There's no magic in the process, or the buildings, or the technology used at the military's sprawling distribution complex near Harrisburg, Pa. It's the ethic that pervades the DDSP that makes the operation something special.
Steve Geary is adjunct faculty at the University of Tennessee's Haaslam College of Business and is a lecturer at The Gordon Institute at Tufts University. He is the President of the Supply Chain Visions family of companies, consultancies that work across the government sector. Steve is a contributing editor at DC Velocity, and editor-at-large for CSCMP's Supply Chain Quarterly.
It's not too often that a supervisor in a distribution center puts his life in the hands of the workers on the line.
Once a month, Master Sergeant Sean Wilson does just that.
Wilson is team leader and master rigger—a certified parachute packing specialist—on a line at the Defense Distribution Depot Susquehanna Pennsylvania (DDSP), the military's sprawling distribution complex near Harrisburg, Pa. His crew packs parachutes for military use. And once a month, Wilson takes one of those parachutes—selected randomly by somebody outside the team—boards an aircraft that takes him thousands of feet above the base, and jumps out.
Wilson's trust in his team, and the team's commitment to ensuring that every parachute is reliable, stands as testament to the ethic that pervades the DDSP complex. At this facility, the phrase "good enough for government work" means something far removed from the pejorative it has become over the years. The phrase entered our lexicon during World War II, when something that was "good enough for government work" met the most rigorous of standards: You could literally stake your life on it. And that's precisely the standard that employees at DDSP hold themselves to today.
Making a difference
DDSP is the headquarters location of the Defense Distribution Command, which is the physical distribution arm of the Defense Logistics Agency (DLA), and the largest distribution depot operated by the Department of Defense. It sprawls over 380 acres, split between two locations near Harrisburg, providing military and commercial repair parts, clothing and textiles, medical supplies, and industrial and electronic components to military customers throughout the United States and around the world. DDSP has over $10 billion worth of inventory on the shelf, with more than 870,000 unique items in stock spread across over 1 million storage locations. Compare that to Wal-Mart, which systemwide handles on the order of 120,000 SKUs.
DDSP, with more than 3,700 military and civilian employees, is the largest of the 25 distribution centers operated by DLA both here and abroad, and it supports a customer base that includes units in Europe, Africa, Central and South America, Southwest Asia, and the eastern half of the United States. The facility houses 9.4 million square feet of covered storage spread across 58 warehouses, with the largest building, the Eastern Distribution Center, providing 1.7 million square feet alone.
In short, it is a distribution goliath, shipping billions of dollars of supplies to locations around the world every year. And it has one customer: the U.S. military. Crucially, it is the DC supporting operations in Southwest Asia, where the United States continues to fight wars in Iraq and Afghanistan.
That knowledge makes employees at the facility—40 percent of whom are veterans—take their jobs very seriously. As you might expect, the relationship between workers and management in the unionized facility is different from what might be found in DCs in the private sector. The same might be said of the employees' attitude toward their work.
Take Bob Keeney, supply specialist and former vice president of Local 2004 of the American Federation of Government Employees, AFL-CIO, for example. Keeney, a military veteran like so many of his peers, has been in the warehouse for 32 years. His father-in-law came back from Korea and went to work there, and Keeney did the same thing when he got out of the Navy in 1974. His particular expertise is in the nasty stuff that moves through a military warehouse: explosives, radioactive materials, fumicides, and other sorts of ugly things.
While talking, he suggests that we shift the conversation after hours to a bar called Julie's near the DC, and he offers to buy me a beer. He is dressed in a T-shirt and jeans; the handiwork of tattoo artists adorns both arms. We get on the topic of continuous improvement and DDSP's current lean initiative. It turns out that Keeney likes lean. "Partnership [between management and the workforce] is the way to do the work ... I look for the day when we have everybody on board. The old way was adversarial," he says. Now, however, "you become like a cog. You understand where you are on that wheel. You try to make it easy for the next guy."
He sees the work as important. "I enjoy making a difference, trying to do good," he explains. "We have obligations to the soldiers in the field, to the agency. If you don't believe in what you are doing, you're not going to be a good employee."
Focused on the warfighter
The same commitment comes across in conversations with senior management. Ed Visker has been the deputy commander of the DDSP since June 2006. Visker, who has a B.S. in banking and finance, as well as a couple of master's degrees, including one in logistics systems management from the University of Southern California, has spent 30 years in the logistics business, primarily with the military. Before coming to DDSP, he reached the rank of colonel in the U.S. Army. He served in the Airborne, and his tour included deployment to Iraq during the first Gulf War and time in Special Operations. He's got the qualifications and the experience to be a senior manager in any global distribution business.
Visker first came to DDSP as a soldier. "As a young platoon leader and company commander, I was in a general supply company. We used to bring the unit here to train. We helped clear the footprint for this building that we're in right now. We brought in all our rough-terrain forklifts and cranes and set up shop down by the pond for the month of February. We emptied out the old sheds that used to be sitting here."
He describes how he sees the mission of DDSP and how to accomplish it. "I don't know that anybody would tell you that they're a warehousing professional. We are supporting the warfighter," he says. "I think you would get that out of just about anybody you talk to. We're really focused on the warfighter. I share with them pictures that I brought back from my time in the desert to remind them that these guys are out at the pointy end of the spear and it's important."
That perspective drives the operation. "We're a strategic platform.We need to think bigger," he says. "We're focused on three basic values: respect for people, customer focus, and continuous improvement. It gets the folks on the floor more engaged. It's largely about relearning: How do we manage the organization? How do we lead people in the organization?"
Lessons from the private sector
DDSP is taking lessons from the private sector. For example, managers have visited a Wal-Mart DC about 100 miles from their facility to see how the retail giant employs technology. They have visited Toyota and adopted many of the fundamentals of the Toyota Production System to drive continuous improvement.
Their success in imbuing that sense of mission throughout the operation reveals itself in a conversation with a group of DDSP employees sitting around a conference table. The "youngster" is probably in his late 30s, but most of them qualified for AARP a long time ago. Some are white collar, some blue collar, but they're all veterans.
Many retired after a career in the military and came to the DDSP, while others did a tour or two. Their service experience spans all of the military departments. They have tales that range from the Vietnam War to Southwest Asia, covering a lot of ground in between.
The conversation drifts toward why they do what they do for a living now. One reminisces about what it was like when he was in the field and heard the magic words, "Your supplies are here." He's a middle manager now, a believer in getting out with his team. He offers, "Every day I tell them about the men and women we're serving. My heart is a heart of compassion for the mission. I don't ever give it up."
Another is more matter of fact. "They need it when they need it. That's what drives me," he says. "Some of them are giving their lives."
A late arrival joins in, asserting, "I'm willing to do whatever it takes to get that soldier what they need."
He gets a little more introspective, recalling what it was like for him when he came to the DDSP. "I got here and didn't realize what I'd gotten myself into here." He was on the floor one day, looking around, and saw "a section full of caskets. I realized that was going to be the last ride home for some soldiers," he recalls. "My whole mindset changed. People are depending on me."
No magic
The scale of the operation at DDSP is impressive, but the facility really isn't. Some of the buildings date back to World War I, and even the 1.7 million-square-foot building dates back to the mid '80s. There's no magic in the process, or the buildings, or the technology.
What makes DDSP special are the people, the pride, and the intelligence of the leadership that is harnessing the power of those two combined.
The final step in the distribution process at DDSP includes a personal statement from whoever does the final check on the shipment before it leaves the facility. Each shipment going out has a sticker on it, and the sticker is signed by a real person. It reads, "Packed with Pride at DDSP."
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]."