Logistics companies can embrace automation while bypassing the hype cycle (with video)

“What concerns me at times is the hype cycle. We want to make sure people can deliver,” Pescatello said. “The last thing we want to do is lose our credibility. That is the one thing that scares me.”

Food giant Kraft Heinz launched Evolv Ventures. The $100 million venture fund invests in emerging tech companies working to help revolutionize the food supply chain.

While Pescatello estimates that cross-country trips in fully autonomous trucks could be as far as 10 years out, he is still interested in the technology. In the shorter term, he sees autonomous trucks doing more localized tasks, like moving trailers around warehouses.

“We’re not here just looking at what are we going to use next year,” Pescatello said. “We’re looking at five years and 10 years out. We have a forward-looking mindset.”

He said the fund is looking at businesses across the supply chain, not just autonomous trucking companies. He also has a strong interest in warehouse automation.

“[Warehouse] automation can really make a difference [at Kraft Heinz],” Pescatello said. “Probably half of our warehouse labor is dedicated to making mixed pallets. Automation can take some of the monotonous tasks and simple labor we do and make it more efficient.”

As tech companies continue to enter the logistics space, tools to more effectively autotomize every part of the supply chain are bound to emerge. Woodrow has noticed this influx of new companies forcing each business to create an identity and carve out a space for itself, even in places like Silicon Valley that are not known as logistics meccas.

“It has been interesting to see Silicon Valley wake up to logistics. It is becoming more competitive all the time from a recruiting standpoint,” Woodrow said. “It is important to be differentiated around the culture of your team and the mission you’re working toward. The way we try to do that is be honest about the work we are trying to do and our values as a company.”