Guest: Abdil Tunca of Gartner on new restrictions for importing robots; Recognizing elite truck drivers; Hedging supply chain uncertainty

Our guest on this week's episode is Abdil Tunca, a Senior Principal Analyst in the Logistics and Customer Fulfillment team in Gartner's Supply Chain practice. The U.S. government through the FCC recently issued new restrictions on robots imported from other countries. This includes the kinds of robots widely used in warehouses and distribution centers. But what are the intentions behind these new restrictions? To find out, Senior News Editor Ben Ames welcomes this week’s guest to discuss why it was done and the impacts of this decision on supply chains and future robotic deployments. 

Most of our nation’s truck drivers take great pride in their work – and sometimes they are even recognized for their driving skills. Senior Editor Victoria Kickham reports on an annual competition that determines the best of the best when it comes to operating our nation’s trucks.

the uncertainty our supply chains have experienced this year is now being reflected in other ways of the business world as many companies have been buying insurance for supply chain impacts. That's according to GlobalData, a London-based research firm. They found that supply chain insurance will see twice the increased demand of insurance for other disruption categories such as cyber, business interruption, marine, and political risk.

Articles and resources mentioned in this episode:

• Gartner’s Supply Chain Practice
• Elite truck drivers compete for top honors in Pittsburgh
• Global instability drives demand for supply chain insurance
• Visit DC Velocity
• Visit Supply Chain Xchange
• Send feedback about this podcast to podcast@agilebme.com

This podcast episode is sponsored by: Werner

Transcript

SPEAKER_02 0:00

Understanding new restrictions on foreign robots. Recognizing elite truck drivers, and hedging supply chain uncertainty. Pull up a chair and join us as the editors of DC Velocity discuss these stories as well as news and supply chain trends on this week's Logistics Matters podcast. Hi, I'm Dave Maloney and the Group Editorial Director at DC Velocity. Welcome. Logistics Matters is sponsored by Werner. Unlock the power of a seamless connection. Werner Intermodal combines a massive nationwide rail network and cross-border solutions into Mexico with an expanding private fleet and total digital visibility. Secure your capacity today at Choose Werner.com. As usual, our DC Velocity senior editor's Ben Ames and Victoria Kickham will be along to provide their insights into the top stories of this week. But to begin today, the U.S. government recently issued new restrictions on robots imported from other countries. And this, of course, includes the kinds of robots widely used in warehouses and distribution centers. But what are the intentions behind these new restrictions? To find out, senior news editor Ben Ames welcomes this week's guest. Ben?

SPEAKER_01 1:19

Thanks, Dave. That's exactly right. We're talking about one of the biggest trends in warehouse in recent years, which is robotics. Some levels of robotics, like automated guided vehicles, AGVs, have been around for years. We've also seen a sharp rise lately of autonomous mobile robots, AMRs, both of them used for all sorts of fulfillment applications like goods to person and sortation and picking and put away. But two weeks ago, uh we saw a new trade regulation from the White House that some analysts say might slow down the spread of those powerful tools in American DCs. This was a restriction that was issued by the FCC that appears to ban American companies from buying certain foreign-made robots. Here with us today to talk about the new policy and its potential impacts on logistics is our guest this week. He is Abdil Tunja, a senior principal analyst in the logistics and customer fulfillment team for Gartner, the analyst firm. Welcome, Abdul.

SPEAKER_03 2:25

Thank you, Ben. Thank you for having me.

SPEAKER_01 2:28

Glad you could be here. First of all, could you maybe just tell us what areas you work on covering at Gartner, since this issue today sits at the intersection of several complex specialties like distribution centers and robotics and trade policy?

SPEAKER_03 2:44

Sure, sure. My primary focus is warehouse automation and robotics, as you mentioned earlier, from AMRs, good suppression systems to robotic picking to humanoids. I also look at the software layer driving them. Because a robot doesn't operate on an island, it connects to a WMS or a OS or an MES or a fleet management system. And that makes the connectivity right. And I think that's why this FCC decision is so critical today. Because 10 years ago, buying a robot was purely an equipment decision. Today you're deploying a mobile computer packed with cameras, gliders, wireless tech receiving potential commands remotely. And that creates an entirely new enterprise risk profile.

SPEAKER_01 3:36

Interesting. And so uh the risk profile that you mentioned there, um, at as I've read it, um, seems to be sort of the core of this new Federal Communications Commission policy. Um they they ban the purchase of certain advanced robotic devices, is the phrase, for two reasons. That national security concern, uh, and and also as a longer-term move to try to encourage domestic production of these things. Did I get that right?

SPEAKER_03 4:04

That's accurate. There are really three concerns here. One of them is cybersecurity, um, and of course, encouraging domestic production and also supply chain dependency, right? The government's national security decision specifically points to the network capabilities of these robots. And these systems collect data and potentially may expose pathways through which a robot could conduct surveillance or it can access information, even can be controlled remotely. I mean, think about an AMR doing inventory cycle counts in a warehouse, traveling through the aisles up and down. It may be collecting images of the racks, um, inventory locations, or even the layout of the facility. An AMR fleet knows where it is, where it's going, and potentially what operational systems are telling it to do. And now imagine hundreds of those devices connected to a cloud-based fleet manager. But but the main concern isn't that someone overseas is remotely driving robot number five. Um, it is really about the increased risk and the attack surface created by having thousands of connected devices operating within those critical facilities.

SPEAKER_01 5:27

Interesting. And it reminds me, I guess, on a smaller scale. There was a concern a few years ago about IRobots Roomba sort of home vacuum that appeared to be taking pictures and measuring people's personal houses on a uh less uh critical infrastructure level.

SPEAKER_03 5:43

Uh but to your point on that, the threshold also actually includes a combined device and docking station weight above 4.4 pounds and a network connectivity of at least 200 kilobits per second. And that's an extremely broad net because, as you mentioned, even some connected robotic vacuum cleaners can fit into this definition, just so you know.

SPEAKER_01 6:05

Right, right. So that that that broad net, and as you mentioned from some of the analysis that I've read, um is what sort of brings us here to this conversation today, because if it does include those AGVs and AMRs that are sort of common everyday tools in a lot of warehouses, uh maybe even ASRS systems or shuttles, exactly how many things might be covered here?

SPEAKER_03 6:28

Well, the FCC about two weeks ago, uh, what they said is that they added a forum produced advanced robotics devices to their covered list. The rule is based primarily on where the robot is produced, not simply where the company is headquartered. Um, and and FCC's covered list says that forum produced advanced robotics devices are covered unless they receive a conditional approval from the Department of War. And that means there is room for exceptions, also. I think that's an important detail. And in practical terms, this is a gatekeeper, um, in my opinion, because once a product falls on the covered list, new covered equipment generally cannot receive the FCC authorization. It needs to enter and be marketed in the US. So they're not really telling uh warehouses to unplug their robots. Um, it has essentially closed the front door to new robots. So uh that's an important distinction. So, yes, ASRS, robotic uh robotic uh shuttle systems, AMRs, AGVs, they're all covered under SIS rule.

SPEAKER_01 7:45

Really interesting. So warehouses can keep using what they have, but not buy new ones. Uh, so how do you see that playing out uh as potential impact on US logistics operations? Uh, I guess are their best and worst case scenarios on what we might see?

SPEAKER_03 8:01

The immediate risk isn't that existing warehouses are gonna stop. Um, I think the bigger risk is future sourcing and expansion and technology lifecycle management. Imagine a company has deployed 100 AMRs across five of their distribution centers and they want to add 200 more across five additional sites. Historically, the decision is made based on throughput, ROI, cost, labor savings, or integration. But now the question is can I actually procure the next generation of this product in the United States? And that changes the business case. I mean, you could potentially end up with a robotics platform that works perfectly today, but has a much less certain expansion potential for tomorrow. And that's particularly important with AMRs because one of their biggest selling points has always been their scalability. You know, you start with 50 robots and add another 50 during the peak season and then expand to another building. To your question about best case and worst case, I think the best case scenario is that this becomes a catalyst for better cybersecurity and supply chain transparency across robotics. Manufacturers provide clearer information about where robots are built, where data is stored, who can remotely access the robots, and how vulnerabilities are patched. On the other hand, though, customers can start treating cybersecurity as seriously as ROI or costs or throughput. And vendors will need to diversify their manufacturing footprints. And we see more jobs and production moving back to the US, making domestic industry stronger. And this shift not only boosts local employment, but also increases the control over supply chains and the technology. And when all these happen in the long term, I think we will end up with a more resilient robotics ecosystem. The worst case, in my opinion, is um more fragmentation in the market, which we already have a highly fragmented market. You know, different robot models receive different approvals, vendors restructure products specifically for the US market potentially, and customers may not be sure which generations can be purchased or which generations can be scaled or expanded. Um, so we may see companies start delaying their automation decisions in the short term because nobody wants to invest millions of dollars into a platform without knowing whether they'll be able to scale in three years or not.

SPEAKER_01 10:51

Yeah, uncertainty for sure uh could be a real bugbear. Um so just to finish up here in our last minute, um, you know, we we've covered a really broad waterfront there. Uh what advice have you been giving with clients uh when they come to you to ask uh how they might react looking forward?

SPEAKER_03 11:10

Well, I don't recommend panicking or ripping anything out at this point. I would recommend an inventory analysis, risk assessment, and a procurement review, and uh identify every foreign-produced mobile robotics platform currently deployed or planned and determine where the actual equipment is manufactured, not simply where the vendor is headquartered. Um, secondly, document. Document the FCC authorization status for each model and then ask your vendors about manufacturing location, remote access, cloud hosting, uh, software update policies, and their conditional approval strategy. Um, and then look at expansion exposure. Like if you have um, let's say 200 robots today, but your network plan assumes 2,000 within the next five years, that is a much bigger strategic issue than a facility with 10 robots and no expansion plans. Um, and then finally, make sure to build an exit strategy into future robotics contracts, data portability, spare parts, um, software support, and the ability to transition to another platform um in case you need to do that. And I would add a new question to practically every major robotics RFP at this point. Are there any legal, geopolitical, or supply chain issues that could stop us from expanding or maintaining this system over its expected lifecycle? Because with this ban, that is becoming almost as important as asking about throughput, costs, or ROI.

SPEAKER_01 12:56

Fascinating stuff. Um, Abdil, we're really glad that you were able to take some time and come talk us through it all this week. Uh thank you very much for being on the show.

SPEAKER_03 13:05

Thank you for having me, Ben.

SPEAKER_01 13:06

Our guest this week has been Abdil Tunja from Gardner. Back to you, Dave.

SPEAKER_02 13:12

Thank you, Abdil and Ben. Now let's take a look at some of the other supply chain news from the week. Most of our nation's drivers take great pride in their work, and sometimes they're even recognized for their driving skills. And Victoria, you wrote this week about an annual competition that determines the best of the best when it comes to operating a truck.

SPEAKER_00 13:32

That's right, I did. So the nation's best truck drivers got behind the wheel this week for the 2026 National Truck Driving Championships, which wrap up today, actually, in Pittsburgh. Sponsored by the American Trucking Associations, the event is hosting more than 400 of the industry's most elite drivers who are competing for the title of 2026 National Truck Driving Championships Bendix Grand Champion. The competitors come from 49 states and represent 55 companies, and they've been tested all week long, first with a written exam and then with hands-on skills tests designed to uncover the best of the best, as you said, Dave, in trucking.

SPEAKER_02 14:14

Well, it certainly sounds like an elite group. How do drivers qualify for the event and when will the winner be announced?

SPEAKER_00 14:20

Yeah, so that's uh great questions. Uh the competition is really about safety. It all comes down to that. These are among the safest drivers on the road. The NTDC and its affiliated state truck driving championships are considered one of the industry's largest and most effective safety programs. I spoke to leaders from a couple of different trucking companies recently who emphasized that point. I was interviewing leaders from FedEx Freight and ABF Freight for a story that will appear in our October issue, so it was separate from this, but they pointed to this program as a primary gauge of safe driving. So drivers and trucking companies take this very seriously. To qualify for this national tournament that it's that's happening this week, drivers must be accident-free for a full year and they have to win their state competition. There are different categories, that's why there's so many competitors. This year's competitors have actually driven a combined 775 million accident-free miles throughout their careers. That's according to ATA. And about those winners. The finalists were scheduled to be announced this morning, and a grand champion will be crowned this evening. You can get regular updates on social media by following ATA and also hashtag NTDC26.

SPEAKER_02 15:35

That is interesting. And Victoria, one number really stood out to me in your report, and that was the 775 million accident-free miles. That's certainly a lot of miles. And we often hear reports of bad drivers who cause accidents. They're the ones that get all the press, but they really are the exception. Most drivers are true professionals who every day bring their expertise to keep our supply chains moving. And it's great to see them being recognized here.

SPEAKER_00 16:00

It is absolutely good to see those uh those vast majority of drivers who are, as you say, are true professionals uh get some recognition.

SPEAKER_02 16:07

Great. Thank you, Victoria.

SPEAKER_00 16:09

You're welcome.

SPEAKER_02 16:10

And Ben, the uncertainty our supply chains have experienced this year is now being reflected in other ways of the business world. You reported one way that companies are looking to hedge some of that risk and uncertainty.

SPEAKER_01 16:22

Yeah, I mean, if you don't know for sure what's going to happen in the future, that makes it harder, uh slower, more expensive to make plans and investments to try to get that peak efficiency that uh everybody's trying to wring out of their supply chains. And we've seen a big rise lately in uncertainty. Uh the obvious examples come to mind, the uh fallout of various conflicts overseas in the Middle East and Eastern Europe, uh changes in uh domestically uh shift toward different uh swinging tariffs. And of course, right before that we had a COVID pandemic. All it's just very, very hard to use our crystal balls lately. These really wild swings in business conditions, uh, you know, they triggered things like higher gas prices, you know, inflation and the shipping delays and reroutes. So to pay for all these kind of added costs, uh, many uh companies with supply chains to operate have actually been buying insurance for supply chain impacts because that long list of costs we just mentioned, somebody's gotta pay them. According to Global Data, they're a London London-based research firm, uh, they found that supply chain insurance is going to see twice the increase in demand compared to other types of in business insurance. Uh they mentioned things like cyber attacks and business interruption, uh, marine incidents or political risks.

SPEAKER_02 17:45

Well, Ben, I imagine that uh demand you mentioned being twice the increased demand. Would that drive up the price for those kinds of insurance premiums?

SPEAKER_01 17:54

Uh short answer is yes. Uh long-term answer is maybe. Uh so Beatrice Benito, uh she is uh the uh author of this particular study. She's a lead insurance analyst uh with global data, said that organizations, as we've been mentioning, they're deeply concerned about trade route blockages, uh state-sponsored cyber attacks, collateral revenue losses. But that doesn't mean that insurance companies are necessarily willing to cover those events at any price. Some insurers are struggling to adapt very quickly. Uh that reduces the amount of coverage that they're willing to extend due to their fear that the risks are unquantifiable. You know, who has seen the pandemic in the modern age before this one came along? And so she said only insurers with the most risk appetite are willing to adapt their underwriting strategies and product offerings. And that requires providers to that's uh insurance providers, that is, to tighten their wording and exclusions around things like tariffs and sanctions, as well as to stress test their insurance products, you know, to try to avoid catastrophic losses from a single event. So we're living through a period where new threats seem to be emerging faster than certain businesses and insurers can figure out how to handle them financially.

SPEAKER_02 19:17

Yeah, it certainly does seem that way. And you know, you you think you've seen it all, and then some new twist comes at us from the geopolitical world that our supply chains have to address, and as we've reported many times, it just seems like it's the new normal now, and insurance companies are trying to adjust to that.

SPEAKER_01 19:33

Uh, exactly so. Yep, that this this brave new world, this new normal. But uh we'll we'll we'll see how long it takes to adjust. I'd have to imagine it's got to happen sooner or later.

SPEAKER_02 19:41

Yeah, I would think so too. Thank you, Ben.

SPEAKER_01 19:43

Glad to.

SPEAKER_02 19:44

We encourage listeners to go to dcvelocity.com for more on these and other supply chain stories. Also, check out the podcast notes section for some direct links to read more about the topics that we discussed today. And we'd like to thank Abdel Tunja of Gartner for being our guest. We welcome your comments on this topic and our other stories. You can email us at podcast at agilebme.com. We also encourage you to subscribe to Logistics Matters at your favorite podcast platform. Our new episodes are uploaded on Fridays. And a reminder that Logistics Matters is sponsored by Werner. Unlock the power of a seamless connection. Werner Intermodal combines a massive nationwide rail network and cross-border solutions into Mexico with an expanding private fleet and total digital visibility. Secure your capacity today at Choose Werner.com. We'll be back again next week with another edition of Logistics Matters. Be sure to join us. Until then, have a great week.