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.
With apologies to Kermit The Frog, being green is looking pretty easy these days—even for warehouse and distribution center operations. Environmentally friendly material handling systems are available for nearly every warehouse function, and most suppliers are eager to help their customers figure out how to use their equipment to maximum green effect. Best of all, many of these products do not require large investments, just a new way of thinking when it comes to selecting equipment.
What follows is a brief rundown of some areas of a DC operation that offer easy opportunities to go green. Although this is by no means a comprehensive list, it may give you some ideas on simple ways to make your own operation more sustainable.
Waste not, want not
Most distribution facilities create mountains of waste—corrugated cartons from incoming shipments, paper used to pick and process orders, and even the backing of labels used in pick operations. Throw in used stretch wrap, old pallets, and left-over packaging supplies, and the volume mounts quickly.
What to do with all that waste? First, reuse the corrugated materials where possible. By shipping products in their original cartons, you save the cost of new materials as well as the time spent repacking. (But check with your vendors first to make sure the cartons are sturdy enough for reuse.) All corrugated that you do not reuse should be recycled. Balers can make it easy to stack and prepare old corrugated for transport to a recycling facility.
Paper, too, can be recycled, but a greener alternative is to eliminate paper altogether wherever you can.More and more DCs are turning to paperless order processing systems these days. In a paperless environment, warehouse management software relays picking instructions to workers via voice, pick-to-light, or radio-frequency technology, eliminating the need for paper pick lists. As a side benefit, these systems boost accuracy and productivity, and generally have a fairly short payback period.
If paperless operations are not an option, there are still things you can do to reduce your environmental impact. For example, if you use paper for pick-to-label applications, look for labels made from recycled materials.
Run on demand
When the subject of green equipment comes up, conveyors probably aren't the first thing that comes to mind. But actually, today's conveyors are engineered to save electricity. A prime example is the motordriven roller (MDR) conveyor, which is designed to power down when not in use—a significant departure from traditional conveyors, which run continuously during operating hours. Although they're more expensive than conventional models, MDR units typically pay for themselves many times over in energy savings and reduced maintenance expenses (because the units don't run continuously, there's less wear and tear on components). The "run on demand" feature alone reportedly cuts power consumption by at least one-third.
Even if you have an old conveyor, you may still be able to save money by converting it to a more energy-efficient design. A number of conveyor companies offer retrofits for existing systems that involve replacing old drive motors with more efficient units.
Many of today's conveyor systems feature a modular design that allows them to be easily repositioned or even moved to another facility as distribution needs change. That versatility can help extend the conveyors' lives far beyond the time when units are ordinarily consigned to the scrap heap.
Manifest destiny
When it comes to opportunities for going green, it's hard to imagine an area of DC operations that offers more potential than packaging and shipping. For starters, there are the shipping containers. Rather than relying on corrugated boxes, consider the reusable plastic container for closedloop applications. Advocates say the plastic units are cheaper to use in the long run and provide better protection than corrugated. And the containers are designed to nest when empty, making them economical to store and transport.
If plastic containers aren't an option, there are still steps you can take to make your operation more sustainable. For example, you can select cartons made of recycled materials. You can also review your operations to make sure you're choosing the right size carton for each shipment. Cubing systems make it easy to determine the volume of each order as well as the optimal carton size. Smaller cartons use less material, save on transportation costs, and require less void fill to protect their contents.
As for void fill, again, look for products that can be recycled. Kraft paper made from recycled material is an eco-friendly choice. Air-filled cushioning is another good option—one that requires minimal storage space and is also readily recyclable. There are also peanut-type cushioning products on the market today that are made of cornstarch and other water-soluble materials, making them a biodegradable alternative to foam-based packing peanuts.
Although often overlooked, green opportunities can also be found in a facility's printing and labeling operations. For example, you might be able to switch to a smaller shipping label, or replace your current labeling system with one that prints the shipping information on one side of the label and the packing slip on the other (thus saving paper).You might also consider dispensing with shipping labels altogether in favor of an inkjet encoding system that prints shipping information directly onto a carton. (If you do, look for a system that uses environmentally friendly inks.)
Of all the equipment in a distribution center, the item most likely to be recycled is actually the wood pallet. Most facilities repair and reuse pallets until they're no longer serviceable, and nearly all pallets are eventually recycled. While some argue that wood pallets are the greenest choice because they're made from a renewable resource, others consider plastic and metal pallets to be more eco-friendly because they can be reused hundreds of times (see "how green are your pallets?" DC VELOCITY, November 2008). Still others advocate for pallets made from fiberboard, corrugated, and other materials that are easy to recycle.
In it for the long haul
Like conveyors, lift trucks, which are the workhorses of most DCs, have become greener in recent years. That's partly because manufacturers have shifted some of their emphasis from internal-combustion engine models to battery-operated trucks that produce virtually no greenhouse gas emissions. In the meantime, research continues on alternative fuels, like hydrogen fuel cells, that show great promise.
Even among electric models, many of today's trucks are greener than their predecessors. There's been a shift away from units that rely on direct current (DC) electricity in favor of alternating current-powered models that use less energy. And lately, manufacturers have introduced hybrid electric models that generate power from energy used in vehicle braking and mast lifting operations.
At the same time, advances in electric battery design and charging technologies have increased the power output of standard cells, making electric trucks more eco-friendly than in the past. Plus, the fast-charging systems for batteries that are now on the market typically reduce the number of batteries required per truck by at least half (and eliminate the need for a battery changing room).
The environment inside
As for the facility itself, there are plenty of ways to make a building more eco-friendly without investing in costly new heating, cooling, and ventilation systems. To begin with, you can install large, low-speed ceiling fans as an alternative or supplement to air conditioning. In the winter, these same fans can force the warm air that rises to the ceiling back down to floor level, where there can be a 20-degree temperature difference.
For very hot climates, also consider misting devices to help keep workers cool as an alternative to air conditioning.
If you haven't already, install dock seals, barriers, and side curtains around all openings at a facility's docks. The seals will not only help keep heated or cooled air from escaping, but will also prevent insects and other pests from entering. Many dock equipment companies also offer seals for their dock levelers and truck plates and the small area around the trailer hinges where air can escape. Consider vinyl strip doors, rollup doors, and air curtains to maintain temperatures in the various zones of refrigerated and freezer buildings— keeping the cold where it belongs.
If your facility uses mercury vapor, sodium vapor, halogen, metal halide, or tungsten lights, think about replacing your existing system with a more energy-efficient alternative, like high-output fluorescent and similar induction lighting systems. T8 fluorescent fixtures, for example, operate on just 64 watts and can reduce power consumption by two-thirds while still producing more illumination than older lights. You can also save energy by installing motion sensors in racks and other areas of the building to turn lights on only when workers are present.
One step at a time
While the list of opportunities to go green may seem overwhelming, remember that you don't have to do everything at once. Instead, start with those improvements that make the most sense for your operation and your budget—no matter how insignificant they may seem at the outset. When it comes to saving the planet, even small steps can have a big impact.
hip to be green?
When it began its search for a new distribution facility in December 2007, Gainesville, Fla.-based Exactech had two main goals, and neither had anything to do with the environment. First, the company wanted more space. Second, it was looking to upgrade to a faster, more efficient system for filling orders for its products, surgical instruments and orthopedic implants for hip, knee, and shoulder replacements.
But when it came time to choose the material handling systems for the new facility, Exactech's designer and integrator, TriFactor, suggested that its client consider setting a third goal for itself: to use eco-friendly equipment where possible. "The opportunity was presented to us to go green," recalls Kevin Godwin, Exactech's director of customer operations. The company agreed to give the matter some thought, and soon afterwards, added eco-friendliness to its list of priorities.
After looking at the various options, Exactech concluded that the biggest eco-benefits would come from selecting energy-efficient conveyors and lighting. For conveyors, it chose a motor-driven roller (MDR) model manufactured by Hilmot Corp. The conveyors, which run on 24-volt direct current electricity, operate only "on demand," that is, when a product is present. That makes them as much as 60 percent more efficient than traditional conveyors, which run continuously. They're significantly quieter as well. "We refer to it as our 'stealth' conveyor," says Godwin. And because the motors are not constantly running, there is less wear on belts, bearings, and other conveyor components.
As for lighting, the company came up with an energy-efficient lighting system that could be described as spartan yet functional. Taking advantage of a resource abundantly available in the Sunshine State, it installed skylights that flood the facility with natural light. A polished concrete floor and white insulation on the walls further reflect the light, keeping the space well illuminated.
With artificial lighting, Exactech took a "less is more" approach, installing as little as possible. The lights it did install are controlled by a user-friendly switch panel that allows lights to be turned on only in the areas needed. As a result, power consumption in the new building is lower than it was in the old building, which was about half its size, according to Godwin.
Godwin says Exactech is now looking at replacing the nickel metal lighting fixtures that were there when the company moved into the building with more efficient induction lighting. Induction lamps would require half the wattage of the current lamps to produce comparable light output. Swapping out the fixtures would further reduce the building's power consumption by half.
As for how it's all working out, it appears that Exactech has no reason to regret its decision to go green. "It was more expensive up front," says Godwin, "but we save in the long run with lower maintenance and energy savings." Plus, the green initiative was a good fit with the company's values, he adds. "As a corporation, we are very community-oriented, and so it made sense for us to go green."
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]."