Rick Faulk, the CEO of Locus Robotics, laughs as he says: “We are fundamentally a software company.” We look like robots, but we are actually software.
It's a common refrain among companies whose hardware products are most popular. That's certainly the case with Locus, which makes the most famous AMRs (autonomous mobile robots) that Amazon doesn't make. Faulk says that while it's true that these container movement systems are essential to the operations of the Massachusetts-based company's warehouse, the company's software is what really sets the department apart from the competition.
Today, Locus provides fleet management software, which is essential for organizing robotic systems in busy environments. It's a feature of LocusHub Engine, the company's latest product. The platform, which was presented at the supply chain fair Modex in Atlanta, is designed to leverage data collection, a critical component of the company's automation system. Locus AMRs are equipped with sensors, like a Roomba at home, that help it navigate people, obstacles, and other robots.
Essentially, they are data collection machines that are also pretty good at moving heavy objects across warehouse floors. AI is used in the new software offering to process the vast amount of data collected and make predictions about what will come next.
Faulk says most of the reports in warehouses right now are "reactive." «That's what happens, someone chose X number of units per hour, and here we show them how many they should choose for day, week and month. "We think that's great and we still need that, but we also think it's very important to have predictive analytics to tell you what's about to happen."
Predictive modeling provides recommendations for where warehouse managers should deploy human and robotic staff. The software can also be used to find bottlenecks and improve AMR routes to increase efficiency.
Faulk says, “We have integrated data capture from our robots into our platform in a unique way. I can go on my phone and see any robot in our system, for example. I can actually operate that robot and keep it updated through my phone. "We have the capabilities to be able to collaborate between people and robots."
Amazon's acquisition of Kiva Systems in 2012 led to the creation of Locus. Quiet Logistics, a former Kiva customer, was one of many customers left without services when the retail giant decided to focus on automating its own fulfillment processes. The following year, Quiet founded Locus, his own robotics division.
The Kiva acquisition boosted the category overall. 6 River Systems, a Locus competitor, was launched by former executives of the robotics company. However, after its acquisition by Shopify and subsequent sale to English grocery technology licensee Ocado Group, that company has struggled in recent years. Fetch Robotics, a major rival, was established in 2014. Commercial technology giant Zebra bought the company in 2021. Founder Melonee Wise has most recently left the company to join Agility's growing executive team.
There are dozens of providers of this service on Modex, but Locus remains the leader by a wide margin. The explosion of interest in warehouse automation driven by the pandemic strengthened its position. Companies hoping to level the playing field in a world completely dominated by the 800-pound Amazon gorilla were buoyed by investor activity at an all-time high.
Investor enthusiasm has waned since then. While it's true that many operations still have trouble hiring workers, there is still a regression to the market average. Locus, in this regard, still nor has revealed how many employees it laid off this January.
Faulk says that, like many of our clients, we hire too much in our target markets. "We came out of COVID and we had projections about staffing needs and those types of things that were probably overestimated." According to the CEO, the changes occurred among Locus' go-to-market staff rather than the engineering team.
But the company remains a success overall. Instead of trying to be everything to everyone, it has achieved consistent growth by focusing on customers' current needs. Bag-carrying AMRs remain at the core of everything Locus does, a decade after its founding. The company has added products like Vector, which can carry up to 600 pounds and has specialized wheels that allow it to move sideways to better navigate tight spaces. Each new robotic device is, in essence, an evolution of Locus' core robot model.
Currently, human work is essential. Because Locus doesn't make a mobile manipulator, people must move containers on and off the robot. Faulk responds, “We will” when asked if Locus will be the company to bring that technology to the warehouse. 'We are examining a number of measures that could reduce the amount of labor needed in a building. Our research and development group is investigating ways to fully automate a building. "I'm sure we'll figure it out in time."
Faulk is not surprisingly optimistic about the role that humanoid robots will play in that future.
“Maybe for specific functions it could be useful,” he says. Currently, there are issues with battery life, cost, uptime, and other factors. I think in the end there may be some use cases for particular things. However, I think any scale is years away. Testing will be carried out, but it is still early for it to have a commercial impact.
“We are fundamentally a software company company,” CEO Rick Faulk of Locus Robotics he says laughing. “We look like a robot company, but we are actually a software company.”
It's a familiar refrain among companies whose most public products are hardware. That's certainly the case with Locus, which makes the best-known AMRs (autonomous mobile robots) that Amazon doesn't make. While these container movement systems are critical to the operations of the Massachusetts-based company's warehouse, Faulk says the company's software is what really sets the market-leading department apart from the competition.
Today, Locus offers fleet management software, essential for orchestrating robotic systems in a busy environment. That's also a feature of the company's latest offering, LocusHub Engine. Announced this week at the Modex supply chain trade show in Atlanta, the platform is designed to leverage data collection that is critical to the company's automation system. Just like your Roomba at home, Locus AMRs are equipped with sensors that provide situational awareness and help you navigate around people, obstacles, and other robots.
Essentially, they are data collection machines that are also pretty good at moving heavy loads across warehouse floors. The new software offering uses AI to process the massive amount of data collected and offer predictions about what will come next.
"The majority of reports in warehouses right now are what we call 'reactive,'" Faulk says. “That's what happened. Someone chose X number of units per hour, here we show you how many to choose for the day, week and month. “We think that's great and we still need that, but we also think having predictive analytics to tell you what's about to happen is incredibly important.”
Using the automatic learning, predictive modeling offers suggestions on where warehouse managers should deploy staff, both human and robotic. The software can also be used to identify bottlenecks and refine AMR routing for greater efficiency.
“We have uniquely integrated data capture from our robots into our platform,” says Faulk. “For example, I can go on my phone and observe any robot in our system. I can actually control that robot and update it through my phone. “We have the capabilities to be able to integrate both together.”
The founding of Locus was a direct result of Amazon's acquisition of Kiva Systems in 2012. Quiet Logistics, a former Kiva customer, was among the customers left in the lurch when the retail giant decided to stop serving businesses. and instead focused all its efforts on automating its own compliance processes. Quiet started its own robotics division in 2014 and created Locus the following year.
The Kiva acquisition was a huge catalyst for the category as a whole. Former executives at the robotics startup launched their own Locus competitor, 6 River Systems. However, that company has struggled in recent years, following its acquisition by Shopify and subsequent sale to English grocery technology licensor Ocado Group. Another key competitor, Fetch Robotics, was founded in 2014. In 2021, the company was acquired by commercial technology giant Zebra. Most recently, founder Melonee Wise left the company to join Agility's growing executive team.
You can see dozens of direct competitors walking the aisles at Modex this week, but Locus is still the market leader by a wide margin. It's a position further cemented by the pandemic-driven explosion of interest in warehouse automation. Investor activity was at an all-time high, boosting companies hoping to level the playing field in a world completely dominated by the 800-pound Amazon gorilla.
Since then, investor enthusiasm has waned. While it is true that many operations still struggle to hire human labor, there is still regression to the mean. This January, Locus laid off a small number of employees – a figure the company has not yet revealed.
“Frankly, we overhire in our target markets, like many of our clients,” Faulk says. “We came out of COVID and we had projections about staffing needs and those types of things that were probably overestimated.” The CEO adds that the "adjustments" occurred among Locus' go-to-market staff, and not the engineering team.
But the company remains a success story in the category overall. It has achieved consistent growth by focusing on customers' existing needs, rather than trying to be all things to all people. A decade after its founding, bag-carrying AMRs remain at the center of everything Locus does. Over the years, the company has added products like the Vector, which can carry up to 600 pounds and features specialized wheels that allow it to roll sideways effectively to better navigate tight spaces. Each new robot is, in essence, an iteration of Locus' core robotics product.
Today, human labor is essential to that story. Locus does not produce a mobile manipulator, which means people have to move containers on and off the robot. When asked if Locus will be the company to bring that technology to the warehouse, Faulk says, “We will. We are looking at a number of things that will reduce labor in a building. We have an R&D group that is studying how to fully automate a building. In time, I'm sure we'll figure it out.
Perhaps not surprisingly, Faulk is not particularly optimistic about the role that humanoid robots will play in that future.
“Maybe for specific functions it could [be useful],” he explains. Today there are challenges between battery life, cost, uptime, and all the other things that come with it. I think there may eventually be some use cases for specific things. But I think there are years before there is any scale. There will be tests, but I think it will be years before anything reaches an enterprise scale.”
