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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
CMYK GRAYSCALE
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,
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
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.” •
As market demands accelerate and technology choices expand, advantage belongs to those willing
to take on what’s next. We can help. GreyOrange uniquely combines always solving artificial
intelligence and machine learning with Maximum-Life™ robotics to master the demands of modern
order fulfillment and commerce.
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
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
www.berkshiregrey.com
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
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
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. •
www.6river.com 1-866-60-CHUCK
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.
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
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
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
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
DMLogic is part of Körber Logistics Systems. That means the highest level of service our customers have come
to expect, can now be further enhanced with our ability to bring you a fully-integrated warehouse solution from
material handling and automation to software development, integration and implementation.
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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.” •
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)
Static
4 shelving
Vertical
Static reciprocating
shelving 4 7 conveyor
Conveyor (VRC)
Cooler 5 10
6 Vault
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.
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
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
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