In the first of our Big Picture Interview series, Forkliftaction News' editor Angie Kay talks with Ralph Cox, senior vice president market operations with Toyota Material Handling Europe, about why lean operations and automation go hand-in-hand. Cox offers his advice on how businesses can optimise today as they prepare for automation.

AK: What automation do you have in your personal life? What benefits does it bring you / what do you love about it?

RC: I mostly use the AI features available in the applications I work with daily. Right now, I'm focused on exploring what AI can do and identifying practical ways to use it to improve efficiency and save time.

In my personal life, I recently bought a robotic lawn mower with an AI camera. As someone who travels a lot, it's been a great solution. It's fascinating to see how easy it was to set up and how quickly it learns and adapts while doing its job.

AK: When applying automation in materials handling, what are some of the most time-intensive tasks which are being automated now?

RC: When introducing automation, the focus should be on processes that are structured and highly repetitive in terms of human labour, such as:

• Order picking
• Horizontal transport
  • picking & dropping at conveyors
  • replenishment to pallet stations
• Storage & retrieval 

In order to identify the tasks worth automating, a site survey and lean assessment of processes are always recommended.

AK: What are the more challenging areas to automate?

RC: Automation in dynamic or unpredictable environments, or with variable or custom products, still pose a challenge. This is the final 10-20% that is often difficult or impossible to automate as these processes are not repetitive, predictable or possible to standardise.

Automating non-standardised items should be seen as a separate process and requires its own approach. Here we need scalable systems and intelligent software combining auto systems and traditional trucks, as well as lifecycle services.

AK: Toyota brings its lean expertise to traditional materials handling operations. How do you see lean in preparing businesses for automation?

RC: One of our main goals at Toyota is to achieve “zero muda”, which translates to zero waste. In order to achieve this, every automation project should start with an analysis of the current processes. These processes need to be standardised by adapting or eliminating elements that are not efficient. Moreover, the data you work with needs to be not only available, but also correct and visible. And last but not least, before starting the groundwork for automation, a review of the operations flow and layout is needed and improvements made where needed (kaizen - Japanese business philosophy that means "continuous improvement" or "change for the better").

AK: We have all heard about businesses which introduce automation in the wrong ways to their workforce. How would you suggest businesses start the conversation with staff about the benefits of automation for them?

RC: People are central in any automation project. People need to know that automation is here to work with them and make their life easier in their daily operations, instead of replacing them. It allows a business to improve safety and ergonomics, leading to less repetitive strain injuries, heavy lifting, but also lower risk of accidents.

Overall, it’s key to be transparent about the benefits to the business and involve employees early in the process, take their feedback into account, and continue to invest in people and their training, for example by making operator training a standard part of every project delivery. This helps customers introduce automation to their workforce in the right way, ensuring employees feel comfortable and confident working alongside the new technology.

AK: When you talk about lean and automation going hand-in-hand, how does it ensure a sustainable focus on the human aspect?  

RC: Lean and automation need to go hand in hand in order to reach the right level of efficiency, productivity and resilience. That’s why human-centric automation is our focus, applying the Jidoka principle (automation with a human touch).

Meanwhile, automated processes give people higher-value tasks and we involve them in decision-making, problem-solving, and continuous improvement.

Lean management helps us identify activities that don't add value, while automation helps us to reduce or remove those activities. The goal is to allow people to spend more time on work that requires judgment, problem-solving, customer service, improvement, and expertise. For us that is the core of Jidoka, automation with a human touch where automation supports the human.

"We need to challenge ourselves to keep automation flexible enough to stay agile in a dynamic business environment."

AK: Automating materials handling flows may help businesses gain speed and efficiency, but reducing human control and interaction can reduce service or create rigid and inflexible loops. Can you share an example where you have seen that happen and what can be done to prevent it?

RC: In most cases up to 80% of operations can be automated thanks to AGV (automated guided vehicle) solutions in order to optimise efficiency, and in some cases also speed. Automation performs best in consistent and predictable activities, but is less flexible in adapting to new situations.

One example is order picking: the order structure, order sequences and daily fluctuating volumes can impact the logistics efficiency and output immensely. Here the flexibility and problem-solving capabilities of the human operators such as the order pickers, team leaders and shop floor supervisor, are key in handling exceptions and variations. In this case the human factor supports the automated solution to improve efficiency, not the other way around.

AK: With the need for people in warehouses, manufacturing, logistics, etc. a constant, how does the sector find the people skilled in using this new technology? 

RC: Finding people with the right skills and competences has been and will continue to be a challenge. I believe in investing in apprenticeships, collaboration with schools, training of people, and developing their careers to help them grow into new roles. 

Full automation not only helps to address the labour shortage, but semi-automation such as remote-controlled vehicles or navigation solutions also improves safety conditions and productivity. 

For example, in the case of navigation solutions for VNA (very narrow aisle) trucks, operators are assisted with driving and positioning, making the technology easier for less experienced operators to use. This can help businesses in the search for operators, when the options are not only limited to advanced drivers - another good example of Jidoka.

AK: How far do you think automation should and could go in the materials handling sector?

RC: It’s a challenge for warehouses and factories to automate 100% since these are dynamic environments where exceptions, judgment, and adaptation still matter. Technology is developing fast and we are only at the beginning of the automation journey in logistics.

On the other hand, we should also always keep the added value in mind: as soon as automation does not make operations more productive, accurate or safe, it’s not worth starting the transformation.

AK: There is a perception only large businesses are able to cost-effectively automate because of the ROI (return on investment); that the step into automation, is prohibited to small businesses. Is this true?

RC: I believe smaller businesses are also able to gain ROI. Due to technological developments, the investments can be lower and will further improve over time. More automation solutions exist that are modular and scalable.

AK: How do you define success when implementing automation—beyond productivity and cost savings?

RC: Key words for success are change management, involvement of top management, and focus on people. Specific to the project, start not with full scope but begin and create momentum, and keep improving. 

See this as a journey together with your employees. Employers need to offer the right technology and deliver the project on time, to make sure the customer can start with the right focus and momentum for their journey.

AK: What excites you about automation in the future - outside of logistics, as a contribution to society?

RC: Logistics never stands still; it is growing and demands are changing continuously. An important step is to automate to support people, make life easier, create a safe environment, be more productive. What is exciting is that this is not the end, as customer demands are changing all the time. We need to challenge ourselves to keep automation flexible enough to stay agile in a dynamic business environment.

Stay tuned for more interviews with the thought-leaders of our industry: the next Big Picture Interview will be on 15 October.

About Ralph Cox:

Ralph Cox began his career at Toyota Material Handling in 2002, and was appointed Senior Vice President Market Operations at Toyota Material Handling Europe in 2019. Prior to joining Toyota, Ralph held different senior roles in logistics, supply chain management and business consultancy. Building on a strong foundation in sales and marketing, rental, logistics, change management and business development, Ralph has held several Director and Management team roles within Toyota Material Handling Europe.

About the Big Picture Interviews:

What does it take not just to survive but to thrive in today’s increasingly complex operating environment? In the Big Picture Interview series, Forkliftaction’s senior reporters invite top-tier executives to share personal insights on the trends, opportunities and evolving market dynamics that are shaping global materials handling right now, offering readers fresh perspectives, greater clarity, and new strategic paths forward.