Personal Interview: Mike Futch of Tompkins Robotics

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Mike Futch is the president, CEO and co-founder of Tompkins Robotics. He was instrumental in bringing the company’s robotic sorting systems to market and continues to lead much of the new application development, product conceptualization and partner integration. Futch also had a successful career in the US Air Force and as a leader in several consulting firms. He recently spoke with David Maloney, DC speed’editorial director of the group.

Q: WHAT IS THE CURRENT STATE OF THE ROBOTIC INDUSTRY?

A: The robotics industry is strong and continues to grow at a rapid pace. The main driver for this is the increase in job content and labor shortages combined with rapidly rising wages. The increase in work content is due to supply chains handling more and more individual items. As item processing increases and there is less case processing, the work content increases.

Combining this with the availability, retention and cost of labor creates a serious deficit for firms to meet demand. Robot solutions enable increased efficiency, accuracy and overall productivity. Robotics also allows a company to do more work, add capacity and create a better work environment with the same staff. The ability to integrate and develop new robotic solutions will continue and only further accelerate the adoption of robotic technologies.

Q: WHAT IS THE TIPPING POINT AT WHICH DISTRIBUTORS REALIZE THEY NEED TO MOVE FROM MANUAL TO AUTOMATED SYSTEMS?

A: Labor and capacity concerns have forced companies to consider automated alternatives. With the growing adoption of robotic technologies, there are also proven quantifiable metrics that companies can examine to determine the business case for adopting robotic solutions. Total cost of ownership, reduction of human error and associated savings, space constraints, utilization of existing facilities, time to value, and return on investment (ROI) are all key performance indicators that have shown improvements with robotic implementation.

Also, workforce changes are important. Removing repetitive and difficult work tasks from workers and elevating them to manage robotic fleets creates value for that workforce and the employer. Another driver for investment in automation is customer expectations and service level requirements, such as 100% accuracy and quality and speed of delivery. As more robotic solutions are implemented, these measurable goals will become more prevalent for decision makers.

Q: WHAT TYPES OF ROBOTIC APPLICATIONS ARE ATTRACTING THE MOST DISTRIBUTORS’ INTEREST?

A: With the tremendous growth of e-commerce and direct-to-consumer buying habits, person-to-person (GTP) picking and autonomous mobile robot (AMR) sorting have become a key focus for fulfillment and distribution centers. The implementation of automated storage and retrieval systems (AS/RS) is a major trend and can help companies deal with space and manpower constraints.

Sortation systems that allow for large lot picking with sorters that arrange items in the correct order are another major trend, and AMRs fill this need. A new trend that is becoming prevalent is combining these solutions into a more efficient and comprehensive implementation solution.

Q: IN WHAT WAYS ARE ROBOTIC SYSTEMS HELPING COMPANIES SCALE THEIR TRANSITIONS TO AUTOMATION?

A: The most cost-effective robotic solutions provide flexibility for facility operations. Solutions that allow robots to be added for peak hours or as a company’s business grows give a company the ability to purchase what it needs today without sacrificing its ability to adapt for future growth. The ability to integrate robotic systems as operational needs change, implement solutions with strong ROI, and create a better work environment for workers is necessary in today’s climate.

An example would be to add one type of system today, say Tompkins Robotics’ tSort AMR sorting system. For a company new to automation, this “entry point” will allow it to introduce robotic technology on a budget, within a small space, and with minimal technical resources, training, or management requirements. Then, after a few months, it can add a robotic induction or GTP solution to bring the items to sorting, which will further improve productivity and ROI. This allows the company to demonstrate efficiency and introduce robotic technology without wholesale changes or large initial capital investment.

Q: ARE THERE PRACTICAL LIMITS ON THE AMOUNT OF AUTOMATION CUSTOMERS SHOULD HAVE IN THEIR FACILITIES AND WHAT DETERMINES THIS?

A: The only real limits to automation are set by company leadership, not foresight. Some leaders fear change, are afraid of new technologies, or see robotics as a risk. However, others see robotics in their supply chain as having the potential to increase margins through lower fulfillment costs and provide a strategic advantage over market competition.

The automation market is mature and reliable solutions are available. For example, robotic AS/RS systems are in approximately 1,000 sites, and the number of deployed AMR sorting robots exceeds 20,000. There are CapEx, leasing and OpEx (robots as a service or RaaS) options on the market. The perception that automation is a long journey and creates inflexibility in the supply chain is wrong. Determining the set of expected requirements for your company, researching solutions to find the right one, and verifying that the company can deliver will allow you to choose a supplier that will make the project successful. Provided you find the right fit, there should be very few limits on the ability to automate.

Q: WHAT TYPES OF ROBOTIC DESIGNS WILL WE SEE BY 2030?

A: There will be a continued push towards flexible, scalable, interoperable and modular solutions. Gone are the days of large, expensive fixed solutions that need to be built for growth projections five and 10 years out. The market is changing, new channels are emerging, dynamic and fluid things are happening. We only have to look at the last 2.5 years to see dramatic evidence of this. Operators require the ability to change as market events and their customers’ needs and buying habits change.

Tompkins Robotics has always challenged our entire company, led by our product and software development teams, to deliver solutions that can be moved to new facilities, scale with our customers’ needs, maintain an open API [application programming interface] software for integration with systems of partners or existing customers and development of new products and services. Also, there will be more pressure to move from manual and traditional automation to the world of robotic automation. The future is a fleet of robots doing the same jobs as humans or the fixed, inflexible systems of the past. It’s not a question of whether; it’s a question of when. And now is the time when change is gaining momentum. This is the future.

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