United Stationers' new high-tech voice system was supposed to solve problems with picking errors. No one guessed it would boost productivity by a whopping 28 percent.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
When United Stationers first announced plans to convert 33 DCs over to voice technology, the talk was all about accuracy. Frustrated by an ongoing problem with picking errors, management at the $4.4 billion office and stationery supplier had decided the time had come for a change. It would scuttle its paper-based picking system and replace that system with something more accurate.
But ask company executives about their voice system today and you're more likely to hear about productivity than accuracy. "Our picking productivity increased 28 percent," boasts Bill Stark, vice president of engineering. "It has really taken hours out of our day and we have seen true savings."
What Stark learned was something DCs managers across the country have discovered in recent years. Voice systems have a big edge over paper- and scan-based picking systems when it comes to speed. There are a couple of reasons for that. For one thing, voice systems eliminate the need for workers to carry—or consult—paper pick lists or scanners. Instead, voice systems (which convert data from the facility's warehouse management system into audible form) let workers receive picking directions through headsets, leaving their hands free.
For another, today's voice systems make use of voice recognition software, which enables two-way communication. Workers can "talk" to the system simply by speaking into their headsets' microphones, getting instant responses to their requests to confirm a pick or repeat the directions. Beyond that, workers can ask the system for performance updates throughout the day, which allows them to adjust their pace if they find they're in danger of falling short of their goals.
Easy listening
United Stationers' experience with voice technology dates back to 2003. Management was becoming increasingly disillusioned with its paper-based system and was looking for a way to boost picking accuracy in the DCs, which stock everything from pens and pencils to notebooks, computer equipment, filing cabinets and janitorial supplies (more than 40,000 items in all). On the advice of its systems integrator, Dematic, the company volume centers process as many as 32,000. With voice tech- decided to give voice technology a try.
Though the companies considered other picking technologies, voice proved to be the hands-down favorite. Part of its appeal lay in its reputation for accuracy and ease of installation. Scalability was a consideration as well. United Stationers operates 34 DCs of varying sizes. While its smaller facilities might only process 3,000 lines a day, its highestvolume centers process as many as 32,000.With voice technology, the company was able to outfit even the largest facilities simply by adding more units.
Dematic selected Vocollect's Talkman voice-directed system for use in two pilot projects, conducted in 2003. Once everyone was satisfied that the voice system could meet United Stationers' needs, Dematic rolled out the Vocollect system to 31 other facilities during 2004 and 2005, with the last system coming online last summer. Currently, 33 of United Stationers' 34 distribution facilities are using voice systems (the lone holdout is a small, low-volume facility in Texas). Currently, 1,000 Talkman units are in use systemwide.
Stark reports that voice technology has lived up to its reputation for being easy to install and easy to use. Workers had no trouble adapting to the voice systems, he says, noting that they became proficient within a couple of days. "It really has been one of the easiest systems we have implemented," he says. "It was much faster to come up to speed than other warehouse technologies and automation we have had— much quicker than we expected."
Added responsibilities
United Stationers first put the technology to work in its DCs' busy split-case areas (broken-case items account for 85 percent of United Stationers' outbound volume). Later, it expanded the technology to its full-case (bulk) picking and replenishment operations. Stark and his team are currently looking into the viability of using voice technology for put-away and cycle counting. "Once you have the platform in place, it is very easy to expand functionality to other parts of the building," notes Stark.
That's not to say that United Stationers hasn't done some tweaking along the way. For example, with split-case picking, it ended up incorporating bar-code scanning into the process to assure accuracy. In most of the company's centers, the split-case picking areas consist of thousands of small pick faces that hold a vast array of small items, like paper clips, staples and notepads. These pick slots are so small that it's hard to incorporate a multi-digit check system into the process for verifying the pick's location.
Adding a bar-code scan to confirm the location quickly solved that problem. Once the voice system has directed the picker to the required location, it asks the worker to scan a bar code attached to the rack to confirm that it's the proper picking slot. The worker then scans the code using a wrist scanner (wrist models were chosen to keep workers' hands free). After it verifies the location, the system tells the worker how many items to select. After complet ing the task, the worker notifies the system that he or she is ready for the next pick. Combining voice with location scanning has boosted picking accuracy to better than 99.7 percent.
In the full-case pick area, by contrast, scanning is not used. Instead, the worker speaks a check digit into his or her microphone. The check digit consists of a two- or three-digit number or letter combination posted at the rack location. The system uses the check digit to link the location to the product it contains. Once the worker speaks the correct check digit into the system, he or she receives directions regarding how many cases to select.
Fast track
Today, with voice technology in place, merchandise moves through the buildings noticeably faster than it did just three years ago. As a result, the company's DCs have been able to absorb additional growth without increasing facility size or staff.
In addition, the accuracy gains have allowed United Stationers to eliminate several quality control stations in each building that were once needed to verify the accuracy of the split-case picks. That labor has now been reallocated to other parts of the facilities.
The system also allows the company to track errors and take corrective action if necessary. "If a customer reports a short, we can go into the voice system and find the history of who picked it, where the product was located and what time it was picked," says Stark. "We can then make sure the right product is in the right location." He adds that he gets fewer calls from customers now, as the data usually confirm that the "errors" occur on the customers' end.
That performance information isn't confined to a single facility; it's also available systemwide. At any given time, Stark can monitor the performance at any building within his network, which allows him to benchmark one facility against another. That, in itself, represents a major leap forward, he says. "We did not have any of that in the past," he notes. "Having that kind of data in your hands is very powerful."
plays well with others
Voice technology's days as a loner are over. These days, it's being teamed with a variety of other technologies to create powerful new systems. "It is no longer just a voice system alone in the corner of the warehouse," says Jason Wilburn, marketing and product manager for Sewickley, Pa.-based Lucas Systems. "It's now integrated into the entire [array of] warehouse systems."
That's not to say companies can no longer buy turnkey voice systems that include all of the hardware and communications devices needed. They still have that option. Pittsburgh-based Vocollect, for one, offers complete turnkey systems.
But today, they have other choices as well. For example, Lucas Systems, Vocollect and Lawrenceville, N.J.-based Voxware all offer software that will work with multimodal data devices, such as mobile computers, scanners and handheld PCs. That means a single device can be used for multiple warehouse operations—picking, receiving, put-away, replenishment, inventory control, cycle counting, capturing catch weight data and shipping. "It opens up the hardware layer so that voice can be part of many more warehouse applications working with a range of devices and a number of functions," says Jef Morrow, vice president of corporate marketing for Voxware.
This also opens the door to combining voice with other automatic identification technologies. That might mean, for example, that the same device that directs picking can also be used to scan a bar code in applications where scanning is the mode of choice.
In the not-so-distant future, RFID could be added to the mix. "You can take voice as a technology that directs work and combine it with RFID, which is a technology designed to capture and verify data," says Larry Sweeney, vice president of product management for Vocollect. "We are now beginning to explore ... value-added applications for combining the two technologies."
The combination of voice and RFID systems offers tantalizing possibilities. For instance, with a dual system, a worker would no longer have to read a check digit into the voice system to verify the pick location. Instead, that worker could simply use a handheld RFID reader to verify the location by reading a tag. At that point, the voice system could take over, providing special picking instructions if necessary. Similarly, a dual voice/RFID system could instantly alert the picker if he or she ends up in the wrong location. If the RFID tag read indicated an error in location, the data could be automatically sent to the voice system, which would create a message advising the picker of the problem. Voice capabilities could even be incorporated into a system to add data to read-write tags, allowing a picker to leave a voice message on a tag for track and trace purposes.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.
The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.
The latest infusion follows the firm’s $33 million Series B round in 2022, and its move earlier in 2024 to acquire the Vancouver, Canada-based company Orderbot, a provider of enterprise inventory and distributed order management (DOM) software.
Orlando-based OneRail says its omnichannel fulfillment solution pairs its OmniPoint cloud software with a logistics as a service platform and a real-time, connected network of 12 million drivers. The firm says that its OmniPointsoftware automates fulfillment orchestration and last mile logistics, intelligently selecting the right place to fulfill inventory from, the right shipping mode, and the right carrier to optimize every order.
“This new funding round enables us to deepen our decision logic upstream in the order process to help solve some of the acute challenges facing retailers and wholesalers, such as order sourcing logic defaulting to closest store to customer to fulfill inventory from, which leads to split orders, out-of-stocks, or worse, cancelled orders,” OneRail Founder and CEO Bill Catania said in a release. “OneRail has revolutionized that process with a dynamic fulfillment solution that quickly finds available inventory in full, from an array of stores or warehouses within a localized radius of the customer, to meet the delivery promise, which ultimately transforms the end-customer experience.”
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.