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.
A lot of companies are jumping on the "green" bandwagon these days. JohnsonDiversey isn't one of them. It's not that the company isn't environmentally conscious. It is. It's just that the Sturtevant, Wis.-based manufacturer of cleaning and maintenance supplies established its eco-credentials long ago. Since its founding in 1886, the company (formerly known as Johnson Wax Professional) has maintained an unusually strong record of environmental leadership.
In 1935, for example, then-president H.F. Johnson made a historic expedition to Brazil to study the sustainability of carnauba palm trees. Carnauba palms represent an important source of raw material for the company's floor waxes—the cut leaves are sun-dried and mechanically thrashed to remove the crude wax. But only 20 leaves can be cut from each tree per year. Though Johnson made the trek in his company's best interests, his efforts to establish a carnauba palm plantation have also helped preserve the species.
In the early 1970s, JohnsonDiversey voluntarily eliminated the use of all chlorofluorocarbons (CFCs) in its aerosol products—long before the ban became law. In the years since, it has introduced an environmentally friendly container and launched several water and agricultural sustainability projects, racking up an impressive array of environmental and conservation awards along the way.
Given the company's long history of environmentally responsible manufacturing, it should come as little surprise that JohnsonDiversey is also committed to sustain- able building and development. In 1997, it built an environmentally friendly corporate headquarters, which has earned a gold-level Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council. This past September, the company opened the greenest distribution center in North America. Like the headquarters building, the new $24 million DC, which is also located in Sturtevant, has received a gold-level certification from the U.S. Green Building Council. The group says the DC, which occupies 550,000 square feet of space (the equivalent of 11 football fields), is the largest DC to be awarded a gold certificate.
"We designed this to be a green facility from the very start," says Stu Carron, director of global facilities and real estate at JohnsonDiversey. "Some companies wondered if we were seeking both green and nongreen bids to compare the two, but we just weren't going to build a non-green building. You can do so much better when it comes to energy efficiency, water use, and productivity in the building when you build green in from the outset."
Developers were asked to compete on the basis of how many green features they could provide, Carron says. Initially, 17 companies bid on the project, but several dropped out when they realized they didn't have the necessary experience in green construction. In the end, the choice of developers turned out to be an easy one, according to Carron. "The low bidder was also the one that produced a bid with the most green features," he says. "It had the most experience building green buildings and had figured out a way to develop green buildings [that are] no more expensive than regular buildings."
Green from the ground up
JohnsonDiversey's new DC is green literally from the ground up. More than 12,000 tons of bottom ash—a granular byproduct of combustion in coal-fired power plants—were reclaimed from a local landfill to be used for the building's sub-base. By the project's completion, the design and construction team had recycled 941 of the 964 tons of waste generated during the building's construction. The result was a net reduction in the volume of landfill material—Carron reports that the company pulled 500 times more material out of the landfill than it put back into it.
The DC has no air conditioning system, relying instead on a state-of-the-art ventilation system and fans the size of helicopter rotors that circulate air in the building to keep it cool in the summer. A specially designed HVAC system ensures optimal indoor air quality and efficient energy use, and a white thermoplastic polyolefin (TPO) roof and extra insulation at R-27 help to reduce solar heat gain within the building.
Faucets in the DC's restrooms and break room reduce the flow of water to one-half gallon per minute, and together with waterless urinals resulted in a 51-percent savings in water usage over the minimum legal baseline. The building's energy-efficient lighting system incorporates fluorescent high-bay fixtures and motion-activated occupancy sensors. Combined with a high-gloss floor finish and a white-painted interior, these features help drive down energy costs. According to the company, the new DC uses 40 percent less energy and 50 percent less water than a typical DC of its size.
The company has also committed to buying green power. All electricity at the new DC is generated by alternative energy sources, including solar, wind, and biomass, which equates to a reduction of 3.2 million pounds of carbon dioxide. Carron says it is the only DC of its size in the United States to make this claim.
Not going for the gold
Though justifiably proud of the DC's LEED certification, the company insists that the project was not about going for the gold. "We never set out to obtain a gold-level certification," says Harold Miller, regional operations manager for JohnsonDiversey and the project leader for the DC's construction. "Our object was to be certified. We never felt we'd hit the gold level. We didn't want to pay our way to obtain a certain level of certification; we wanted each decision we made to be cost justified."
In fact, the JohnsonDiversey team considered but rejected a number of common green features during the planning and design process. For example, they passed on a rainwater collection system, which has turned out to be no great loss. More than 70 percent of the 38-acre site has been landscaped with native and adaptive plants that don't require irrigation.
Company executives also took a pass on skylights because the 10-year payback exceeded the three- to five-year time frame the company was looking for. Solar panels also didn't make the cut, although the company plans to look at the technology down the road as a possible building retrofit as the price of solar equipment drops.
Even without solar panels, the DC's energy savings promise to be impressive. The company expects to save more than $100,000 a year on energy costs over a typical DC of its size. It also expects that the facility will be much more productive than traditional DCs.
"It's highly competitive to build green and this project proves that," says Carron. "We have not only created a much better working environment, but one that undoubtedly will improve productivity as well."
one truck, one invoice … one DC
Along with securing the company's reputation as an eco-friendly business, JohnsonDiversey's newly opened DC has given supply chain performance a boost. That's partly a result of efficiencies gained through consolidation. The new 550,000-square-foot DC replaced four other buildings in the Racine (Wis.) area that had been used to store the company's cleaning and maintenance products. Geography has been a factor as well. The new DC is located just under a mile from Waxdale, the company's flagship manufacturing plant, which has cut travel times and enhanced the speed and efficiency of the distribution process.
"There were a lot of drivers and synergies from consolidating four locations into one," says Stu Carron, the company's director of global facilities and real estate. "The transportation costs from shuttling products between the manufacturing plant and the different DCs were significant, so that's been another cost savings."
It also helps that the new DC was designed for fast throughput. It features 55 loading docks and staging for 118 tractor-trailers—a significant capacity increase over the four previous warehouses, where backlogs in processing trucks were once common.
"Great customer service is the name of the game and this new center delivers," says JohnsonDiversey President and CEO Ed Lonergan. "We call it one truck, one invoice. Customers order one time. They receive one invoice with their order on one truck. That's a huge improvement in service to customers and our operational efficiency."
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]."