Cover Story Eileen Schmidt
As e-commerce grows, automation and artificial intelligence help companies keep pace
RightHand Robotics piece-picking solution installed in a PALTAC Corporation facility – Japan’s largest wholesaler of consumer packaged goods.
Recent months, and the last holiday season, in particular, brought an e-commerce boom like no other. As the pandemic accelerated trends already in motion, online shopping and deliveries exploded and possibilities surrounding automation and artificial intelligence zoomed to the forefront. Now as businesses consider the changing landscape, the use of automation and AI are weaving more tightly into the practices of many operations. A Permanent Shift At DHL Supply Chain, Kraig Foreman said the shifts that occurred in shopping patterns during the pandemic are here to stay. “It’s not a temporary change,” said Foreman, president of eCommerce for North America, of the rapidly rising levels of online shopping and home delivery. While such patterns were increasing before the pandemic, Foreman said that March and April of 2020 contained a big e-commerce spike coinciding with the spread of the coronavirus. The subsequent 2020 holiday season also presented major increased demand for e-commerce and delivery. At DHL, Foreman reported a “very successful peak season.” “There was a lot of work and effort in the industry to make it successful. Parcel carriers did a great job. I think retailers did smart things in bringing in promotions early, before Black Friday,” he said. “Overall, the industry did a great job considering the unprecedented level of volume.”
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March 2021
The need for additional labor was apparent, however, both over the holidays and currently. “The more (e-commerce) expands, the more labor we’re going to need. That is where technology is going to be important,” Foreman said. Technology can help fill gaps, but Foreman added that businesses will also need to hone their appeals for workers. “When a shortage exists, as an employer in the market you have to win the contest for labor,” he said, noting this is something DHL has remained focused on - building a work environment and culture appealing to workers. Also important is “getting technology into our businesses that help reduce some of the burdens and also make the work content more appealing,” Foreman said. There are a host of growing areas in both automation and artificial intelligence that Foreman said is exciting for the industry, like advancing analytics. “That’s a big game-changer for the industry,” he said. “It is changing from us looking through the rearview mirror to looking through the windshield,” he said. Foreman also mentioned advancements in robotics as part of the new landscape, including picking robots. Robots Lend a Hand This is an area focused on at RightHand Robotics. “We are building data-driven, intelligent picking platforms useful for predictable order fulfillment,” said Vince Martinelli, head of product and marketing for the company. He noted the frequent number of points during the e-commerce process when a product needs to be handled. If robotics can help at some of those points, then he said the process can be streamlined. Picking automation has solution: RightHand Robotics developed beyond what was RightPick2 next-generation, data-driven picking envisioned even as recently platform which provides flexible and scalable automation for predictable order as a decade ago, according fulfillment. to Martinelli, aided by the advancement of cameras. Cameras are cheaper and can now perceive depth, allowing a robot to be equipped to sort items from a pile. “This machine learning that has emerged in the last eight years that makes it such that you can teach and train systems to do cognitive
