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.
Grocery shoppers at select IGA, Price Less, and Food Giant stores will soon be able to use an upgraded in-store digital commerce experience, since store chain operator Houchens Food Group said it would deploy technology from eGrowcery, provider of a retail food industry white-label digital commerce platform.
Kentucky-based Houchens Food Group, which owns and operates more than 400 grocery, convenience, hardware/DIY, and foodservice locations in 15 states, said the move would empower retailers to rethink how and when to engage their shoppers best.
“At HFG we are focused on technology vendors that allow for highly targeted and personalized customer experiences, data-driven decision making, and e-commerce capabilities that do not interrupt day to day customer service at store level. We are thrilled to partner with eGrowcery to assist us in targeting the right audience with the right message at the right time,” Craig Knies, Chief Marketing Officer of Houchens Food Group, said in a release.
Michigan-based eGrowcery, which operates both in the United States and abroad, says it gives retail groups like Houchens Food Group the ability to provide a white-label e-commerce platform to the retailers it supplies, and integrate the program into the company’s overall technology offering. “Houchens Food Group is a great example of an organization that is working hard to simultaneously enhance its technology offering, engage shoppers through more channels and alleviate some of the administrative burden for its staff,” Patrick Hughes, CEO of eGrowcery, said.
The 40-acre solar facility in Gentry, Arkansas, includes nearly 18,000 solar panels and 10,000-plus bi-facial solar modules to capture sunlight, which is then converted to electricity and transmitted to a nearby electric grid for Carroll County Electric. The facility will produce approximately 9.3M kWh annually and utilize net metering, which helps transfer surplus power onto the power grid.
Construction of the facility began in 2024. The project was managed by NextEra Energy and completed by Verogy. Both Trio (formerly Edison Energy) and Carroll Electric Cooperative Corporation provided ongoing consultation throughout planning and development.
“By commissioning this solar facility, J.B. Hunt is demonstrating our commitment to enhancing the communities we serve and to investing in economically viable practices aimed at creating a more sustainable supply chain,” Greer Woodruff, executive vice president of safety, sustainability and maintenance at J.B. Hunt, said in a release. “The annual amount of clean energy generated by the J.B. Hunt Solar Facility will be equivalent to that used by nearly 1,200 homes. And, by drawing power from the sun and not a carbon-based source, the carbon dioxide kept from entering the atmosphere will be equivalent to eliminating 1,400 passenger vehicles from the road each year.”
As a contract provider of warehousing, logistics, and supply chain solutions, Geodis often has to provide customized services for clients.
That was the case recently when one of its customers asked Geodis to up its inventory monitoring game—specifically, to begin conducting quarterly cycle counts of the goods it stored at a Geodis site. Trouble was, performing more frequent counts would be something of a burden for the facility, which still conducted inventory counts manually—a process that was tedious and, depending on what else the team needed to accomplish, sometimes required overtime.
So Levallois, France-based Geodis launched a search for a technology solution that would both meet the customer’s demand and make its inventory monitoring more efficient overall, hoping to save time, labor, and money in the process.
SCAN AND DELIVER
Geodis found a solution with Gather AI, a Pittsburgh-based firm that automates inventory monitoring by deploying small drones to fly through a warehouse autonomously scanning pallets and cases. The system’s machine learning (ML) algorithm analyzes the resulting inventory pictures to identify barcodes, lot codes, text, and expiration dates; count boxes; and estimate occupancy, gathering information that warehouse operators need and comparing it with what’s in the warehouse management system (WMS).
Among other benefits, this means employees no longer have to spend long hours doing manual inventory counts with order-picker forklifts. On top of that, the warehouse manager is able to view inventory data in real time from a web dashboard and identify and address inventory exceptions.
But perhaps the biggest benefit of all is the speed at which it all happens. Gather AI’s drones perform those scans up to 15 times faster than traditional methods, the company says. To that point, it notes that before the drones were deployed at the Geodis site, four manual counters could complete approximately 800 counts in a day. By contrast, the drones are able to scan 1,200 locations per day.
FLEXIBLE FLYERS
Although Geodis had a number of options when it came to tech vendors, there were a couple of factors that tipped the odds in Gather AI’s favor, the partners said. One was its close cultural fit with Geodis. “Probably most important during that vetting process was understanding the cultural fit between Geodis and that vendor. We truly wanted to form a relationship with the company we selected,” Geodis Senior Director of Innovation Andy Johnston said in a release.
Speaking to this cultural fit, Johnston added, “Gather AI understood our business, our challenges, and the course of business throughout our day. They trained our personnel to get them comfortable with the technology and provided them with a tool that would truly make their job easier. This is pretty advanced technology, but the Gather AI user interface allowed our staff to see inventory variances intuitively, and they picked it up quickly. This shows me that Gather AI understood what we needed.”
Another factor in Gather AI’s favor was the prospect of a quick and easy deployment: Because the drones can conduct their missions without GPS or Wi-Fi, the supplier would be able to get its solution up and running quickly. In the words of Geodis Industrial Engineer Trent McDermott, “The Gather AI implementation process was efficient. There were no IT infrastructure or layout changes needed, and Gather AI was flexible with the installation to not disrupt peak hours for the operations team.”
QUICK RESULTS
Once the drones were in the air, Geodis saw immediate improvements in cycle counting speed, according to Gather AI. But that wasn’t the only benefit: Geodis was also able to more easily find misplaced pallets.
“Previously, we would research the inventory’s systemic license plate number (LPN),” McDermott explained. “We could narrow it down to a portion or a section of the warehouse where we thought that LPN was, but there was still a lot of ambiguity. So we would send an operator out on a mission to go hunt and find that LPN,” a process that could take a day or two to complete. But the days of scouring the facility for lost pallets are over. With Gather AI, the team can simply search in the dashboard to find the last location where the pallet was scanned.
And about that customer who wanted more frequent inventory counts? Geodis reports that it completed its first quarterly count for the client in half the time it had previously taken, with no overtime needed. “It’s a huge win for us to trim that time down,” McDermott said. “Just two weeks into the new quarter, we were able to have 40% of the warehouse completed.”
Trade and transportation groups are congratulating Sean Duffy today for winning confirmation in a U.S. Senate vote to become the country’s next Secretary of Transportation.
Once he’s sworn in, Duffy will become the nation’s 20th person to hold that post, succeeding the recently departed Pete Buttigieg.
Transportation groups quickly called on Duffy to work on continuing the burst of long-overdue infrastructure spending that was a hallmark of the Biden Administration’s passing of the bipartisan infrastructure law, known formally as the Infrastructure Investment and Jobs Act (IIJA).
But according to industry associations such as the Coalition for America’s Gateways and Trade Corridors (CAGTC), federal spending is critical for funding large freight projects that sustain U.S. supply chains. “[Duffy] will direct the Department at an important time, implementing the remaining two years of the Infrastructure Investment and Jobs Act, and charting a course for the next surface transportation reauthorization,” CAGTC Executive Director Elaine Nessle said in a release. “During his confirmation hearing, Secretary Duffy shared the new Administration’s goal to invest in large, durable projects that connect the nation and commerce. CAGTC shares this goal and is eager to work with Secretary Duffy to ensure that nationally and regionally significant freight projects are advanced swiftly and funded robustly.”
A similar message came from the International Foodservice Distributors Association (IFDA). “A safe, efficient, and reliable transportation network is essential to our industry, enabling 33 million cases of food and related products to reach professional kitchens every day. We look forward to working with Secretary Duffy to strengthen America’s transportation infrastructure and workforce to support the safe and seamless movement of ingredients that make meals away from home possible,” IFDA President and CEO Mark S. Allen said in a release.
And the truck drivers’ group the Owner-Operator Independent Drivers Association (OOIDA) likewise called for continued investment in projects like creating new parking spaces for Class 8 trucks. “OOIDA and the 150,000 small business truckers we represent congratulate Secretary Sean Duffy on his confirmation to lead the U.S. Department of Transportation,” OOIDA President Todd Spencer said in a release. “We look forward to continue working with him in advancing the priorities of small business truckers across America, including expanding truck parking, fighting freight fraud, and rolling back burdensome, unnecessary regulations.”
With the new Trump Administration continuing to threaten steep tariffs on Mexico, Canada, and China as early as February 1, supply chain organizations preparing for that economic shock must be prepared to make strategic responses that go beyond either absorbing new costs or passing them on to customers, according to Gartner Inc.
But even as they face what would be the most significant tariff changes proposed in the past 50 years, some enterprises could use the potential market volatility to drive a competitive advantage against their rivals, the analyst group said.
Gartner experts said the risks of acting too early to proposed tariffs—and anticipated countermeasures by trading partners—are as acute as acting too late. Chief supply chain officers (CSCOs) should be projecting ahead to potential countermeasures, escalations and de-escalations as part of their current scenario planning activities.
“CSCOs who anticipate that current tariff volatility will persist for years, rather than months, should also recognize that their business operations will not emerge successful by remaining static or purely on the defensive,” Brian Whitlock, Senior Research Director in Gartner’s supply chain practice, said in a release.
“The long-term winners will reinvent or reinvigorate their business strategies, developing new capabilities that drive competitive advantage. In almost all cases, this will require material business investment and should be a focal point of current scenario planning,” Whitlock said.
Gartner listed five possible pathways for CSCOs and other leaders to consider when faced with new tariff policy changes:
Retire certain products: Tariff volatility will stress some specific products, or even organizations, to a breaking point, so some enterprises may have to accept that worsening geopolitical conditions should force the retirement of that product.
Renovate products to adjust: New tariffs could prompt renovations (adjustments) to products that were overdue, as businesses will need to take a hard look at the viability of raising or absorbing costs in a still price-sensitive environment.
Rebalance: Additional volatility should be factored into future demand planning, as early winners and losers from initial tariff policies must both be prepared for potential countermeasures, policy escalations and de-escalations, and competitor responses.
Reinvent: As tariff volatility persists, some companies should consider investing in new projects in markets that are not impacted or that align with new geopolitical incentives. Others may pivot and repurpose existing facilities to serve local markets.
Reinvigorate: Early winners of announced tariffs should seek opportunities to extend competitive advantages. For example, they could look to expand existing US-based or domestic manufacturing capacity or reposition themselves within the market by lowering their prices to take market share and drive business growth.