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.
For third-party logistics service providers (3PLs) that specialize in order fulfillment, life is never dull—unpredictable, perhaps; but never dull. Unlike their counterparts at, say, an engine manufacturer or a textile mill, the third party's staffers might find themselves picking lipstick one day, electric guitars the next.
A prime example of a 3PL company that has to be ready for whatever its clients might throw at it next is New Jersey-based Capacity. This five-year-old company, which runs two distribution facilities in North Brunswick, N.J., serves more than 60 different clients. Half of Capacity's distribution business is for cosmetics companies, like Bliss and Tarte, so it has to be ready to deal with small products. But the facilities also must be prepared to handle music CDs and larger items, like textiles, garments and electronics. "We actually handle everything from K-Mart uniforms to yoga mats to electric guitars," says Thom Campbell, chief strategic officer and a founding partner of Capacity.
To give it the flexibility it needs to process both pallet loads and single-item orders, Capacity actually uses two warehouses. The smaller 60,000-square-foot facility processes mostly full case orders, while its 130,000-square-foot building handles pick-and-pack needs. Of course, managing two different systems in two separate facilities poses challenges for the software that automates the whole process. For Capacity, the answer was a warehouse management system (WMS) customized by Foxfire Technologies to accommodate Capacity's multi-facility, multi-product design. The WMS controls all picking and packing processes, including paper picking and radio frequency (RF)-directed picking from pallet racks, flow racks and shelving. In addition to order fulfillment, RF is used to direct receiving and shipping functions. The WMS also allows clients to view their inventories in real time.
Take your pick
Most picking tasks take place in the larger pick-and-pack building. In that facility, the majority of products are placed into reserve pallet racks upon receipt, where they remain until needed. Some full pallets and full cases, like cosmetics that ship directly to stores, may be picked from the pallet racks, but most of the items pulled from there are destined to replenish Capacity's pick modules.
"Our picking strategy really depends on the client," reports Campbell. "We currently process everything from a single Internet order with one piece to a full trailer of products."
The facility's pick modules consist of case flow racks and shelving. Takeaway conveyors run through these areas to facilitate efficient picking of orders. The flow racks hold fast-movers, while the shelving contains slower-moving products and irregularly shaped items not suited to the flow racks. Most products for a particular client are grouped together to speed up selection, as processing is typically waved a client at a time.
Items are picked by order into totes or cartons according to the client's specifications. The fast-movers are selected from their flow racks using either pick tickets or RF-directed assignments (Capacity is currently in the process of migrating more of its clients to the RF processes). Items are also gathered from the nearby shelving and placed into the cartons or containers before they're pushed off onto the takeaway conveyors. Since picking is performed by discrete order, some cartons or totes are filled to the brim with products, while others, such as those for Internet orders, may contain only one item.
Slower-moving items, odd-shaped products (such as the electric guitars) and select merchandise for less-active customers are located in shelving away from the conveyors. These items are picked to wheeled carts.
Once all selections have been made, the items are either conveyed or carted to 16 pack stations. Typically, 10 to 15 of these stations are active at any given time, depending on the volume being processed that day. Workers remove the items from their totes and cartons, conduct quality checks to verify proper order selection and then repack the items into shipping cartons.
"Different clients have different pack regimens," says Campbell. Some use custom boxes with identifying markings. Some require value-added services, such as gift wrapping. Dunnage, the protective material placed around the product in the shipping carton, is added according to the clients' preferences. Some prefer air bubble wrap, while others use kraft paper to protect their products. Cartons are also weighed and packing lists are created, again based on customer preferences. Once all items have been repacked, the cartons are sealed and then sent to a staging area to await shipment.
The facility processes 2,000 to 3,000 orders a day, consisting of about 10,000 packed items. And in case you were wondering, Capacity has not yet reached its name.
gearing up to pick ...
There's no shortage of equipment and systems on the market designed for use in picking and packing operations. Here's a look at some of the most common types of equipment:
Pick tickets and labels: Although they represent a decidedly low-tech approach, pick tickets are still the most widely used method of picking orders. Typically, a list of required selections is printed onto a sheet of paper that a worker takes with him into the picking areas. The worker simply pulls the needed items, then crosses them off the list. Similarly, pick labels are used in many facilities. The labels contain printed information on which items are needed, with many also doubling as shipping labels. Workers pick required products, deposit them into a carton, then place the label on the carton's side.
Radio frequency-directed systems: At sites that use RF systems, workers use radio-frequency data terminals/scanners to direct their picking. Instructions for which items are needed are relayed to the display on the workers' terminals. Typically, items are scanned with the units to confirm their picks.
Voice-directed systems: Workers wearing headsets are given audible computer-generated instructions on which items to choose. The software that drives the system has voice-recognition capabilities so that the workers are able to speak responses back into their headsets to confirm their selections.
Light-directed systems: Beacons installed on racks next to storage locations light up to guide workers in selecting items contained in the racks. Number displays adjacent to the lights show how many of each SKU are required. The worker selects the proper items, then hits a button on the pick-to-light system to confirm that picking has been completed.
Storage systems: While not true picking technologies, many storage systems are designed to facilitate order selection. These include flow racks that rely on gravity to move products to the front of the rack faces where they are easily accessible. Carousels and mini-load automatic storage and retrieval systems (AS/RS) are similarly designed to collect stored items and then present them directly to workers located at picking stations.
... and to pack
Corrugated cartons: Corrugated is still the material of choice for packing products, especially for one-way shipments. Corrugated is relatively inexpensive, recyclable and easy to store and assemble.
Returnable containers: Companies that have a closed-loop distribution system find economic advantages to using returnable containers. These shipping boxes—typically constructed of plastic, although they may also be made of wood, steel, aluminum and other materials—provide greater protection than most corrugated cartons and are reusable, making them economical and environmentally friendly. Even companies that do not have their own backhaul transportation mechanism for returning containers to their distribution center can benefit by joining a pooling organization that shares returnable containers among a large number of clients.
Dunnage systems: Dunnage is the protective material placed inside a carton or container to cushion products in transit. There are a variety of different types.
Air-filled bubble material can be purchased either already inflated or in flat form so that the user can inflate it as needed and cut it to length at the packing stations using specialized machines.
Kraft paper can also be distributed by machines at pack stations. In many systems, the paper can be folded into a protective "mattress" that is placed around items within the cartons to provide cushioning and to fill voids. Foam peanuts are also widely used to protect items.
They are small enough to fill empty carton space easily, and are lightweight and reusable.
Chemical foam offers a high level of protection and is often used to cushion electronics and other products that could be easily damaged by shifting during transit. Typically, two chemicals are injected into plastic bags to form this type of dunnage. As the chemicals mix, they interact to create a foam that quickly begins to expand. The bags are then placed around the product within the carton. As the foam continues to expand, it wraps around the product and fills any voids.
Machine-aided packing: A number of machines can help to automate packing processes. Automatic carton erectors make building multiple-sized cartons a snap. Once the cartons are packed, sealing machines automatically tape them closed. Labeling machines place packing slips, shipping labels and RFID-embedded labels directly onto cartons. Other labeling machines known as coders can print bar codes and other information directly onto carton surfaces without the need for adhesive labels.
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
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%."