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.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.