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April 18, 2023 By user

Reshaping the Future of Logistics: An Outlook on Warehousing Automation Trends

Despite an expected slowing pace of automation in 2023, the forecast is for stronger growth through 2027. According to Interact Analysis’ Warehouse Automation – 2022 report, between 2024 and 2027, the market is forecast to grow at a 19% CAGR, driven by improving macro-economic conditions, as well as steady growth in e-commerce. 

Reported by The Industrialist, the warehouse automation market is expected to reach $41 billion by 2027, according to LogisticsIQ’s latest 2022 market report. As the sector looks to evolve and keep up with rising consumer demand, significant investments are needed in transformative warehouse robotics.  

Changing Consumer Dynamics – More at Home, More Online 

The logistics industry needs to shift gears in order to keep up with changing consumer demands. Consumers are spending more time at home, and have included ordering online as part of their everyday shopping routines. For e-commerce merchants, this shift in consumer behavior meant that warehousing facilities have had to adapt to control a sharp spike in online orders moving through the warehouse. 

Optimizing Warehouse Capacity 

The warehousing sector was especially challenged to innovate fast enough in order to support higher levels of throughput. A frictionless flow of parcels is critical to ensure parcel carriers don’t experience a lag in order deliveries. Warehouses and fulfilment centers are held accountable for this. Logistics solutions therefore need to be made more flexible, so that warehousing companies can efficiently scale up to accommodate the transformations happening across the industry.  

Pressures Faced by Warehouse Floor Workers 

E-commerce growth, with its heightened demands, is leading to a turbulent situation for warehouses having to keep up with order throughput and output. In turn, this pressure is causing warehouse employees to experience a decline in their mental and physical health. This is a strong argument for why automated solutions need to be prioritized, to improve the welfare of existing warehouse employees. 

A 2022 research project, by YouGov, found that nearly one out of every four survey respondents working in warehousing and transportation said their work had a negative effect on their mental health. Of the group, 19% said their employer was resistant to helping employees with work-life balance. To aid healthier working conditions, robotic systems can increase productivity and warehouse capacity. Employees benefit from this, as time-consuming, repetitive and strenuous task are taken out of their hands. 

Unique Challenges: Opening the Door for New Business Models in 2023 

Local-to-Local 

As the logistics industry is adapting to accommodate the online shopping behaviors of modern-day consumers, the typical blueprint for warehouses need an update. Warehousing facilities are now becoming decentralized, meaning smaller warehouses across multiple locations are popping up, with a grid connecting them to the main warehouse. This model decreases congestion, and assists in keeping a steady flow of parcels moving between different parties in the supply chain. Local-to-local reduces the distance between product pickup points and delivery locations, in turn reducing expenses like transportation costs, and cutting back on greenhouse emissions. 

The implication of decentralized warehousing is that traditional methods for packing, handling and shipping parcels have to adapt. When constructing new fulfilment centers, the architecture of “smart warehouses” has to be given special attention. Smart technology can greatly improve parcel storage and shipping activities. 

Space Optimization 

The question of how to store and handle larger items persists. Fulfilment centers are often located in a place that presents limited opportunities for expansion. Making use of every square meter currently available in the existing warehouse is therefore a priority. Here, automation plays a key role in supporting warehouse capacity and optimizing performance. 

Automation is also becoming more advanced in its capabilities. For example, advanced smart technologies are making it possible for robotic systems to be more intuitive, with some automated solutions being able to sort and stack items without wasting valuable space, all while optimizing throughput capacity. With this intuitive approach, robotic pick-and-place systems can help address some common issues with space optimization for warehouses, as these systems are able to fill a tote or container to the optimal capacity. 

More Comfort, Less Labor 

Certain sectors within logistics are feeling first-hand the effects of the labor crisis, not least the warehousing sector, with fewer employees interested in conducting physically demanding tasks, such as pick-and-place activities. Warehouse automation is now offering more personalized in-service offerings, as well as being tailored to solve the unique needs of the warehousing facility’s existing employees. 

The logistics industry has access to technology that can foster a frictionless experience across multiple stages of the supply chain. The challenge is overcoming a tendency to be passive in optimally embracing automation. The future of the smart warehouse is dependent on implementing value-added solutions today, so that supply chains can keep up with customer demand and alleviate pressures for existing employees tomorrow. Local-to-local grid planning and the implementation of smart warehouses will become more prevalent as warehouse infrastructure gets optimized for better performance. 

Heico Sandee is founder and CTO of Smart Robotics

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LOGISTICS
April 4, 2023 By user

Humanoid robots are coming to a warehouse near you

Humanoid robots are coming to a warehouse near you

The first commercially available human-shaped robots designed for warehouse work were unveiled last week by a company called Agility Robotics, for delivery in 2025.

Details: Digit, which is built to work alongside humans, can lift and move plastic bins in a warehouse or distribution center.

  • Fully self-charging, Digit — who is a slim 5’9″ and 140 pounds — will walk over to its own charging dock, click itself in, and return to the workplace for another shift after it’s juiced up.
  • “Everything we do is about building a robot that can work in human spaces and do human workflows,” Jonathan Hurst, CTO of Agility Robotics, tells Axios.

    The big picture: There’s an arms race to develop humanoid robots that can alleviate labor shortages and do jobs that people find too boring, dangerous or repetitive.

    • Tesla and a startup called Figure are building humanoid robots for logistics work, while another startup, Sanctuary AI, recently deployed a humanoid robot with dexterous hands (but wheels instead of legs) at a Mark’s retail store in Canada.
    • But Agility says it’s the frontrunner in bringing a product to market.

    How it works: Digit is designed to pull plastic bins called “totes” from a warehouse wall and move them wherever they need to go, taking up the same footprint as a human.

    • Digit will lift “anything that a person would handle,” Damion Shelton, CEO of Agility, tells Axios. “Think about things that are larger than a small box, but smaller than a giant bag of dog food.”
    • Building robots that can simulate human movements is a huge challenge, but approximating the human body is important: “With other form factors, it is very hard to be multipurpose,” Hurst says.

    Backstory: Shelton and Hurst met at Carnegie Mellon University’s graduate robotics program.

    • The first product they introduced under the Agility brand was Cassie, which ZDNet described as “little more than a pair of bipedal robotic legs.”
    • The first iteration of Digit, introduced in 2020 with Ford Motor Co. as its launch partner, was designed to ride in the back of a Ford autonomous vehicle and deliver packages to homes.
        • Its backwards knees allowed its legs to tuck under its body to sit conveniently in a car.
      • “Our entire career has been around getting robots to move the way people and animals do,” Shelton says.

      Zoom in: The new-and-improved Digit, designed for logistics work, has anthropomorphic features meant to guide the humans in its midst.

      • The robot’s LED eyes indicate the direction in which it’s going to turn, and “it can use expression and gesture in order to indicate its intent and what it’s about to do,” Hurst said.

        Of note: Amazon has developed a spate of non-humanoid robots for logistics and delivery work — and has invested in Agility.

        • Chains like BJ’s are using AI-driven robots for inventory tracking.

        What’s next: Digit’s evolution will be determined by a partnership program that’ll give potential customers “an exclusive opportunity to shape the development of Digit’s skills and abilities,” Agility said in a press release.

         
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LOGISTICS
March 28, 2023 By user

Retailers Reaping Big Savings on Ocean Transport Costs

Retailers Reaping Big Savings on Ocean Transport Costs

Ocean container transport prices and negotiations at the moment. The shipping prices have fallen towards pre-pandemic levels, and companies are delaying signing annual contracts to negotiate even further discounted rates, resulting in significant savings for retailers on ocean container transport. As a result of a steep drop in cargo that began in the fall of 2022 and has continued into 2023, ocean carriers are having a difficult time filling their ships. Due to a decline in shipping demand, retailers have overstocked, and spot market rates have fallen by more than 90% from pandemic-era highs.

The article written by  Paul Berger  from WSJ on this matter:

Retailers are gaining huge savings on ocean container transport as once sky-high shipping prices tumble toward prepandemic levels and companies delay signing annual contracts so they can bargain rates down even further. 

The average price for Asia-to-U.S. container trade has “fallen as dramatically as we’ve ever seen it fall,” said Jon Cargill, senior vice president and chief financial officer of Hobby Lobby Stores Inc.

Importers and container lines typically conclude agreements for the fall shipping season, when retailers stock up on consumer goods, by mid-April for contracts that take effect May 1. Companies say they are negotiating in a far different environment from last year, when retailers looking to replenish depleted inventories rushed to sign deals and paid record amounts to secure scarce space on container ships.

“In 2022, it was beg, borrowing or stealing to get a meeting with an ocean freight liner,” said Michael Shaughnessy, senior vice president of operations and supply chain at Christmas tree seller Balsam Brands Inc. “Everyone wanted to talk to us this year.”

Mr. Shaughnessy said Balsam Brands expects to sign contracts in the coming weeks at a discount of about 75% compared with last year’s prices and roughly in line with 2019 rates.   

Ocean carriers are struggling to fill space on ships after a steep drop-off in cargo that began in the fall and that has continued into 2023. Retailers ended up overstocked in the second half of last year as consumer spending shifted, and many are still coping with excess inventories. 

Spot market rates have crashed more than 90% from pandemic-era highs as shipping demand has declined. The average spot rate to ship a container from Asia to the U.S. West Coast as of Thursday was $1,289, according to Norway-based transportation data specialist Xeneta, about $668 lower than the contract price.

For a midsize importer bringing in thousands of boxes a year, the wide gap can translate into millions of dollars in annual savings.

Kaitlyn Glancy, head of North America for digital-focused freight forwarder Flexport Inc., said companies that value reliability of cargo flow and consistency in pricing are willing to commit a portion of their imports to rates fixed to contracts. But Ms. Glancy said many of Flexport’s customers are still sitting on inventory that cost $20,000 a box to import last year and are willing to play the spot market to boost profits.

“What we’re hearing more and more is the customer is saying, ‘Look, cost is still king for us,’” Ms. Glancy said. 

Some shippers say they aren’t clamoring to sign a contract because they have no fear of securing space on ships in the coming months.

Ocean carriers are starting to take delivery of container vessels ordered during the pandemic when demand for cargo space surged 20%. Yet demand for space on ships today is low.

U.S. container imports in February were down 25% compared with 2022 and 0.3% lower than February 2019, according to Descartes Datamyne, a data analysis group owned by supply-chain software company Descartes Systems Group Inc. 

Xeneta Chief Executive Patrik Berglund said some shippers are drawing out talks to the last possible minute, or going beyond traditional deadlines, as spot rates continue to fall and drag down contract rates.

Mr. Berglund said many carriers opened negotiations with customers by seeking about $4,000 to ship a container on routes linking the Far East to the U.S. West Coast. The average contract rate to ship a box on those routes as of Thursday was $1,957, according to Xeneta, 71% lower than the same time last year. 

“And it’s still sliding downwards,” Mr. Berglund said.

 

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LOGISTICS
March 21, 2023 By user

GPT4.0 Game Changer

OpenAI developed GPT-4.0, a multimodal model that accepts images as well as text inputs and outputs text. In addition to its human-level performance on various academic and professional benchmarks, GPT-4.0 boasts a multimodal nature that allows businesses to feed it a wide range of data. Companies can use the model to summarize PDFs, aggregate and contextualize chart data, analyze and critique contracts, or identify visual irregularities in physical infrastructure.

As OpenAI’s most advanced system, GPT-4.0 can solve difficult issues with greater accuracy. Its broader general knowledge and problem-solving abilities enable it to produce safer and more useful responses.

In comparison to previous versions of GPT, GPT-4.0 has several improvements. As a result, GPT-4.0 has a larger memory than previous versions. While GPT-3.5 could only handle around 8,000 words, GPT-4.0 can now read, analyze, or generate up to 25,000 words. GPT-4.0 also has a strong sense of ethics built into it. For example, ChatGPT added filters to its original engine (GPT-3.5) to prevent it from giving inappropriate answers.

Overall, GPT-4.0 is significantly smarter than its previous model and scored in the 90th percentile on the Uniform Bar Exam. With the development of GPT-4.0 and its advanced natural language processing capabilities, we can expect significant improvements in virtual assistants, chatbots, and customer service interactions. By utilizing these technologies, users will have a more accurate and personalized experience in answering their questions.

The logistics industry could benefit from improved communication between customers and service providers. Customers could track their packages or schedule deliveries more easily with a chatbot. The chatbot would be able to understand the customer’s needs and provide customized responses based on their individual situation.

In addition, GPT-4.0 could help logistics companies improve their internal communication. For example, by using virtual assistants, employees could easily access information or complete tasks without having to navigate complex systems.

Ultimately, GPT-4.0 can improve customer and employee communication and efficiency in the logistics industry.

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LOGISTICSPACKAGE
March 14, 2023 By user

Streamline Your Logistics with Technology

PHOTO: ARCBEST
PHOTO: ARCBEST

 

Managing inventory and warehouses, as well as coordinating shipments and deliveries, are some of the challenges faced by logistics operators. Their most frustrating and time-consuming task, however, is loading and unloading truck trailers. In the past, this process could take at least 45 minutes, since workers would have to handle pallets individually. As a result, truckers had to wait until their trailers were unloaded before they could pick up or drop off freight.

A trucking company called ArcBest developed an innovative freight-management system called Vaux. In place of handling pallets individually, Vaux is a steel-and-aluminum racking system that sits beneath and around cargo inside trailer beds, allowing forklifts to push or pull freight in one move. Vaux technology, according to ArcBest, speeds up loading and unloading trucks by more than 5 minutes, compared to 45 minutes using traditional methods.

As a result of this technology, logistics operators and truckers both benefit. By eliminating bottlenecks and inefficiencies in distribution facilities, Vaux enables greater efficiency in trailer turns and yard congestion for logistics operators. For truckers, reducing dwell time is crucial since excessive delays mean drivers are not getting paid, which leads to higher driver turnover, and a ripple effect on subsequent loads.

Vaux has already been tested by companies like Polaris, which has found that the system allows for more freight to be loaded per truck, since the racking can be arranged to fit a variety of package sizes and shapes and to stack items. Moreover, Polaris has been able to cut down on the amount of product that gets broken as it is moved on and off trucks, particularly delicate items such as glass windshields and doors.

In addition, Vaux has software to track freight while it is traveling, giving shippers a clear picture of where their goods are. In addition to cellular service and a Global Positioning System tracker, the pallets are scanned as they are loaded, allowing the software to track them based on their location on the racks.

For both logistics operators and truckers, Vaux technology has revolutionized the logistics industry by streamlining loading and unloading processes, reducing dwell time, and improving efficiency and profitability. Increasing the use of this technology will lead to further improvements in freight management and transportation as more companies adopt it.

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