but intelligent software agents programmed to make exquisitely nuanced logistics decisions will soon be at work in the commercial sector as well. Maybe.
Wouldn't you like end-to-end control of the entire logistics pipeline? Simultaneous planning and execution? A logistics control system that operated at all levels and during all phases of operations? A system that allowed multiple simultaneous communications and decision-making over a vastly complex, spread out theater of operations?
Well, of course you would, although it probably sounds as far-fetched as having psychic access to your customers' order planning, or complete control over the weather.
It's not. The U.S. military and the defense departments in other countries, including the UK and Australia, are shooting for these exact goals, and they're coming close to achieving them. It's all made possible by something called intelligent software agents (see box).
Ironically, intelligent agents were originally developed in the commercial sector, and advocates initially had high hopes for an early rollout there. Last year, we published a story about intelligent software, quoting several sources who promised significant pilot projects in the next year. That proved overly optimistic, and a year on, adoption in the commercial sector is still far from reality. In the interim, however, intelligent software agent technology has steadily found its way into mainstream military applications.
R & Defense
It may be that the military has pulled ahead simply because it needs this level of sophistication more than commercial shippers do. "People ask, why aren't you like Wal-Mart," says Mark Greaves, program manager at the U.S. Department of Defense's Defense Advanced Research Projects Agency (DARPA) in Arlington, Va. "I say, well we are like Wal-Mart except our stores are moving all the time and Christmas comes on a random date every year."
And so for now, the military's where the action is. "The military has been in the front of this agent stuff," confirms Dr. Noel Greis, director of the Center for Logistics and Digital Strategy at the University of North Carolina's Kenan-Flagler Business School. "In the commercial world, the interest in agents [really took off] during the e-commerce era, and most of the applications focused on the interface between the customer and the process." (Amazon.com, for example, uses intelligent agents to automatically recommend new titles based on the customer's previous purchases.) "The military is a bit different," says Greis. "They dug in immediately on how agents can help with internal processes, especially logistics—the deployment of people, ammunition, fuel, water. In the military, agents are part of this whole digitization of the battlefield and systemization of operations. They want information captured in real time so they can see how the environment is changing dynamically and make sense of the information coming in."
On that front, perhaps the most promising intelligent software system being developed in the United States is UltraLog. Project UltraLog was established by DARPA in 2001 to take over from the Advanced Logistics Project that ran there from 1996 to 2001.
The UltraLog project's stated goal is "to create a comprehensive capability [that] will enable a massive scale, trusted, distributed agent infrastructure for operational logistics to be survivable under the most extreme circumstances." In other words, researchers are seeking the best way to use smart technology for maximum operational efficiency in combat situations—with the ability to continue operating at 80-percent capacity with up to 45-percent information infrastructure loss, for example.
UltraLog's not the only project under way, however. Others include Control of Agent-Based Systems (CoABS, also under DARPA), and Log Net, a joint-venture between the University of North Carolina, software vendor Saffron Technology of Morrisville, N.C., and Boeing Inc., headquartered in Chicago, which is developing technology for the U.S. Marine Corps. The Office of Naval Research announced in August 2003 a $5.74 million contract with the University of Southern California and Vanderbilt University to use agent software developed by computer scientists at the two schools to handle Navy and Marine Corps pilots' schedules. There is also a more ambitious and long-term project called Future Combat Systems, fostered by the U.S. Army.
Ultra-quick response
There are two main advantages to using intelligent software agents to help out with dynamic logistics management— that is, logistics management that responds quickly to changing situations.
First, intelligent agents form a collaborative network and can act independently. They don't need to operate in lockstep with a "master" computer that's overseeing everything; they can make a request, say, from a transportation management system to a local shipper's office without going through the head office's computer banks. This is called a distributed system, and it mimics much more tightly the physical structure of a complex logistics network.
Second, intelligent software agents are able to make autonomous decisions that humans would likely make if only they had the time. This is where the technology intersects with artificial intelligence, although on a relatively small scale. Intelligent agents are programmed with parameters that cause them to make what humans would consider "good" decisions, and they interface with humans on overall plans that spring from those decisions.
"What we're trying to do is tackle something that is a critical need, which is to unload humans from a lot of the mundane tasks they need to do, and to get humans and computers to collaborate," says Dr. Andrew Lucas, managing director at Agent Oriented Software Pty Ltd., a Victoria, Australia-based technology firm. "If you could do that, you could get a lot done," adds Lucas, who's currently working for the U.S. Air Force Research Laboratory at the Wright-Patterson Air Force base in Ohio, applying intelligent agents to military simulation.
And you could get a lot done fast. Enlisting computers to collaborate and make decisions lets users create a top-level logistics plan for a major maneuver in under an hour instead of the weeks it would take using humans alone. The USC/Vanderbilt program researchers reckon intelligent software cuts down the time needed to produce a daily schedule for AV8-B Harrier jump jets from six hours to four minutes.
Furthermore, intelligent software gives users greater ability to predict and limit the loss of operability caused by damage to the logistics system. The DARPA UltraLog program stresses the capability to build clusters of intelligent software agents that adapt so they can function in damaged and stressed environments. The military needs these capabilities more than anyone else because, for them, a logistics hiccup might mean losing an entire port or fleet of aircraft.
Greis says that the Future Combat System will also concentrate on smart ways of figuring out when and how to restock supplies in the field. "What they'd like to do is to make a lot of the logistics processes—re-supply, moving materiel from boat to shore—as autonomous and automated as possible. Right now, someone gets on the horn and says: I need such and such, and they're just responding. What they'd like to do is to develop agent systems that are more anticipatory and also respond autonomously," says Greis.
Greis describes one test project conducted recently, where vehicles in the battlefield were fitted with sensors that relayed information about engine temperatures, water and oil levels and so on. The software agents made their own decisions about how much to re-supply, who would do it, when it would be done and how long it was going to take. "We've developed a system with mobile agents, learning agents, collaborative agents that work together to manage the logistics," says Greis. "We're moving away from the push model to more of a pull model of supply. It's the same concept as the commercial supply chain."
Other military forces are catching on, too. Dr. Lucas is doing simulation work for the Defence Science and Technology Laboratory (DSTL), part of the UK's Ministry of Defence. Lucas is also working with the Defence Science and Technology Organisation (DSTO) in Australia to apply his company's agent product to unmanned air vehicle mission management. The firm is also working with the military in Canada and France.
Beginning of a beautiful friendship
Lucas is confident this smart technology will end up in the commercial sector, but he doesn't expect to see widescale adoption for five years or so. "It's not being used in the commercial sector, but it's close," he says. "As a technologist, I recognize that risk management is a big element in introducing new technologies. It's about showing people you have a plan for proving the technology and reducing the risk to the customer, over a number of years, and we've chosen to do that with the military first."
Part of the problem is that the technology's not quite ready for prime time. "We don't want to minimize the extent to which we think this would be useful in the commercial world," says Tony Rozga, research fellow at LMI Government Consulting, a not-for-profit government consulting firm based in McLean, Va., that supports the UltraLog project. "It's just not there yet." LMI and DARPA have worked together to develop Cougaar, a computer architecture for distributed agents. Notably, it's been made "open source"—that is, non proprietary—to encourage commercial application.
Saffron Technology's co-founder, chairman and chief scientist, Manny Aparicio, says one obstacle to adoption in the commercial sector is the issue of trust, especially with learning agents—ones that gather information about habitual human preferences and responses over time. People are nervous about delegating responsibility to a piece of software, Aparicio says. But, once they learn to trust it, things change. "The user can have it set so it just makes recommendations, but then they might get bored seeing it's right all the time and let it build a whole re-supply strategy," Aparicio says. There's always a safety net, he adds. "Whenever an agent sees a situation it doesn't know, it can still send an exception back."
Meanwhile, Greis's Center for Logistics and Digital Strategy's new "Intelligent Enterprise Initiative" aims to help industry leverage advances in digital technology, especially intelligent agents, to redesign their business processes. Greis says the commercial logistics sector is still wrestling with collecting sufficiently fine-grain data to feed to intelligent agents—something the military is far ahead on. "As you get all this real-time information, the agents are going to become tools for interpreting that," Greis says. "So people are focused on the RFID part of the puzzle [for now], but ultimately the RFID and agents will be brought together."
What is intelligent software?
Intelligent software agents are a form of artificial intelligence —software packets that act as autonomous decision- making entities, capable of coming up with solutions to problems and acting on them automatically. Think of the job performed by a travel agent hired by a business manager who needs to schedule a meeting. The manager contacts the travel agent to deal with flight schedules and make rental car and hotel arrangements. The travel agent then works independently with the manager's assistant—who's planning other details of the meeting, such as time and the list of attendees— to coordinate efforts so that they fit in with personal schedules, location information, the other attendees and even the weather.
To the manager, the end result, ideally, is a simple set of outcomes—flights, hotel booking, a reserved conference room full of people he wants to meet with. But the travel agent and assistant have collaborated in choosing these outcomes from an almost infinite number of possibilities, many of them interrelated. Change one factor and you change others—flying direct rather than to the local airport means renting a car. A single hiccup can send the whole process back to square one—a crucial client becomes unavailable on those dates. And so on. People respond and make decisions as the situation changes.
Software agents do the same job. They are goal-oriented, autonomous, collaborative, adaptive, proactive and mobile. Further, they allow "systems of systems," meaning you can link any number of agents together to get on with highly complex and widely distributed series of tasks. In practical logistics operations, such as a theater of war, that means you can have data and business processes distributed throughout the operation, instead of centralized data warehouses with longreach data feeds. This makes the flow of information adaptable to fast-changing environments, according to DARPA. It's also more robust and more reliable.
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]."