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.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!