Digital’s 2021 Year in Review: Industry 4.0

Autonomous mobile robots (AMRs) have quickly grown into the go-to solution for automated material handling across multiple industries — chiefly finding success in supply chains where the rise in e-commerce has led to the need for optimized distribution center workflows. This business problem gave rise to the era of AMR startups. After a few years of hesitation and questions around ROI, customers are quickly jumping on the bandwagon, deploying AMR technology in their warehouses and even in public spaces like grocery stores and other retail establishments. However, clients should remain cognizant that AMRs in public spaces will experience slower adoption due to challenges around the education of the public and requirements for high safety standards. Moving forward, OEMs supporting AMRs will look for diversification to adjacent sectors given that the same technology can be used in outdoor settings for applications like last-mile delivery.

The unprecedented disruption to the supply chain brought on by COVID-19 in recent years has left companies looking for ways to alleviate this pressure. Amazon, the world’s largest e-commerce company, has certainly felt the effects brought on by these disruptions. In order to combat this, Amazon has initiated their Industrial Innovation Fund to help spur technological innovations that can reduce the burden on the greater delivery infrastructure. The fund is stage agnostic, awarding funding to startups and established companies alike while focusing on all areas of the market, including customer fulfillment, logistics, and the greater supply chain. So far, Amazon has invested its first billion dollars for supply chain, fulfilment, and logistics innovation, but the company has said it has plans to support innovation across a larger array of use-cases and digital technologies Notable startups in the first cohort In the first round of investments, Amazon wanted to focus narrowly on innovation in two areas: Warehouse Robotics: Warehouse robotics has seen a lot of advancement in recent times, and that is not unwarranted. Robotics can have a wide array of use-cases within the warehouse, and they all can reduce employee load while improving efficiently. The technology can also increase safety in the warehouse, moving humans out of dangerous situations and replacing them with robots. Agility Robotics: Developer of a legged robot that is designed to work with humans in a warehouse setting. The robots are intended to move like people, meaning they have an easier time navigating human-centric spaces such as Amazon fulfillment centers. Bionic Hive: A warehouse robotics company that designs robots intended for Industry 4.0. The company's robot, SQUID, is designed to work in any warehouse, so customers do not have to change their current model of operation. Mantis Robotics: A developer of a cobot that is intended to improve human workers' efficiency and productivity in the warehouse. Warehouse Wearables: Much like warehouse robotics, one of the chief use-cases of wearables within the warehouse is safety. Wearables can alert employees to hazardous situations before a human may notice, reducing accidents during the course of work. Another strong use-case is of the technology is optimization, with wearables allowing companies to track employee movement. Within the warehouse, routing is key. Wearables allow companies to develop optimal routes that will allow employees to reduce the amount of time and steps taken while increasing productivity. ModJoul: An Internet of Things company offering warehouse wearable technology that provides employees with haptic alerts for unsafe conditions while also collecting data on employee movement for optimization purposes. The wearable leverages an radio-frequency identification system to assist with inventory control, asset protection, and personal protective equipment compliance. Vimaan: An inventory tracking company that helps customers achieve greater inventory accuracy using a variety of technologies. Products include, a parcel, ground, pallet, and air tracking system. Lux Take With USD 1 billion on the line, the Amazon Industrial Innovation Fund has a lot of capital to work with. The fund is still in early stage investments and is looking for investment opportunities the fields of robotics, artificial intelligence, machine learning, and autonomy. As of April 2022, the fund is currently taking applications from players in these fields. Clients within warehouse robotics, warehouse wearables, or any other technology with strong warehouse use-cases should look at how they can partner with Amazon to identify strategic partnerships and investments that can boost their own organizational supply chain and logistics demands in this current volatile pandemic environment.

Digital twins serve as solid platforms for integrating data from assets and processes while grounding them in physical reality via physics-based models. Major incumbent industrial software companies have offered versions of this technology for a while; however, with the recent drives in digital initiatives, data integration has become an important component. This removes data silos within organizations and expands the use of the digital twin of an asset beyond one specific use-case across the value chain, including design, manufacturing, and operations. Because of this unique feature, the digital twin is becoming a keystone digital initiative for physical industries. Clients interested in working with external partners should note that digital twin development is not a one-off engagement but will last longer-term; it's critical to be mindful about data ownership and engage with companies that do not have a conflict of interest with your competition.