The three companies say the deal will allow clients to both define ideal set-ups for new warehouses and to continuously enhance existing facilities with Mega, an Nvidia Omniverse blueprint for large-scale industrial digital twins. The strategy includes a digital twin powered by physical AI – AI models that embody principles and qualities of the physical world – to improve the performance of intelligent warehouses that operate with automated forklifts, smart cameras and automation and robotics solutions.
The partners’ approach will take advantage of digital twins to plan warehouses and train robots, they said. “Future warehouses will function like massive autonomous robots, orchestrating fleets of robots within them,” Jensen Huang, founder and CEO of Nvidia, said in a release. “By integrating Omniverse and Mega into their solutions, Kion and Accenture can dramatically accelerate the development of industrial AI and autonomy for the world’s distribution and logistics ecosystem.”
Kion said it will use Nvidia’s technology to provide digital twins of warehouses that allows facility operators to design the most efficient and safe warehouse configuration without interrupting operations for testing. That includes optimizing the number of robots, workers, and automation equipment. The digital twin provides a testing ground for all aspects of warehouse operations, including facility layouts, the behavior of robot fleets, and the optimal number of workers and intelligent vehicles, the company said.
In that approach, the digital twin doesn’t stop at simulating and testing configurations, but it also trains the warehouse robots to handle changing conditions such as demand, inventory fluctuation, and layout changes. Integrated with Kion’s warehouse management software (WMS), the digital twin assigns tasks like moving goods from buffer zones to storage locations to virtual robots. And powered by advanced AI, the virtual robots plan, execute, and refine these tasks in a continuous loop, simulating and ultimately optimizing real-world operations with infinite scenarios, Kion said.
We are in the golden age of warehouse automation. Supply chain leaders today have a dizzying array of new automated solutions to choose from. These include autonomous mobile robots (AMRs), automated storage and retrieval systems (AS/RS), automated case-handling mobile robots, robotic pickers, and advanced software. While predominantly manual facilities remain, advancements in automation are improving existing facilities and use cases demonstrate in very real ways how robotics will forever alter supply chains.
But while the potential gains from automation can be significant, it’s also important to realize that no two organizations’ needs are the same. There is no cookie cutter approach to warehouse automation and robotics. A successful implementation requires not only strategic planning and investment but also a full understanding of the organization’s own unique needs. Before it installs any automation, a company must have a clear picture of its specific processes and requirements and ensure solutions are tailored to its operations. This involves identifying the needs of the specific sector or market segment that the company is trying to serve, what its growth potential is, and where it currently is in its automation journey.
To show how this can be done, let’s take a closer look at the retail industry. Today’s retail distribution centers are some of the most advanced materials handling facilities ever built, simultaneously supporting fulfillment for online purchases and enabling the efficient stocking of brick-and-mortar stores. These facilities demonstrate the impact automation and robotics advancements can have on distribution operations, including enabling unprecedented performance and throughput levels that were unimaginable a few short years ago. For this reason, reviewing the strategic considerations a retailer may face on the way to making a business case for automation will provide a model not just for other retailers but for companies in other industries as well.
Tackling long-standing challenges
Warehouse robotics and automation can help retailers respond to a variety of longstanding challenges. First, there is the growth of e-commerce. The volume of online purchases continues to increase, even as the rate of growth slows to pre-pandemic norms. According to the U.S. Department of Commerce, despite ongoing inflationary forces, American consumers spent more than $300 billion online in the third quarter of 2024, which represented 16.2% of total retail sales and a 7.4% percent increase over the same period in 2023.
Each online purchase is essentially an ad hoc event, making the resulting fulfillment more complex and demanding than the regular, scheduled replenishment of in-store inventories. Automation plays a vital role in helping retailers overcome these challenges. By automating key processes, retailers can achieve faster throughput, can more efficiently handle a larger variety of stock-keeping units (SKUs), and can maintain exceptional order accuracy. Automated systems streamline order picking, packing, and shipping, reducing errors and speeding up operations. This allows retailers to keep up with the growing demands of e-commerce while ensuring customer satisfaction with precise and timely deliveries.
Then there is the issue of labor. Retail supply chain leaders face an ongoing and problematic shortage of workers. While the “2024 State of Warehouse Labor Report” from the online labor marketplace Instawork found some improvement in the labor market, more than 40% of surveyed businesses still reported that warehouse staffing levels remain a cause of revenue loss.
The implementation of automation and robotics in both existing brownfield and new greenfield warehouses is a direct response to these labor market concerns. All forms of warehouse automation, including robotics, are fundamentally efforts to address the shortage of labor or to increase its efficiency. For example, many automated solutions, such as AMRs, are designed to specifically address the most time-consuming activity in warehouses: the 78% of time employees spend walking.
There are other important benefits. Machines don’t require rest, and they are particularly effective at highly repetitive tasks, which are a leading cause of workplace injuries. Automation also creates new career paths for employees, transitioning them away from physically taxing activities that center on moving items through the warehouse to maintaining and overseeing the systems that assume those tasks. Finally, as the cost of labor rises, the cost of technology continues to decrease.
Implementation: Where to begin?
Automated storage and retrieval systems (AS/RS) provides advanced storage capabilities and fast throughput. But they are typically more costly and take longer to implement than less automated systems.
Courtesy of Vanderlande
While the benefits of automation are clear, selecting the right solution for a specific operation can be daunting. To choose among the variety of automated solutions available, retail supply chain leaders must first consider the needs of their specific sector.
The grocery and food sector is a telling example. Few sectors have experienced as rapid a transformation in recent years as the grocery industry. Before the pandemic, online grocery sales were mostly limited to select metropolitan areas. Last year, online grocery sales in the U.S. reached $95.8 billion, according to the data and technology company Mercatus. Consumer grocery purchases are now split between three very distinct fulfillment models: ship-to-home, delivery, and pick-at-store. Those models and the retailer’s unique needs determine the type of warehouses required. As a result, the grocery sector sees everything from full standalone distribution centers to warehouse operations at the “back of the store” and even so–called dark stores—stores that are solely used as warehouses for online orders and are not open to the public.
Due to razor-thin margins and price-sensitive shoppers, the grocery sector is embracing advanced automation, such as AS/RS and palletizing robots. For example, they are utilizing software and automation to build pallets and pallet cages in a stable and space-efficient fashion with products arranged by store layout. By doing so, leading grocers and food retailers ensure that they can quickly move and stock items while keeping labor costs in check—all savings that enable them to maintain margins while competing on price.
Different considerations, however, are the main focus for automation projects in the apparel and general merchandising industries. In apparel, items need to be moved—typically in bags—without being damaged. Additionally, warehouses often have to manage the processing of returns. In both applications, pocket sorters are often used. In contrast, the general merchandise sector deals with highly variable SKUs and the rapid processing of online orders, making throughput levels and order accuracy critically important. Here, a high-performance AS/RS is often a natural choice.
Build new or sweat your existing warehouse assets?
Automated case-handling mobile robots are a good solution for companies looking for more "incremental" automation. Because they can use existing warehouse racks, they can be implemented faster than a more complex system.
Courtesy of Vanderlande
Where retailers are in their growth cycle and in their warehouse automation journey should also be carefully considered when determining what kinds of automation and robots are needed. These two factors will play a particularly strong role in determining whether a retailer implements new automation or sticks with what it already has. This is particularly true today when the cost of capital is a key consideration. As an example, let’s look at how this decision might play out in different retail sectors.
Fast-growing, mid-market retailers: Most of these organizations currently have largely manual distribution centers. They are predominantly moving to build more advanced, fully automated facilities that include AMRs, AS/RS, and robotic pickers. Primed for growth, they are foregoing the improvement of existing warehouses, as even modernization projects can't keep up with growing sales and risk becoming quickly obsolete.
Slower growing mid-market retailers: These companies are embracing more incremental automation. For example, many are deploying a system that includes automated case-handling mobile robots (ACRs). These robotic units are designed to move and retrieve goods stored in traditional, often pre-existing, warehouse racks. As a result, these systems can often be implemented in just a couple of months, offering a faster implementation timeline.
Other mid-market retailers are choosing to implement an AS/RS, which—while automating many of the same tasks—provides more advanced storage capabilities and faster throughput. These systems are, however, more costly and require a more comprehensive planning and installation process, as they can take a year or two to design and make operational.
The largest retail brands: These companies already rely on largely automated warehouses that utilize AS/RS, robotic pickers, and other solutions. They are increasingly choosing to “sweat their assets” by making incremental improvements—such as adding additional shuttles and more storage capacity to an already existing AS/RS or deploying additional robotic pickers to speed throughput. Such improvements can result in significant efficiency gains, without requiring any large capital investments.
No matter what type of automation is selected, however, successful implementation hinges on a crucially important step: creating an effective business case.
The crucially important business case
Before implementing any automation or robotic solution, a company must perform due diligence. It is critical that no project should proceed without first completing a detailed business case. There are several factors to consider, starting with the decision between modernizing an existing brownfield facility or building a new greenfield site. This choice requires evaluating the costs, growth potential, and the return on investment (ROI) associated with a more advanced warehouse system.
Importantly, the business case should not be created in a vacuum. Operational, financial, and legal leaders should all be involved. The process should be sure to incorporate the following steps:
Determine growth projections: No one has a crystal ball, but growth projections and plans should be carefully considered to determine if a new greenfield facility with advanced automation and robotics is viable and necessary. These cutting-edge solutions often deliver the highest ROI but come with significant upfront investment.
Determine the lifecycle of existing warehouses: Are they able to process the number of SKUs, achieve the throughput, and provide the storage capacity needed today? What about for the future? If not, can they be modernized to cost-effectively buy more time?
Calculate the timeframe needed to realize an ROI: How long will it take to achieve the ROI for your automation project over the cost of capital and labor that would be required in its absence? How does this compare to the lifespan of the facility or project in question? Are you looking to see your ROI in three years, five years, or ten? The time required to achieve the desired ROI is key.
Consider the costs and gains associated with incremental advancements: Even if it seems like a new, fully automated facility makes the most sense, consider the alternative approach of making incremental improvements. If you choose to move forward with a greenfield project, it is good to know you carefully considered existing assets.
Run the numbers on your dream warehouse: Even if a new facility that delivers the capabilities of high-performance robots and automation is likely out of reach, run the numbers anyway. It can feel safer to upgrade a warehouse than to build a new automated one, but no one wants to invest significant capital in a facility that hinders growth in the future.
Remember that no automation is automatic: Advanced solutions and robots are never a one-and-done purchase. They must be maintained and managed—tasks that require significant expertise, either from partners or through an investment in employees and training.
By carefully considering the needs and nuances that define success in their sector and creating a detailed business case, supply chain leaders can embrace emerging, powerful robotics and automation with confidence. Regardless of whether they choose to obtain the most advanced capabilities or take a more measured approach, they will do so with the confidence that their investments are based on proven strategies that position them for growth and success in the future.
About the authors: Jake Heldenberg is the director of North American Warehouse Sales Engineering, at Vanderlande. He oversees the design of warehouse systems that combine intelligent software, robotics, and advanced automation. Andy Lockhart is the director of strategic engagement, warehouse solutions, North America, at Vanderlande, where he provides retail customers with innovative, scalable systems; intelligent software; and reliable services to optimize distribution and fulfillment operations.
And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.
One of the biggest targets for innovation spending will artificial intelligence, as supply chain leaders look to use AI to automate time-consuming tasks. The survey showed that 41% are making AI a key part of their innovation strategy, with a third already leveraging it for data visibility, 29% for quality control, and 26% for labor optimization.
Still, lingering concerns around how to effectively and securely implement AI are leading some companies to sidestep the technology altogether. More than a third – 35% – said they’re largely prevented from using AI because of company policy, leaving an opportunity to streamline operations on the table.
“Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage,” Kristi Montgomery, Vice President, Innovation, Research & Development at Kenco, said in a release. “Now’s the time for organizations to explore and experiment with the tech, especially for automating data-heavy operations such as demand planning, shipping, and receiving to optimize your operations and unlock true efficiency.”
Among the survey’s other top findings:
there was essentially three-way tie for which physical automation tools professionals are looking to adopt in the coming year: robotics (43%), sensors and automatic identification (40%), and 3D printing (40%).
professionals tend to select a proven developer for providing supply chain innovation, but many also pick start-ups. Forty-five percent said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
there’s room to grow in partnering with 3PLs for innovation: only 13% said their 3PL identified a need for innovation, and just 8% partnered with a 3PL to bring a technology to life.
Los Angeles, CA, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Warp, a tech-powered network of cross-docks and carriers offering various vehicle sizes, announced that 2025 it will extend its solutions and services to the U.S. government. Warp aims to modernize government freight logistics with machine-learning-driven planning, optimized network strategies, and flexible solutions to create efficient, cost-effective, and sustainable supply chain transportation.
Focused on optimizing every load, every time, Warp employs machine learning (ML), artificial intelligence (AI), and groundbreaking consolidation techniques to blur the traditional lines of freight shipping by combining the best elements of LTL, FTL, and parcel delivery. Using its homogenous fleet including cargo vans, sedans, box trucks, and 53-foot trailers, Warp facilitates carrier injections, inbound vendor consolidation, pool point distribution, zone-skipping, store replenishment, and national retail distribution for some of the world’s largest shippers.
Unlike traditional FTL carriers, Warp offers per-pallet rates, ensuring customers pay only for what they use. Similarly, unlike traditional LTL carriers, Warp eliminates challenges such as unpredictable pricing, freight class adjustments, reweighs, and rebills. In the process of becoming an official government contractor, Warp will strategically align its technology, teams, and network to meet government needs while identifying opportunities for collaboration.
Many shippers that Warp has helped were previously paying for full truckloads without fully utilizing the space. Additionally, shippers relying on LTL services before switching to Warp often faced hidden fees, surprise surcharges, and unexpected rate adjustments. Our research indicates that these challenges are even more widespread in U.S. government transportation contracts.
“Partnering with Warp will save the government millions of dollars through reduced empty miles, shipment consolidation, route optimization, and scalable logistics—all without requiring government-owned infrastructure,” said Warp Co-founder and CEO Daniel Sokolovsky. “This is something we’ve been working on for quite some time, and we’re thrilled to showcase Warp’s capabilities and innovative logistics solutions on a national scale,” said Warp Co-founder and CRO Troy Lester.
About Warp Warp is a technology-enabled leader in middle-mile logistics, focused on creating efficient, scalable solutions for high-density, high-demand supply chains. By connecting shippers, carriers, and warehouses through an integrated platform, Warp delivers innovative freight technology solutions that prioritize efficiency, sustainability, and customer satisfaction. With a suite of tech-driven offerings, including real-time tracking, cross-docking, and route optimization, Warp provides unmatched reliability, visibility, and transformative impact in logistics and supply chain management.
For more information on how Warp can enhance your logistics network, visitwww.weareWarp.com.
Reducing empty miles—or the distance traveled with no load or cargo—can have multiple benefits, including increased cost savings and streamlined operations. But at its core, it’s about making smarter, more sustainable choices while transporting goods. Here are three components to craft and execute a successful empty miles program, keeping collaboration in mind at each stop along the way.
1. Route Optimization: Streamlining Your Routes to Minimize Empty Miles
Eliminating empty miles begins with route optimization. By analyzing traffic patterns, delivery windows, and geographical distances, logistics leaders can uncover opportunities in their network to minimize empty miles. You can think of route optimization as a more advanced version of strategies used every day by commuters, who adjust their errands to avoid rush-hour traffic, efficiently visit stores in the same shopping center, and use backroads to bypass slowdowns.
To overcome route challenges, organizations should invest in new tools and technology like real-time planning software that helps companies to adjust routes dynamically. These enterprise tools go beyond finding the shortest paths between destinations and unlock granular data on various factors like delivery time windows and vehicle capacity to ensure operations run as smoothly as possible.
Some cutting-edge solutions use artificial intelligence (AI) and machine learning to continuously adjust routes, improve overall productivity, and even boost customer satisfaction rates with reliable tracking information.
To understand what solutions are needed to maximize route potential, companies should evaluate their internal resources and capabilities, as well as consider the type of fleet they manage. For instance, there’s more visibility and direct influence over a private fleet compared to operating through a third party, so the approach may differ in each scenario.
2. Lane Matching & Transportation Collaboration: Team Up to Boost Efficiency and Drive Sustainability
Consider this: According to the U.S. Environmental Protection Agency (EPA), transportation accounted for the largest portion of total greenhouse gas (GHG) emissions in 2022. Now, picture a world where every truck journey is diligently planned to minimize empty space, limit miles on the road and maximize delivery potential—all of which can contribute to reduced greenhouse gas emissions.
This vision becomes reality through collaborative efforts between shippers and carriers. By strategically matching trucks with loads that share similar routes, businesses can drastically reduce their empty miles, helping their bottom line, and the planet. Leaders should look for these lane-matching opportunities, even if that means putting aside competitive differences in the name of the partnership.
Imagine two companies with fast-moving goods that are both sending partial loads down similar routes. By lane sharing and working together to combine these hauls into one truckload, both companies limit the miles spent on the road and improve their asset utilization.
Another form of transportation collaboration involves strategic pickups and returns. Think about the practical example of dropping off pallets along a route and conveniently picking up finished goods from customers on the return trip. This method improves truck capacity while significantly reducing the carbon footprint in each journey.
These key examples underscore the power of partnerships in achieving mutual goals, demonstrating the success industry players can have when they work together toward common objectives.
3. Unit Load Planning: Maximizing Your Space to Reduce Costs
The American Council for an Energy Efficient Economy (AEEE) estimates that 20%-35% of trucks are driven empty, and those that aren’t empty carry just 57% of their capacity. Effective unit load optimization goes beyond filling truck space—it ensures that every cubic inch is utilized to its fullest potential.
Take employees restocking grocery store shelves, for example. In this scenario, load planning maximization looks like stacking cans on top of each other to fit more on a shelf or pulling out better-selling product collections to their own stand-alone display. By actively planning where each product will go, employees can better stock the items and consolidate the number of carts needed to move products.
Within the supply network, companies can explore solutions to optimize their load planning. One includes leveraging test centers, which can uncover invaluable insights into optimal stacking and loading configurations by simulating various scenarios and measuring their outcomes. Taking this a step further, companies can look to adjust their product packaging or transport platforms, such as transitioning to collapsible containers to maximize space. These types of decisions can also translate into substantial cost savings through reductions in labor and handling, pallet costs, and transportation expenses.
Using Technology to Drive Success
While collaboration and strategic planning is fundamental, the impact is even bigger when supported by next-gen technologies. McKinsey reports that 68% of logistics providers and 56% of shippers have invested more in advanced transportation solutions like real-time transportation visibility, route optimization, and telematics since 2020.
These platforms streamline the process of identifying suitable partners by not only considering supply chain variables like anticipated demand but also brand-level commitments like environmental, social, and governance (ESG) objectives. By delivering automated insights, digital solutions empower supply chain leaders to make informed, data-driven decisions to achieve business goals through the best-fit solutions and partnerships.
It's More Than Empty Miles
For many years, businesses have accepted empty miles as a cost of doing business. But the tangible outcomes of collaborative efforts speak volumes. Customer data shows that last year in North America alone, businesses leveraging CHEP’s transportation solutions eliminated approximately 4.7 million empty miles and more than 15 million pounds of C02 from their transportation networks.
When business leaders shift their perspective to recognize that this strategy is more than empty miles, they unlock the future of the supply chain. If companies work together, leverage the latest technology and actively look to better their lane and route strategies, it’s possible to create a more sustainable, productive and resilient supply network.
About the author: Dan Ahrens is the director of Customer Solutions & Zero Waste World at CHEP North America.
Nearly three-quarters of supply chain executives view technology as fundamental to their company’s growth strategy, according to a study by logistics technology vendor Descartes Systems Group, released this week. The study of nearly 1,000 supply chain and logistics leaders from across Europe, North and South America, and Asia-Pacific identified the increasingly complex global trade environment as a major challenge that technology tools can help tame.
“For companies in diverse industries, global trade has become much more complex, with many new challenges to traditional business operations,” Jackson Wood, director, industry strategy at Descartes, said in a statement announcing the findings. “As businesses contend with tariffs and trade barriers, geopolitical instability, supply chain disruptions and compliance requirements, technology tools can help them build greater agility and resilience into their supply chains to compete more effectively.”
The study found that 74% of the supply chain and logistics leaders surveyed view technology as fundamental or highly important to their organization’s growth strategy in the face of rising global trade challenges, including tariffs and trade barriers, supply chain disruptions and geopolitical instability. The number jumps to 88% for companies expecting greater than 15% growth over the next two years. In addition, 59% said they consider technology as extremely or very important to providing a competitive advantage in international trade.
Companies involved in international trade said there are three main tech-focused capabilities that can help them grow and gain a competitive advantage: 36% of respondents cited global trade intelligence—which can help identify new suppliers, markets, and customers—as the top capability required to deliver the greatest value in the next two years; that was followed by global trade analytics at 27%, and supply chain mapping at 26%.
The results also show that respondents across all industries agree that global trade intelligence is the top technology capability expected to deliver the greatest value over the next two years—including, for example, in manufacturing (40%), wholesale and distribution (44%), finance and insurance (38%), and retail (30%) sectors.