative, and profitable businesses.
Global industries, from manufacturing to healthcare, face mounting pressures such as intensifying global competition, workforce constraints, escalating expenses, and the urgent need for environmental restoration. Tackling these issues demands a new paradigm of intelligent automation, energy efficiency, and sustainable innovation.
The Fund's investments target early-stage innovators in smart manufacturing, robotics, industrial AI, and energy transformation, developing localized solutions with global applications.
“We don't just fund innovation—we build the industry leaders of tomorrow.”
The idea for the Fund was inspired by Matthew Chang's track record of collaborating with talented startups and investing in them using Chang Robotics engineering expertise. "Our company has a strong ability to spot ideas with real potential," said Chang. "Through The Chang Robotics Fund, we're investing in startups that will shape the future of their industries. I'm confident the companies we support will achieve great success in the years ahead."
The Fund team is a conglomerate of experts from various fields, bringing an unparalleled diversity of wisdom to this project. Matthew Chang, the General Partner, is joined by Dr. Don Capener, Fund Strategist, Forrest Hayes Jr., Fund Director, Robert Sterling, Chief Financial Officer, and Phil Hudgens, Fund Controller. Their fields of experience include asset management, serial entrepreneurship, engineering, venture capital, academia, corporate M&A, and investment banking, amongst others. Their ventures have reached across global markets—spanning the US, Europe, Africa, the Middle East, and Asia-Pacific—demonstrating a deep understanding of diverse markets and economies.
The key to the success of this fund lies in the unique relationship that Chang Robotics has with each potential portfolio company. Whether it is engineering, robotics automation, or consulting, Chang Robotics will work with each portfolio company to ensure their innovations come to life. When asked about this concept, Forrest Hayes, Fund Director, said, "Those relationships with our investment companies, along with the insider knowledge we gain, are critical. Matthew has the vision to harness the intellectual property and capital to conceive a product that fits into the market and will lead to substantial returns for our stakeholders."
On January 29th at 2:00 pm EST. Matthew Chang will join Robert Sterling, CFO and friend of the Fund, to share more of the story behind the Chang Robotics Fund and dive into the trends reshaping automation and investment. If you are interested in investing or simply hearing more about the Fund's vision, you can register here.
About Chang Robotics Chang Robotics is a DBE-certified engineering firm at the forefront of advanced manufacturing, collaborative robotics, and disruptive automation. Founded in 2017, Chang Robotics has rapidly grown, delivering innovative, data-driven solutions, including some of the world's largest autonomous systems. Recognized as one of Fast Company's 2024 Best Workplaces for Innovators, the company revolutionizes supply chain automation and enhances workforce productivity through human-focused robotics. With a commitment to sustainability and cutting-edge technology, Chang Robotics empowers businesses across manufacturing, government, healthcare, and beyond. More information is available at ChangRobotics.ai and on LinkedIn.
Miami, FL – January 28, 2025 – Magaya Corporation, the leading freight management platform for logistics service providers (LSPs), today released a report detailing the state of digitization in freight forwarding and the divide that presently exists between shipper expectations and forwarder capabilities.
In November 2024, independent research firm Adelante SCM and Magaya surveyed executives in the logistics services industry, as well as supply chain and logistics executives from manufacturing, retail, and distribution companies. The research found a substantial gap between what the shippers expect in terms of technological capabilities and what their logistics service providers currently offer.
“Shippers are clear in their expectations: they want visibility, ease of use, and fast response times from their LSPs. Those that fail to meet the technology expectations of their customers are highly likely to lose business moving forward, while the ones that meet or exceed customer expectations will grow and gain market share,” said Adrian Gonzalez, Adelante SCM CEO. “As one respondent shared, ‘we have some logistics partners who have best-in-class technology, while others lag behind with limited visibility and delays in messaging. We're actively working to rid ourselves of the latter.’”
Key findings of the report include:
●90% of shippers said that technological capabilities are extremely or very important when evaluating and selecting 3PLs/freight forwarders.
●Real-time shipment tracking, integration capabilities, and automated documentation and compliance were the top three most requested technological capabilities shippers want from their LSPs.
●Only 23% of the freight forwarders surveyed have digitized more than 75% of their overall business processes/transactions. Less than 40% are using a freight forwarding management system.
●Improving productivity/efficiency is the main driver for digitization among freight forwarder respondents, followed by improving customer experience and lowering costs.
“This report highlights a critical gap between shipper expectations for digitization and what many forwarders currently deliver, which presents an incredible opportunity for forwarders to differentiate themselves, “ said Gary Nemmers, Magaya CEO. “By leveraging innovative solutions like the ones Magaya offers, forwarders of any size can not only close the gap, but exceed expectations with better visibility, ease of use, and faster service. There's plenty of room to compete for those willing to embrace smarter technology strategies.”
Adrian Gonzalez will join Magaya on February 25 at 2 P.M. ET for a deep-dive webinar to review the report findings and explore strategies forwarders can implement to close the expectation gap. Click here for more information.
About Adelante SCM
Adelante means “forward” or “move ahead” in Spanish. We chose this as our name because we are moving supply chain and logistics leadership forward by making it easier for industry professionals to share ideas, knowledge, and advice with each other. Our services include Talking Logistics, an online video talk show and blog featuring thought leaders and newsmakers in the supply chain and logistics industry. And Indago, a community of supply chain and logistics practitioners who are committed to sharing practical knowledge and advice with each other in a trusted and confidential manner — while giving back to charitable causes that make an extraordinary difference in lives every day. Visit adelantescm.com to learn more.
About Magaya
Magaya, the number one freight management platform for logistics service providers, is Moving Freight Forward with a Digital Freight Platform that optimizes the entire origin-to-destination supply chain through flexible, interoperable, and modular cloud-based software. Whether used together as an integrated suite or independently, Magaya solutions enable businesses of all sizes to simplify complex logistics processes, enhance the customer experience, and grow revenues alongside profits. At Magaya, we are passionately devoted to our customers’ success and don’t hesitate to go the extra mile. There are no limits to your growth with Magaya. Visit magaya.com to learn more.
Atlanta, GA – ORTEC, a leader in advanced analytics and optimization solutions, is excited to announce its membership in the Wine and Spirits Wholesalers of America (WSWA), the only national membership organization dedicated to wine and spirits distributors.
“Joining WSWA is an important milestone for ORTEC toward our goal to become a trusted technology partner to wine and spirits distributors,” said Mat Witte, CEO of ORTEC Americas. “We envision a future of collaborating with fellow members to drive innovation and optimize operations that benefit their business, their customers, and the industry as a whole.”
As a member of WSWA, ORTEC is committed to leveraging its expertise in advanced analytics and optimization to support the goals of the wine and spirits distribution industry. This collaboration will enable ORTEC to share insights and innovative solutions that can help streamline loading and delivery while improving efficiency across the sector.
About ORTEC ORTEC is a leading provider of advanced analytics and optimization solutions, dedicated to helping organizations enhance their operational efficiency and decision-making processes. With a strong focus on innovation, ORTEC leverages cutting-edge technologies and data-driven insights to address complex challenges across a number of industries, including logistics, manufacturing, and healthcare. The company’s commitment to continuous improvement and collaboration with clients enables businesses to optimize their resources, reduce costs, and drive sustainable growth. By integrating advanced analytics into their operations, ORTEC empowers organizations to make informed decisions that lead to transformative outcomes and a competitive edge in the market. Discover more at ORTEC | NEWS.
About WSWA WSWA plays a vital role in advocating for the interests of distributors on federal, state, regulatory, and legal issues that impact the beverage alcohol industry. The organization focuses on critical policy areas, including taxation of family-owned businesses, state-based alcohol regulation, social responsibility, and impaired driving prevention. Additionally, WSWA offers programs designed to promote the careers of its members and help their businesses thrive in a diverse and dynamic industry. Learn more at wswa.org.