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 New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."