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ROBOTICS

gain ground inside


warehouse/DC operations

While the labor crunch and the ability of AMRs to offload


manual travel are central to their success, there are other benefits
to robotics in addition to reducing labor requirements.

CMYK GRAYSCALE B/W


ROBOTICS
gain ground inside welcome
warehouse/DC operations Robots have arrived
Robotics are being
applied at a rapid pace

contents
inside our warehouse,
distribution center and
fulfillment operations
Mobile robotics descend on warehouse operations 4 around the U.S.—and
Robots, including autonomous mobile robots (AMRs), are seeing rapid uptake in according to recent
warehouses. The labor crunch and the ability of AMRs to offload manual travel are
central to their take-off, but there are other benefits to robotics besides reducing reports, there’s a good
the labor requirement. chance they’re coming to your facility. In
fact, the latest forecast shows that ship-
ments of logistics and warehousing robots
The robots are here 10 will grow from 194,000 units in 2018 to
Long a fixture on the factory floor, a new generation of robots are ready for a broader
range of applications. The only thing standing in their way is end-user adoption. 938,000 units annually by 2022.
The labor crunch and the ability of
AMRs to offload manual travel are cen-
While you were sleeping, robots took over 17 tral to this growth, but there are other
It seems that most everywhere you look in the past couple of months there are robots.
And they are almost always doing something new. benefits to robotics besides reducing the
labor requirement. Today, vendors tout
the synergies of human-to-robot collabo-
The robots are coming to the warehouse dock 20 ration, ease of system scalability, and the
From AGVs to exoskeleton suits, the robotics on today’s warehouse and DC docks
aim to help shippers operate more efficiently in an increasingly competitive ability to refine storage, order fulfillment
distribution environment. and transportation execution as other
facets of the robot value proposition.
In this Special Digital Issue, the
Rochester Drug Cooperative: Robots ready for work 24 Logistics Management editorial team
It’s still early stages, but Rochester Drug Cooperative is proving that mobile robotic
piece picking can get the job done in the right application. has curated some of our best cover-
age on the robotics market including
case study examples that illustrate how
RDC puts robots to work 30 early adopters are putting the various
An early adopter, Rochester Drug Cooperative is using robotic piece-picking
technology to complement picking of slow-moving items. available robotic technologies to work
in their facilities.

Robots at GEODIS 32
The global 3PL turned to mobile collaborative robots to rev up its e-commerce
fulfillment operations. One measurable result: a 2x improvement in productivity.
Michael A. Levans, Group Editorial Director
Comments? E-mail me at
mlevans@peerlessmedia.com
Follow me on Twitter: @MikeLeva

Editorial Staff Peerless Media, LLC


Michael A. Levans John Kerr Wendy DelCampo Brian Ceraolo
Group Editorial Director Contributing Editor, Global Logistics Senior Art Director ® President and CEO
Patrick Burnson Bridget McCrea Polly Chevalier Editorial Office
Executive Editor Editor at Large, Technology Art Director 111 Speen Street, Suite 200
Sarah Petrie Roberto Michel Kelly Jones Framingham, MA 01701-2000
1-800-375-8015
Executive Managing Editor Contributing Editor, Warehousing & DC Print/Online
Jeff Berman John D. Schulz Production Manager
Group News Editor Contributing Editor, Transportation

CMYK GRAYSCALE

2 Robotics gain ground logisticsmgmt.com


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Robotics

o
M bile robotics
descend on
warehouse operations
Robots, including autonomous mobile robots (AMRs), are seeing rapid
uptake in warehouses. The labor crunch and the ability of AMRs to
offload manual travel are central to their take-off, but there are other
benefits to robotics besides reducing the labor requirement.

RR
obotics for distribution centers In reality, there are plenty of nuances to
(DCs), such as autonomous the robotics trend, including their abil-
BY ROBERTO MICHEL,
EDITOR AT LARGE mobile robots (AMRs) and col- ity to collaborate with humans, and the
laborative picking arms, are growing ability of some bots to hand off goods to
at a rapid rate, with well over a dozen fixed automation.
robotics vendors aiming at the needs of For certain, the growth outlook for
DC operators. At the same time, U.S. robotics in DCs is robust. Accord-
unemployment was running at 4% or ing to analysis by ABI Research, by
under for the first few months of 2019, 2025, more than 4 million commercial
dipping to 3.6% in April. robots will be installed in more than
The two trends are interwoven, 50,000 warehouses, up from 4,000
with labor scarcity seen as a primary warehouses using robots in 2018. The
driver for this market. ABI study looked mainly at AMRs, but
But let’s not get carried away with also considered picking arms, autono-
misconceptions. “Lights-out” DCs, where mous lift trucks, and some types of
human workers are eliminated, is not automated guided vehicles.
where the trend is headed say most ven- Analyst firm IDC, in a study from
dors. Another misconception: robotics December 2018, forecast that robotics
can’t be combined with more traditional spending across industries would be
“fixed” forms of warehouse automation. $103.4 billion worldwide in 2019,

4 Robotics gain ground logisticsmgmt.com


AMRs differ in function, ranging from those that focus on material transport to bots with picking capability.

representing a compound annual creating labor scarcity, and rapidly advanc- orders to a light-driven, pick/put station
growth rate (CAGR) of 18.9% over ing robotics technology, is fueling the where a human can pick orders. This
2018. While IDC doesn’t forecast just market. “Perhaps most importantly, the cuts out nearly all the travel involved in
for AMRs in warehousing, it does predict technology has reached a point where it is more manual order picking, says Barber.
robotics for materials handling work- reliable and safe to use,” says Santagate. “The number one value users get is
flows such as “pick and pack,” says John that [robotics] eliminates the time that
Santagate, an IDC research director. For People helpers human workers have to spend walking,
the five-year period 2018 to 2023, IDC While there are understandable fears which isn’t a directly value-added activ-
forecasts a 22.4 CAGR for pick and pack about automation eliminating certain ity like picking is,” says Barber. “With
robotics, culminating in more than $9 jobs long term, for many DCs today, robotics, the human operators are no
billion in spending by 2023. it’s a struggle to find enough workers longer spending most of their time walk-
There are several reasons for such for tasks like order picking, pack- ing around—they’re actually picking.”
rapid growth, says Santagate, starting ing, receiving, replenishment, cycling Because DCs face such a serious
with the fact that material movement counting or cross docking, especially labor crunch, efficiencies gained by hav-
via manual methods is a huge labor with the peak seasons involved with ing robots handle travel and material
drain. “If you can automate the move- e-commerce. That’s driving operations moves doesn’t so much eliminate jobs as
ment of material, you may still have to deploy robotics, says Chris Barber, it allows warehouse workforce to do other
the wasted movement, but you are CEO for North American at GreyOr- value-added tasks, while making human
freeing your human resources to focus ange, a robotics vendor. workers at light-driven pick stations
on other tasks,” he says. GreyOrange offers multiple types highly productive. Users of GreyOrange’s
This confluence of time-consuming of robots, including a good-to-person solutions include third-party logistics
material moves, macroeconomic factors system that brings goods needed to fill (3PL) provider XPO Logistics, which has

logisticsmgmt.com Robotics gain ground 5


Robotics

Some mobile robots work collaboratively


with human pickers, cutting down on
travel and guiding their picks.

ates launched Manhattan Automation


Network, a partner program with robot-
ics and automation vendors to speed up
deployments.
The increasing difficulties that DC
operators are having finding enough
associates, combined with the rapid
maturity of sensor and guidance tech-
nology, are driving a strong market, ven-
dors agree. “The huge driver for us is the
labor challenge operations are facing,”
says Karen Leavitt, chief marketing offi-
cer for Locus Robotics, an AMR vendor.
“Getting labor has become increasingly
difficult with ecommerce growing at
leaps and bounds, and also because
warehouse fulfillment is such a highly
seasonal business.”
Locus Robotics Leavitt agrees with the idea that
AMRs are about making the human labor
deployed the bots in multiple DCs. fer goods to fixed automation. Another you can find more productive, rather than
It’s now possible to pair up a good- variation are mobile bots that have a eliminating jobs. With Locus, she adds,
to-person AMR solution with a col- picking arm attachment. The exact meth- its bots work in concert with human
laborative picking arm at a pick/put ods and order fulfillment logic will vary pickers, guiding them through picks and
station to augment human associates within these types, but generally, AMRs drastically reducing travel by the work-
at the pick station, says Barber. For the aim at eliminating or drastically reducing ers. According to Leavitt, it’s common
associates, it becomes a better work the labor requirement. for user operations to see a two- to three-
assignment because rather than walk- The high market interest in robot- fold productivity improvement for each
ing miles per shift, they can stay at a ics has led to well over a dozen vendors human picker, due to the guidance from
more comfortable work cell and gain focused on mobile robots for the ware- the bots and elimination of most travel.
experience working with AMRs. “When house, robotics offerings from major Locus already has two dozen installa-
you put robots into warehouses it’s typi- warehouse automation providers, as well tions of its AMRs, representing hundreds
cally a better working environment for as continued involvement from Amazon, of bots, with one site running at least 70
the human workers,” says Barber. which recently acquired robotics vendor bots normally, and as many as 120 during
Not all AMRs function alike. Some Canvas Technology. peak season. For the users, says Leavitt,
solutions work on a good-to-person prin- Among the major automation vendors, the software and the guidance features
ciple, bringing rolling shelves with goods Honeywell Intelligrated announced a on the bots create a productive interplay.
to a workstation, while others work in partnership with AMR provider Fetch “What we hear from our customers is
aisles alongside humans, and others Robotics last fall, while last year Dematic that for their workers, [robotics] is like
handle material transfer tasks. There are launched a Robotics Center of Excel- working with another co-worker that
also mobile robots with sorter mecha- lence business unit. Another sign of just happens to be a robot,” says Leavitt.
nisms or roller conveyor attachments on AMR momentum: earlier this year, “There is a very natural rhythm between
top, making it possible for a bot to trans- software provider Manhattan Associ- the human and the technology.”

6 Robotics gain ground logisticsmgmt.com


Drivers toward flexible automation is responsible for ensuring that workers
don’t have to travel far picks, can inter-
• Customers expect rapid delivery times leave restocking and picking activity,
• Rapid flexibility or that picks for multiple channels can
SPEED
be combined. “For all their cool physi-
• Shortage cal manifestations, mobile robots are
• Increasing cost
• Seasonal needs
about 90% software,” says Leavitt.
LABOR • Digital transformation
• Mis-connected • Connected operations Barber agrees the secret sauce with
MODERN- • Visibility AMRs is the software. For example, he
IZATION • Integration
explains, with GreyOrange’s good-to-
person system, the software analyzes
• High labor cost
COST order patterns so that stock keep-
• Reduced cost of robotics
• Robot-as-a-service ing units with are frequently ordered
together (an “affinity” relationship) are
stored in the same shelf unit or very
close to each other.
OPERATIONS INNOVATION Source: IDC “It’s really the software that is the
brains of a robotics operation to allow
There are multiple drivers for robotics and flexible automation. for high efficiency,” says Barber. “We
have artificial intelligence and machine
Another robotics vendor whose and item detection intelligence, IAM’s learning technology that is able to con-
mobile bots work alongside humans is bots can pick on their own, although sider multiple inputs—customer order
6 River Systems. According to Fergal there is one “robot supervisor” person patterns, what’s currently in stock, and
Glynn, vice president of Marketing for for up to eight bots, and the shelves are how many [robotic] assets you have in
6 River, a 200% to 300% productivity replenished by warehouse associates. the building—to make the picking as
improvement is the typical improve- The ability of IAM’s robots to pick efficient as possible.”
ment range in deployments, though 200 to 300 items per hour, makes for As Glynn sees it, a good software
levels vary depending on how well the an efficient operation with less manual platform is central to AMR efficien-
previous process was working. work involved, says Galluzzo. “The cies. The Six River System solution,
What’s more, he adds, with AMRs people who work with our robots have he explains, can be thought of robotic
such as 6 River Systems’ solution, to do less manual work, while the robots zone picking with a directed workflow.
there is no special shelving required, do more of the manual work,” he says. Hardware features on the bot such
which helps with rapid return on “We’re quite excited by the fact we are as a flat screen support the directed
investment (ROI). “There is always a able to offer people job upgrades [as workflow, but it is the software that
human involved with the solutions we robot supervisors] and make the ware- dynamically manages zones and
provide,” says Glynn. “By keeping that house more efficient, so that overall, the sequences the pick activity. “If you can
human element and making it more prosperity of the operation goes up.” have software manage the zone, then
efficient, we’re able to deliver technol- the software will move the robots and
ogy at a low cost so that the rapid ROI Software-driven the people into the area of the building
is there for our customers.” While mobile robots in some cases have where the work can take place in the
Even when a mobile bot has an hardware features that allow the bots to most efficient way,” Glynn says.
integrated picking arm, and can do the instruct or otherwise collaborate with
actual picking autonomously, as is the humans, the secret to effective bot-to- Flexibility benefits
case with bots from IAM Robotics, peo- human collaboration is the robotics Robotics providers say a major plus for
ple still play a role, notes Tom Galluzzo, software platform, says Leavitt. In the AMR solutions is there high degree of
founder and chief technology officer for case of the type of collaborative multi- flexibility and scalability. AMRs scale
IAM Robotics. Using its picking arm bot solution Locus offers, the software quickly by adding more units, which is

logisticsmgmt.com Robotics gain ground 7


Robotics

Mobile robots can either replace fixed automation, or hand-off totes or materials to automation like conveyors.

made easier on budgets via “robotics as with which mobile robots can assist.” Finally, while the ability of AMR’s to
a service” payments. Vendors also point In its simplest deployments, says slash labor-consuming travel time is a
out that rather than replacing all existing Wise, Fetch AMRs can be deployed core driver in the market, vendors also
automation, AMRs often work in combi- without integration to a warehouse say that by deploying AMRs, operations
nation with fixed automation. management system or warehouse should also see high order accuracy, and
AMRs not only work in piece pick control system, using bar code scans to have a software platform that is constantly
locations near pack out areas, some are trigger a bot to move goods. Even with learning how to improve operations.
capable of transporting and handing off integration to other systems, says Wise, These platforms typically govern
goods to other systems in a DC, notes it’s possible to deploy an AMR solution how to best sequence picks and move-
Melonee Wise, CEO of Fetch Robot- rapidly, without adding special infra- ments to reduce travel, and also will
ics. “We’re able to move everything from structure beyond the bots. adjust slotting or other inventory loca-
pieces to pallets [with our robots], and “We use the term on demand automa- tion decisions to maximize pick density.
how we interact with different machinery tion, which to us, means rapid deploy- “With robotics, what happens is that
is based on the attachment or accessory ment, extreme flexibility, no IT overhead the software can slot the warehouse
on the top of the robot,” says Wise. “If and the ability to scale easily,” Wise says. dynamically, without anybody having
you look at how we interact with those AMR vendors also stress that it’s easy to do anything,” says Barber. “It’s really
[fixed automation systems], we typically to move units between DCs as needed, the software that understands the little
bring material to those systems. There or add a new workflows just by adjusting nuances to order fulfillment that are
are many other warehouse processes in some software or downloading digital going to drive productivity and maximize
addition to e-commerce order picking map data for a new portion of a facility. storage density as well.” •

8 Robotics gain ground logisticsmgmt.com


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Robotics

The Robots are


Coming Here
R
BY JOHN SANTAGATE obots have been a fixture of science
Long a fixture on fiction books and movies for
the factory floor, a decades. Perhaps our infatuation
new generation of with them stems from some innate need to
robots are ready for reproduce humanity in the form of a
a broader range of machine. Or, perhaps, it comes from a
applications. The desire to create machines that can take
only thing standing in over the mundane tasks of our everyday
their way is end-user lives. Whatever the reason, the fact is, the
adoption. idea of robots has prompted innovators to go
out and build the robots that we see today
John Santagate is the
and will continue to see into the future.
research director for service But robots aren’t just a plot device in sci-fi or play-
robots at IDC. He can be things for the nerds in the “Big Bang Theory” when
reached at jsantagate@ they aren’t in a comic book store. In the business
idc.com. For more world, robots have been in use in industrial manufac-
information, visit idc.com. turing since their introduction in 1962 in a GM auto-
motive plant. But, until recently, they haven’t gotten
much traction beyond the assembly line or one-off use
cases. In part, that’s because the industrial robots
used in manufacturing differ quite significantly from
the new generation of robots making their way into a
broader range of industries and applications. Indus-
trial manufacturing robots are designed to operate at a
high rate of speed, precision and strength. While
these traits are good for automating manufacturing

10 Robotics gain ground logisticsmgmt.com


logisticsmgmt.com Robotics gain ground 11
Robotics

processes, they don’t translate well to other areas of the as well as a tremendous amount of movement throughout a
business that require more human interaction. Indeed, facility. Now, it’s not as if robotics have been absent from
they are part of the reason why industrial manufacturing these areas in the past; there are use case examples, but
robots have to operate in “cages:” areas where human work- none at a large scale across supply execution. Those organi-
ers aren’t permitted to enter during operation. zations that have introduced robots into their warehousing
It’s safe to say, however, that the development and matu- and fulfillment operations have delivered added value
rity of industrial robotics has helped to pave the way for the including productivity improvements, efficiency gains, the
capability to better scale up/down with
Referred to as collaborative robots, or co-bots, the new
demand spikes and the ability to improve
generation of robots are safe, smart, collaborative and can customer service levels.
work side-by-side with people. They have become immensely The most familiar example of robotics in the
sophisticated, resulting in modern robots that are increasingly fulfillment process is at Amazon. The e-com-
being used as a mechanism to automate business processes merce giant acquired Kiva Systems (now
that have historically been incapable of automation. known as Amazon Robotics) in 2012 for $775
million. Since then, Amazon has continuously
new generation of robots that is quickly being introduced expanded their use to upwards of 80,000 robots across 25 dis-
across business functions and industries. Robotic technol- tribution centers. Through their deployment, Amazon has
ogy has been on a continuous path of improvement over been able to accelerate delivery times and reduce fulfillment
time as robotics manufacturers look to improve their tech- related costs. According to a note published by Deutsche
nology and layer modern digital technologies onto the Bank, the deployment of the robots equates to a roughly $22
mechanical elements of robots. million per year savings in facilities where they are in use, or
Indeed, over the past several years, robots have increased an estimated 20% reduction to operating costs.
their level of intelligence and flexibility as machine learning If Deutsche Bank’s estimates are close, Amazon has
and artificial intelligence (AI) have been built into the sys- proven that there is tremendous value to be gained through
tems; there have been significant improvements to the the use of robotics within the fulfillment center. However,
mobility of robots, while the ability to connect robots via IoT the acquisition and subsequent privatization of Kiva Sys-
and enhanced safety measures have also been built into tems created a void in the market. Companies that were
robotic devices. The result of these innovations is a new interested in this type of robot for their fulfillment pro-
style of robot that is more suited to work side by side with cesses were no longer able to procure Kiva Systems robots;
humans rather than be segregated in a human free zone. those who were already using Kiva were confronted with
Referred to as collaborative robots, or co-bots, the new the eventual loss of support for their investment. That was
generation of robots are safe, smart, collaborative and can a real disincentive to anyone considering an investment in
work side-by-side with people. They have become robotics from another start-up that might be similarly
immensely sophisticated, resulting in modern robots that acquired and taken off the market. On the positive side,
are increasingly being used as a mechanism to automate business, like nature, abhors a vacuum. Kiva’s exit from the
business processes that have historically been incapable of market created an opening for opportunistic companies to
automation. This next generation of co-bots is one of the create innovative new robotic technologies and solutions to
factors driving robotic adoption in new industries and fill the void, and to improve upon the technology itself.
across new points of use. Some of those companies are offering Kiva-like solu-
tions, but we are also seeing the emergence of new com-
Disruptive processes petitors taking a decidedly different approach to robots in
One business area ripe for business process disruption the fulfillment process from Kiva. The result is that fulfill-
enabled by robotics is supply chain execution, especially in ment operations have a variety of robotic solutions from
order fulfillment processes in the warehouse. These pro- which to choose. And, as with most technologies, the first
cesses typically involve a high degree of human involvement step is for organizations to define their needs in order to

12 Robotics gain ground logisticsmgmt.com


choose an appropriate technology to meet those demands. all of the non-value-added travel between tasks, associates
For some, a Kiva-type model will work quite well. These on the floor are more productive because they remain in
utilize fast-moving robots that shuttle entire racks of inventory their zone where they are focused on picking items from
from a segregated section of the fulfillment center to a picking the shelves. What’s more, they can typically operate within
station, where a picker selects the inventory needed to fill an an existing infrastructure, which can help minimize the
order. After a pick, a robot returns the rack back to the floor upfront investment and accelerate deployments and go-
and moves on to the next pick. Think of this as a goods-to-per- live. The drawback: The robots sacrifice speed for safety,
son, or better yet, a rack-to-person, solution. Solution provid- operating at slower speeds than their non-collaborative
ers offering this model include GreyOrange and Swisslog’s counterparts. That’s not necessarily a bad thing, but it’s
CarryPick mobile system. A rack-to-person model is best certainly a point worth mentioning.
suited to high throughput facilities where speed is the most Sophisticated navigation systems are also essential in
important element. The benefits include the ability to rapidly the collaborative mobile robot space. That is because co-
move product to picking locations and accelerate fulfillment bots are designed to autonomously navigate their way
cycles. However, the rack-to-person model also has its draw- through a fulfillment center and around potential obstruc-
backs. For example, it requires some facility modification to tions. Once the facility is mapped within the robots guid-
create a segregated area where the robots can safely operate ance system, the robots are free to roam where other sys-
and it requires a guidance mechanism to ensure that the tems require some guidance support, such as a beacon,
robots operate within the appropriate spaces. These systems white line on the floor, or some other type of physical
are not necessarily collaborative because humans aren’t marker to help guide the robots. However, co-bots must
allowed to work in the same aisles where the robots are oper- also be capable of decision making when it comes to
ating. One final drawback is that with these
Because the robot is responsible for all of the non-value-
models, half of the movement is spent returning
racks after a pick, essentially retaining 50% of
added travel between tasks, associates on the floor are more
the wasted movement in the process. productive because they remain in their zone where they are
That is one model. Still other companies focused on picking items from the shelves. What’s more,
have emerged with collaborative robots they can typically operate within an existing infrastructure,
designed to complement traditional picking
which can help minimize the upfront investment and
processes. Some notable vendors in this
accelerate deployments and go-live.
space include Locus Robotics, Fetch Robot-
ics and 6 River Systems, to name a few. The devices from selecting an initial route or creating a new route when the
these companies have been designed to operate on the robot encounters an obstacle, much the way a GPS system
floor in the same spaces where associates are at work, often recalculates to a change in the original route.
in collaboration with those associates. In this model, the As previously mentioned, both approaches are an effec-
robot is assigned a task by the WMS and automatically tive means to deploying robots. The question becomes
navigates to a pick location. When it arrives at a location, which approach is most appropriate for your individual sce-
an associate will pull product from a shelf or carton and nario. Clearly, not all fulfillment center operations are set
place it in a bin or tote on the robot. The robot is then up the same. Just as its common to find more than one
directed by the WMS to the next pick location until all the kind of picking process and technology in a conventional
items for an order are in the tote and ready for delivery to warehouse, different facilities may identify different strate-
the pack station. Once the pick is complete, the robot gies to achieve the increased value. For example, a mix of
moves onto the next pick order rather than returning to high-speed rack-to-person robots and co-bots may be the
drop a rack. way to go. The objective of introducing robots into the ful-
This model can be very effective for fulfillment centers fillment process is to improve the overall operation by
with a high variety of orders, including a significant number reducing costs, improving productivity, improving efficiency
of multi-product orders. Because the robot is responsible for or some combination of the three.

logisticsmgmt.com Robotics gain ground 13


Robotics

Why now? through IoT, we have the capacity for a WMS system to
Regardless of our fascination with robots, no organization deliver a pick list directly to a robot that then knows
is going to deploy technology for the novelty of it. There exactly where it needs to go as well as the most efficient
must always be a business case before a company makes a way to get there. Finally, consider the inventory manage-
decision to invest in new technology. Robots are no differ- ment capability: Through connected robots, fulfillment
ent. The business case for their deployment is being driven centers have the opportunity to leverage connected robots
by the value proposition of reducing costs, increasing pro- to send inventory signals directly to the WMS.
ductivity and improving efficiency. Sub-elements that con- • Cloud. The Cloud is helping to drive improvements in
tribute to achieving value include the ability to increase robotics. Through the Cloud, coupled with IoT, orga-
speed and inject flexibility into the processes, which sup- nizations are now able to monitor, manage and even
port the objectives of improving productivity and efficiency. operate robots from anywhere they have a connection
to the internet. This point is drastically enhancing the
Regardless of our fascination with robots, no
usability of robots in the workplace and has even
organization is going to deploy technology for the helped robot manufacturers to enhance their service
novelty of it. There must always be a business to their customers. For example, through the Cloud,
case before a company makes a decision to invest manufacturers can remotely monitor the health of
in new technology. Robots are no different. their clients’ robots. They also have the ability take
control of a mobile robot that has encountered a situa-
Still, the larger question remains, why now? Robots tion that it can’t resolve on its own and navigate a
have been around for decades, so what is the break- robot back towards appropriate operations without
through that is finally enabling robots to deliver value inconveniencing the client.
across the fulfillment center? There are several ways to The second “why now” point is the continuous innova-
address this question. tion in the field of robotics. Robot vendors have been able
The first is to look at how the advances in related tech- to build upon the technology over time to develop modern
nologies have led to improvements in how robots perform. robots that significantly outperform the robots of the past.
They include: A big part of this continuous innovation is the application
• Artificial Intelligence (AI) and cognitive computing. AI is of related technologies (as mentioned above) to the field of
often associated with a humanoid robot that looks and robotics. Additionally, we must consider how robotic ven-
sounds like a person. When thinking about advance- dors have continued to improve the mechanical capabilities
ments in robotics for supply chain applications, the AI of robots. Consider the recent video from Boston Dynam-
and cognitive elements are more related to mobility. The ics that shows an Atlas robot performing a series of box
collaborative mobile robots that have made their way into jumps, ending with a back flip. In fact, if you haven’t seen
modern fulfillment centers are able to autonomously nav- this look it up, it’s pretty cool. * While this motion does not
igate a facility because they have the onboard intelligence perform a function that is useful in the supply chain, the
to identify an obstruction and make a decision about how display of dexterity showcases the rapidly evolving physical
to respond to that disruption. Such an advance in mobil- capabilities of robots, with each new innovation being built
ity is quite significant in enabling mobile collaborative upon the existing set of robotic capabilities.
robots to add value to the fulfillment process. One final answer to the “why now” question is the
• Internet of Things (IoT). IoT provides a mechanism to readiness of the market. This may be the most important
communicate with and capture data about an operation in point in this discussion. As Daniel Theobold, co-founder
real time. Robots are a connected asset and as such create and chief innovation officer at Vecna Robotics, recently
a tremendous amount of data about the business processes mentioned: “We have been building and improving our
they are involved in. Through such data capture, organiza- robots for more than 20 years, with the military and in
tions can now capture data about previously manual busi- medical facilities, so that when the broader market was
ness processes. But, it’s more than just data capture; finally ready we would be ready to meet the markets

14 Robotics gain ground logisticsmgmt.com


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Robotics

needs with a mature suite of products, the market is constant state of innovation in robotic development will
finally ready for this technology.” Companies today recog- evolve here.
nize the value of robots in the supply chain, and are IDC’s 2018 Robotics FutureScape report predicts “by
increasingly looking to deploy the technology to improve 2019, 25% of mobile robotic deployments will include the
their ability to serve their clients and build a competitiveability to add on modular components enabling multiple
position in the market. uses on the same mobile platform, thus delivering up to
Ultimately, the “why now” is not answered by any one of 30% productivity and efficiency gains.” Through this pre-
the aforementioned points independently, but rather diction, IDC is expressing the belief that mobile robots will
through the combination of technology interplay, robotic be able to be outfitted with components that enable multi-
ple business processes to be performed while
Companies that are better able to extract value out of the leveraging a common management platform.
data related to their fulfilment processes will be in a better Melonee Wise, CEO of Fetch Robotics,
agrees with this belief stating: “We are banking
position to drive value for their customers. Robots are pro-
on the future success of the collaborative robot-
viding a mechanism to capture such data to drive this value.
ics market as a combination of common hard-
—Bruce Welty, chairman, Locus Robotics ware platform and custom, task- or industry-spe-
cific software. Anyone can build a robot that
technology maturity and market readiness. When you bring does one thing well; the real opportunity lies in deploying a
together a market that is ready to accept robots, robotic modular platform that can be extended to a wide variety of
technology that is mature and continuing to innovate, and solutions.” As with any technology, innovation in robotics
an abundance of related technology that are helping to and the use of robotics is paramount. A competitor that
advance robots, you arrive at the point where robots in the embraces change will quickly disrupt the company that sits
supply chain will become required to compete rather than idle and believes it’s at the top.
a means to enable competitive advantage. Speaking on supply chain innovation and robotics,
This already happening. Since its acquisition of Kiva Adrian Kumar, DHL’s vice president of solutions design,
Systems, Amazon has leveraged robotics to create a says: “We believe it’s critical to identify and implement
competitive advantage, and its competitors are now these types of advanced technology solutions in the ware-
deploying robots just to keep up in the fulfillment mar- house so we can seamlessly improve our customers’ supply
ket. “The ever-increasing demands for faster and more chains.” He adds that the implementation of a robotic pilot
accurate order fulfillment requires IT tools that accu- program within the life sciences sector at DHL Supply
rately track and measure both human and robotic perfor- Chain “will inform the potential for broader deployment
mance,” notes Bruce Welty, chairman of Locus Robotics. across different parts of our business. This is a natural evo-
Companies that are better able to extract value out of lution of our robotics program.”
the data related to their fulfilment processes will be in a This is a testament to the importance or robotics on the
better position to drive value for their customers. Robots future of the supply chain. Robots are not just an interest-
are providing a mechanism to capture such data to drive ing technology for science projects. They are quickly
this value. becoming a critical technology that is helping supply
chains to innovate and deliver exceptional customer service
The future of robots in the supply chain while improving business performance. Those companies
Based on our research at IDC, we believe the future of that sit on the sidelines, rather than invest now, run the
robots in the supply chain is bright. A growing market risk of becoming obsolete in a market that is increasingly
demand will continue to encourage robotic vendors to reliant on technology—and more specifically robotics—as a
innovate and bring advanced functionality to the supply mechanism to drive value. •
chain. While robots have historically been built and *You can view the Boston Dynamics back-flipping robot
deployed to perform a specific process or function, the at: youtube.com/watch?v=fRj34o4hN4I

16 Robotics gain ground logisticsmgmt.com


Robotics Viewpoint

While you were sleeping,


ROBOTS took over
It seems that most everywhere you look in the past couple of months
there are robots. And they are almost always doing something new.

BY GARY FORGER, CONTRIBUTING EDITOR

Holy robots!
It seems that most everywhere you look
in the past couple of months there are
robots. And they are almost always doing
something new.
To start, look at the news coming
out of the ProMat and Automate shows
in April, where robots dominated even
though there were many more than 1,000
exhibitors with supply chain solutions.
The introductions ranged from collabora-
tive robots to pick-and-place to autono-
mous mobile robots and beyond. Artificial
intelligence and cloud-based systems
figured prominently too.
Meanwhile, you now have to watch out
for mobile robots at your local store. When
you go to Walmart, look for robots taking
inventory storewide. Ditto for grocer Giant
Eagle. Robots in the personal care and
pasta aisles? Really? It’s happening now.
Of course, Amazon’s bots continue
to proliferate to fill your e-commerce
orders. Meanwhile, Ryder Systems is cycle
counting in its smart warehouses with
robots from Fetch Robotics. Hollar, which
Collaborative robots offer a low-stakes way to prove the viability of robotic piece offers products starting at $1 online, has
picking, though safety features can sometimes limit rates. deployed inVia Picker robots at its new

logisticsmgmt.com Robotics gain ground 17


Robotics

Cincinnati warehouse.
Don’t overlook companies like family-owned national 3PL
Barrett Distribution. It’s using Locus Robotics’ order picking
robots to fill orders at its facility in Franklin, MA. “This most
recent busy season we were able to utilize the bots to ship a
record number of packages with less head count than we’ve
had before,” explains Doug Varga, vice president information
technology at Barrett.
That puts robots in a nutshell – higher throughput with
less labor. But don’t expect people to go away. Collabora-
tive robots, those that work alongside people in the ware-
house especially, are at the top of people’s cap ex budgets
these days.
All this robotics technology is having an impact.
“Industry is making the transition from fixed automation to performance and efficiency over time.
robotics,” says Christopher Barber, CEO of North America at At the ProMat show, RightHand Robotics received the
intelligent robotics supplier GreyOrange. “We are at a junc- Innovation Award for best innovation of an existing product.
ture very similar to the mid-1980s when computers were first The company introduced its RightPick2, an integrated soft-
taking their place in manufacturing and distribution. Clearly, ware and hardware platform. The autonomous piece-picking
big changes are coming,” Barber adds. platform incorporates new skills using artificial intelligence
Demand for robots is expected to be strong for the fore- enabled vision and motion control software with deep learning.
seeable future. ABI research expects today’s automated ware- Here are four other recent examples of new introductions
houses worldwide to climb from 4,000 to 50,000 by 2023. of mobile robots with AI from the recent shows.
The firm says those facilities will have four million robots. InVia offers a cloud-based robotics-as-a-service man-
The International Federation of Robotics projects 14% agement system for its robots. The artificial intelligence-
annual growth in robot sales globally through 2021. In North based system learns the warehouse and improves pro-
America, non-automotive robot sales were up 17% last year cesses over time.
over 2017, explains Jeff Burnstein, president of the Associa- Vecna recently introduced its AI-based platform for
tion for Advancing Automation, in this month’s NextGen: coordinating workflow of piece-picking robots and people.
The Interview. It analyzes current operations and adjusts processes within
Just as important, venture capital is flowing to robot start- pre-set norms.
ups. GreyOrange raised $140 million last year, bringing the Boston Dynamics has acquired Kinema Systems that
total raised to $170 million. Meanwhile, Locus Robotics enables industrial robotic arms with deep learning technology
raised an additional $26 million last month, bringing total to locate and move boxes on pallets.
funding to nearly $70 million. Those are just two examples. Geek+ introduced autonomous mobile robots for ware-
Here’s what a recent investor in Fetch Robotics had to say. housing and order fulfillment. They are powered by machine
“The warehouse and automation market is estimated at over learning to improve picking and inventory accuracy.
$40 billion today, and is poised to double over the next five These and other robots already do or will someday com-
years. Our investment in Fetch complements and extends municate with the cloud, which opens up a new horizon.
our portfolio of exceptional leaders who are transforming the “I fully expect that learning will be shared across a fleet of
global supply chain,” says Brian Nugent, founding general robots using cloud communications,” says A3’s Burnstein.
partner at Sway Ventures. “That will continuously upgrade the capabilities of robots if
Innovation is leading the way here. Clearly, there is noth- not in real time, in near real time,” he adds.
ing static about robots these days. Not only are they mobile It seems that as robots meet up with the cloud, the sky’s
but many are incorporating artificial intelligence to enhance the limit for this NextGen technology. •

18 Robotics gain ground logisticsmgmt.com


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FOLLOW THE LEADER
Robotics
THE ROBOTS
ARE COMING
to the warehouse dock
From AGVs to exoskeleton suits, the robotics on today’s warehouse
and DC docks aim to help shippers operate more efficiently in an
increasingly competitive distribution environment.

BY BRIDGET McCREA, CONTRIBUTING EDITOR

T
o hear John Santagate tell it, in the not- According to data from Liberty Mutual
too-distant future we’ll see warehouse dock Insurance, the 10 leading causes of the most
workers wearing robotic exoskeleton suits disabling work-related injuries account for $49.9
and lifting 200-pound boxes in Ironman-esque billion of that total, with the top three causes
fashion with no other assistance. being overexertion, falls on the same level, and
With very little exertion, and without the typi- falls to a lower level.
cal ergonomic problems associated with the con- “Companies are looking for ways to keep
tinuous lifting and moving of heavy items, these employees safer, extend their workers’ longevity,
futuristic “exosuits” will help ensure higher safety and reduce the costs associated with injury risk,”
levels—and a speedier process overall—in an says Santagate, IDC’s service robotics research
area of the warehouse where hefting heavy loads director. This will also help companies more
is the norm. effectively deal with issues like the rising costs
This is just one example of how the conver- of hiring and training employees, both of which
gence of humans and robots could play out in the can be lessened when you reduce the frequency
warehouse and distribution center (DC) of the of work-related injuries—which, in turn, lead to
future. Made by companies like Sarcos Robotics, more days off.
which plans to introduce a powered industrial “Right now, exoskeleton suits with payloads of
exoskeleton suit in 2019, these advanced prod- around 200 pounds are coming down the pike,”
ucts will help reduce the number of workplace says Santagate, “which means a human worker
injuries and accidents that cost U.S. employers will be able to lift 200 pounds in a repetitive
more than $60 billion annually, according to the fashion as if he or she was lifting a pencil.” And
U.S. Bureau of Labor Statistics (BLS). because a person wearing an exosuit can move

logisticsmgmt.com Robotics gain ground 21


Robotics

ventional method of loading and unloading, which typically


requires a forklift or pallet truck, robots of various shapes
and sizes could take the process to new levels of efficiency
and productivity by assisting with the strenuous tasks.
When designing its new 24/7 cold warehouse, for
example, Preferred Freezer Services (PFS) installed an
automatic truck loading and unloading system that includes
a chain conveyor system that can handle 50,000-pound
loads in minutes. In fact, from parking the truck to driving
away, the entire process takes 10 to 15 minutes. The highly-
automated system has also helped PFS reduce its logistics
costs, preserve the integrity of its cold supply chain, improve
loading and unloading efficiency, and directly integrate with
an existing warehouse management system (WMS).
Norm Saenz, managing director at supply chain consul-
tancy St. Onge Company, says that the analysts at his firm
are seeing a “surprising” number of new, dock-centric robot-
ics developments, including several new prototypes that
have surfaced over the last few years. “At first, we saw a few
installations here and there,” he says, “but now we’re seeing
Sarcos Robotics
some definite development taking place, with robots being
around faster than, say, a pallet used to move ‘fluid’ loads or those that include loose cases
jack or a forklift, the entire pro- transported via tractor trailer or container.”
cess will be sped up. Saenz points to robots that can be telescoped into a
As he waits for the superhu- trailer to grab a case and then turn and place it on either a
man exosuits to be ready for pallet or onto a conveyor as one example of how far robotics
“Shippers can prime time, Santagate is antici- technology has come over the last few years.
pating some of the early use “This technology isn’t widely used yet, but it can unload
already use AGVs
cases for them both on the dock a trailer instead of a person doing it,” says Saenz, who also
to load and unload and in the warehouse as a whole. sees automated guided vehicles (AGVs) as a good “current”
full, palletized “It’ll be far more flexible than a example of robotics on the dock, where they’ll play a more
truckloads or less- rigid contraption that’s designed prominent role in the near future.
than-truckloads at to do the same thing,” he says, Companies like Fetch Robotics, for example, make auton-
“and will allow workers to move omous mobile robots that can handle “pretty good-sized pay-
this point, so that’s
in a more fluid manner.” loads,” according to Santagate, and that help shippers move
the real deal.” pallets (i.e., into the warehouse, or cross-dock to another
— Norm Saenz, “Lights out” on the dock vehicle) once they’re unloaded from the truck itself.
St. Onge Company As the picture of the fully auto- “Shippers can already use AGVs to load and unload full,
mated, “lights out” logistics palletized truckloads or less-than-truckloads at this point,”
operation continues to come Saenz adds, “so that’s the real deal.”
into focus, the dock is increas-
ingly being seen as an area where Managing complexities, overcoming challenges
robotics can play a role in the The dock presents some interesting complexities that aren’t
loading, unloading, staging and necessarily present on the warehouse or DC floor, where
situating of freight. automation has been around for years and only getting more
Rather than using the con- advanced and prevalent every year.

22 Robotics gain ground logisticsmgmt.com


“The dock is a dynamic place that
requires more than just a fulfillment “On the dock, robots have to be able to pick up pallets,
robot that can traverse the DC floor,” cases, or boxes and then put them on some sort of
Santagate points out. “On the dock, conveyance system that pulls them off the truck.
robots have to be able to pick up That’s a lot more complex than other use cases.”
pallets, cases, or boxes and then put
them on some sort of conveyance — John Santagate, IDC
system that pulls them off the truck.
That’s a lot more complex than other automated fashion. ations, Doyle says now is the time to
use cases.” Yaskawa Motoman’s robotic automa- keep your eyes open and be ready to
For example, the typical ware- tion solutions are also being used for test out and implement these tech-
house includes multiple bay doors loading and unloading trucks, Santagate nologies as they’re being introduced.
and plays host to myriad different says. Equipped with a robotic arm and “The timing is right, as these
types of trucks and vehicles during gripper—the latter of which can attach applications are brought from the
the course of a day. Those trucks to a mobile conveyance system—the research stage to startup to actually
come in various configurations and machines enter the back of the truck, applying them in real areas,” says
sizes, and they carry different goods pick up the packages, and “drive” them Doyle. “It’s an exciting time. And
(also in different sizes and varia- over to a conveyance system that then while we’re still in the early stages,
tions). So, unlike the piece-picking moves the packages into the warehouse. there’s more and more opportunity
robot that can be trained to identify for companies to utilize automation
and select among a certain number The early stages of innovation to help improve their operations,
of SKUs, the robots working the dock According to Bob Doyle, vice president productivity and worker safety.”
must be more dynamic in nature. of the Robotic Industries Association, Santagate is equally as bullish on
“Robotics are often very effective robotics in the warehouse and DC is in the blending of robotics, humans,
in standardized scenarios,” says San- the “early stages of innovation” when it and freight on the warehouse dock,
tagate, “and less so in more unpre- comes to the loading and unloading of where e-commerce and omni-channel
dictable environments. That’s prob- trucks at the dock. “Robots are roaming distribution are both pushing the
ably why robotics aren’t being used around the warehouse floor, but those envelope on order velocities and deliv-
to unload and load trucks as much applications aren’t typically utilized for ery speeds. He’s also realistic about
as they’re currently being used in the actual loading and unloading of what those robots will and won’t be
other areas of the warehouse or DC freight,” he says. able to do. Along with the exoskeleton
right now.” Looking ahead, Doyle expects some suits, he also envisions a time when
But that doesn’t mean robotics of the visionary robotics technology robots can either remove full pallets
vendors aren’t developing solutions to that’s currently under development to or build out box- and case-loads in an
those complexities, or that shippers play a larger role on the dock, where autonomous fashion—but probably
aren’t testing them out on their own robots will be able to load and unload not both—at the same dock door.
docks. In fact, Santagate says vendors boxes. “At this point, I’ve only seen “Those two robots are going to
like Daifuku’s Wynright division, for these in demonstrations of the technol- look pretty different from one
instance, designs and markets robots ogy, so I don’t know how much they’re another, and they’re going to be
that are specifically designed for use actually being used at the dock,” says configured differently,” says San-
on the dock. Its industrial, robotic Doyle, who points to autonomous fork- tagate. “That’s where some of the
arm includes a manipulator or “endo lifts as having particularly high potential complexity is coming in on the
factor” that can grab material off a in the areas of the DC where trucks are design side right now. When you’re
vehicle and place it onto a conveyor loaded and unloaded. talking about warehousing, you’re
system that, in turn, removes the To shippers who want to integrate talking about two different types of
products from that vehicle in a highly more robotics into their own dock oper- deliveries at the bay door.” •

logisticsmgmt.com Robotics gain ground 23


Robotics

Rochester Drug Cooperative:

ROBOTS
READY FOR
WORK
It’s still early stages, but Rochester Drug Cooperative
is proving that mobile robotic piece picking can get the
job done in the right application.
Gary Ritzmann, project
manager

BY BOB TREBILCOCK, EDITOR AT LARGE

Up on a 19,000-square-foot mezzanine
in a distribution center in western New York, order selec-
tors at either end of a pick module are directed by voice as
they walk through their zones, picking slow-moving SKUs.
There’s nothing special about that process at the Rochester Drug Coopera-
tive, which goes to market as RDC. It’s the kind of piece-picking solution you
see every day in distribution centers. But in the middle of the pick module,
something different is happening. Dubbed “Adam” because it’s a first of its
kind, a mobile piece-picking robot (IAM Robotics, iamrobotics.com) picks
from 1,200 SKUs stored on static shelves in a four-aisle pick zone.
When a shipping tote representing a store order for one of RDC’s inde-
pendent pharmacy members is conveyed into the robot’s work zone, Mike
Collins, the robotic operator, scans a bar code to send picking instructions
to Adam. The robot then travels autonomously through the zone, using an
arm with a suction cup to pick items to a tote. When the order has been
picked complete, the robot travels back to Collins. He scans the items into
the shipping container, pushes it onto a takeaway conveyor and scans the
next shipping tote to initiate the next order. Asked whether the robot is
accurate and reliable, Collins chuckles: “The highlight of my night is when

Michael Okoniewski / Getty Images for Peerless Media

24 Robotics gain ground logisticsmgmt.com


it misses something,” he says. Which, isn’t very often.
While the robot was working four aisles during a July
visit, RDC was prepping an adjoining zone that would
double the size of the robot’s area.
While an early prototype of Adam picked 1,100
items an hour stationed in front of a shelf in IAM
Robotics’ test area, this robot is picking between 100
and 110 items an hour, a rate that is similar to human
order selectors working the mezzanine. Whether the
robot can work faster—the robot maker estimates that
at speed it could make as many as 400 picks an hour—
is moot, according to Gary Ritzmann, the Rochester
Drug project manager who oversaw the implementa-
tion of the robot and an industry veteran. The current
rate is all that’s required for the application.
“Downstairs on the floor, our order selectors do
between 250 and 300 picks per hour from fast-mov-
ing items in carton flow racks,” Ritzmann says. “But
upstairs, where we store our slowest-moving items,
the robot is only picking three hours a night. Our
order selectors need to pick about 100 lines per hour
to get their work done, and the robot has no problem
keeping up.”
The robot went into production in January 2017
and picked test orders until March. Seven months in,
Ritzmann says RDC is still learning how to get the most
out of the application. At present, the robot is between
95% and 98% accurate, compared to 99.9% accuracy for
voice-directed associates. “But most of the errors can be
eliminated if we do a better job of putting product away
on the shelf correctly,” Ritzmann says. He adds that if
the next steps they have planned to integrate the robots
further into the automation system pan out, RDC plans
to expand the fleet to four robots. “I’m convinced it’s
going to work,” he says.
The dynamics that convinced RDC to take a
chance on a new, emerging technology, as well as the
cooperative’s methodical step-by-step approach to
rolling out robotics, could very well provide a road
map for other end users who are also thinking about
becoming early adopters of robots.

Early adoption
Let’s face it: It’s a pretty exciting time to be in the
distribution business. Automation is old hat to manu-
facturers, but many retailers and distributors like

logisticsmgmt.com Robotics gain ground 25


Robotics

Rochester Drug Cooperative have Adam, the mobile piece-picking


robot, automatically picks slow-
long gotten along adding more moving items.
pick modules and throwing more
people at the problem. After all, who were looking for an edge.
traditionally people were plenti- Count Rochester Drug Coop-
ful, flexible and relatively inex- erative in that category. Founded
pensive when compared to auto- in 1905, RDC describes itself as “a
mation. That was especially true marriage of a traditional drug distri-
in facilities with uneven demand. bution company, a buying cooperative
For many, though, that old for- and a private long-term investment
mula is no longer working. New structure formed for the sole benefit
RDC’s robotics supplier developed a high-speed
customer and market demands, cubing and weighing device to capture and manage of pharmacist-entreprenuers.”
especially those related to information about the products picked by the robot. With more than $2 billion a year
e-commerce, have put a premium in sales, RDC provides pharmaceu-
on getting every order accurate and complete, and doing so ticals, over-the-counter health and beauty care products, and
in record time to meet aggressive order cut-off times. At the health care supplies to more than 1,300 independently owned
same time, it’s harder than ever to find a reliable workforce, community retail pharmacies, long-term care pharmacies and
especially for two- and three-shift operations. home health care stores in the Northeast. It currently ranks as
The result has been a slew of new automated offerings to the seventh-largest full-line distributor in the United States. In
solve the piece-picking and packing problem. In recent issues this industry, RDC’s top three competitors control more than
of Modern, we’ve featured shuttles and bots for goods-to-person 90% of the market. Customer service is paramount—all orders
picking at facilities operated by Destination Maternity and are delivered next day.
Johnson & Johnson Vision Care; pocket sorters at REI and RDC did not set out to become an early adopter. As recently
Stage Stores; and mobile robots at Quiet Logistics and GE as five or six years ago, the Rochester facility was relatively light
Healthcare. Many of those projects represent a first-time imple- on automation—a conveyor and voice technology. But, with
mentation of a technology or unique solutions by early adopters business growing, labor was becoming an issue, especially on

26 Robotics gain ground logisticsmgmt.com


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Robotics

explained to Modern back in 2015: “Too often, people are sched-


1
uled to work and don’t show up, or go out for a meal and don’t
come back.” Turnover was as high as 40% a year.
To address the issue, RDC considered expanding the Roch-
ester operation. Instead, it opted to build a new, highly auto-
mated 110,00-square-foot automated facility in Fairfield, N.J.,
since more than 60% of the cooperative’s business is in the
New York metropolitan area. That facility, developed with SSI
Schaefer, represented RDC’s first leap into automation, with
A-frames, carousels and other automation. The new facility
took some of the pressure off the Rochester facility. It also pro-
vided a window into the benefits of automation. Yet, the second
2 shift continued to experience constant turnover.
What happened next was as much a matter of coincidence
as design. As Doud, the former CEO, told the story to Modern
back in 2015, he shared his frustration with one of RDC’s phar-
macist customers and said something like: “Someone ought to
invent a robot.” As it turned out, Tom Galluzo, the pharmacist’s
son, was a robot specialist at Carnegie Mellon University in
Pittsburgh and the co-founder of IAM Robotics.
While materials handling wasn’t necessarily top of mind for
Galluzzo, he went to Rochester to learn about the picking pro-
cess for slow-moving SKUs. In the spring of 2014, he made a
pitch. “He asked us if we could get something that could pick
3 two to three times faster than our current pickers and work
multiple shifts without a break or vacation, would we be inter-
ested,” Ritzmann says. “Well, of course!”
Over the next six months, Ritzmann and IAM Robotics
worked together to better understand just what a robot would
have to do to integrate with RDC’s operation. At one point,
RDC sent IAM about 20 common SKUs to practice on. In
November 2014, right before Thanksgiving, a prototype was
ready for a demonstration.
To get ready, Ritzmann prepped a test area with about
60 items. They were stored next to one another on a limited
number of shelves in one aisle. The prototype showed up on a
Thursday afternoon. A team from IAM Robotics uncrated it,
In operation, the robot is system directed to a picking location
(1). Using a suction cup arm, the robot picks the required item
put it together and ran some tests. “The next day, we were pick-
(2). It then places it in a tote before the next pick (3). ing,” Ritzmann says.
The prototype had limited capabilities, and the picking
the second shift, which operates from 5:30 p.m. till 2:00 a.m. demonstration was similarly limited, but in that environ-
At the time, the facility was processing about 30,000 lines a ment, the robot did what it was supposed to do. RDC
night with a crew of 45 people. The slow-moving SKUs on the decided to go to the next step.
mezzanine were the hardest to pick.
“It was a hectic work environment, and we had a lot of turn- Next steps
over,” says Joe Brennan, who has been with RDC for 25 years and There was risk-taking on everyone’s part, which meant that
recently became CEO. Or, as Larry Doud, Brennan’s predecessor, part of the next step was a contract, with RDC providing some

28 Robotics gain ground logisticsmgmt.com


funding for Beta model of the robot. Rather than flip the switch last
Those were corporate issues. From January, go live, and then install the
Ritzmann’s point of view, there were other three robots, RDC has taken
operational issues to get the robot a “crawl to walk, walk to run, run
ready for prime time. to sprint” approach to minimize the
For one, the prototype had lim- risk of failure.
ited maneuverability. It moved up For the first several months, some-
and down aisles, but it couldn’t turn one from IAM Robotics was on site to
corners. To work in the pick module, address any issues and to train Col-
it had to make 90-degree turns so it lins, the robot operator. Once Collins
could access multiple aisles. The robot was self-sufficient, he began working
also needed a lift so the robotic arm on his own. Still, IAM Robotics gets
could access a wider range of shelves. real-time feedback from the Cloud
To enter new SKUs into the system, that allows it to monitor the perfor-
IAM Robotics developed a high-speed, mance of the robots and report impor-
3D scanner that rapidly weighs and tant metrics to RDC.
scans an item, creates a 3D model, The robot was assigned to an area
classifies the new product and then with four aisles and 1,200 SKUs.
After picking, the robot delivers the items to a
enters it into the database of products tote induction station. At present, picked items And, to get started, the robotic
being picked by the robot. are placed in the shipping tote by an operator. picking process mimics what order
Speed was part of the discussion, selectors are doing in the adjoining
but less of an issue given the applica- aisles. Collins scans new shipping
tion. While the roboticists estimated that the robot could pick as containers when they arrive in the robot’s zone to initiate
many as 400 pieces an hour and work the same pace at the end picks for that order, just like the nearby order selectors.
of the shift as at the beginning of the shift, for now, a robot only The robot picks to an onboard tote as it travels through
needed to pick 100 or so pieces an hour to meet RDC’s needs. the pick zone; when the order is picked complete, Col-
Of course, prototypes aren’t built in a day, and given that lins empties the contents into the shipping container and
this was a new solution designed for RDC’s picking environ- inducts it onto a take away conveyor. Similarly, order selec-
ment, this was no exception. By April 2016, however, a team tors pick to a lightweight carrier that they then dump into a
from RDC traveled to Pittsburgh to watch a demonstration of shipping container and induct it onto the takeaway conveyor.
the Beta robot. At that point, RDC gave the go ahead to build For now, Collins also scans the items to ensure accuracy
a production-ready robot. “We went back in September and before pushing the container onto the takeaway conveyor. “We
approved what they’d built,” Ritzmann says. don’t have to do that,” says Ritzmann. “But for now, we want to
IAM Robotics put the robot through its paces in Rochester, make sure that the order was picked accurately and complete.
then took it back to Pittsburgh for tweaking, delivering the And, we’re doing it to keep statistics.”
completed robot in late October. “We took a slow approach roll- Next steps are already on the drawing board. First, RDC
ing it out,” Ritzmann says. “Rather than just going live, we used is going to double the size of the robot’s pick zone. “If we’re
the robot intermittently during the day for test orders through able to do that successfully, we can double the number of
the end of the year. They made tweaks and updates, and then orders the robot picks for and do batch picking,” Ritzmann
we’d test again.” says. In addition, RDC is working with SSI Schaefer to
By the end of the year, RDC was satisfied that the robot was integrate the robot with the conveyor system. The idea is
ready to go into production on the mezzanine in January 2017, to have the shipping container automatically roll on and
after the holidays. off the robot, freeing up Collins for other tasks. Assuming
these ideas pan out, RDC plans to expand the fleet to four
Working with robots robot zones that could handle most of the slow-moving SKU
Being an early adopter is no easy task. As Ritzmann puts picking on the second shift.
it, “If it was easy, someone else would’ve already done it.” Having worked with the robot for six months, Ritzmann’s

logisticsmgmt.com Robotics gain ground 29


Robotics

biggest surprise was the speed of the IT integration. “We’re is a niche solution, most automation is suited to specific
piggy-backing off information we’re already sending to our voice applications. AGVs aren’t a replacement for all lift trucks;
system and the warehouse control system managing the con- automated storage hasn’t replaced all pallet and pallet rack
veyors,” he says. “Getting the information from our enterprise and shuttles; and pocket sorters have not yet made pick-to-
resource planning system to their server and from their server to light mezzanines obsolete. “I spent 15 years selling materi-
the robot went better and faster than I imagined,” he says. als handling solutions,” he says. “There are thousands of
He has also learned that precision counts, as is the case warehouses with static shelving.”
with most automated equipment. Most of the robot’s mistakes There is more work to be done. It is after all, just one
are the result of how items were put away onto the shelving. robot working three hours a shift during part of the week. But
“Those can be eliminated if we put things away correctly, Ritzmann and Brennan believe that robots are ready for work
which ought to be a best practice anyway,” he says. today for those companies brave enough to be early adopters.
He says other potential users call and ask if picking from “We saw what automation could do for us when we opened
static shelves is a limiting factor. Ritzmann points out that the new DC in Fairfield, New Jersey,” says Brennan. “We all
the robot was designed to pick from his static shelves—he get that this is the so-called bleeding edge, but I think there
doesn’t need robots to pick from case flow rack. While it will be rewards in the end.” •

RDC puts robots to work


ers receive a license plate bar code
label and may be placed on a put away
cart and delivered to a storage location
An early adopter, Rochester Drug Cooperative is using (3,4,5,6). Slow-moving items are trans-
robotic piece-picking technology to complement ported to the mezzanine level (4) on a
picking of slow-moving items. vertical reciprocating conveyor (10).
Picking: There are several distinct

I
n its Rochester, N.Y., distribution mixed cases—never full cases—along picking processes in the facility.
center, a mobile piece-picking robot with cases, split cases and some each 1 Full case picking: Order selec-
augments voice-directed picking deliveries. All incoming deliveries are tors identify the number of cases they
operations on a mezzanine dedicated to scanned against a purchase order already are going to pick on a desktop computer
slow-moving products, while faster-mov- in the system. screen and the system prints out ship-
ers are picked from shelves and pallets Storage: Putaway into storage is ping labels. They are then directed by
on the ground floor. system directed. The facility has a small voice to picking locations in the pallet
Receiving: Receiving (1) takes place area for pallet storage (2). The rest of storage area (2) based on the most effi-
during the day shift. The facility receives the inventory is stored at the case or cient path to pick those cases. Cases
item level in carton flow rack and shelv- are picked to a cart or to a pallet on a
ing (3) on the floor level and on static walkie and the shipping label is applied.
Rochester Drug shelving on the mezzanine level (4). They’re then inducted onto a conveyor
Cooperative Temperature sensitive items are stored (7) and sorted to a shipping location in
in a small cooler (5) while restricted the packing and shipping area (8) based
Rochester, N.Y.
prescription drugs, such as narcotics, on the route.
SIZE: 60,000 square feet plus a
19,000-square-foot mezzanine are stored in a secured vault (6). Pal- 2 Pick to returnable tote: Return-
PRODUCTS: Pharmaceuticals and over- lets ready for storage, or pallets built able totes that are sent to individual stores
the-counter drugs
in receiving, are delivered to a pallet may receive inventory from different pick
THROUGHPUT: 15,000 lines per night
SHIFTS PER DAY/DAYS PER WEEK: storage location (2), where the putaway zones located in the facility. The process
2 shifts per day/6 days per week is confirmed either by a bar code scan is initiated on the floor level when a tote
EMPLOYEES: 45
or by voice. Carton or individual items is inducted from a tote destacker (9) onto
such as canes, wheelchairs and walk- the conveyor (7). When the conveyor (7)

30 Robotics gain ground logisticsmgmt.com


MEZZANINE

Static
4 shelving
Vertical
Static reciprocating
shelving 4 7 conveyor
Conveyor (VRC)
Cooler 5 10
6 Vault

Conveyor 7 Tote destacker


9
3 Pallet
3 storage
3 2
3 Carton flow rack
and shelving
1
R
Receiving
7
Conveyor
10
Vertical 8
reciprocating
conveyor Packing
(VRC) and shipping

delivers a tote into one of the floor level tote. The tote is then inducted back onto Shipping: In shipping (8), customer
pick zones (3), an associate scans the the conveyor. It is then routed to the orders are grouped into waves, palletized
tote, the voice system speaks a code that shipping and packing area (8). and loaded onto a truck for delivery to a
identifies the storage location for the next 3 Mobile robotic piece picking also courier destination. The courier breaks
tote and the quantity. Once the associ- takes place on the mezzanine level (4). the orders down into last-mile deliveries
ate has confirmed all of the picks in that For now, the process mimics picking by to individual customers. •
zone, the tote is pushed back on the order selectors. When a shipping tote
conveyor (7) and travels to the next pick arrives, a robot operator scans the tote.
location (3) on the floor level, where the Order information is then delivered to
System Suppliers
MOBILE PIECE-PICKING ROBOT:
process is repeated. the mobile robot. The robot travels to
IAM Robotics
Once all of the items for that tote a pick location and automatically picks CONVEYOR: Hytrol and SSI Schaefer
have been picked on the ground level, the item from a shelf to an onboard con- VERTICAL RECIPROCATING
CONVEYOR: PFlow Industries
the VRC (10) lifts the tote to the mezza- tainer. If another pick is required, the VOICE RECOGNITION SYSTEM:
nine level (4), where slow-moving items robot is directed to the next location and Lucas Systems
are stored on static shelves, along with repeats the process until it has picked MOBILE COMPUTING & BAR CODE
SCANNING: Zebra Technologies
items for which there was no available all of the required items in its zone. It WMS: Developed in-house
space on the floor. then returns to the robot operator, who WCS: SSI Schaefer
Order selectors follow a similar pro- empties the contents of the tote into RETURNABLE SHIPPING TOTES:
Monoflo International
cess on the mezzanine level. When a tote the shipping tote and inducts it onto the INLINE PRINTING: Konica Minolta
arrives in their zone, they scan a label mezzanine conveyor. It is then routed to PRINT & APPLY SHIPPING LABELS:
Weber Packaging
and are directed to picking locations, the packing and shipping area (8). The
LIFT TRUCKS: Toyota
where they pick to a handheld container operator then scans the next tote in the RACK: Ridg-U-Rak
that is then emptied into the shipping zone, and the process begins again.

logisticsmgmt.com Robotics gain ground 31


Robotics

Robots at
GEODIS The global 3PL turned to mobile
collaborative robots to rev up its e-commerce
fulfillment operations. One measurable
result: a 2x improvement in productivity.

M
BY BOB TREBILCOCK, EDITOR AT LARGE

ore than 6.5 million. That’s how many units GEODIS, the global third-
party logistics (3PL) provider, had picked to a fleet of mobile collaborative
robots (Locus Robotics, locusrobotics.com) as of mid-December 2018.
175 and counting. That’s the number of cobots GEODIS had deployed across its
North American facilities as of that date.
2x. That’s the productivity improvements that GEODIS realized since it first
deployed a fleet of 21 bots in a facility outside of Indianapolis in January 2018 fol-
lowing a three-month pilot, according to Alan McDonald,
senior director of continuous improvement, and Kevin
Stock, the senior vice president of engineering.
Those are just some of the numbers that GEODIS
believes make a compelling case for mobile collaborative
robots in warehouse and distribution environments, like
e-commerce, that involve a significant volume of each picks.
In GEODIS’ case, the number of units picked during peak
season increased 30% year over year. But it’s not just the
drive for more productivity that led GEODIS to robotics.
Customers are also demanding innovation.
“The market is definitely driving us to new technologies
like robotics,” notes McDonald. “Our customers are ask-
ing us what innovations we are looking at for the future. In
fact, not a week goes by that we don’t talk to an existing or

From left: Kevin Stock, senior vice president


of engineering and Alan McDonald, senior
director of continuous improvement.

Chris Cone / Getty Images for Peerless Media

32 Robotics gain ground


potential customer who wants to know where we’re headed.”
Adds Stock: “Delivering on KPIs and costs are considered
table stakes for a 3PL. Now, the question is: What else are
you bringing to the table?”
For GEODIS, one of the answers to that question is
mobile collaborative robots, which also help the global 3PL
address the other big issue for warehousing and distribution
operators: How do we staff a facility with reliable and produc-
tive associates at a time when more and more e-commerce
facilities are opening in the same logistics hubs during record
low unemployment?
“There is a lot of competition for associates in the areas
where we have warehouses, so we have to make them a more
desirable place to work,” Stock says. “We’re installing better
breakrooms, better lighting and doing what we can to make
the jobs easier to learn and perform successfully. Robotics is
part of that.”
This is a look at how one of the world’s leading 3PLs chose
and implemented a mobile collaborative robotics solution that
it is now deploying across its footprint.

Investigating robots
With headquarters in Paris, GEODIS is one of the largest
3PLs in the world and generated more than $9.25 billion
in revenue in 2017, the last year for which results are
available. The company services 165,000 customers, with
40,500 employees across 120 countries and 70 million
square feet of warehouse space. It moves more than 100
million parcels a year.
In the United States, GEODIS leverages 140 facilities on
20 campuses, representing 43 million square feet. It serves
six defined verticals, including retail and e-commerce fulfill-
ment, consumer electronics, fast-moving consumer goods,
health care, industrial and automotive.
As with other 3PL providers, one of the key trends impact-
ing the business is the growth of e-commerce fulfillment.
“It’s not pallets and cases anymore,” says Stock. “The volume
of e-commerce orders is soaring and that means a lot more
touches and a lot more people in a very tight labor market.”
And, as with other 3PL providers, GEODIS is looking to
technology to address those issues in an industry that his-
torically eschewed automation in favor of best conventional
warehousing processes. GEODIS has installed automated pick
towers, conveyor and sortation systems, and put walls in some
of its operations—and it is working on a project to use drones
to take inventory in its facilities. But, in its e-commerce picking

Robotics gain ground 33


Robotics

operations, it still relied to,” McDonald says, “You not only want the right solu-
heavily on conventional “and after we narrowed tion, you want the right provider,” says
pick processes such as the solutions we were McDonald. “Vendors visited our site to
pick-to-cart enabled by interested in down to demonstrate what they could do. More
wearable wrist units and a collaborative robots, we importantly, when we visited them on
warehouse management narrowed that down to their home turf, we wanted to know what
system (WMS). a few providers.” was on their road map. It was great that
In early 2017, the Over the course of they could do something now, but we
3PL concluded that con- the summer, the inno- wanted to know what were their plans
ventional was no longer vation team visited for the future. What was in development
sustainable, according to sites where cobots that they could tell us about?”
McDonald. That spring, were up and running; By the end of the summer, they had
GEODIS put together they visited company chosen a provider for a three-month-
an innovation team to headquarters to long pilot involving 21 bots. The decid-
investigate new technolo- learn more about the ing factors went beyond the solution.
gies. Important criteria various providers and “Truthfully, we bounced back and forth
included: the capital their cultures; and between potential solution providers, but
investment required, was asked the potential we chose the partner we chose because
it user friendly and easy providers to develop we not only liked their software, but
to operate, was it scal- a business case. The there was a good cultural match between
able and finally, was it fact that this is a new our companies, and they had the same
mobile—if necessary, how technology, and that vision as we did. The fact that they had
easily could GEODIS many of the providers experience in operations helped.”
move a solution from one are startups, made the
facility to another? evaluation a differ- Rolling out a solution
That April, the new team ent process than if Implementing a new technology, espe-
went to ProMat 2017 to GEODIS had been cially one for which there isn’t a lot
see what the industry had An associate scans a tote to looking at a conven- of use cases to learn from, is often a
a robot (top). Order selectors
to offer. “We were deliber- receive their picking instructions tional, established multi-step process. That was the case
ate about who we spoke on a screen (bottom). automation solution. for GEODIS, although the technology

The new business model


A utomation-as-a-service is one of the emerging business models in the materials
handling automation space. In this model, a solution provider owns, maintains and in
some cases, even operates, the equipment or an entire automated warehouse for a fee.
The cost is often on a per-pallet, per-case or per-pick basis.
That includes robotics. Typically two or three options are available, similar to the lift
truck industry. They include a purchase option; purchase and rental option, where you
purchase a baseline fleet and then rent additional robots on an as needed basis, such as
peak and a robot-as-a-service model in which you pay a price based on how the robot is
operated, such as a cost per pick.
In this instance, GEODIS chose the service model, which is less capital intensive than
a purchase option. “It’s a very competitive market right now, and we spoke to multiple
providers who were offering a robotics-as-a-service model,” says Alan McDonald, GEO-
DIS senior director of continuous improvement. “I think they all know they need to make it
as easy as they can for people to adopt the technology.”

34 Robotics gain ground logisticsmgmt.com


proved itself fairly quickly. In early January on the volume of orders.”
It began with a planned three-month 2018, GEODIS for- At present, GEODIS
pilot program using 21 cobots in an mally transitioned from uses between three and
Indianapolis e-commerce fulfillment pilot to go live. During six bots per associate,
center. They developed a process to that period, communi- depending on the volume
batch pick single line orders to a tote cation was important: and density of orders to be
that would then be sorted out at pack- It was important that picked in a given day.
ing. “Once we selected a supplier, we the whole team, and In addition to produc-
did a deep dive, starting in October not just order selectors, tivity improvements and
2017,” says McDonald. “We compared understand their jobs customer satisfaction,
pick rates to the existing cluster pick- were not threatened. cobots are easy to imple-
to-cart process we were using in that “We held meetings for ment compared to other
operation.” Additionally, there was some all of our operators, technologies. A new
software development for the interface whether they would robot can be received,
between the GEODIS WMS and the interface with a robot unpacked and in opera-
robotic control system, along with some or not,” says Stock. An order selector scans an item to tion in a matter of hours.
one of the order totes.
modifications to the pack operation. “The important word Similarly, an associate—
GEODIS quickly learned that in addi- was: collaborative. We or an office employee
tion to productivity improvements, soft made sure our operators knew that a bot helping out on the floor during peak—can
benefits needed to be factored into the was not going to pick the product, so be picking very quickly. Finally, for the
decision. For one, the training time to get this was about enabling our people to be distribution team, it’s exciting to be on the
an associate up and running with a cobot more productive while making their jobs leading edge of an emerging technology.
was quicker than learning how to pick to easier. It wasn’t about replacing people.” “There is a perception that I think is
cart. They were easy to operate. Today, At the facility level, there have been accurate that GEODIS is on the front line
the cobots can communicate in the four ongoing learnings over the last year, as of this technology,” says McDonald. “If we
languages most common to the facility: GEODIS works with the cobots. “It’s were to wait until the technology matures to
English, Spanish, Burmese and Chin, very easy to learn to pick to the bots. It’s adopt it, we’d be behind the curve.”
which is a language spoken predominantly longer to learn how to operate them,” says Adds Stock: “We want to be on the cut-
in Myanmar. For another, associates liked McDonald. “The more you work with ting edge, and as a result, we’re
working with the cobots, which they were them, the more you learn about what kind creating new opportunities for our business,
encouraged to name during the pilot. of robot-to-operator ratio you need based and for the people who work for us.” •
“If you watch some of our videos
online, our operators say they often talk to
the bots,” McDonald says. “So, while pro-
ductivity was an important metric, we also
considered the engagement of employees
and the fact that we could make a mun-
dane task more interesting. That leads to
better retention.”
Another soft benefit that could not be
counted out: customer satisfaction. “When
our customers ask us what we’re doing with
technology, we can point to the robots,”
McDonald says.

Here, an associate uses a wrist-


mounted scanner to confirm a pick.

logisticsmgmt.com Robotics gain ground 35

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