Skip to content
Search AI Powered

Latest Stories

Material handling sector needs to woo generations Z and Alpha

Youngest workers will lead industry’s adoption of cloud computing, robotics, and machine learning, MHI panel says.

children generic pic

Companies throughout the logistics sector are focused on finding enough labor to drive trucks and stock warehouses, but too much of that current discussion is focused on thirty-something millennials instead of on the rising generations that will soon replace them, known as Generation Z and Generation Alpha, according to a panel discussion hosted by the industry group MHI.

Although the eldest members of Generation Alpha are barely 10 years old today, they will enter the workforce in just a decade, bringing with them a completely different lens for viewing technology and its place in the workforce than any previous group, speakers said in the online session “Roadmap 3.0 Panel: Transformation Age: Shaping Your Future.”


For example, by 2030, robotics and augmented reality will be in mainstream use for warehousing, manufacturing, and distribution centers, the panelists said. The session was a part of Charlotte, North Carolina-based MHI’s annual Fall Meeting, held as a virtual event this year due to the coronavirus pandemic.

Those new technologies will be natural tools—not challenging novelties—for the children now growing up around them, according to MHI. Strict definitions vary, but many researchers say millennials (also known as Generation Y) are those who were born between 1980 and 1995, followed by Generation Z with birthdays between 1996 and 2015, and Generation Alpha born between 2010 and 2025.

That workforce of the future will be more diverse, more dispersed, and more highly skilled than their predecessors, said panelist Brett Wood, CEO of Toyota Material Handling.

They have enormous potential to help companies move toward a more technology-enabled future, but many material handling firms will need to adjust their hiring strategies to recruit and retain them, Wood said. For example, the younger generation expects sustainability to be a core value of the company they join, not just a special project. Likewise, they want to work for companies that are good corporate citizens, not merely by writing checks, but by offering their employees paid time off to volunteer at local charities, for example.

For companies that can make those changes, the rewards of landing next-gen employees can be enormous, because the very foundations of technology are already changing around us, said panelist Melonee Wise, CEO of autonomous mobile robot (AMR) vendor Fetch Robotics.

In order to forecast the technology that will be in common use 10 years from now, she pointed at the heritage of today’s robotics and machine learning platforms, many of which were first developed about 20 years ago. Applying that same yardstick to the future, she said that within 5 to 10 years, we’ll see a better leveraging of hosted cloud platforms. “So don’t be afraid of the cloud. That’s where you’ll get the best leverage for your data and capabilities,” Wise said. “One of the biggest limits in robotics is computation power for executing algorithms. The only way to do it is to scale up, and you can do that in the cloud.”

Another implication of the rise of cloud computing will be new applications in edge computing, also known as “the fog” because it is neither nailed to the floor nor hovering virtually in the cloud, but living somewhere in between, like robots, Wise said.

As well as hiring a new generation of workers who are comfortable with that approach, logistics sector companies must also demand more of their leaders, said panelist Nara Eechambadi, CEO of Quaero, a customer data platform provider. “Companies need a more data-centric mindset, not just about raw data but about analytics and insights,” he said. “We need to democracize data, make it available so people can use it to make better decisions and do their jobs better.”

According to Eechambadi, American business executives too often defer to their company’s chief technology officer (CTO). Instead, they should emulate savvy European business leaders, who learn the basics of new technologies themselves. While executives don’t have to be experts, they do need to know how to ask the right questions, he said.

Fortunately, executives can start boosting their technology games right now, because the essential infrastructure is already available, in the form of cloud-based computing and open-source software development. So leaders need to focus on interoperability and adaptability with those trends, and avoid getting bogged down in trying to duplicate the same foundation within their own companies, Eechambadi said.

Recent

More Stories

cover of report on electrical efficiency

ABI: Push to drop fossil fuels also needs better electric efficiency

Companies in every sector are converting assets from fossil fuel to electric power in their push to reach net-zero energy targets and to reduce costs along the way, but to truly accelerate those efforts, they also need to improve electric energy efficiency, according to a study from technology consulting firm ABI Research.

In fact, boosting that efficiency could contribute fully 25% of the emissions reductions needed to reach net zero. And the pursuit of that goal will drive aggregated global investments in energy efficiency technologies to grow from $106 Billion in 2024 to $153 Billion in 2030, ABI said today in a report titled “The Role of Energy Efficiency in Reaching Net Zero Targets for Enterprises and Industries.”

Keep ReadingShow less

Featured

Logistics economy continues on solid footing
Logistics Managers' Index

Logistics economy continues on solid footing

Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.

The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.

Keep ReadingShow less
iceberg drawing to represent threats

GEP: six factors could change calm to storm in 2025

The current year is ending on a calm note for the logistics sector, but 2025 is on pace to be an era of rapid transformation, due to six driving forces that will shape procurement and supply chains in coming months, according to a forecast from New Jersey-based supply chain software provider GEP.

"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."

Keep ReadingShow less
chart of top business concerns from descartes

Descartes: businesses say top concern is tariff hikes

Business leaders at companies of every size say that rising tariffs and trade barriers are the most significant global trade challenge facing logistics and supply chain leaders today, according to a survey from supply chain software provider Descartes.

Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.

Keep ReadingShow less
photo of worker at port tracking containers

Trump tariff threat strains logistics businesses

Freight transportation providers and maritime port operators are bracing for rough business impacts if the incoming Trump Administration follows through on its pledge to impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China, analysts say.

Industry contacts say they fear that such heavy fees could prompt importers to “pull forward” a massive surge of goods before the new administration is seated on January 20, and then quickly cut back again once the hefty new fees are instituted, according to a report from TD Cowen.

Keep ReadingShow less