In Simon & Schuster's fast-paced distribution operations, the warehouse management system may call the shots. But it's the warehouse control system that makes sure things get done.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Fame can be fleeting in the book publishing industry. A book that's a best-seller one week may be relegated to the half-price rack the next. That means that for book distributors, the pressure's on to whisk hot titles out to stores before they become paper weights.
To keep books flowing smoothly through its DCs, Simon & Schuster, one of the nation's largest book publishing houses, relies on a relatively unknown but powerful technology: a warehouse control system (WCS). Several years back, the publisher installed warehouse control systems from AL Systems at its two U.S. distribution centers to coordinate order fulfillment activities. The warehouse control systems are layered as "middleware" between the facilities' warehouse management systems and their material handling subsystems—conveyors, sorters, and the like. Essentially, the WCS serves as a "go between" or interface between the two, collecting information from the host system and then allocating work and providing specific instructions to the various pieces of material handling equipment.
Simon & Schuster is not alone in turning to a WCS to help run its operations. More and more companies are taking this route these days— usually, but not always, in conjunction with a WMS. (In some facilities, the WCS works directly with order- or inventory-management software.)
The appeal of warehouse control systems is not hard to understand. To begin with, they're affordable—warehouse control systems tend to be significantly less expensive than warehouse management systems. They're also quite versatile—warehouse control systems provide functionality that may not be available in standard warehouse management systems, or at least not without costly modifications. They're also easy to customize.
Compared to a WMS, a WCS is easier and cheaper to modify to meet a facility's individual needs. Also, for facilities with older warehouse management systems in place, a WCS can offer an economical means of upgrading. Oftentimes, a WCS can offer capabilities that older WMS systems lack, filling gaps and controlling processes that would otherwise require the user to upgrade—or even replace—its WMS.
Down to the nitty-gritty
In Simon & Schuster's case, the decision to install warehouse control systems was driven by a desire to gain greater control over its processes, in particular those processes associated with its extensive conveyor systems. "We have a lot of need for speed to the market and have to get our products there quickly," says Dave Schaeffer, the company's vice president of distribution and fulfillment.
The publisher uses the warehouse control systems in conjunction with warehouse management systems from Manhattan Associates at its distribution centers in Bristol, Pa., and Riverside, N.J. The two facilities, located about 11 miles apart, each measure about 600,000 square feet and hold different SKUs. Together, the two buildings provide distribution for all of North America and parts of Europe.
The WCS and WMS work together as part of an integrated system, says Schaeffer. "The warehouse control system controls the movement of cartons through the systems and onto the shipping docks. It works with the warehouse management system. But while the movement within the WMS is more product level, the actual real-time, minute-to-minute handling is done by the warehouse control system."
And that is precisely where warehouse control systems shine. Although warehouse management systems certainly have the capability to direct a number of warehouse processes, they typically perform most of their work at a higher level—for example, collecting orders, tracking and allocating inventory, and generating invoices. In contrast, the WCS is designed expressly to take care of the nitty-gritty operational details, telling the material handling subsystems not just what to do, but also how to do it (for example, directing a conveyor to send a case down a specific chute).
Ability to multi-task
In Simon & Schuster's Riverside facility, the WCS controls the movement of products over five miles of Hytrol conveyors, as well as a sliding-shoe shipping sorter and other subsorters. It also directs cartons through the facility's pick zones. The warehouse management system relays pick information to the warehouse control system, and the WCS then directs the actual picking activities, which for new titles usually involves picking full cases of books.
"The WMS and the WCS really work in partnership," says Schaeffer. "In our case, it really made sense to put more functionality into the WCS because of how the conveyors and the picking are integrated so closely together."
Schaeffer reports that directly linking the picking to the conveyor makes the conveyor more responsive to the picking process. "If there is a short on a pick," he says, "the conveyor can simply direct the carton to another lane before moving it on to shipping."
In addition to overseeing the picking of full cases of new titles, the WCS directs the split-case picking of older or "back list" titles—relaying picking instructions to workers via the company's Voxware voice system. Although the warehouse management system also has a module capable of directing the voice picking activities, Simon & Schuster chose to have the WCS manage its voice operations. Again, the advantage is that the WCS ties more closely into the related picking and material handling systems.
"The WCS has all of the components needed to direct voice," says Schaeffer. "The WCS can be molded easily and is just a better fit for the functionality." He adds that if Simon & Schuster someday decided to convert to, say, a pick-to-light system, it would be a simple matter to modify the WCS to handle that task.
In addition to picking, the WCS oversees quality control activities, which include check weighing (a process in which cartons are automatically weighed and their weight compared to the expected weight for the contents) and the selection of cartons for random inspection. It also handles all of the manifesting of orders.
As for Simon & Schuster's Bristol facility, the WCS there plays much the same role as its counterpart at Riverside. That is, it controls the movement of products through picking on the conveyors, full-case sortation, split-case sortation with weight verification, and the manifest stations. It also directs voice picking activities.
Ease of revision
All in all, Simon & Schuster believes the WCS is a good fit for its operations. For one thing, the WCS ensures that the operations and the associated equipment are tightly integrated, which allows both products and information to move swiftly and efficiently throughout the facilities. And when it comes time to make a change in any of the processes, the WCS can easily adapt.
"By its nature, the WCS is easy to upgrade," notes Schaeffer. "It is less complicated and is a more economical solution than upgrading a WMS."
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”