James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
When food-service distributor Gordon Food Service (GFS) began planning for the construction of its fourth distribution center a few years back, it decided early on that the DC would be automated. GFS's other three distribution centers take considerable advantage of material handling automation. When it came to the new facility in Shepherdsville, Ky., the distributor decided to follow the same course to ensure an efficient and cost-effective operation. In GFS's eyes, automation would be critical to increasing throughput, optimizing cube utilization, and keeping close track of pallets.
The question was how to go about it. The 300,000-square-foot center, which was being built to serve customers in Kentucky and Tennessee, as well as parts of Indiana, Illinois, Arkansas, and Missouri, would be a high-throughput operation, handling up to 5,000 incoming pallets per day. Furthermore, its handling requirements would be relatively complex. As is typical of grocery distribution centers, the building would have separate sections to hold dry, chilled, and frozen products—approximately 10,000 stock-keeping units (SKUs) in all. That meant that the system would have to be set up to accommodate the flow of thousands of pallets each day into not one, but three separate storage areas (ambient, refrigerated, and freezer storage).
There were other challenges as well. For example, the automation plan for the Kentucky facility would have to provide a way to handle waves of inbound pallets quickly within the small footprint allocated to receiving. It also had to be capable of managing storage positions within the automated storage and retrieval system (AS/RS) to ensure that stock positions were not depleted. Furthermore, the system had to make provisions for the disposition of the empty pallets created as workers selected products to fill orders. On top of that, the company wanted to make sure that any automated system would be cost-effective to maintain as well as easily adaptable for future needs.
A matter of coordination
The decision to break ground on a fourth distribution center in 2004 was prompted by the company's rapid growth. Headquartered in Grand Rapids, Mich., GFS is the largest family-owned and -operated broad-line food-service distributor in North America. GFS delivers about 16,000 national brands and private-label products to more than 45,000 customers, which include restaurants, hotels, health care institutions, colleges and universities, and businesses both in the United States and Canada. Besides its wholesale distribution business, it operates more than 120 GFS Marketplace stores in Florida, Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, and Tennessee.
As it set about the task of designing the new facility, GFS came up with a plan for a unique AS/RS system with its own "intelligence" to expedite the put-away of incoming products. To execute that plan, the food-service distributor turned to German company Viastore Systems GmbH. GFS contracted with Viastore to provide not only the automated storage and retrieval (AS/RS) technology, but also the material flow control (MFC) software needed to run the system.
The software Viastore developed oversees the inbound receiving operation and interfaces with the host warehouse management system (WMS). Basically, the MFC optimizes pallet movement, integrates all sub-systems, and provides command history, system status, and system diagnostics—all in real time. It also contains a special mathematical algorithm designed to minimize AS/RS moves. The complex algorithm in the MFC also requires the AS/RS machines to scan all storage positions in the DC on an hourly basis to ensure that pallet locations at the ends of the aisles are not depleted.
Before installing any automated equipment in the Kentucky center, Viastore took it for a virtual test drive by conducting a simulation. Using actual order data from one of the company's other distribution centers, it ran tests to model the system's capabilities and prove that, even in worst-case scenarios, the system could still meet throughput requirements. Simulation was also used to improve and refine the system.
Just take the shuttle
As for the tricky problem of handling waves of inbound pallets rapidly within a small space, Viastore came up with a shuttle car system that allowed GFS to quickly and efficiently transfer pallets from inbound conveyor spurs to the correct storage aisle. Forklift truck drivers off-load pallets from inbound trucks and then take them to an inbound transfer station, which feeds the conveyor spurs.
As an added feature, the shuttle cars are equipped with sophisticated controls to move loads gently, without sudden acceleration or deceleration. By eliminating the risk of a bumpy ride, the shuttle cars have effectively reduced the amount of pallet shrink-wrapping required for load stabilization before put-away. "Compared to our other facilities that utilize chain conveyors with 90-degree right transfers, the shuttle car solution provides a much more smooth and stable transition from the input conveyors to the crane pickup stations," says Kirk Mortenson, DC development manager for GFS. "This fact has enabled us to reduce the number of stretch wrappers from what we originally had planned."
The shuttle cars whisk full pallet loads to the AS/RS system, which consists of nine storage/retrieval machines equipped with double-deep pallet shuttles. The system measures approximately 98 feet high and more than 450 feet long. In the freezer and dry grocery sections of the warehouse, the system ranges between 16 and 17 levels high. In the cooler area, however, it only reaches 12 levels high. The AS/RS contains more than 60,000 unique storage locations.
GFS's warehouse management system determines whether the inbound loads are sent to reserve storage or to pick face locations. The control system on the AS/RS verifies the pallet's size, weight, and product ID and then sends it to a dedicated pick or storage location.
Rapid replenishment
To expedite the picking process, the AS/RS system also features integrated pick levels where workers have access to the pick faces on the two levels closest to the ground. Workers refer to pick labels as they walk the aisles to select cases of products needed to fill orders. Once a worker picks an item, he or she applies a label to the carton and then deposits the box on the outbound conveyor system. FKI Logistex furnished the outbound conveyor system, which has the capacity to ship 185,000 cases per day. The conveyor transports the product cases to a staging area, where the items are then floor-loaded into a truck for delivery via GFS's fleet of refrigerated vehicles.
About 95 percent of GFS's outbound shipments consist of full cases. Selectors pick those cases from pallets placed into the pick location by the AS/RS machines. The remaining 5 percent of the company's outbound shipments are full pallets. When full pallets are needed to fill an order, the AS/RS itself will pull out the skids and route them to a designated shipping spur. The WMS then directs a forklift operator to go to the shipping spur and deliver the pallet to a particular loading door.
The system enhances efficiency by automatically providing for the pick bays to be replenished on a regular basis. To make that happen, Viastore put sensors on its AS/RS cranes to create a "pallet sensing" mechanism. A typical AS/RS with integrated order fulfillment uses photo-eye sensors on every pick face location to signal when product is needed from reserve storage or the inbound area. Viastore's approach, by contrast, was to create a dynamic pallet-sensing system that scans every pick location as the storage/retrieval machines travel by these locations at full speed.
Dynamic pallet sensing has allowed GFS to greatly reduce the amount of field wiring and piping required in its Kentucky warehouse. On top of that, the unique design eliminated the need for more than 10,000 sensors on pick faces, providing more cost-effective automation. "We are very pleased with the 'sensing on the fly,'" says Mortenson. "This has been much easier to troubleshoot and maintain compared to individual wired locations."
Nowadays, when a crane sensor detects an empty bay, it automatically triggers stock replenishment. Oftentimes pallets received into the system are placed right into the pick bay rather than storage. "Putting items directly into pick reduces moves on the crane by eliminating a put-away move and then later, a replenishment move," says Mortenson. "Keeping the pick bays full also [eliminates] the need for picking the product later and enables us to complete the work in a more timely [fashion]."
Trash logic
To accommodate the need to remove empty pallets from the gravity pick faces, the system was designed so that workers can stack empties in the empty pallet returns located periodically throughout the aisles. The storage/retrieval machines take the stacks of empty pallets back to the shuttle cars in the inbound area. To direct that task, Viastore wrote special code into the MFC logic.
In addition, trash chutes have been built into the AS/RS to collect and remove bulky waste materials like cardboard and discarded shrink-wrap. Trash tossed into the chutes is collected in bins at the floor of the high rise. For leaking or damaged product that can't be thrown down the chute, three-foot-high containers are staged on every level of the AS/RS. When these containers need to be emptied, workers can use the control system to request their removal. The containers are transported back out on the pallet conveyor to a specified spur, where the custodians can empty the refuse into a compactor or trash bin.
A unique feature of the automated system installed at the Shepherdsville DC is that its storage/retrieval machines were designed with double-deep telescopic shuttle forks with synchronized chain conveyors on the lift carriages. This innovation has cut cycle times at pickup and drop-off stations in half by eliminating the need to wait for telescopic arms to pick up or drop off full pallets. In addition, the chain-driven mechanism has resulted in a substantial space savings. In fact, the space freed up allowed GFS to add an additional storage level in the building.
As for the technical details, the Viastore solution features Windows server-based technology, the SQL Server database management system, and Wonderware software. A graphical software package, Wonderware enables visualization and system monitoring capabilities. It provides a user interface for workers to monitor AS/R movements and solve problems as they arise.
Exceptional performance
How has the automated system worked out? GFS reports that it's proved to be both reliable and accurate. To begin with, the system runs with minimal interruptions. Since the Kentucky facility opened in early 2006, the automated system has experienced 99.9 percent uptime. In addition, accuracy in replenishment and picking has been close to 100 percent.
"Automation has enabled us to improve our overall performance in the facility and to our customers," says Mortenson. "We are very pleased with the performance of the system both in terms of throughput and uptime," he adds. "The Viastore machines are very fast, and we are able to transfer loads efficiently and move on to the next move."
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]."