As companies seek new use cases for robots in their supply chains, many will find themselves needing to integrate different robots from different vendors that perform different tasks.
The past few years have witnessed an explosion in interest in and use of robots within the supply chain. According to Gartner’s most recent “Supply Chain Technology User Wants and Needs Study”—a cross-industry, cross-company size, and cross-geography survey—a staggering 96% of respondents said they were investing, or were planning to invest, in robotics over the next two years.
Of those respondents, 7% had already fully deployed a robotics solution, and 29% were currently deploying one. Furthermore 93% of these current robot users said that they planned to expand the fleet size of their existing robot platforms, and 94% said they were pursuing additional use cases for robotics in their operations.
As a result of this interest, we believe there will be exponential growth in what we call the “intralogistics smart robots” (ISR) marketplace over the next decade. In fact, Gartner predicts that by 2028, 50% of large enterprises will have adopted some form of ISRs in their warehouse or manufacturing operations.
Currently, Gartner tracks 34 different categories of intralogistics smart robots. Among the most relevant categories to logistics leaders are six that we see companies deploying and having the most success with today. The categories include:
Basic transport—This category involves autonomous mobile robots (AMRs) designed to move goods around warehouses and plants. These trainable and intelligent robots excel at moving goods long distances and can operate through multiple shifts. By using them, companies reduce the amount of time human workers waste traveling across the warehouse.
Collaborative picking (robot to person)—For this application, a human worker and robot move through the warehouse together. The human worker picks products into bins or totes transported by the robot. This category will enhance human labor by improving picker efficiency, cycle time, and throughput. This “cobot” augmentation of human effort can leverage existing infrastructure and will be utilized in high volume/velocity picking environments such as e-commerce.
Goods to person (G2P)—For this variation, the robots deliver multiple goods on mobile storage units (MSUs) to a stationary area, where a human picks goods for multiple orders onto another MSU. When all the orders are complete, robots deliver the MSUs to packing stations. G2P robots can eliminate wasted travel time for human workers, reducing drudgery and fatigue.
Sortation robots—This category will be seen both in e-commerce and parcel-sorting environments and will improve order-fulfillment accuracy and agility while streamlining picking and packing operations. These robots can replace powered conveyors and are not bolted to the floor, meaning they are adaptable and reconfigurable on demand, with lower fixed infrastructure requirements.
Robotic picking—These robotic solutions are designed to handle the most mundane pick-and-place tasks. These solutions combine robotic arms, different forms of end effectors or grippers, and 3D vision systems, all enabled by advanced machine learning and artificial intelligence (AI). Robotic picking works particularly well in environments where the items are a consistent size and shape.
Cube robotic G2P systems—In this category, G2P robots autonomously move goods in totes or cases that are stored in a pre-built cube/grid structure. The robots also deliver these totes or cases at the appropriate time to humans at pick stations. These solutions work well for high-density and high-speed environments. For example, these applications work well in facilities with large quantities of small items that are ordered frequently. This category is scalable and adaptable and is typically delivered as a larger integrated system.
Each of these categories represents different use cases and operating models, some are designed to be stationary, others mobile; some are designed to operate alone and autonomously; while others are designed to complement human labor.
As companies seek new use cases, many will start to have different robots from different vendors performing different tasks. We believe that within the next five years more than 40% of large enterprises will have a heterogeneous fleet of ISRs in their warehouse operations. The good news is that many companies will begin to leverage ISRs in their operations. The bad news is that this creates challenges for companies. Namely, how do they integrate with and orchestrate the work of a heterogeneous fleet of robots? And how do they coordinate between different fleets?
Standardized software needed
To integrate and orchestrate the work of a fleet of heterogenous robots, companies will need standardized software that can easily unite a variety of agents and robot platforms. Gartner refers to this emerging software as “multiagent orchestration platforms.” These solutions act like intelligent middleware that integrate and orchestrate work among various business applications, heterogenous fleets of operational robots, and other automated agents like doors or elevators. These solutions will assign work to the right robots based on the characteristics of the immediate tasks and will orchestrate communication between different robot platforms and other types of automation agents. (See Figure 1.)
This type of software becomes increasingly necessary as the robotic environment becomes more complex. When companies invest in their first ISR platform, they will typically just create a one-off connection between their business applications—such as a warehouse management system (WMS)—and their robot provider’s fleet management system. This, while not optimal, works for one robot. However, as a company’s fleet of robots grows, simple point-to-point API (application programing interface) integration will not be enough. Companies will need an orchestration capability that can assign work to the right robots based on near-real-time information. These work assignments will need to take into consideration the characteristics of the activity and the capabilities of various automation agents. A multiagent orchestration platform will reduce the time, effort, and cost to onboard new robots. It will also reduce support cost, ultimately making organizations more efficient because work will be assigned to the robot best suited for the task. As a result of this need, we believe that by 2026, more than 50% of companies deploying intralogistics robots will adopt a multiagent orchestration platform.
Of course, most companies will not recognize the need for these types of solutions until they move beyond one or two robot platforms. Then, they may attempt to find a solution through their current WMS provider or their robot provider’s fleet management systems. These systems may or may not address the need for orchestration and integration across and between a variety of robot platforms. While some providers do offer these types of orchestration platforms, many ISR providers’ fleet management solutions are largely focused in and around their own robot offerings and are not true multiagent orchestration platforms. To be sure, many ISR providers are focusing more on software, as they are concerned that they will be commoditized by less expensive robot hardware. But we do not expect a universal fleet management platform that works across robot platforms any time soon, if ever. Consequently, for the foreseeable future, companies with heterogeneous fleets of robots will need a multiagent orchestration platform.
To identify the right platform capable of orchestrating and integrating their heterogenous robot fleet, companies should start by analyzing the integration requirements as their robot fleet expands beyond a single vendor. Along with that, they should study how work will be assigned to the various robots and other automation agents and determine what orchestration logic will be needed to support this simultaneously. Once they understand their orchestration and integration requirements, they should then look for the multiagent orchestration platform that best addresses their needs.
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.