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.
When lift-truck drivers at Southeast Frozen Foods' Miami DC need directions for storing incoming cases of ice cream or frozen vegetables, they don't have to fumble with paper lists or scanners. All they have to do is listen. The drivers, all participants in a voice technology pilot project, wear headsets that allow them to receive spoken instructions as they cruise through the facility unencumbered by radio-frequency devices or clipboards.When it comes time to respond back to the system, they simply speak into the headset's microphone.
Much the same thing is happening over in the facility's replenishment area. There, too, instructions are relayed to workers via their headsets. There's no more need for drivers to stop and consult a list or a scanner for directions. A voice in their ear tells them exactly where to find the items they need to restock the picking areas and precisely where those items should go.
Add replenishment and putaway to the growing list of DC tasks that are being directed by voice systems nowadays. Once confined largely to picking applications, voice technology is making the leap into other operational areas of the DC as users discover the benefits of a system that frees up their hands and eyes.
Part of the attraction lies in voice's simplicity and ease of use. In a typical application, workers wear belt-mounted terminals and headsets connected to the terminals by cables. (Wireless headset models that use Bluetooth connectivity and systems that allow voice to be deployed onto handheld terminals are also available.) As they go through their workday, workers are guided by a computer-controlled voice that tells them where to go and what to do when they get there. Once they've finished a task, workers confirm their actions by speaking back into their headsets' microphones, prompting the system to record the transaction.
From DC management's perspective, however, the big draw is voice technology's potential to boost both speed and accuracy. Many companies that have switched to voice-directed picking report productivity gains of 20 percent or more, depending on their previous picking method. And it's not unusual for voice users to report near-perfect accuracy rates.
Word gets out
Like most voice users, Southeast Frozen Foods started out by implementing the technology in its picking operations. Two years ago, it began experimenting with voice as part of its search for an alternative to its label-based picking system. Though labels were working perfectly well with the drygoods portion of its business, they were proving to be less than ideal for its frozen-foods operations. Southeast Frozen Foods, a division of Southeast Food Distribution, is a thirdparty warehouse and transportation service provider that supplies customers in 16 states with dry goods, refrigerated items, and frozen foods—the latter from freezer warehouses in Richmond, Va.; Columbia, S.C.; Cordele, Ga.; New Orleans; and Miami.
One problem with labels was that they didn't stick well in freezer environments where temperatures dropped down to 20 degrees below zero Fahrenheit.As a result, they tended to fall off the cases. Another was that workers wearing gloves found it difficult to peel and apply the labels. A third drawback was that the sheets of labels were easily mislaid, which sometimes resulted in a shortage of picks.
In June 2005, Southeast launched its first voice pilot, working in conjunction with its supplier, Vocollect. The pilot took place at the Columbia facility, which at the time was providing third-party services to two customers. Though Southeast had intended to start out slowly, implementing voice to pick cases for just one of those customers, it wasn't long before managers began talking about accelerating the rollout. "It did not take us long to be convinced that voice was the way we wanted to go," recalls Danny Payne, the company's vice president of operations. Within days, Southeast had added the second customer to the mix.
In fact, after only a month of testing, Southeast decided to forge ahead with full deployment of voice technology for all picking operations in both its Columbia and Richmond facilities. Then, in February 2006, it rolled out voice technology at its frozen-foods warehouse in Miami. Later this year, the company will implement the system at its other Miami facility, which handles dry goods. Currently, 90 selectors use voice across the company's three voice-enabled DCs. Most are picking full cases onto pallets. The only exception is the Miami frozen-foods DC, where order pickers also select split case items, such as candy and spices, to fill cartons on order pallets.
Voicing approval
As for the voice pilot's outcome, the results speak for themselves. Almost immediately, Southeast saw order turn times drop. That's largely because the wait period has been nearly eliminated.With voice, workers can begin picking within 30 to 45 minutes of receiving an order, whereas with paper, it could take up to eight hours to print all of the labels needed. And once they get going, workers tend to be more productive than they were under the previous system because the headsets free up their eyes and hands.
Order accuracy has soared as well—a critical consideration for a third-party service provider like Southeast. That came as an unexpected bonus. Shortly before the voice pilot was launched, Southeast had introduced a program designed to detect picking errors by comparing the actual weight of outbound shipments against the expected weight. Though the program resulted in a significant drop in errors, it soon became apparent that it wasn't infallible. Once the voice system was introduced, picking errors dropped by half again.
Voice has an edge over paper when it comes to accuracy partly because it's able to bridge language barriers. In Southeast's case, for example, some members of the largely Hispanic workforce are unable to read English, which occasionally led to errors with the old label-based pick system. Voice eliminates that problem by allowing associates to use the language of their choice. Before they begin using the system, associates record their responses to standard work commands to "train" the system to recognize their individual speech patterns. What language they use is immaterial as long as they respond consistently. In addition, employees in the Miami frozen-foods facility have the choice of receiving their instructions in English or Spanish.
Boosting accuracy has paid off in ways that go beyond customer satisfaction. "The accuracy we have has allowed us to reduce our auditing, which has saved labor," says Payne. "Throughput is also better. Our only limitation now is the size of the building." Overall, Payne says, average worker productivity is up about 5 percent and accuracy is now better than 99.9 percent.
Miami ice
Buoyed by its success using voice to direct order picking, Southeast is now preparing to expand its use of voice into other areas of its operation. The company is currently conducting tests in the Miami frozen-foods facility to see how voice stacks up against its existing scanner-based system for replenishment and putaway.
The pilot has required very little in the way of capital investment. Since picking is performed on a separate shift from putaway and replenishment, workers can share the voice terminals, although they have their own earpieces and mouthpiece screens.
With both replenishment and putaway, the voice system works on pretty much the same principle as the picking application. When used in replenishment, for example, the voice system first directs a lift-truck driver to the specific location in the reserve storage area that houses the items needed to restock the picking area. Reserve stock is normally stored on the upper levels of the racking system above the floor-level picking locations.
Once he or she arrives at the storage location, the driver recites the check digit printed on the rack into the system to confirm the location. The system then directs the driver to move the load into a floor-level pick location. The pattern is repeated at the destination location, with the driver reading the destination location's check digit back into the system to confirm that the load is being deposited in the correct pick slot.
With putaway, the procedure begins when a truck arrives and workers begin reading six-digit codes into the system to notify it which pallet loads have been delivered. The voice system then informs the drivers of the goods' assigned storage location so they can whisk the cases off the dock and directly into the freezer. Received products must be processed quickly, since, as Payne puts it, "Ten minutes on the dock with ice cream is too long."
When they arrive at the storage location, drivers read the rack position's check digit into the microphone to confirm the position. Although storage locations are often assigned by Southeast's homegrown warehouse management system, drivers also have the freedom to place loads into other locations at their discretion. In that event, they simply notify the voice system where they've deposited the load and provide the location's check digit.
Payne notes that voice devices have several advantages over scanners in freezers with sub-zero temperatures. For one thing, he says, scanners aren't always reliable at low temperatures. For another, they tend to become brittle when exposed to extreme cold, which makes them more susceptible to damage when dropped.
Turning up the volume
As for the ongoing story of Southeast's voice deployment, it's unlikely that replenishment and putaway will be the last chapter. By the end of the year, Southeast expects to have a pilot program under way using voice to direct the loading of outbound trucks. Weight and dimensional data on all of its products have already been entered into the system. Once the pilot is up and running, the voice system will guide workers through the loading process, providing information on the proper sequence. When they're finished, workers will read check digits back into the system to confirm that they've loaded the merchandise onto the right truck and in the right order.
Down the road, Payne plans to look into the possibility of using voice to direct cycle counting and receiving activities. And there could be more to come. Payne says that he'll push to use voice for any application where he sees an opportunity to improve accuracy and obtain a solid return on investment (ROI).
What kind of returns has Southeast seen to date? So far, they've exceeded expectations, Payne reports. "When the Vocollect salesman told me to expect an ROI in just 12 months, my head was spinning," he says. "And it actually ended up [being] less than that. We can live each day off of the money we're [saving] and can now invest that in new applications."
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.”