robots Archives

5 Myths of Making Robots Work with People

Robotics | By James Hart • 11/09/2023

Robotics and automation in the warehouse continue to be a growing trend, with a recent study estimating that the warehouse robotics market is expected to reach USD 23. 09 billion by 2027 and grow at a rate of 15. 33% annually from 2022-2027. But there is still much to learn.

As autonomous mobile robots (AMRs) find their place in the DC, there is much promise in terms of benefits to derive, but your challenge is to coordinate and optimize the tasks of humans and their robotic coworkers by alleviating labor challenges using robots in multiple workflows, maximizing productivity by dynamically allocating workers and robots, and improving ergonomics and eliminating workplace injuries.

There are many myths when it comes to the implementation of what some call “human in the loop” robotic systems or just optimizing “sharetasking” between humans and robots in the DC. In this article, we’ll take a look at a few of these and give you the real answers on orchestrating and optimizing the work of people and robots in the warehouse.

Myth #1 – Robots are well-suited for all picking styles

Today there are AMR’s that can handle almost all styles of picking. However, there are different providers that specialize in different AMR’s. Some of these workflows include:

Robots to goods
Goods to person
Follow the robot
Transit robots
Full pallet moves

To get the best blend of robotics in your DC, you may need different AMR’s from different providers to satisfy every process. This can lead to integration complexities. Using AMRs as take-away or transport systems will eliminate some worker travel, but warehouses will still need to optimize pick rates and minimize worker travel within picking areas.

This is where utilizing an integration partner, like smart software and mobile technologies to orchestrate and optimize these processes can help you get the most out of robots and reduce time and effort for human co-workers. This software based approach in most cases does not require any new automation systems or changes to warehouse layouts or storage systems.

Myth #2 – Your WMS can best manage human/robot workflows

Most of the robot types we introduced above can be integrated into your warehouse operations regardless of your operating software. In most cases, a WMS follows basic logic and location sequence pick paths in allocating work. But it is not looking at batch and path optimization without robots. So if you’re going to start looking at how best to orchestrate the work of humans and robots, chances are you probably don’t have the systems or the logic in place.

To improve decision making and task execution in your system involving humans and robots, it’s essential to implement an additional layer that synchronizes all three components under one controlling entity. Typically, a WMS (Warehouse Management System) lacks this capability.

WMS usually follows a fixed location sequence, using a snake pick path around the facility, which is not optimal. Even if there are some optimized paths within the WMS, they are often hardcoded and inflexible. For a truly dynamic approach, a solution that allows intuitive real-time adjustments is required.

Myth #3 – AMR software is best able to optimize people and robots

AMRs optimize for robots, not people. There are two common processes with AMR’s – follow-the-robot/cobot styles, or zone picking. Cobot picking means that a human follows the robot, more often than not through a WMS allocation of tasks. Zone picking keeps the humans in a fixed zone. This reduces human travel, but means that pickers need to be allocated to the correct zones and ready for AMR’s. It can be quite static. While a WMS, or an AMR company might claim that they do optimization of travel, again, this is something that is hard coded and not dynamic. There are actually three different aspects of optimization that make it all truly dynamic – work prioritization, batch optimization and finding the most efficient pick path.

Before any system can get into creating efficient work, we must first understand that warehouses have priorities via certain types of orders, service levels, important customers or carrier cut off times. And these priorities often shift rapidly throughout the day. Before being fed orders, a best case scenario system should consider these priorities on a just in time basis, to increase pick density and create better batches, so as new orders come into the system, they are automatically slotted and prioritized appropriately. Warehouse leads and supervisors should have full control over changing priority for their orders too, because the system should operate on demand. In a best practice scenario, when a user asks for work, they always get optimally prioritized work.

Myth #4 – Robots themselves can minimize worker travel

As previously explored, zone picking can do this, but cobot picking is unlikely to do so. To be truly optimized, you need to harmonize the travel of both robots and humans. This reduces travel for humans, but doesn’t tie them to a zone. They dynamically travel to the most optimized pick and meet the AMR there.

To explain, cobots don’t necessarily reduce any human travel, because their concept generally involves a human traveling around with the robot at the same time. Obviously, if the robot goes in a more optimized path, then the human is going in a more optimized path as well. But the whole concept of a cobot is that you’ve got one human and one robot tied together.

The second option of zone based picking does reduce human travel, but it’s very rigid. In that scenario, you have humans in zones, so they might have an aisle or section that is allocated to them, but they will stay completely rigid within that zone. The whole concept of the solution is based upon the humans being there, when they’re supposed to, and a robot coming around into a zone, the human picking and loading to the robot, and the robot going on into a different zone. But if they need to go for a break, and no one replaces them in that zone, the whole solution can start to fall apart. Also, it’s harder to balance your workforce well in that scenario, because there might be one day where one zone has 50% of the picks and then the next day it has 1% picks. So you might have some people waiting around not picking while you might have someone else picking completely flat out. You still need a layer of orchestration that can reduce worker time at the pick face.

Myth #5 – Orchestration of work can be done within existing systems

WMS and AMR companies lack true orchestration. To achieve genuine optimization, you must incorporate system software and AI to provide the necessary intelligence. The focus of optimization should be on minimizing the human pick path. However, AMR and WMS systems generally overlook this aspect and simply concentrate on the next easiest pick where a robot is already present in the same aisle. True orchestration and optimization do not follow a rigid zone-based picking approach; instead, they employ a hybrid model where the system dynamically makes decisions at various points to reduce human travel. This flexibility and dynamic decision-making are the critical factors that set true orchestration and optimization apart.

In an AMR-supported picking workflow, for example, a worker can avoid a lot of unnecessary walking by picking items to a tote on an AMR, directing the AMR to a conveyor system to unload, and then triggering another robot to move into place for the worker to continue picking. Interfaces with the robots and workers can be directed by voice. Similar to conventional voice picking systems, workers confirm their work using voice, scan, RFID, or robot mounted screens or lights.

In conclusion, the use of autonomous mobile robots (AMRs) in warehouses holds great potential for various benefits. However, in order to fully optimize and coordinate the tasks of humans and robots, it is important to address labor challenges by incorporating robots into multiple workflows, dynamically allocating workers and robots to maximize productivity, and improving ergonomics and safety. Despite common misconceptions about the implementation of human-robot collaboration in the warehouse, there are solutions available for effectively orchestrating and optimizing the work of people and robots.

James Hart leads the Lucas Systems business development team in Europe, the Middle East and Africa, helping to streamline and optimize customers’ processes through smart and user-friendly software solutions. James excels at identifying, delivering and implementing smart solutions that provide rapid ROI, transform operations and help companies continuously adapt to the ever-evolving demands of the warehouse and distribution center industry.

With a strong analytical background and experience through his degree in Economics, he understands the nuances that drive design, implementation and delivery of financially successful solutions for customers. He utilizes his unique expertise in a variety of industries including telecommunications, medical devices and e-commerce fulfilment to bring significant value to customers.

The Complexity of Cold Chain Logistics

Food & Beverage Industry | By Anton du Preez • 11/24/2020

Compared to classic logistics with normal temperatures, cold chain logistics are challenging, expensive and complex at the same time. It is one of the most difficult types of logistics in the supply chain industry. The rapidly increasing demand for frozen foods and the requirement of maintaining an uninterrupted cold chain make logistics considerably more complicated. This makes processing orders quickly and efficiently crucial. Consequently, demand for innovative logistics solutions to speed up the handling and processing of orders is growing.

Low temperatures – a challenge for humans and technology

Working in subzero temperatures means extreme physical strain on warehouse employees. Not only due to the cold and the huge air conditioners that circulate cold air, but also owing to the very noisy environment. Because of these extreme working conditions, the turnover of employees in cold storage is particularly high. One of the most common comments of warehouse workers in cold storage is that bulky gloves and protective clothing severely restrict their movement. Warehouse workers report that they constantly have to take off their gloves to carry out their tasks. Whether it is entering information using a scanner or writing it on a pick list, gloves make simple tasks difficult. As a result, pickers have to resort to entering data manually, which greatly reduces productivity and significantly increases errors.

But warm clothing, caps and gloves are not the only things that are essential for employees working in cold storage. The technology used in these demanding environments is also crucial to success. Given the harsh environment, it is fundamental that it suits the purpose. Not only does the hardware have to remain functional for a long time in the cold, it also has to meet the needs of the warehouse workers. But normal equipment cannot be used properly in cold storage. Labels might not stick, causing them to peel off the boxes. Pens used for writing down the weights of goods are more likely to fail at -30° Celsius. The batteries of mobile computers stop working when the temperature drops below a certain level. Cold air, frost, and condensation – all these elements pose threats to mobile devices. Insulation, which is supposed to keep refrigerators and freezers cool, also causes problems with wireless connections.

The big picture

Above all, it is important not to lose sight of the big picture. Food safety must be taken just as seriously by operational logistics companies as it is by agricultural and manufacturing companies. In the future, both parties’ responsibilities will increase even more, for example, the extensive legal deadline requirements for the traceability of food and feed. However, logistics is already heavily involved here, since it has to meet customers’ expectation of faster delivery, etc. Traceability places a heavy burden on logistics services, making transparency along the entire supply chain indispensable.

This provides challenges and opportunities, such as preparing processes flexibly and efficiently for the future. Intelligent software solutions that link IT networks play a significant role. In addition, suite providers have an advantage in providing comprehensive planning and control functions and optimization options with end-to-end solutions.

In this situation, the WMS (warehouse management system) is the decisive operational component. Being the IT core of the warehouse, it ensures that logistics processes in cold storage are transparent and optimally designed, so that actions are efficient, and peripherals can be integrated.

Autonomous mobile robots (AMRs) – robots and humans, hand in hand

One example is the use of AMRs. Recently, AMR developments have uncovered new applications that might enable the use of this technology for goods-to-person processes even in areas with temperatures as cold as -25°C.

Autonomous robots are not widespread in cold storage yet, because the focus of the industry has largely been on ambient operations with excellent results.

However, this does not mean they are unsuited for this environment. We are waiting for innovative companies to think outside the box and thereby taking the first step. Due to further developments in these technologies, coupled with the growing challenges in logistics, it is only a matter of time before AMR conquers cold chain logistics.

Voice technology

Voice technology is well-established and has been used extensively in cold storage. With its hands-free/eyes-free approach, it gives employees maximum freedom of movement, leading to higher satisfaction. The warehouse worker is given clear instructions by voice through a wireless headset, and each step of the process is confirmed verbally. This enables employees to focus on their tasks and thus reduces picking errors by up to 80%. Voice devices are designed to operate at subzero temperatures and easily withstand temperatures as low as -30°C. The headsets and their terminals are sealed against moisture, and batteries last for a full shift – even in extreme temperatures. These are major benefits of these solutions.

By using voice in the warehouse, productivity can increase up to 30%. However, voice not only addresses the special requirements of individual industries, but also the growing challenges of labor shortages. Companies can still grow without hiring more employees by using voice solutions, as they are very flexible and scalable.

Growth through challenges

There is no doubt that the future of cold chain logistics depends on meeting its greatest challenges. It will do so with technologies that ensure traceability. And it must do this while complying with regulations and meeting growing customer expectations. But, as always, it all starts with a single challenge that one or more teams rise to every day. Investing in employee safety and happiness is the best way to future-proof logistics.

At Körber, Anton du Preez oversees sales and marketing efforts to help customers reduce their supply chain complexity through voice, vision, and mobility solutions. He also builds strategic partnerships within these spaces to push what’s possible and create a more dynamic, integrated future for supply chain logistics. Anton brings over 10 years of leadership in sales and business development to Körber from Voiteq, a voice-based business which is now under the Körber brand.

This Week in Logistics News (May 23 – 29)

logistics news | By Chris Cunnane • 05/29/2020

On Wednesday, SpaceX was set to become the first piloted launch to orbit of a privately owned and operated spaceship. The launch of SpaceX’s Crew Dragon spacecraft also would have been the first piloted flight to orbit from US soil in nearly nine years. However, bad weather rolled through Florida and the launch was scrubbed. But the company will try again tomorrow, with a scheduled launch time of 3:22:45 pm EDT. This is the next available opportunity for a launch into the plane of the International Space Station’s orbit with the proper conditions for a rendezvous and docking. The forecast is once again not looking great for launch tomorrow, but SpaceX and its astronauts Douglas Hurley and Robert Behnken are hoping for the best. On a side note, my realtor will be watching with great anticipation as her youngest son will be in mission control. And now on to this week’s logistics news.

Even in the midst of the coronavirus pandemic, Amazon is pushing ahead with the development of its own logistics network to speed up the delivery of online orders to its customers doorsteps. One area the company has been looking to expand is its Prime Air fleet, which moves goods between Amazon warehouses for delivery to the consumer. According to a study from DePaul University’s Chaddick Institute of Metropolitan Development, Amazon’s Prime Air fleet could grow to about 200 planes in the next seven or eight years. Currently, the company has 42 planes in its fleet. If this happens, it could become a rival for both UPS and FedEx. Currently, UPS and FedEx have the advantage due to their large central hubs in Louisville, KY and Memphis, TN resepctively. While Amazon generally operates out of smaller, regional airports, the company is making a large investment in a central hub at the Cincinnati/Northern Kentucky International Airport. This will be the first “built-to-spec” airport project for Amazon Air, and its capabilities include sortation as well as the infrastructure to handle multiple flights daily. An expanded fleet, combined with a large central hub, could be a game changer in the years to come.

As the coronavirus pandemic continues to grip the world, technology is being used to help in the fight. Over the last several weeks I have written about drone operations to deliver emergency supplies and medications in the US. Building on the program it launched in Africa, UAV delivery startup Zipline is partnering with Novant Health to deliver personal protective equipment and medical equipment in North Carolina. Under the partnership, Zipline’s drones will make 32-mile flights on two routes between Novant Health’s emergency drone fulfillment center in Kannapolis to the company’s medical center in Huntersville, NC. According to Zipline and Novant, this will be the first authorized long-range drone logistics delivery flight program in the US.

Other technologies that have ramped up during coronavirus are warehouse automation and robots. US apparel chain Gap is one company that is speeding up its rollout of warehouse robots for assembling online orders. The basic premise is to use robots to reduce the amount of human contact with orders during the pandemic. Initially, Gap had reached a deal to triple the number of robots in its warehouses by the fall. However, once the pandemic hit and the company was forced to close all of its stores (plus those of Bana Republic and Old Navy), its warehouse was soon overwhelmed with online orders. So, Gap had Kindred AI, the seller of the robots, expedite the order to get them in the warehouse as soon as possible. Each machine handles work typically performed by four people and has been a key component to fulfilling online orders in a timely manner.

Last month, Airlines for America, a trade association representing the airline industry, filed paperwork to allow passenger airlines to carry cargo in seats that were empty. This was in response to the limited cargo capacity available and skyrocketing prices associated with air cargo. The Federal Aviation Administration (FAA) will allow the exemption, thus allowing cargo to be carried on the seats in the cabin of a passenger airplane if there are no passengers on board. The FAA said that the decision is meant to facilitate the movement of goods during the coronavirus pandemic. Airlines for America had asked for the exemption to remain valid until April 30, 2022, but the FAA said it will only hold through Dec. 31, 2020. The agency said the provision can be extended “if warranted and under appropriate conditions and limitations.”

Supply chains continue to be disrupted by the coronavirus pandemic. And for many food manufacturers, this is causing all sorts of problems when it comes to sourcing ingredients. The food industry had asked the US Food and Drug Administration to grant it flexibility over food labeling requirements as a result. The FDA has approved the request, granting temporary labeling flexibility for non-allergen ingredients. According to the FDA, food manufacturers may make minor formulation changes that may cause the finished food label to be incorrect, but do not pose a health or safety risk. The minor changes should not cause adverse health effects such as allergens or sensitivities, must not be a major ingredient (it must be less than 2 percent of the final weight of the food), and cannot be a characterizing ingredient.

The grocery home delivery market continues to explode globally. In more and more countries, demand is far outpacing supply. And in Australia, this is certainly the case. For the two largest grocery chains in Australia, Woolworths and Coles, demand at the beginning of the coronavirus pandemic was so overwhelming that they both shut down their own home-delivery services. To meet demand, both companies turned to last mile delivery startups to reach their consumers. While they have since reinstated their own private fleets of delivery trucks, the use of crowdsourced delivery partners has allowed them to double their capacity. The main players in Australia are Drive Yello, Sherpa, Uber, and 13 Cabs. To put the volume in perspective, Drive Yello made 120,000 deliveries last month, up from 40,000 deliveries a month before the pandemic hit.

Truck tonnage plunged 12.2 percent in April, marking the largest monthly decline in 26years. The last time there was a decline this large was in April 1994, and that was caused by a labor strike. According to American Trucking Association (ATA) Chief Economist Bob Costello:

“Considering that April factory output and retail sales plummeted, the large drop in truck freight is not surprising. However, not all fleets saw large declines in April. Those hauling food for grocery stores and those involved in the online retail supply chain outperformed most other fleets. Some fleets witnessed very large declines in freight last month. These historic declines show just how much trucking was impacted by our national response to the COVID-19 pandemic.”

Speaking of plunges, forty containers have fallen off the APL England off the coast of Australia. The Australian Maritime Safety Authority (AMSA) said the APL England experienced a loss of propulsion amid heavy seas shortly after 6am Sunday about 45 miles southeast of Sydney. The ship’s power was restored quickly, but as it was rolling heavily, multiple container stacks collapsed, and several went overboard. Besides the forty containers that were lost overboard, and seventy-four more were damaged. The contents included facemasks and medical supplies, which have since begun washing ashore between Magenta Beach and The Entrance in New South Wales.

That’s all for this week. Enjoy the weekend and the song of the week, R.E.M.’s Man on the Moon.

This Week in Logistics News (May 16 – 22)

logistics news | By Chris Cunnane • 05/22/2020

This Monday is an important day. It is Memorial Day, a US federal holiday to honor and mourn the military personnel who have died while serving in the Armed Forces. But that is not the only important thing happening on Monday. It is also my birthday. And while this is exciting, there is still one more important thing happening. On Monday, May 25, 2020, as the Massachusetts economy opens in its multi-phase plan, barber shops are allowed to re-open. I, along with my son, probably both needed a haircut in mid-March. But the coronavirus pandemic shut down non-essential retailers and personal services such as barber shops. As time has gone by and shops have remained closed, my hair, and my son’s, has continued to grow at what seems to be a faster rate than normal. So now, I have a giant mop on my head. Barber shops will have to follow strict guidelines, such as haircuts by appointment only and limits on the number of people allowed inside at the same time. I’m guessing that it may take a while before I can actually get an appointment, but I can see the light at the end of the tunnel. And I won’t have to let my wife try to cut my hair. And now on this week’s logistics news.

Earlier this week I wrote about what the supply chain will look in a post COVID world. For FedEx, this will include a new partnership with Microsoft. The companies announced a multi-year partnership that will combine FedEx’s logistics network with Microsoft’s cloud. Dubbed FedEx Surround, the platform will target commercial shippers, such as manufacturers that use FedEx’s network to ferry goods to retailers and will use Azure’s artificial intelligence services to predict potential delivery delays. Aside from shipping delays, the platform will use IoT data provide more transparent package tracking for near-real-time insights down to the granular level of ZIP code. The companies are planning to launch a pilot with select customers this summer.

Coronavirus has shuttered many retailers but across the country liquor stores were deemed essential and allowed to remain open. And while alcohol sales have continued to grow, craft breweries are feeling the pinch. While craft breweries have turned to curbside pick-up and delivery, the majority of sales come through their tap rooms. As a result, big beer brands are seeing a bounce back in their sales. Craft brewers do not have the same distribution networks as the largest brewers, so as consumers go to liquor stores and supermarkets, the big beer brands are winning out. It remains to be seen what the long-term impact will be for the big brands, but according to multiple surveys, up to 60 percent of craft breweries could close in the next few months.

As mentioned in several articles, e-commerce is booming during the coronavirus pandemic. One thing that has been tricky for many retailers is how to balance costs while shifting gears towards more online commerce. JD.com is reporting that it is seeing record sales and lower costs. In Q1 of 2020, JD.com announced revenue grew 21 percent over Q1 2019, and it expects growth in the 20 – 30 percent range for Q2. On top of this, cost per delivery has reached an all-time low due to the increased order volume and cost controls in place. For JD.com, even though the costs to operate during the pandemic are up due to the need for personal protective equipment, the cost was easily covered by the uptick in business. According to CFO Sidney Huang, Fulfillment costs (defined by the company as procurement, warehousing, delivery, customer service, and payment processing expenses) were up 28 percent year over year, but logistics and other services revenue was up 54 percent in that same time. Those are some impressive numbers.

Walmart is shutting down Jet.com, the e-commerce site it acquired four years ago for $3.3 billion. When the acquisition was announced, I asked whether the acquisition was a strategic initiative or desperation move. Four years later, I’m not sure we have an answer. According to a Walmart statement, “due to continued strength of the Walmart.com brand, the company will discontinue Jet.com. The acquisition of Jet.com nearly four years ago was critical to accelerating our omni strategy.” This last part of Walmart’s statement is the most important as Jet.com founder Marc Lore now runs Walmart’s e-commerce division which has seen significant growth. In fact, it is now the second largest e-commerce company in the US behind Amazon. While same store sales increased 10 percent in Q1, e-commerce sales grew by 74 percent.

The city of Miami is piloting a new e-cargo bike initiative to reduce congestion and pollution. The city will partner with DHL Express and mobility logistics hub Reef Technology to pilot four low-powered electric-assist e-cargo bikes that will be used for deliveries across the city. The cargo bikes will come equipped with three wheels and a cargo container. They’re capable of pulling up to 400 pounds or 60 cubic feet in volume. A DHL truck will carry up to nine cargo containers for the bikes, which will be sent to the Reef Hub to be hooked up to the bikes for last-mile delivery in the morning. Those same containers can be reloaded in the afternoon for outbound shipments. The bikes are anticipated to reduce 101,000 kg of CO2 annually and help DHL achieve its short-term goal of “clean pickup and delivery solutions” for 70 percent of operations by 2025.

UPS continues to push ahead with its drone tests in an effort that could have significant implications for the nation’s wireless network operators. During a presentation at the Wireless Infrastructure Association’s Connect (X) virtual trade show UPS highlighted the tests it has performed since receiving FAA approval to operate a drone airline in 2019. Specifically, Bala Ganesh, the VP of UPS’s Advanced Technology Group, highlighted three key tests: working with Matternet to deliver medical samples to hospitals; launching drones from the top of UPS vehicles in rural areas; and delivering prescriptions to a retirement community in Florida. The presentation hinted at the possibility of UPS’s plans to connect a fleet of delivery drones to 4G or 5G networks, which would be big news.

As the economy continues to open, social distancing at the workplace will be a requirement. This can difficult on the manufacturing floor or in warehouses. ProGlove, a maker of ergonomic wearables for industry, has you covered. Leveraging its MARK family of wearable barcode scanners and ProGlove Connect app for Android, ProGlove announced a product upgrade that activates proximity sensing for frontline workers. When personally equipped with the MARK wearable scanner and paired Android device, workers coming within close proximity of each other are alerted by audio sound, optic LED light, and haptic vibration signals. The multiple alert system is important as manufacturing floors can be very noisy, so wearers are alerted in a variety of ways.

Coronavirus has caused many companies to shift gears in their manufacturing operations. Plenty of manufacturers have begun making face shields and other personal protection equipment to aid front line workers. In Florida, Bob’s Space Racers has been manufacturing large arcade games for amusement parks and fairs. The company is most famous for its whac-a-mole game, which was invented by the company’s founder. Now, however, the company is also shifting gears, making hand sanitizer stations to help out during the coronavirus pandemic. The company noticed that many dispensers were not efficient and would dispense too much sanitizer. Their new concept is a hands-free unit. When a person walks up to the station, they place their hand under the dispenser and with one foot, press down on a pedal. Since launching their new design a week ago, employees have been working every day and orders from across the country have been coming in daily.

That’s all for this week. Enjoy the long weekend and the song of the week, Pavement’s Cut Your Hair.

https://www.youtube.com/watch?v=uq6tUKwvfNw

This Week in Logistics News (May 9 – 15)

logistics news | By Chris Cunnane • 05/15/2020

As the world continues to turn during the coronavirus pandemic, we are all adjusting to the new normal. However, what that new normal will ultimately look like is still an unknown. But for now, there are certain things that we are getting used to, such as social distancing and wearing face covers. But how will businesses adjust to the new normal? I’ve seen a bunch of articles this week about what businesses are considering. According to the CEOs of Burger King and Popeyes, face masks may become part of the new uniform. Tim Hortons will widen the space between tables and sanitize them, as well as chairs, after each use. It will also limit the number of customers allowed at any given table to no more than four. Retail stores will also have to adjust accordingly, with wider aisles, face coverings, and better sanitation. Things will continue to evolve and so will our new normal. But for now, let’s move on to this week’s logistics and supply chain news.

A couple of weeks ago, my colleague Steve Banker wrote an article about companies using virus killing robots in plants and warehouses. According to the article, “UV light, at a particular wavelength, has a germicidal effect. The light energy destroys the DNA structure of all microorganisms.” The robots have been around for 50 years, mainly used in sewage plants. But, with COVID-19 disrupting the global economy, interest in the robots is gaining traction. In a segment on 60 Minutes, Amazon showed a video of a robot it is developing that would roll through grocery stores and distribution centers, using banks of ultraviolet light to kill viruses on surfaces. This was the first glimpse of the technology that the company has previously hinted at. The segment describes Amazon’s UV-emitting robot as “something they’re working on for the future,” without providing a timeline or other details.

Amazon apparently sees the light at the end of the tunnel and has said that one and two-day deliveries that customers have come to expect should return in the coming weeks. The company has implied that it has caught up from the demand surge that stemmed from the coronavirus outbreak. Amazon has lifted restrictions on the amount of inventory that suppliers can send to its warehouses. With more on-hand inventory, orders can be turned around quicker and meet the one and two-day delivery timeframes. The ability to revert to the quicker timeframes brings about two key benefits. First, customers that were seeing long delivery times and looking elsewhere will likely come back. And second, with reduced delivery timeframes, there is less chance of merchants defecting from its logistics service.

Coronavirus has put added stress on the global supply chain, and as mentioned above, has put added strain on delivery capacity. As a result, FedEx has limited the number of items that retailers can ship from certain locations such as stores. COVID-19 has brought about a surge in online shopping that rivals the holiday season. Shippers and carriers plan well in advance for the holiday surge; there was not time to plan for the coronavirus surge, however. In order to ensure that its network is not overwhelmed, the company has put these limits on a number of retailers that had turned stores into mini warehouses to fulfill online orders. The limits vary at each location and are only temporary. The list of retailers includes Kohl’s, Belk, Neiman Marcus, Nordstrom, Abercrombie & Fitch, Bed Bath & Beyond, Hobby Lobby, Eddie Bauer, and other sellers like Groupon and Young Living Essential Oils.

The Centers for Disease Control and Prevention (CDC) has issued guidelines tailored to help long-haul truck drivers and their employers deal with the COVID-19 pandemic. The majority of the guidelines echo what the CDC has recommended for the general population since the outbreak first hit such as social distancing, proper and frequent hand washing, and the use of personal protective equipment. However, it also offers specific guidelines aimed at truckers, such as frequent cleaning and disinfecting of the driver door handle, steering wheel, seat belt and buckle, arm and headrest, seat covers, turn signals, wiper controls, dashboard, air ducts, radio, and temperature controls. In the sleeper berth, light switches, mattress trays, temperature controls and other flat surfaces should be cleaned frequently as well. The complete list of recommendations can be found here.

Federal regulators have extended broad exemptions from hours-of-service (HOS) rules for drivers hauling freight deemed essential during the COVID-19 pandemic until June 14. Carriers and drivers hauling freight that supports COVID-19 relief efforts have been granted emergency relief from Parts 390 through 399 of federal motor carrier regulations, which includes HOS rules. The exemption was soon expanded to include raw materials and other cargo considered essential to coronavirus pandemic relief. This extension marks the second extension by the Federal Motor Carrier Safety Administration (FMCSA). The original extension would have expired today.

As consumers are still trying to avoid stores as much as possible, Walgreens is bringing a fast food fulfillment model to some of its pharmacies. The company is bringing its buy online, pick up in store operation for a limited selection of products to its 7,300 pharmacies that have drive thrus. The selection includes more than 100 items such as cleaning supplies, paper goods, over-the-counter medicines, first aid supplies, and baby formula. The number of products has increased from 60 in March, although these items could not previously be pre-ordered online. A Walgreens spokesperson said customers are not required to have a prescription in order to use the new drive thru pickup service. However, a press release noted pricing for drive-thru orders may differ from in-store items.

Walgreens isn’t the only company expanding its prescription fulfillment services. Publix is expanding its home delivery options as well. The company already has a partnership with Instacart for curbside and home delivery. But, in a new partnership with ScriptDrop, Publix is offering home delivery of prescriptions. The partnership offers prescription delivery within a 5-mile radius of each in-store Publix Pharmacy. The service comes with a $5 fee, but there is no limit on the number of prescriptions ordered. Deliveries take place on weekdays after 2 PM, and to receive same-day delivery, orders must be placed by 11 AM. Customers who receive a text message when prescriptions are ready will receive a link to prepay for their prescriptions and choose delivery. Age-restricted products, controlled substances and prescriptions needing refrigeration are excluded.

As home delivery continues to heat up, Uber is looking at ways to expand its business. The company reportedly has made an offer to acquire meal delivery company Grubhub. An acquisition would certainly raise Uber’s profile in the food delivery space alongside its UberEats platform. Grubhub has been around since 2004 but has seen the competition increase in recent years as Uber, Postmates, and DoorDash all took off. While an Uber spokesperson said the company does not comment on merger and acquisition rumors or speculation, Uber’s stock was up 8 percent and Grubhub’s was up 35 percent following the reports.

And finally, as companies try to compete with Amazon-like experiences, opportunities abound for start-ups. DispatchTrack, which provides a platform for last-mile deliveries specifically to help companies mimic Amazon-like experiences for themselves by planning and tracking deliveries more easily, has closed a $144 million funding investment. This is the company’s first ever funding and it all comes from a single investor – Spectrum Equity. DispatchTrack was founded in 2010 and has since grown to support more than 60 million deliveries per year. DispatchTrack includes features for managing routing and planning (including telematics and compliance), customer communication (including reservation systems for delivery slots), driver communication (via a mobile app), billing, social reviews and omnichannel order tracking.

That’s all for this week. Enjoy the weekend and the song of the week Ten Years After’s I’d Love to Change the World.

This Week in Logistics News (January 4 – 9)

logistics news | By Chris Cunnane • 01/10/2020

Welcome back to the Logistics Viewpoints weekly news round-up. I certainly had a busy, but refreshing, break over the holidays. But somehow the beginning of the new year seems different this time around. I suppose that is because for the first time in a decade my beloved New England Patriots are not in the divisional round of the playoffs. Not only that, but Tom Brady is not under contract, meaning he could leave the team when free agency begins in March. As the clock ticked down on their defeat to the Titans, I could hear David Gilmour’s voice singing “where do we go from here?” over and over again in my head. And the answer to that question, for New England fans, is “I don’t know.” The Brady – Belichick duo has been a staple in my football life for twenty years. But now, that future is uncertain, and I am left wondering where do we go from here? My prediction is the Pats bring Brady back on a two-year deal, as they groom his heir to the football throne. But then again, who knows. Maybe he will sporting new colors next year, which would just look wrong on so many levels. And now on to this week’s logistics news:

After hearing arguments last August, a federal appeals court has sided with truck drivers that had sued Walmart over what it called unpaid wages. According to the ruling, Walmart must abide by a $54.6 million jury award compensating a group of California-based drivers for 10-hour end-of-shift layovers, rest breaks, and inspections. The three-judge panel from the 9th US Circuit Court of Appeals found that the drivers were entitled to compensation under California law because Walmart had exercised control over their schedules during mandated layovers and other breaks. California state law requires that employees be paid a minimum wage covering the entire time they are under an employer’s control. This case covers drivers that worked for Walmart between 2004 and 2015. Walmart is reviewing the panel’s decision and has not made a decision on whether it would appeal the ruling.

Walmart is continuing to advance its use of robots to increase efficiencies in the store. The retailer is working with Massachusetts-based Alert Innovation to deploy its Alphabot, which it calls a “first-of-a-kind” technology at a Salem, NH supercenter. The robot is a grocery-picking machine that Walmart thinks could revolutionize its online business. Alphabot automates steps of the online grocery pickup process by using autonomous mobile carts to gather shelf-stable, refrigerated, and frozen items from a high-density storage system. The carts retrieve the items and deliver them to a store associate for fulfillment. The process takes place in the back of the store, out of view of the customer. According to Brian Roth, a senior manager of pickup automation and digital operations for Walmart US, “by assembling and delivering orders to associates, Alphabot is streamlining the order process, allowing associates to do their jobs with greater speed and efficiency.”

At the 2020 Consumer Electronics Show, IBM and Farmer Connect unveiled a new mobile application dubbed “Thank My Farmer” to increase coffee traceability. The blockchain-based mobile app will allow consumers to trace the origin and quality of their coffee while supporting the farmers that are growing it. The app will also enable consumers to understand just how sustainable their coffee is, and what the company is doing to improve its sustainability efforts. The app was developed in conjunction with representative from Beyers Koffie, the Columbian Coffee Growers Federation, ITOCHU Corporation, Jacobs Douwe Egberts, the JM Smucker Company, Rabobank, RGC Coffee, Volcafe, Sucafina, and Yara International.

For the first time in the company’s 60-year history, Little Caesars will deliver pizza nationwide. The company has decided to venture into the delivery realm through a partnership with crowd-sourced delivery platform DoorDash. Little Caesars is known for its inexpensive pizza, especially compared with some other national chains. For example, a large cheese pizza costs $7.99, compared to $13.99 and $14.99 at two other well established pizza chains. Little Caesars announced that there is no minimum order for delivery, and that delivery fees will top out at $5.99. To place a delivery order, customers can use the Little Caesars website or mobile app, pre-pay, and choose the delivery option.

Food delivery is becoming big business for many retail supercenters. Carrefour, the French hypermarket operator, has doubled down its efforts with the acquisition of Dejbox, a start-up focused on lunch delivery for office workers. The acquisition is intended to complement Carrefour’s e-commerce ready meal business and open up new opportunities for the B2B market. Dejbox currently operates in a number of French cities, including Paris, Lyon, Nantes, Lille, Bordeaux, and Grenoble. In its announcement, Carrefour highlighted the startup’s employment model, which, according to the firm sets Dejbox apart from its competitors, many of which rely on “gig economy” or self-employed workers.

As the Amazon effect continues to change the industry, leading carriers are making changes to their business models to compete. Both UPS and FedEx are raising prices and imposing new restrictions for e-commerce orders as Amazon takes more control of the e-commerce market, and its own shipping needs. Both companies have implemented a new $24 fee for packages that exceed 50 pounds. This is a two-fold change for the companies. First, it has lowered the weight threshold from 70 pounds. And second, it has raised the price for overweight items. This will be a story to keep an eye on over the course of the next few months and years.

Another week, another price fixing accusation. This week, the petrochemical and refining unit of the French energy major Total accused the nation’s four biggest railroads of price fixing by adding fuel surcharges to cargo prices. The company has joined a list of 37 other companies suing the railroads that control 90 percent of the nation’s rail freight traffic for allegedly conspiring to impose fuel surcharges from as early as 2003. The companies allege that Burlington Northern Santa Fe Railway of Fort Worth, CSX Transportation of Florida, Norfolk Southern Railway of Virginia and Union Pacific Railroad of Nebraska violated federal anti-trust laws by coordinating the fuel surcharges through meetings, phone calls, and emails. According to Total, these fuel surcharges have generated billions of dollars of revenue for the railroads.

A combination of a softening economy and a rush for bookings in 2018 has resulted in orders of new Class 8 trucks to tumble to their lowest annual level in a decade in 2019. Truck makers saw the slowdown eat away at a record industry backlog of a year ago and cut production that resulted in thousands of job losses. Even though year-over-year truck orders fell once again in December, the 20,000 bookings were actually an increase of 14 percent over November, according to ACT Research. Retail sales, which follow orders and production, are expected to set a record of 310,000 to 340,000 when those numbers are tallied later in January. Most predictions call for about 100,000 fewer Class 8 sales in 2020.

That’s all for this week. Enjoy the weekend and the song of the week, Pink Floyd’s Keep Talking.

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