The robotics industry is growing fast, and it can be hard to keep up with the latest developments and innovations. Yet supply chain managers still need to decide which operations they should automate and understand how that automation will affect staffing and worker training. To help provide a clearer picture of where automation is headed, we brought together five experts from leading robotics companies.
Participants included:
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Here’s what they had to say.
Q: What is the current state of the robotics industry?
Luther Webb: The warehouse robotics industry is strong, innovation continues, and investors remain positive as the industry crosses the next phase of evolution from product centricity to the delivery of profits on revenue.
Kevin Reader: There is considerable growth projected for the robotics industry—17.64% globally, from $114.7 billion annually in 2023 to a projected $258.3 billion in 2028. The largest market is the Asian Pacific market, and the fastest growing market is the North American market.
More appropriate, perhaps, is the question “What is a robot?” since the term has been overused by venture capital companies and marketing departments and has come to represent an array of technologies, from goods-to-person to AMR [autonomous mobile robot]-type devices, that are more specialized and more appropriately termed “transport application devices.”
Brian Pulfer: The robotics industry still seems to be in growth mode, and I believe that growth is on two fronts. First, the number of deployments of robotics projects is continually increasing within the distribution and warehousing vertical. Second, the research and development work for new types of robotic solutions is leading to the introduction of options for many different facets of operations. There are a few robotics offerings that have become mature and trusted, such as AMRs, while there are other offerings that are still developing.
Q: How has the recent slowing in warehouse investments affected new automation projects?
Luther Webb: Large new automation projects have slowed as economic conditions have customers concentrating on getting back to operational best practices that drive efficiency and effectiveness in existing operations. These include extending the life of current assets and upgrading subsystems that provide a quick return on investment and realization of benefits.
Steven Hogg: We are seeing that implementations of fixed warehouse automation solutions are slowing as retailers and manufacturers grapple with capital expenditure limitations. This has led to a growing appetite for scalable technologies like mobile automation, which come in at a price point under $20 million. These offer swift deployment and a rapid return on investment.
Thomas Meyer-Jander: Our experience has shown that the downturn has had no immediate impact on robotics tenders or projects. In individual cases, the decision-making process on the part of the customer is delayed and more concrete [total cost of ownership] calculations are being made.
Q: For companies just beginning their automation journey, what are the easiest operations to automate?
Steven Hogg: The easiest operations to automate are the monotonous, hard-to-staff processes that don’t require dynamic decision-making. By employing automation, companies can reassign employees to more challenging tasks, improving employee safety and job satisfaction. Automating these operations improves the bottom line in obvious ways, like reducing production costs, but also in less apparent ways, such as reducing the time and resources spent onboarding new and seasonal employees.
Thomas Meyer-Jander: Customers who want to enter into automation often require standardized solutions with short installation times and seamless integration into existing systems. According to our experiences, AMR solutions for picking and shuttle systems for bins or pallets are particularly suitable for operations seeking an easy entry with a manageable level of resources.
Brian Pulfer: I believe the easiest area to attack is the transitory elements. The distance traveled and overall steps of a warehouse associate are very significant when considering productivity. The ability to reduce this element has a large impact from a budgetary standpoint for any operation.
Luther Webb: The wide range of solutions focused on piece picking allows companies—both large and small—to enter into automation with ground-level technologies like “follow-me” and “meet-me” AMRs that can be installed within some existing rack configurations and using robotics-as-a-service financing models.
Q: Does a move to automation change the level of skills needed for workers who must interact with the new systems?
Brian Pulfer: I do not believe that it has a significant impact on the skills needed. When many of these technologies are being considered, you hear the term “cobot” or “helper” being utilized as these systems really provide assistance to the current associates. Most warehouse associates over the last 10 to 20 years have become very familiar dealing with conveyors, RF (radio-frequency) devices, tablets, etc., and a lot of these robotic solutions are utilizing similar applications—and in many cases, are even simplifying the interaction between the associate and the system. In today’s world, almost everyone is comfortable with most of these technologies in their personal lives, which translates to the warehouse.
Thomas Meyer-Jander: Of course, the introduction of automation technologies expands the range of tasks for the workers. It is then less about directly carrying out the picking or storage process than about controlling and monitoring the automation—in some ways, a collaboration between man and machine. In particular, the physical strain on the worker is reduced, which improves working conditions and reduces the susceptibility to errors. The ergonomic factor at the workplace also plays an important role in automation.
Q: How are artificial intelligence (AI) and machine learning (ML) impacting robotics design and operations?
Steven Hogg: Artificial intelligence allows for greater autonomy in the operation and improves the robot’s recognition and adaptability, which allows for a wider range of products to be handled by automation. This flexibility is critical for a system design that requires a vision system to handle thousands of SKUs (stock-keeping units) in an e-commerce setting or in distribution centers.
Kevin Reader: Particularly with the “tasks of the hands,” artificial intelligence has a major impact on the success of robotic applications and is especially important when considering the success of a prototype or test application.
Luther Webb: The impact that AI and machine learning is having is most evident with AMR guidance; the product identification used in piece-picking robots and automated packing systems; and the improvements that have been made to grippers that have improved the range of form factors and speed of piece-picking robots.
Q: How does staff training need to be adjusted for associates who will work with today’s robotic systems?
Steven Hogg: An often-overlooked factor that significantly impacts a new automated system’s success is employee acceptance and utilization. In staff training sessions, it’s crucial to explain how automation will benefit employees and share plans for repurposed roles. Opening lines of communication with operators enables them to provide feedback on workflows, leading to improved utilization and ROI.
Thomas Meyer-Jander: Despite automation technology, employees remain a company’s most important asset. As innovation continues, employees need regular training to keep up. Training staff to apply innovations and new technologies is a strategic investment that can result in improved efficiency, competitiveness, employee satisfaction, and overall business success. It enables successful companies to harness the full potential of technological advancements and adapt to the ever-changing business landscape.
Brian Pulfer: I do not believe that it needs to be adjusted significantly, but what we are seeing more and more is the use of technology in training, which is a significant development. The use of interactive software, virtual reality, etc., in training is helping associates become comfortable with the technology before they ever hit the warehouse floor and start to engage with the robotic solution.
Q: With more automation being implemented every year, what will distribution centers look like 10 years from now?
Luther Webb: I think we will see a network of smaller distribution centers (DCs) closer to the final mile. These DCs will use automation that requires less space, is quick to deploy, and is simple to maintain.
Kevin Reader: Applications will be simplified, and there will be fewer applications to deal with. Software will take on a more important role, vis-à-vis flexibility, the ability to change, overall operations, and the results that can be achieved. There will also be a proliferation of AI tools to manage operations and resources.
Steven Hogg: With the advances in AI, machine learning, and vision systems, additional opportunities for robotic automation in distribution centers continue to evolve. These technological advances will drive continued growth in DCs, with most of the core material handling operations managed by robotic automation.
Thomas Meyer-Jander: The distribution center will likely undergo further significant transformations over the next 10 years driven by advancements in technology, automation, and evolving supply chain demands. Automation will play a central role, with a wide range of tasks being performed by robots, autonomous vehicles, and other automated systems. Robots, both large and small, will collaborate with human workers in a more integrated manner. Collaborative robots will work alongside humans, enhancing efficiency and safety. AI and ML will be used extensively to optimize warehouse operations, and AI algorithms will manage inventory. Autonomous vehicles will move goods within the warehouse, and drones will probably be used for aerial inventory scans and monitoring. Sustainable practices will be a priority. In addition, some warehouses may incorporate 3D printing capabilities to produce spare parts on site.
