www.vecnarobotics.com Open in urlscan Pro
23.185.0.3  Public Scan

Submitted URL: https://email.vecnarobotics.com/e3t/Ctc/GF+113/d2jyWk04/MX3kDB_rZx0W1n1c1974YB1mVrHz2f4-5CNNM_h9pm5nCVBV3Zsc37CgZ2HW4zYB2j587GQ-...
Effective URL: https://www.vecnarobotics.com/resources/promat-2023-recap/?helper___lead_source=Email%20Marketing&suspect_source_detail=April%...
Submission: On May 03 via api from US — Scanned from DE

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Automation Technology • Company • Industry Trends


PROMAT 2023 RECAP: BORING AUTOMATION IS TURNING MAINSTREAM, AND THAT’S A GOOD
THING


Published Apr 5, 2023
Author Matthew Cherewka
Read Time 5 min read


Promat is always an exciting time for industrial automation. It was always a big
deal for the material handling industry, but over the last 6 years it has really
evolved into a robotics show. I can still remember Promat 2017 when there were
just a handful of us robotics startups shoved in the back corner; now AMRs and
picking robots are center stage, displaying some of the most prominent and
impressive booths, claiming over half the exhibition space, and covered in a
majority of seminars and
thought leadership over the course of the event.

In fact, I would argue that Promat has really become to supply chain and
industrial automation what CES has become for automotive and consumer tech –– it
is a time for hundreds of new product launches; a showcase for new startups
looking to enter the market with a splash; a chance to see the latest
technological advances and gawk at new concepts; and most importantly, a
temperature gauge on the market as a whole and a glimpse into where the industry
is heading. And given the dominating presence of robotics everywhere, it is
proof that automation is most definitely the future of supply chain. 

However, the most remarkable part of Promat 2023 is not just the sheer number of
robots present, but the amount of boring robots at the show. Just like CES with
their concept cars and one-off demos that will never be seen or heard from
again, it’s hard not to get enthralled by shiny new toys like humanoid robots,
or to check out early new concepts – like custom trailer loading robots – that
may take off in the next few years. Were they cool? Absolutely. But it’s not my
biggest takeaway from the show. 

What I mainly noticed is that as you walked the floor at Promat you tended to
quickly notice some patterns, namely that there are a lot of companies doing
very “boring” automation – moving pallets from A to B; picking objects from one
bin into another; improving the efficiency of forklift operators and material
handlers in severely understaffed operations so they can still keep up with
demands. It is easy to get caught up in the excitement of the show and get
distracted from mainstream solutions by shiny objects (“I’ve seen it all
before”) – but if anything, this proliferation of “boring” automation should be
the most exciting news of the show for end users. 

What this signals to the market is that flexible material handling automation
has rapidly matured out of innovation proof-of-concepts and into the mainstream.
While the public may get caught up in the hype of potentially deploying POCs of
humanoid robots in EV factories as early as 2025, many leading market analysts
in supply chain and robotics predict that general material handling AMRs and
picking robots will be in the midst of crossing the chasm and exhibiting
explosive growth by then.

You can see it from the vendors as well – we talk less about the technology and
more about case studies, industry niches, and partnerships; we talk less about
the robots themselves and more about workflows and applications; new product
announcements tend to be centered around system-level improvements and the full
product solution, such as analytics software and new integrations; and industry
challenges are far past proving whether the robots work, and are instead focused
on how can we deploy and scale faster and easier. 

What this means for manufacturing and supply chain leaders:


1. “BORING” USE CASES NEED TO BE THE TOP PRIORITY FOR END USERS

Many organizations start their automation journey by trying to automate a
highly-complicated, highly-variable, and high-cost manual task that often
requires very sophisticated automation and yet still retains lots of edge cases
and exceptions (such as trailer loading and unloading). If you only find 1-2
vendors that are reluctantly willing to deploy this challenging and/or custom
use case you have in mind (after several months of additional R&D, additional
$$$$, and using you as a guinea pig), but you can find 10 others that can deploy
a simpler use case with an off-the-shelf solution today, that should tell you
something. While I know this comes from a place of well-meaning by the users,
many have the tendency to start with their hardest problems first, whereas the
most mature users of automation understand that there are plenty of
opportunities for lower-hanging fruit that, while not as exciting, can still
provide plenty of benefits. 

For example, simple A->B pallet movement — such as shuttling from receiving to
VNA staging or from a stretch wrapper to outbound staging — can reduce operating
costs by 25-30% in a large, multi-shift warehouse. While it is not necessarily
the sexiest thing in the world, a retailer or 3PL with multiple large DCs can
substantially reduce costs at scale, as well as develop valuable internal
expertise and best practices for future automation projects. Speaking of which…


2. BUILD INTERNAL CAPABILITIES AND STANDARDS TO PREPARE YOUR NETWORK FOR
AUTOMATION

A recent McKinsey study noted that outside of costs and ROI challenges — which
will inevitably improve as the technology scales and labor rates continue to
rise — technology readiness, lack of knowledge and implementation, integration,
and onboarding challenges are the biggest blockers to adoption. This makes sense
given we’ve built warehouses and factories around humans and manual operations
for decades and that this is new technology, but it is not insurmountable. 

Take note from market leaders that have successfully adopted automation at scale
by forming centralized, multidisciplinary automation teams that can onboard new
technology, disseminate knowledge, and drive standards across the enterprise.
For example, operations and engineering leadership can identify candidate sites
that are ready to deploy while driving towards standardized processes and
materials across the network instead of each facility operating independently
with custom workflows and payloads. IT leadership should ensure adequate
wireless infrastructure is in place to enable these systems and upgrade to
modern, standardized WMS/ERP systems to simplify integrations. All of which is
driving towards:


3. AUTOMATION NEEDS TO BE AN EXECUTIVE-LED INITIATIVE, NOT A ONE-OFF PROJECT

Most importantly, users need to effectively change the way they adopt
automation.

Historically, material handling automation has consisted of custom projects for
individual facilities, spearheaded by individuals at the local level with capex
budgets allocated from corporate line executives. This leads to current industry
bottlenecks – high levels of customization that drive up costs and technology
risks; lengthy budgeting and deployment cycles leading to cost overruns and
project fatigue; and business case challenges when selling up to executives due
to viewing each deployment as a short-term cost reduction project vs. a
strategic initiative. 

Instead, supply chain leaders need to view material handling automation as a
strategic technology investment. Modern material handling automation — while
still consisting of physical equipment — is a software-driven system and should
be treated similar to the way IT makes centralized decisions and adoption
strategies for other software systems. Automation strategies should start with
the CSCO and CIO, and leverage the centralized teams mentioned above to
effectively onboard new vendors and use cases while driving towards a broader
vision and scalable, standardized solutions. 



So to recap the #1 lesson from Promat 2023 – while there were a lot of cool new
robotic concepts that grabbed a lot of attention, the more important takeaway is
that there were also a lot more “boring” robotic systems that are mature, in
production, and ready for scale.  Does this mean companies should stop piloting
innovative new robotics technologies and use cases? Of course not. But it does
mean that they need to prioritize investing in proven technologies/case studies
and developing their own organizations so they can effectively bridge the gap
from piloting innovation to truly reaping the benefits of automation at scale. 

To learn more about how to adopt “boring” automation technologies at strategic
scale, Vecna Robotics will have a booth and a presentation slot at the upcoming
Gartner Supply Chain Expo in Orlando May 8-10. To get your Return on Robotics
analysis kickstarted, consult our ROR Calculator. For more information about how
you can get started with your logistics automation journey, go to our From No
Bot to Robot page, or can contact us today to schedule a consultation with a
factory automation expert.

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Tags AUTOMATION

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