Say goodbye to language barriers and guesswork. Today's newest pick-to-light systems feature tiny TV-like display screens that show order pickers exactly which tube of lipstick or bottle of anti-aging serum to retrieve.
John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
Should you happen to find yourself cruising down the aisles of health-care products manufacturer Melaleuca's brand new distribution center in Idaho Falls this fall, you'll almost certainly notice the tiny TV-like screens mounted all over the place. Peer into one of these tiny screens with its artfully lit photos of cosmetics or cleaning products and you might think you'd stumbled onto the set of "The Price Is Right." But you won't hear Bob Barker's booming voiceover inviting you to guess the price of the tube of Sugarplum lipstick or bottles of Vitality multivitamins, Classic Tooth Polish or EcoSense cleaners. The items displayed on the 1.2-inch "pick to display" monitors won't be game-show props; they'll be there to serve as visual guides to show order pickers working in Melaleuca's distribution center exactly what to pick.
Pressured by the success of rival voice technology, makers of pick-to-light systems have unleashed a flurry of innovation, resulting in such advances as the PictureView pick-to-display system that will be installed in Melaleuca's DC. "Voice has taken a lot of the pick-to-light market over the last couple years, and I think we'll continue to see that happen," says Howard Hammer, vice president of sales for the Eastern region at Fortna, an integrator of logistics and distribution systems.
To fend off the competition, pick-to-light vendors have taken several other steps as well: First, they've dropped the price of their systems, which today cost a fraction of what they did as recently as three years ago. They've also made them easier to install. Manufacturers have introduced both track-mounted displays that let users simply plug the lights into the panel without the miles of wiring, and modular snap-on displays that can be swapped out in a heartbeat when a new product is introduced into a pick location.
They've even made their systems smarter. Siemens Logistics and Assembly, for example, has designed a pick-to-light package that includes workload balancing software to analyze individual work loads and adjust picking assignments when necessary, reports Tony Wright, a systems sales manager for the company. In a typical picking operation, a picker starts at one end of an aisle and follows the lights to the end of the picking zone (perhaps 150 feet from where he started), where he passes off his tote to the next picker. Instead of sending him back to the beginning of the pick zone, the pick-tolight software can assign the next round of picks in reverse sequence, thereby increasing picker productivity. The software can also adjust picking assignments to accommodate slow or inexperienced pickers and adjust the size of the picking zones to balance work flow better.
follow the light
Though it's the new and dazzling features that capture headlines, it's also true that not every company wants or needs a pick-to-light system with TV displays or voice technology built in. For many companies, traditional pick-to-light more than fills the bill. That was true for Vera Bradley, a manufacturer of women's fashion accessories that decided to upgrade to pick to light from its old paper-based picking system in February. Vera Bradley's main concern was improving picking accuracy. Yearly growth in the 15-percent range had stressed the picking process at its distribution center, and accuracy had deteriorated to the point where the company felt it needed to inspect 100 percent of its orders before they shipped.
After deciding that its picking operation was a good candidate for pick-to-light (the company experiences high demand for a relatively low number of stock-keeping units), Vera Bradley called in systems integrator Forte to install PCC Systems' Lightning Pick system. With the pick-tolight technology in place, the company expects to increase its accuracy to the 99-percent range on the first pass for the 25,000 items it picks daily. If that works out as planned, the company will be able to save on labor costs by shifting the workers who perform inspections to picking.
Another company that decided to bypass the extras in favor of a traditional pick-to-light system was Gear For Sports. Like Vera Bradley, the athletic apparel manufacturer installed a Lightning Pick system in its new Lenexa, Kan., distribution center, and it's pleased with the results. The company now ships up to 70,000 athletic shirts a day from a 300,000-square-foot building, thanks to a two-story pick module featuring 3,000 pick-to-light units supplied by PCC Systems.
For Gear For Sports, the primary advantage of its Windows-based pick system has been labor savings. Before the system was installed, workers trotted all around the building with wheeled carts picking individual orders. "We had lots of walking time," recalls Jerel Williams, director of warehousing. Another problem was a language barrier. Williams reports that most of the company's workforce doesn't speak English.
The pick-to-light system solved both problems. Workers remain pretty much within designated zones and no longer have to travel very far. Lights direct picking for each order, so the system transcends any language barriers. "The system has simplified our training as well," adds Williams. "A new associate can be productive in about one-fourth the time that it took under the old system."
What you see is what you get
Still, for all the innovation, the most eye-catching, at least, is the PictureView system developed by ASAP Automation and slated for installation this fall in Melaleuca's brand new 155,000-square-foot distribution center. Executives at Melaleuca believe that once it's up and running, the pick-to-display system, which features a 170-degree viewable screen, will help pickers work faster and more accurately than in the past. That's critical to the company's business strategy, says Jace Poole, Melaleuca's director of property development. To compete in a crowded market, Melaleuca, which manufactures and markets health care, pharmaceutical and home care products,must offer fast deliveries and accurate orders.
It's not that Melaleuca is having a particular problem with picking accuracy at the moment. Poole reports that his company's accuracy rates run above 99 percent using the pick-to-light system currently in place. It's just that Melaleuca wants to be even better, and it's convinced that the ability to show order pickers a photo of the actual product to be picked will enhance picking accuracy even further.
That visual aid promises to be particularly useful to new employees, temp workers and the corps of part-time workers the company employs. "We have a force of part-time workers [who] usually only work a few days a month during our busy times," says Poole. "Given that they don't work here full time, their familiarity with our products is not as great as full-time workers'. The pick-to-display system will help them be more accurate since they can see a picture of the product they need to pick." In addition, the system can alert workers when products are slotted incorrectly. Poole is nothing if not optimistic. "With a picture of the product, it'll be hard for pickers not to pick the right item," he says. "We looked at some other systems, including voice picking, but in the end this seems to fit our operations and employees better because of our high throughput.We think this is really going to help [us] service the customer better just through pure accuracy since the recognition of a product visually is easier than finding a light."
But is the price right?
Though outfitting a DC with the tiny PictureView monitors might sound expensive, the developer reports that it's surprisingly affordable. True, the display screens cost about 70 percent more than traditional pick-to-light beacons, but the system's added features help offset the added cost. For example, traditional pick-to-light systems require a light for each row of product. With pick-to-display technology, by contrast, the monitor can be set up with an arrow to direct pickers either up or down, which means that fewer terminals are needed.
In addition, the PictureView technology is wireless. Workers can load it onto a cart and wheel it to remote sections of the distribution center if needed. And while the
technology remains more expensive than a traditional pick-to-light system, the price is expected to drop as the cost of producing LCD screens in Asia falls.
Price aside, the ASAP system is surprisingly versatile, offering options for both text display and voice. That means workers in an assembly or kitting operation could actually turn to the screen for instructions for carrying out their picking and assembly assignments.
That's not to say that the technology's right for everybody, however. Says ASAP Automation's operations vice president, Andy Brinkmeier: "It's not the right product for every application. But if you can use one device for multiple pick locations or you need to hit isolated parts of your picking floor, this product, with its wireless capabilities and high accuracy, could be beneficial."
Occupiers signed leases for 49 such mega distribution centers last year, up from 43 in 2023. However, the 2023 total had marked the first decline in the number of mega distribution center leases, which grew sharply during the pandemic and peaked at 61 in 2022.
Despite the 2024 increase in mega distribution center leases, the average size of the largest 100 industrial leases fell slightly to 968,000 sq. ft. from 987,000 sq. ft. in 2023.
Another wrinkle in the numbers was the fact that 40 of the largest 100 leases were renewals, up from 30 in 2023. According to CBRE, the increase in renewals reflected economic uncertainty, prompting many major occupiers to take a wait-and-see approach to their leasing strategies.
“The rise in lease renewals underscores a strategic shift in the market,” John Morris, president of Americas Industrial & Logistics at CBRE, said in a release. “Companies are more frequently prioritizing stability and efficiency by extending their current leases in established logistics hubs.”
Broken out into sectors, traditional retailers and wholesalers increased their share of the top 100 leases to 38% from 30%. Conversely, the food & beverage, automotive, and building materials sectors accounted for fewer of this year's top 100 leases than they did in 2023. Notably, building materials suppliers and electric vehicle manufacturers were also significantly less active than in 2023, allowing retailers and wholesalers to claim a larger share.
Activity from third-party logistics operators (3PLs) also dipped slightly, accounting for one fewer lease among the top 100 (28 in total) than it did in 2023. Nevertheless, the 2024 total was well above the 15 leases in 2020 and 18 in 2022, underscoring the increasing reliance of big industrial users on 3PLs to manage their logistics, CBRE said.
Oh, you work in logistics, too? Then you’ve probably met my friends Truedi, Lumi, and Roger.
No, you haven’t swapped business cards with those guys or eaten appetizers together at a trade-show social hour. But the chances are good that you’ve had conversations with them. That’s because they’re the online chatbots “employed” by three companies operating in the supply chain arena—TrueCommerce,Blue Yonder, and Truckstop. And there’s more where they came from. A number of other logistics-focused companies—like ChargePoint,Packsize,FedEx, and Inspectorio—have also jumped in the game.
While chatbots are actually highly technical applications, most of us know them as the small text boxes that pop up whenever you visit a company’s home page, eagerly asking questions like:
“I’m Truedi, the virtual assistant for TrueCommerce. Can I help you find what you need?”
“Hey! Want to connect with a rep from our team now?”
“Hi there. Can I ask you a quick question?”
Chatbots have proved particularly popular among retailers—an October survey by artificial intelligence (AI) specialist NLX found that a full 92% of U.S. merchants planned to have generative AI (GenAI) chatbots in place for the holiday shopping season. The companies said they planned to use those bots for both consumer-facing applications—like conversation-based product recommendations and customer service automation—and for employee-facing applications like automating business processes in buying and merchandising.
But how smart are these chatbots really? It varies. At the high end of the scale, there’s “Rufus,” Amazon’s GenAI-powered shopping assistant. Amazon says millions of consumers have used Rufus over the past year, asking it questions either by typing or speaking. The tool then searches Amazon’s product listings, customer reviews, and community Q&A forums to come up with answers. The bot can also compare different products, make product recommendations based on the weather where a consumer lives, and provide info on the latest fashion trends, according to the retailer.
Another top-shelf chatbot is “Manhattan Active Maven,” a GenAI-powered tool from supply chain software developer Manhattan Associates that was recently adopted by the Army and Air Force Exchange Service. The Exchange Service, which is the 54th-largest retailer in the U.S., is using Maven to answer inquiries from customers—largely U.S. soldiers, airmen, and their families—including requests for information related to order status, order changes, shipping, and returns.
However, not all chatbots are that sophisticated, and not all are equipped with AI, according to IBM. The earliest generation—known as “FAQ chatbots”—are only clever enough to recognize certain keywords in a list of known questions and then respond with preprogrammed answers. In contrast, modern chatbots increasingly use conversational AI techniques such as natural language processing to “understand” users’ questions, IBM said. It added that the next generation of chatbots with GenAI capabilities will be able to grasp and respond to increasingly complex queries and even adapt to a user’s style of conversation.
Given their wide range of capabilities, it’s not always easy to know just how “smart” the chatbot you’re talking to is. But come to think of it, maybe that’s also true of the live workers we come in contact with each day. Depending on who picks up the phone, you might find yourself speaking with an intern who’s still learning the ropes or a seasoned professional who can handle most any challenge. Either way, the best way to interact with our new chatbot colleagues is probably to take the same approach you would with their human counterparts: Start out simple, and be respectful; you never know what you’ll learn.
With the hourglass dwindling before steep tariffs threatened by the new Trump Administration will impose new taxes on U.S. companies importing goods from abroad, organizations need to deploy strategies to handle those spiraling costs.
American companies with far-flung supply chains have been hanging for weeks in a “wait-and-see” situation to learn if they will have to pay increased fees to U.S. Customs and Border Enforcement agents for every container they import from certain nations. After paying those levies, companies face the stark choice of either cutting their own profit margins or passing the increased cost on to U.S. consumers in the form of higher prices.
The impact could be particularly harsh for American manufacturers, according to Kerrie Jordan, Group Vice President, Product Management at supply chain software vendor Epicor. “If higher tariffs go into effect, imported goods will cost more,” Jordan said in a statement. “Companies must assess the impact of higher prices and create resilient strategies to absorb, offset, or reduce the impact of higher costs. For companies that import foreign goods, they will have to find alternatives or pay the tariffs and somehow offset the cost to the business. This can take the form of building up inventory before tariffs go into effect or finding an equivalent domestic alternative if they don’t want to pay the tariff.”
Tariffs could be particularly painful for U.S. manufacturers that import raw materials—such as steel, aluminum, or rare earth minerals—since the impact would have a domino effect throughout their operations, according to a statement from Matt Lekstutis, Director at consulting firm Efficio. “Based on the industry, there could be a large detrimental impact on a company's operations. If there is an increase in raw materials or a delay in those shipments, as being the first step in materials / supply chain process, there is the possibility of a ripple down effect into the rest of the supply chain operations,” Lekstutis said.
New tariffs could also hurt consumer packaged goods (CPG) retailers, which are already being hit by the mere threat of tariffs in the form of inventory fluctuations seen as companies have rushed many imports into the country before the new administration began, according to a report from Iowa-based third party logistics provider (3PL) JT Logistics. That jump in imported goods has quickly led to escalating demands for expanded warehousing, since CPG companies need a place to store all that material, Jamie Cord, president and CEO of JT Logistics, said in a release
Immediate strategies to cope with that disruption include adopting strategies that prioritize agility, including capacity planning and risk diversification by leveraging multiple fulfillment partners, and strategic inventory positioning across regional warehouses to bypass bottlenecks caused by trade restrictions, JT Logistics said. And long-term resilience recommendations include scenario-based planning, expanded supplier networks, inventory buffering, multimodal transportation solutions, and investment in automation and AI for insights and smarter operations, the firm said.
“Navigating the complexities of tariff-driven disruptions requires forward-thinking strategies,” Cord said. “By leveraging predictive modeling, diversifying warehouse networks, and strategically positioning inventory, JT Logistics is empowering CPG brands to remain adaptive, minimize risks, and remain competitive in the current dynamic market."
With so many variables at play, no company can predict the final impact of the potential Trump tariffs, so American companies should start planning for all potential outcomes at once, according to a statement from Nari Viswanathan, senior director of supply chain strategy at Coupa Software. Faced with layers of disruption—with the possible tariffs coming on top of pre-existing geopolitical conflicts and security risks—logistics hubs and businesses must prepare for any what-if scenario. In fact, the strongest companies will have scenarios planned as far out as the next three to five years, Viswanathan said.
Grocery shoppers at select IGA, Price Less, and Food Giant stores will soon be able to use an upgraded in-store digital commerce experience, since store chain operator Houchens Food Group said it would deploy technology from eGrowcery, provider of a retail food industry white-label digital commerce platform.
Kentucky-based Houchens Food Group, which owns and operates more than 400 grocery, convenience, hardware/DIY, and foodservice locations in 15 states, said the move would empower retailers to rethink how and when to engage their shoppers best.
“At HFG we are focused on technology vendors that allow for highly targeted and personalized customer experiences, data-driven decision making, and e-commerce capabilities that do not interrupt day to day customer service at store level. We are thrilled to partner with eGrowcery to assist us in targeting the right audience with the right message at the right time,” Craig Knies, Chief Marketing Officer of Houchens Food Group, said in a release.
Michigan-based eGrowcery, which operates both in the United States and abroad, says it gives retail groups like Houchens Food Group the ability to provide a white-label e-commerce platform to the retailers it supplies, and integrate the program into the company’s overall technology offering. “Houchens Food Group is a great example of an organization that is working hard to simultaneously enhance its technology offering, engage shoppers through more channels and alleviate some of the administrative burden for its staff,” Patrick Hughes, CEO of eGrowcery, said.
The 40-acre solar facility in Gentry, Arkansas, includes nearly 18,000 solar panels and 10,000-plus bi-facial solar modules to capture sunlight, which is then converted to electricity and transmitted to a nearby electric grid for Carroll County Electric. The facility will produce approximately 9.3M kWh annually and utilize net metering, which helps transfer surplus power onto the power grid.
Construction of the facility began in 2024. The project was managed by NextEra Energy and completed by Verogy. Both Trio (formerly Edison Energy) and Carroll Electric Cooperative Corporation provided ongoing consultation throughout planning and development.
“By commissioning this solar facility, J.B. Hunt is demonstrating our commitment to enhancing the communities we serve and to investing in economically viable practices aimed at creating a more sustainable supply chain,” Greer Woodruff, executive vice president of safety, sustainability and maintenance at J.B. Hunt, said in a release. “The annual amount of clean energy generated by the J.B. Hunt Solar Facility will be equivalent to that used by nearly 1,200 homes. And, by drawing power from the sun and not a carbon-based source, the carbon dioxide kept from entering the atmosphere will be equivalent to eliminating 1,400 passenger vehicles from the road each year.”