Award-winning journalist Bernie Knill has been writing about material handling and logistics for more than 35 years. He can be reached at bernknill@sbcglobal.net.
Let's get rid of the notion that pick-to-light systems start and end with lights. That might have been true 25 years ago when the technology was introduced, but not today.
What differentiates one system from another nowadays is the order fulfillment software. The lights just have to be reliable; the software is what really separates one system from another, says Bill Hubacek1, director of distribution products for FKI Logistex North America.
Hubacek advises customers to evaluate a system by its functionalities: Can it track a tote's contents? Pinpoint when an order was picked, by whom, and into which tote? Generate a packing list? Signal the system when replenishments are needed? Balance workloads to accommodate variations in workers' picking speeds? In short, can the software do what the customer requires?
Customers can be forgiven if they aren't sure exactly what they require. The last few years have seen an explosion in technological advances, leaving many confused about pick-to-light technology and its capabilities. To help clear up some of the uncertainty, we offer answers to a number of frequently asked questions.
Q: How does a pick-to-light system work?
A: A pick-to-light system uses lighted beacons, usually mounted on storage racks, to direct order picking activity. In a typical pick-to-light operation, a computer electronically reads order pick tickets, determines the best picking sequence and transmits signals to the light modules on the racks. Flashing lights then guide workers to the items they need and indicate the quantity needed. When he or she is finished, the order picker presses a button so that the computer can verify that the correct item has been picked.
Q: What are the benefits of using pick-to-light technology?
A: To begin with, there's productivity. By minimizing the time order pickers spend searching for the correct SKUs, pick-to-light technology can double or triple picking rates. That, in turn, typically translates into a reduction in labor requirements.
Then there's increased accuracy. The light-up displays make it virtually impossible to pick the wrong items. As a result, most DCs find that costs associated with returns and mispicks plummet soon after they install a pick-to-light system.
The systems are also easy to use. Pickers need only minimal training and a minimal command of the language, says Dave Broadfoot, managing partner at Lightning Pick Technologies. That's a big plus for DCs that use a lot of part-time workers or employees with limited English skills.
For an example of the results, you need look no further than East Coast Salon Services, a Runnemede, N.J.-based distributor of salon and beauty products. The company's order accuracy has soared to 99.98 percent and labor needs have dropped by half since it installed a Dematic pick-to-light system. Company officials also report that it now takes just 15 minutes to train new workers and that by the third day on the job, the average picker is able to pick 216 lines per hour and 648 pieces an hour.
Q: Is a pick-to-light system the same as a put-to-light system?
A: No. Although the two systems use the same hardware, a put-to-light system essentially works like pick to light in reverse. With pick to light, pickers with order totes fan out to retrieve items from the locations indicated by the flashing lights. With put to light, batch-picked items are instead delivered to stationary totes or bins used to collect items for an individual order. The light modules are located not at the SKUs' locations but at each order bin, telling the picker that, say, this tote needs six pink sweaters and that one needs three.
Q: What kind of software do pick-to-light systems use?
A: Many users choose to link their pick-to-light systems to their warehouse management software (WMS). But that's not the only option, says Brian Morley, vice president of Daifuku America Corp. Other possibilities include tying pick-to-light systems into a warehouse control system or a stand-alone system supplied by the pick-to-light vendor.
Q: Can a pick-to-light system be modified to accommodate changing needs?
A: Yes. They're designed to make it easy for companies to change pick zones or add more zones. In fact, many of today's systems come with modular snap-on light displays that can be swapped out in a heartbeat when a new product is introduced into a pick location. "Pick-to-light systems are flexible, based on day-to-day or week-to-week business needs," says Craig Welch, Daifuku America's manager of new product development. "Also, companies have the ability to dynamically slot product based on velocity."
If it turns out that a major overhaul is needed, suppliers will step in to help. "You're seeing a lot more upgrading, adding, changing, modifying," says Ed Romaine, director of marketing for Remstar International, which supplies pick-to-light systems. "Our current projects are all modifications."
Q: Isn't pick-to-light technology just for big companies?
A: Not any more. Prices have plummeted in the past few years, says Stephen Small, vice president of marketing and sales for Kingway. "When we first used to build these systems, they were built on a custom computer with its own operating system," he explains. "Since then, we've begun using servers that are a lot less expensive." He adds that the costs of manufacturing the lights have tumbled as well. Small claims that anybody with a couple hundred SKUs can afford to put in a pick-to-light system. "We're selling systems with 200 lights for under $l00,000," he says.
Q: How can I get a rough idea of the cost?
A: To estimate the cost, you first have to figure out how many lights you'll need. From there, it's a simple matter of multiplication. "From a budget standpoint, the industry uses a couple of hundred dollars a light as a ballpark figure," says Ken Ruehrdanz, business development manager for Dematic (formerly Siemens Dematic).
Q: Do I have to buy the components separately?
A: No. A number of suppliers offer all-inclusive packages. For example, GBI Sorters sells a turnkey system that includes the servers, pick modules, wiring, custom software and service, says Philip Sinnreich, systems sales consultant for the company.
Q: What are the most common mistakes made by companies buying pick-to-light systems?
A: One is planning for the present, not the future. "Anything you do in the warehouse has to be part of a plan," says Romaine of Remstar International. "It's important to anticipate what the [DC's through put] rate will be three years from now and design for it, matching the rates of all the components."
Another is assuming that the technology will sell itself to management based on its reputation for boosting productivity. "I think that pick to light requires some kind of justification," says Bob Carver, vice president of HK Systems. "Either that's going to be an economic or some other corporate justification—perhaps security or verification."
Q: What about maintenance and upkeep?
A: Maintenance is much simpler today than it was in the past, thanks to advances in diagnostic systems. "If a light fails, we have diagnostics that identify the light that is not responding," says Hubacek of FKI Logistex.
In addition, most suppliers offer maintenance contracts. Those contracts have become popular with customers. Today, about 80 percent of users have maintenance contracts.
Contracts are available for systems of all sizes. Prices range from just under $100,000 up to one and a half million dollars.
Q: I keep reading that RFID is the way of the future. How does RFID fit with pick to light?
A: Although there have been a limited number of installations to date, RFID is unquestionably moving into the realm of pick to light. As Broadfoot of Lightning Pick Technologies sees it, RFID is a natural fit with a technology like pick to light that's engineered to boost productivity.
For one thing, RFID frees order pickers' hands for other tasks. "With RFID, you eliminate the need for workers to use hand-held scanners," Broadfoot says. Another benefit is that workers no longer need to line up cartons for scanning. RFID doesn't require a line of sight for reading a tag. No matter which way the carton spins on the conveyor, the operator can still identify its contents.
1Due to a reporting error, Bill Hubacek was misidentified as Bill Subacek in an earlier version of this article.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
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.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."