The logistics sector is the backbone of the global economy. When businesses can’t reliably and efficiently move products from point A to point B, they suffer from cascading effects of delays, rising costs, inventory issues, and upset customers.
While COVID-19 has been the primary concern of late, supply chains have also been struggling with challenges brought on by the war in Ukraine, inflation, and labor shortages. Simultaneously, there is more pressure on operators to embrace environmental sustainability. Add in long-term demand drivers such as the rise of e-commerce, businesses of all types are forced to pay closer attention to their supply chains and seek out new solutions in the form of innovative technology.
It’s hardly surprising that the global logistics industry is expected to grow at a rate of 17.1 percent annually from 2023 to 2030, according to research by Facts & Factors.
Here are some of the overarching approaches and specific technologies that are helping corporations navigate a dynamic environment and operate as efficiently as possible.
Freight Technologies
Technology is being adapted across dock and yard management systems to help combat congestion and manage the sheer volume of product being moved in and out of warehouses. Here are two companies I have observed making a difference:
• Conduit: Features an automated truck schedule, remote dock assignment and check ins/check outs, and allows rescheduling based on real-time ETAs. Conduit integrates itself with shipping transportation and warehouse management systems on top of carrier and broker systems. This removes a headache for warehouse workers by eliminating the need to start from scratch. Truck driver turnover is a pain point for a majority of companies - an issue that has become more worrisome during labor shortage. Investments in autonomous truck technology reflect the urgency to have a full fleet; such investments currently make up 40 percent of VC investments in the freight tech segment.
• Kodiak: Kodiak is a technology stack designed and tested for autonomous truck driving. Featuring advanced camera technology and a unique mapping approach, Kodiak aims to assist with driver shortages and make fleets more efficient by supplementing drivers who are limited by drive-time regulations.
Loading/Unloading/Devanning
Technology is beginning to play a large role in a time-consuming and physically demanding process. Among the companies I have seen addressing this challenge are Fox Robotics and Pickle.
"Companies that integrate automation-focused tech solutions are gaining considerable advantages in their logistic operations."
• Fox Robotics: Their autonomous forklifts can drive into a trailer, pick up a pallet, and place it in a staging lane, increasing efficiency and help to mitigate the persistent shortage of workers.
• Pickle: It is helping to simplify e-commerce; Pickle is a robot that works alongside humans to unload mixed SKUs and the wide variety of box shapes that exist in the age of e-commerce. Pickle is specifically designed to assist human workers.
Inside the Warehouse
Incorporating technology in the warehouse helps reduce inefficiencies. Two of our portfolio companies, Fulfilld and Third Wave Automation, have been supporting this approach.
• Fulfilld: Ensures operational predictability to reduce inefficiencies in the warehouse. Fulfilld is designed to simplify inventory management by leveraging real-time warehouse movement to provide task instructions, more efficient order cycle times, and more accurate inventory traffic. Fulfilld maps against customer demand and broader supply chain disruptions. The insights Fulfilld provides limit inefficiencies that lead to excess waste while increasing productivity and cutting costs.
• Third Wave Automation: Third Wave’s automated forklifts are equipped with advanced detection software including 3D Lidar, cameras, and sensors to gauge and adapt to the warehouse environment. Workers can spend less time placing and pulling items, and focus on more productive and fulfilling tasks.
Technology Supplements Human Workers
Imagine these technologies incorporated into the full supply chain-- Conduit schedules truck arrivals and departures based on real time insights. Trucks are loaded and unloaded with the assistance of Fox Robotics, freeing up employees for other jobs. Third Wave Automation forklifts take product to and from the staging lane, simplifying a time consuming process. Along the packaging line, Pickle robots help maximize worker efficiency. Tasks are intelligently split between humans and technology across all the previous examples by Fulfilld’s orchestration engine.
In this example, technology is not replacing any warehouse employees, but maximizing productivity to meet demand.
Although these types of technologies often get a negative reputation as job destroyers, they are not designed to replace full time employees. Instead, they aim to automate repetitive tasks, allowing employees to focus on more fulfilling and productive work. In the face of the industry’s labor shortage, this is crucial. Companies that integrate automation-focused tech solutions are gaining considerable advantages in their logistic operations.
Technology is key to solving many of the logistics challenges we face. Tech companies, 3PLs, and corporations across all industries must align on solving the toughest challenges in order to keep the global economy humming.
