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.
Imagine an NFL game brought to you via tiny scanners attached to a football helmet. As a player runs downfield, the scanner automatically captures data, including the location of digitally enhanced yard markers. No more "moving the chains" to measure first downs. No more delays so game officials can watch hooded TV replays to determine whether a player was in bounds or not. And no need to replace the scanners, even after absorbing repeated sacks. These scanners are built to take the punishment.
This scenario isn't really such a stretch. Scanners this rugged are in use in American industry right now. And even if the NFL takes a pass, they're gaining yardage in today's distribution centers as word spreads regarding their ability to stand up to abuse.
And they do take abuse. Last year, a delivery truck ran over a handheld scanner at Mockler Beverage, a large Anheuser-Busch distributor in Baton Rouge, La. "The handheld did not work afterwards," reports John Lewenthal, the company's information technology manager, "but the data card was still intact. We took the data card out and transferred the information in about 15 minutes. It was virtually transparent."
Going to extremes
Judging from the marketing materials for rugged-duty products, today's distribution center is one rough place, at least if you're a piece of electronic equipment. Vendors of rugged equipment (whether it's handheld scanners, computer screens and printers, two-way radios or vehiclemounted computers) go out of their way to enumerate the hardships their products can withstand—a list that includes not only temperature extremes but also chemical spills, shock and vibration.
But there's clearly a need for this tough stuff. A study just released by Venture Development Corp. (VDC) says sales of ruggedized (also referred to as "industrial") products were just under $3 billion in 2002. That report, released by VDC in February, forecasts that the market will grow to $4.8 billion by 2007, representing annual growth of just over 10 percent.
Users are finding that paying a premium for ruggedized versions, rather than commercial units, is money well spent, reports Tim Shea, a senior analyst with VDC. Much of that demand is for equipment that is both mobile and rugged—a combination that attracts companies seeking higher employee productivity and better customer service, he adds. "The increasing adoption of wireless communications as a means to enhance operational efficiency and improve profitability will also propel demand for rugged mobile computers."
Longer life expectancy isn't the only reason many companies are switching to products that can take a licking and keep on ticking—or scanning, or printing. A big part of the attraction is the protection they offer against the loss of data in the event that someone, say, drops the unit or spills chemicals on it.
"We know from research in the distribution center that devices get abused," says Daniel Arroyo, senior marketing communications manager at Intermec Technologies Corp. in Everett, Wash. "What's more important than just replacing the equipment is being able to retrieve the information. If the information on the device gets lost or the device suddenly isn't available, that failure could potentially shut down a line. That can eat away at the bottom line very quickly."
Big chill
Their ability to survive a multi-foot drop aside, heavy-duty industrial products are also quickly gaining traction in places where the temperatures go to extremes. Take the distribution center operated by SCS Refrigerated Services Inc. in Tacoma, Wash., where temperatures approach minus 31.7 degrees Celsius (minus 25 Fahrenheit). Because SCS is a public warehouse and ownership of some products may change two or three times while in storage, the company must keep accurate data on inventories at all times. "That's why a first-class data collection and warehouse management system is so important," says Michael Karami, information systems manager for SCS. "It's our life blood."
In addition to providing refrigerated storage, SCS offers its clients a variety of value-added services, including labeling, weighing, inspection, sorting and transportation. To help it meet these demands, SCS recently installed new cold-resistant data-collection equipment from Intermec along with new warehouse management software (WMS) at each of its three West Coast facilities. The software includes a Web-based billing and management system that gives customers access to information through the Web. The data fed into the system are captured in real time through RF terminals mounted on forklifts operated by warehouse workers.
But before the system could go live, the company had to install the RF access points and the requisite cabling in temperatures ranging from minus 28.9 to minus 34.4 degrees Celsius (minus 20 to minus 30 Fahrenheit). "Our biggest challenge was the rapidly condensing moisture, even beginning on the loading dock, where temperatures are a relatively mild 35 degrees Fahrenheit," says Michael Knappert, Intermec's district service manager. "We had to take extra precautions to prevent the equipment from getting cold-soaked or essentially freezing up."
To compensate, Intermec installed heated copper strips for the RF units and access points and supplied heated holsters for the scanning devices. The first electrically heated scanner holsters were purchased from PSC Equipment, although SCS has since created its own units.
True grit
Workers at Pittsburgh-based Copperweld may not work in the deep freeze, but no one would characterize their work environment as kind and gentle. Copperweld cuts, bends and welds large, multi-ton bands of steel into structural steel tubing used for agriculture, construction and industrial vehicles, as well as structural columns and beams.
Though Copperweld's need for rugged equipment isn't too hard to understand, the company also wanted equipment that was mobile. Already weighted down with wearable walkie talkies, crane controls, hardhats and heavy work gloves, Copperweld plant workers in the past had to walk over to the terminal every time they needed to scan a bar code, then go back to the workstation to enter the data at PCs in industrial enclosures. "We decided to look into portable terminals that they could carry with them to allow them to be more mobile and streamline the tracking process," says Jeff Pfeister, network administrator for Copperweld.
Among other things, the hardware had to tolerate that rugged, gritty environment and be able to scan bar codes covered by laminate or printed on metal, often in poor lighting. And the software had to be written for use by workers wearing heavy gloves that made working with a keyboard difficult.
Working with Symbol Technologies, Copperweld created its first radio-frequency application, one that would mana ge raw material inventory. By all accounts, the company is happy with the results. Users have found they can complete the tracking process in one-third the time it took with Copperweld's manual system and are able to perform raw materials inventory counts more often and with fewer people. As Pfeister puts it, "Now we know to a high degree of accuracy what's sitting out here."
ahead of the iPAQ?
It's cheaper than a bar-code scanner—costing somewhere between a quarter and half the price of a high-end reader. But is the handheld iPAQ Pocket PC device on track to replace scanning equipment in DCs across America?
The iPAQ, which is marketed by Hewlett-Packard, has several factors in its favor. Not only is it comparatively cheap, but the device also offers a high degree of data protection, allowing data to be downloaded many times a day through wireless networks. That means if the device is destroyed, the result would not be catastrophic because the data would be stored and readily available.
"iPAQs are obviously not as durable, but you pay a lot more for [rugged] handhelds because of the way they are built," says John Lewenthal, information technology manager at Mockler Beverage, an Anheuser-Busch distributor in Baton Rouge, La. "If you can capture data multiple times during the day, you minimize the amount of data that could be lost if [the iPAQ] is destroyed."
But others aren't convinced. Vinnie Luciano, vice president of product management for Symbol Technology's Mobile Computing Division, is quick to defend the traditional scanner. "I see a lot of wishful thinking out there," he says. "Wishful thinking on the part of Hewlett-Packard, and wishful thinking from the customer side. I've heard people say 'I can throw away two of these and still come out ahead [on cost].' We've seen people pilot them, but we've yet to see them deployed."
Luciano says the risk of losing data, as well as having DC employees left without a unit to work with, exceeds any potential benefit offered by iPAQs. He also notes that while iPAQ units may be less costly, by the time accessories like scanners, radio cards and protective sleeves are factored in, you are quickly approaching the $1,295 list price for a Symbol rugged scanner.
"Keeping track of the goods you are distributing is the single most mission-critical application in the DC," says Luciano. "Nothing you do is more important. Being able to manage and collect data is absolutely crucial. But the vast majority of DC workers don't operate when their handheld is broken. You can't afford to lose data, and you can't afford to have your people not working."
Hewlett-Packard did not return calls requesting information about the use of its iPAQ device in distribution center applications.
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]."