28 November, 2025

MIT finds AI Embedded in 60% of Warehouses

Posted on 28 November, 202527 November, 2025 by David Priestman

Research from Mecalux and the MIT Intelligent Logistics Systems Lab, based on a survey of 2,000+ logistics leaders, shows rapid automation and AI adoption, 2–3 year payback periods and rising demand for high-skill warehouse roles.

As retailers brace for the annual surge of Black Friday demand, a new study from Mecalux and the MIT Intelligent Logistics Systems (ILS) Lab at MIT’s Center for Transportation and Logistics reveals that the warehouses powering today’s global supply chains have entered a new era of intelligence. The research, drawing on responses from over 2,000 supply chain and warehousing professionals across 21 countries, shows that artificial intelligence and machine learning are no longer experimental tools but core drivers of productivity, accuracy and workforce evolution.

With more than 9 out of 10 warehouses now using some form of AI or advanced automation, the sector has reached a surprising level of maturity. Over half of surveyed organisations report operating at advanced or fully automated maturity levels, especially among larger businesses with complex multi-site logistics networks. Warehouses have moved well beyond isolated pilots in that AI increasingly supports day-to-day workflows, including order picking, inventory optimisation, equipment maintenance, labour planning and safety monitoring.

“The data show that intelligent warehouses outperform not only in volume and accuracy, but in adaptability,” says Javier Carrillo, CEO of Mecalux. “As peak season approaches, companies that have invested in AI aren’t just faster — they’re more resilient, more predictable and better positioned to navigate volatility.”

The study also finds that AI investments are paying off more quickly than many expected. Most businesses now dedicate between 11% and 30% of their warehouse technology budgets to AI and machine-learning initiatives, and the typical payback period is just two to three years. These returns stem from measurable gains in inventory accuracy, throughput, labour efficiency and error reduction. They also reinforce a shift from exploratory spending to long-term capability building. Cost savings, customer expectations, labour shortages, sustainability goals and competitive pressure all drive these investments, demonstrating that AI’s value extends far beyond automation alone.

Despite this progress, organisations continue to face challenges as they scale AI across their operations. “The hard part now is the last mile: integrating people, data and analytics seamlessly into existing systems,” says Dr. Matthias Winkenbach, Director of the MIT ILS Lab. The leading barriers include technical expertise, system integration, data quality and implementation cost, reflecting the underlying work required to connect advanced tools with legacy systems. Even so, companies report strong foundations in data and project management, and they identify better tools, clearer roadmaps, expanded budgets and stronger internal expertise as key accelerators for continued adoption.

Crucially, the report challenges persistent fears about automation replacing human workers. Rather than supplanting human workers, AI is contributing to higher productivity, greater job satisfaction and expanded workforce opportunities. More than three-quarters of surveyed organisations saw a rise in employee productivity and satisfaction after implementing AI tools, and over half reported growing the size of their workforce. New roles are emerging across the board, including AI/ML engineers, automation specialists, process-improvement experts and data scientists — evidence that intelligent automation is expanding, rather than reducing, the human role in warehouse operations.

Looking ahead, nearly every company surveyed plans to scale up its use of AI over the next two to three years. An overwhelming 87% expect to increase their AI budgets, and 92% are currently implementing or planning new AI projects. The next frontier, the report shows, will centre on decision-making technologies — especially generative AI. Businesses identify generative AI as the single most valuable method in today’s logistics facilities, citing applications such as automated documentation, warehouse-layout optimisation, process-flow design and even code generation for automation systems. As these capabilities advance, AI will help a growing number of warehouses move from predictive insight to automated action.

“Traditional machine learning is great at predicting problems, but generative AI actually helps you engineer the solution,” says Dr. Winkenbach. “That’s why companies see it as the biggest value generator in the warehouse today. Ultimately, the measurable gains from automation are productivity wins, making existing systems work smoother, faster and with fewer disruptions.”

The study underscores that as the logistics sector enters the year’s busiest season, the warehouses behind Black Friday orders are not only becoming more automated, but more intelligent systems. With AI boosting performance, supporting workers and enabling new capabilities across global networks, the coming years propose even deeper integration of data and decision-making into the core of warehouse operations.

Driving the Future of Transport

Posted on 28 November, 202519 November, 2025 by Peter MacLeod

Peter MacLeod speaks with Girteka Transport’s CEO Mindaugas Paulauskas about the critical shortage of drivers, and what measures his company is taking to attract and retain people.

As Europe’s driver shortage deepens, logistics operators are being forced to confront a simple question: is investing in drivers a necessary cost or a competitive advantage? For Mindaugas Paulauskas, CEO of Girteka Transport, the answer is clear. “It is the future of transport,” he tells me. “Without investing in drivers – in their skills, working conditions, well-being, and long-term prospects – the industry will not sustain itself.”

From its base in Lithuania, Girteka has grown into one of Europe’s largest asset-based transport companies, operating a fleet of more than 10,000 trucks and specialising in temperature-controlled and high-value logistics. Yet even at this scale, the company faces the same structural challenges reshaping the European road freight sector: an ageing driver workforce, tightening labour rules, and a shrinking pool of qualified recruits.

Regulatory Bottleneck

However, amidst this landscape Girteka continues to attract applicants. “We don’t face a shortage of interest – drivers actively apply to join Girteka, and many come through referrals. We even see former drivers returning, having noticed how much our working conditions have improved.”

The real bottleneck, Paulauskas argues, is regulatory rather than motivational. “Visa rules and work permit requirements have become significantly stricter compared to just a few years ago. For a company operating across Europe, these constraints affect how quickly we can onboard qualified drivers, even when the talent is there.”

Paulauskas believes the situation will worsen unless policymakers act. “The profession is becoming less attractive to younger generations, and without meaningful policy action across the EU, the shortage will not ease on its own. Current political trends are moving toward tighter labour mobility and migration controls, limiting access to professional drivers from outside the EU.”

Investing in drivers

At Girteka, driver recruitment and training are viewed as long-term investments, not reactive measures. “The only way to retain drivers and maintain service quality is to focus on people – their wellbeing, safety, satisfaction, and professional growth,” says Paulauskas.

The company plans to invest around €300,000 in 2026 to upgrade its Drivers Academy, reinforcing skills in areas such as load securing, temperature control, and the use of advanced safety systems. “Many of our drivers come from different countries, where standards and vehicle requirements may vary,” he explains. “It’s our responsibility to ensure they operate at a consistently high European level.”

This focus on competence goes hand-in-hand with a modern fleet strategy. Earlier this year, Girteka signed an order for 2,000 Volvo FH and FH Aero heavy-duty trucks, believed to be Europe’s largest truck deal of 2025. Girteka believes the investment ensures that its drivers have access to some of the most advanced vehicles on the market.

In parallel, an injection of €173 million of financing will support further fleet renewal through 2025-2026. “Modern trucks improve safety, comfort, and efficiency,” Paulauskas (pictured, below) says. “They reduce fatigue, enhance reliability, and make daily operations smoother, benefits that drivers immediately recognise.”

Human Insight

For Paulauskas, understanding driver experience is not theoretical. In 2024, he launched his ‘Mindaugas on the Road’ initiative, in which he spent several days travelling with one of Girteka’s drivers. “I wanted to see the job through their eyes – not from the office or reports, but from the driver’s seat,” he recalls.

His observations pointed to deeper systemic challenges. “Infrastructure in Europe is still not where it should be. The Mobility Package requires drivers to take weekly rest outside the cabin, yet there are not enough hotels, secure parking areas or rest facilities to make that possible everywhere. So, if the industry must provide these conditions, who takes responsibility for the parts outside our control? These are the real questions we need to solve collectively.”

Beyond pay, Paulauskas emphasises social and cultural factors: “Drivers want to feel appreciated, have proper rest, and live a life outside of work. We put strong focus on respectful communication, work-life balance, and creating a supportive environment. With more than 10,000 drivers, we’re truly a multicultural company, so empathy and understanding are essential.”

He rejects the notion that wellbeing is optional. “Rest, health, and safe working conditions are not ‘extras’. They directly influence performance, safety, and how clients perceive us. Ignoring wellbeing only creates bigger problems later for drivers, companies, and the transport sector as a whole.”

Shared Responsibility

Encouragingly, customers are beginning to consider driver wellbeing in their selection of logistics partners. “That’s a positive shift,” says Paulauskas, “but collaboration is still limited when it comes to action. Too often, the responsibility is pushed entirely onto logistics service providers.”

He argues that genuine progress requires cooperation. “We cannot improve conditions at thousands of loading and unloading sites across Europe on our own. Basic things like rest areas, showers, or secure parking depend on how facilities are managed. That’s where partnership is needed.”

Building on his earlier initiative, Mindaugas plans to extend his on-the-ground approach by observing operations at customer facilities. “We’re planning a new campaign, similar to ‘Mindaugas on the Road’, but focusing on loading and unloading sites. Only by experiencing these realities first-hand can we have an honest conversation about what needs to improve and how responsibility should be shared.”

Looking ahead, Paulauskas believes policymakers have a vital role to play. “Easing legal requirements for non-EU drivers could help address the shortage in a realistic, long-term way,” he suggests. “In the short term, better alignment on load-weight rules and stronger support for intermodal transport could improve efficiency and help companies operate with the workforce they already have.”

He also urges greater industry involvement in Brussels. “Policy discussions must include logistics companies and industry leaders so that decisions reflect real-world challenges and feasible solutions, not just theory.”

Central to Girteka’s strategy is its Drivers Academy, which offers structured onboarding, continuous skills development and a clear career path. “For newcomers, it helps them integrate faster and feel supported. For experienced drivers, it’s a place to refresh and upgrade their skills as technology and customer expectations evolve,” says Paulauskas. “It shows that we are serious about giving people the knowledge and confidence to grow.”

That sense of commitment – from training to technology – underpins Girteka’s appeal as an employer of choice. “Drivers value a smooth recruitment and onboarding process, access to professional development, and competitive pay,” he explains. “Those three elements make their work more enjoyable, predictable, and supported, and they give confidence to new drivers just starting their careers.”

The Road Ahead

For Paulauskas, the message is simple: investment in people is the only sustainable route forward. “If we don’t believe there is a future for transport, despite all the challenges we face on the road and all the effort we put into it, then what are we really working for?”

In an industry too often driven by margins and mileage, Girteka’s approach offers a stark reminder that progress depends not just on trucks, but on the people behind the wheel.

‘Zero Muda’ Forklifts

Posted on 28 November, 202528 November, 2025 by David Priestman

Japanese titan Toyota embraces a ‘zero muda’ (no waste) lean philosophy that aims to eliminate the unnecessary consumption of time, money or effort. It extends to the Toyota Materials Handling business, which took visitors to IMHX Birmingham, including David Priestman, on a journey through six distinct zones that showcased a full-service provision.

With a firm commitment to net zero carbon neutrality by 2041, Toyota Materials Handling (TMH) puts ESG at the heart of its manufacturing and delivery. One process in achieving that is the usage of ‘zero carbon’ steel at its Swedish factories. This is recycled steel that is recovered, processed and then re-melted for use in forklift and warehouse vehicle production. The plants run on renewable energy including hydrogen and Ecovadis certification recognition has been achieved as a result.

Safety is paramount in the forklift industry, to protect workers and minimise accidents. TMH aim for continuous improvement in this area – a concept derived from the kaizen (good change) concept and method pioneered by Japanese producers. One example of progress are the new ‘BT Levio’ low-lifter powered pallet trucks, 1.3t to 2.0t. Available with lithium-ion or lead-acid battery, the trucks are equipped with cameras that provide surround sensing. It will automatically stop if it drifts towards someone’s leg, for instance. Audible alarms will sound when there is a risk of contact, and the cameras assist with the Levio’s ‘curve control’ turning.

Waste not, want not

On the energy front, ‘BT Reflex’ reach truck models now come with hydrogen fuel cell variants, with which the only by-product is water. The fuel cell system consists of the fuel cell stack, the 350-bar hydrogen tank, a small lithium-ion battery to temporarily store surplus energy, and a fan. All this is contained in a cast frame the size of a classic lead-acid battery and can be installed relatively easily in a conventional electric forklift.

Inside the fuel cell stack, the hydrogen is mixed with air, where it reacts with the oxygen in the air to produce water. During this chemical reaction, electrical energy is released; this energy is collected and used to drive the electric motors that power the forklift’s propulsion, lift and tilt systems. Suitable for pallet stacking up to 13m, block stacking, drive-in racking, outdoor use and operating in cold storage facilities, Reflex load capacities range from 1.2 up to 2.5 tonnes.

Connectivity and data and provided through the ‘My Toyota’ fleet management system. This details service levels, safety and telematics data, for example on usage and ‘shock’ incidents. Real time location, precise to 3cm, is achieved via AI cameras and mapping of the warehouse facility, including pallet locations.

Within the TMH group, mobile automation solutions including AMRs, order picking and automated mini-load storage are offered by the former Viastore Systems business in Europe (acquired in 2022), and by Bastian Solutions (acquired in 2017) in North America, as well as shuttles and automated pallet carriers. Automated reach trucks can work up to 12m high, can operate double-deep pallet storage and are provided on a rental basis only, enabling scaling up or down when required. Automated and manual warehouse vehicles are assembled on the same production line and engineers are trained to service and support either type.

Finally on the tour I was able to speak to Noel Blake from Vanderlande UK. Also part of the TMH global group, Vanderlande is branded by TMH UK as Toyota Automated Logistics, offering turnkey systems integration for fixed automation, conveying and sortation, including as a reseller of the AutoStore ASRS. I questioned why Vanderlande sells this product and the answer inevitably is, “why reinvent the wheel.”
But will the famous orange brand survive in the long term? I was unable to get a definitive answer, but we at Logistics Business are on-record for being sceptical of mergers and acquisitions as they often diminish competition, which is a waste after all.

Geopolitics Redrawing Commodity Supply Chains

Posted on 28 November, 202527 November, 2025 by David Priestman

Global commodity supply chains are being reshaped by the new realities of geopolitics, writes Dan Romanelli, SVP of Quoreka.

The combined effects of sanctions, tariffs and regional realignments have up-ended the once-connected network that moved energy, metals, and agricultural products around the world. The result is a trading environment where logistics and risk management are gaining as much visibility as front office processes.

What began as a series of short-term disruptions, from the Covid-19 pandemic to port congestion and sanctions, has evolved into a structural shift in how global trade operates. The Russia-Ukraine conflict exposed how dependent Europe had become on single-route energy corridors, while escalating US-China trade tensions are prompting countries across Asia and the Americas to diversify suppliers and logistics hubs. These changes have redrawn trade routes and altered traditional sourcing models, introducing both resilience challenges and new opportunities for regional players.

For logistics planners and commodity traders alike, the rebalancing of flows is far from straightforward. Europe’s search for alternative gas and metals suppliers, or China’s expanding links with differing economies, illustrate how politics can define supply as much as price or demand. Long-established trade corridors are slowly being augmented to include new, costlier ones that can be harder to predict and maintain. Cargoes are being rerouted, blending standards are shifting, and inventory management has become a far more dynamic process than it was a just a few years ago.

At the same time, the return of tariffs and export controls has complicated procurement and pricing. Fluctuating trade policy distorts price discovery and arbitrage, forcing firms to hedge more aggressively and to make faster decisions about storage, transport, and contract exposure. For bulk commodities such as copper, nickel, wheat or corn, the knock-on effects reach from mine and field to port and warehouse. Logistics teams must adapt to changing flows while contending with higher insurance premiums, longer lead times, and increasingly volatile freight markets.

Even efforts to strengthen supply chain security bring trade-offs. Nearshoring and so-called ‘friend-shoring’ are reshaping regional manufacturing and logistics hubs, but they also create inefficiencies that must be managed. More production is being brought closer to home yet input materials often still cross multiple borders. That means greater reliance on real-time data and collaboration between trading, procurement and logistics teams.

CTRM’s Expanding Role in a Fragmented Trade Environment

This environment has elevated the role of Commodity Trading and Risk Management (CTRM) systems beyond their traditional remit. Once used mainly for pricing, position management, and compliance reporting, CTRM platforms are now at the heart of operational resilience. Modern solutions integrate real-time shipping and warehouse data, cargo tracking and country-level risk analysis, helping firms model disruption and re-route shipments before losses mount.

In practice, that means traders and supply chain operators can run scenario tests to simulate events such as sanctions, port closures, or even extreme weather events. By linking trading positions to freight contracts, credit terms, and insurance exposure, CTRM tools provide a dashboard view of the financial and physical implications of disruption. Firms can compare the cost of alternative routes, quantify potential penalties or missed deliveries, and make faster decisions about reallocating cargoes.

The same systems are also becoming crucial for ESG and regulatory compliance in some areas of the world. New frameworks such as the EU Deforestation Regulation (EUDR), demand traceability from mine or farm through to processing and transport. Integrating those data points within a single CTRM environment allows firms to automate reporting and reduce the risk of non-compliance while maintaining agility.

Ultimately, the convergence of trading, logistics and risk data is changing how global supply chains operate. Instead of treating these as separate functions, leading firms are building integrated decision platforms that merge operational visibility with financial intelligence. This evolution makes CTRM software less a back-office tool and more a real-time command centre for trade.

As commodity flows continue to fragment, success will depend on agility and insight. The ability to integrate new data sources quickly, visualise exposure across suppliers, trade routes and financial positions, will allow action before disruption hits. In this world, data integration is no longer a luxury; it’s the infrastructure that keeps global trade moving.