Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
You know that pick-to-light technology can boost picking accuracy and accelerate throughput. But times are tight, and these systems aren't cheap. How can you make sure you'll see a quick return on your investment?
With most technologies, the answer is simply to go out and find as many applications for the new system as possible. But that's not the case with pick to light. In fact, order fulfillment experts—including some who sell pick-to-light equipment—strongly advise against it. With pick to light, they say, the key is to use the technology selectively, reserving it for applications that meet very specific criteria (and finding alternate picking methods—like radio frequency (RF), voice, or even paper—for those that don't).
Although that might seem unduly complicated, this type of blended approach is the key to a smooth-running picking operation, according to the experts. "No one solution meets 100 percent of everybody's needs," says Ed Romaine, vice president of marketing for Remstar International, a manufacturer of automated storage and retrieval systems (AS/RS) that use pick to light. At the same time, pick to light's advocates also maintain that virtually any operation can benefit from the technology. "I do believe there is a limited number of SKUs within every DC that pick to light really makes the most sense for," says Lance Reese, group manager, sales support for FKI Logistex, which makes automated material handling solutions.
The need for speed
Since their emergence several decades ago, pick-to-light systems have become a fixture in DCs around the globe. Designed to promote efficiency, the systems use lighted beacons, usually mounted on storage racks, to direct order picking activity. In a typical pick-to-light operation, warehousing software electronically "reads" order pick tickets, determines the best picking sequence, and transmits signals to the light modules on the racks. Flashing lights then guide workers to the items they need and indicate the quantity needed. When the worker is finished, he or she presses a button so the computer can verify that the correct item has been picked.
So where does pick to light provide the biggest bang for the buck? To answer that question, you have to look at the items being picked in a given zone, how they're picked, and the method of storage, says Richard Gillespie, senior project engineer for TriFactor, an integrator of material handling systems. Are the stockkeeping units (SKUs) in the zone fast or slow movers? Are they picked individually or in case or pallet quantities? Where are they stored—on shelving? on flow racks? in carousels?—and how far apart are the pick locations?
Because pick to light's advantage over competing systems is speed, it stands to reason that it's best suited to fastmoving items. But how fast is fast moving? Reese of FKI Logistex considers an item to be fast enough for pick to light if it moves at a rate of 300 to 1,100 lines per hour.
Remstar's Romaine takes a somewhat different approach to determining if an item qualifies as a fast mover. "I have a very scientific test," he says. "I walk up to a rack, and I run my finger over the second or third line of items. If there's dust a quarter of an inch thick, then it's not a high-activity item."
Just how many SKUs will fall into the "fast movers" category? Although the answer varies from one operation to the next, usually the 8020 rule applies, says Dave Broadfoot, managing partner of pick-to-light manufacturer Lightning Pick. That is, about 80 percent of all orders will "hit" 20 percent of the SKUs. The zones containing these SKUs will benefit most from pick to light.
What makes pick to light a good choice for fast movers is its ability to provide picking instructions for several items simultaneously. With voice and RF systems, order pickers must wait for the computer to tell them what their next pick is, according to Gillespie. With pick-to-light systems, the wait time is eliminated. All of the displays for items needed for an order can be illuminated at once, so the picker can tell at a glance where the next pick location is.
Prime picks
Another key factor in determining whether a zone is a good fit with pick to light is the picking method used. Generally speaking, pick to light is best suited to splitor brokencase picking applications, in which items like single bottles of wine or power cords are picked as "eaches."
Still, there are plenty of companies that have used pick to light successfully for fullcase picking operations. Lightning Pick has one customer, for instance, that decided that voice wasn't providing the speed it was looking for in its fullcase picking operation. The company is now in the process of switching to pick to light.
The type of storage system used in a zone will also enter into the decision. Most experts agree that pick to light works best for items stored in carton flow racks, with replenishment taking place at the back end and picking occurring at the front end. Pick to light can also be used with static shelving, although that will keep the operation from taking full advantage of the technology's speed.
Carton flow racks and shelving aren't the only storage media that are good candidates for pick to light, however. For medium-velocity SKUs that might not warrant carton-flow racks, Remstar's Romaine recommends using AS/RS pod technology (which incorporates pick to light). These systems bring the items to the pickers, instead of requiring the pickers to travel to the pick location. For example, a pod may consist of two horizontal carousels that are integrated into a pick-to-light system. The carousels automatically turn so that the correct item is in a position for picking, and the light tree indicates what carousel to pick from, what shelf to pick from, which cell on the shelf, and the number of items to be picked.
Whatever the type of storage used, however, it's important to take travel distances into account. For pick to light to make sense, pick locations must be relatively close to one another; lengthy travel distances will offset the technology's speed. "Even though you may have a very high-velocity item, if you've got to travel six feet in between picking locations, then pick to light may not provide the best payback," says Reese.
The non-starters
Just as there are characteristics that make a zone a good candidate for pick to light, there are others that essentially rule it out. What's not a good fit? To begin with, zones with bulky items and items that are being picked from a pallet. "Any place where you have a worker aboard a forklift truck picking pallet quantities, pick to light does not make sense; it's almost impossible to get off a forklift truck and push a light," says Broadfoot.
The same goes for zones where throughput volume is extremely low or extremely high. David Remsing, system sales manager for Innovative Picking Technologies Inc. (IPTI), says IPTI receives many inquiries about the technology from companies that only have two pickers. "In those cases, you just don't have enough volume to justify it," he says. To be a good candidate, he says, the operation needs at least 10 pickers.
At the same time, Remsing warns against using pick to light for extremely high-volume operations. For those applications, he says, a mechanized solution like a mechanical sorter or an A-frame would probably be a better choice.
Other non-starters include what Broadfoot calls "grocery store setups" that contain 10,000 to 100,000 SKUs and where travel distances between picking locations can be several pallet-lengths long. Still, these aren't hard and fast rules. Sometimes, there are operational considerations that make pick to light the best choice for a zone that wouldn't otherwise fit the profile. An example would be a zone that doesn't contain any fast movers but would nonetheless benefit from improved picking accuracy.
Broadfoot adds that in some instances, the need for consistency will override all other considerations. "If you find that you have 100 SKUs that need to be managed by pick to light but you have a total of 300 SKUs, then let's just put lights on all 300 SKUs," he says. "That way, the business process will be the same for everyone involved."
The price is right?
Inevitably, any discussion of how to get the most from pick to light will turn to costs. With the lights alone costing around $50 a pop, according to Gillespie, pick to light isn't cheap. But there are ways to economize.
One is to stay away from the "extras" when choosing a system. Most manufacturers offer a base package that doesn't include all of the bells and whistles (like reporting capabilities and labor tracking), and some offer models designed specifically as low-cost alternatives (like IPTI's Pick-MAX Micro). These solutions can provide a good entrée into the technology without breaking the bank.
Another option is leasing. Broadfoot reports that some smaller companies—say, those with around 100 pick locations—have found leasing to be an affordable choice.
There are also opportunities to save money at the installation stage. "One of the shortcomings of pick to light is that it requires a light for every pick location, which can be relatively expensive," says Gillespie. "You can eliminate some of the costs by having a light share multiple pick locations or a light for one whole bay, but then you lose some of the accuracy."
Remsing adds that some customers have kept costs down by handling some of the installation work themselves. They provide most of the labor and have just one or two people from the manufacturer participate as supervisors.
Companies sometimes try to save money by installing RF or voice systems in areas that are more suitable for pick to light, but they're fooling themselves, says Gillespie. Although people often assume pick to light is the highest-priced option, he says, that's not always the case. "If you have a [small] number of SKUs and a [large] number of pickers," he says, "then RF and voice picking are generally going to cost more [than pick to light]."
Rather than focusing on initial cost alone, says Romaine, DC managers would do better to take a hard look at how the technology fits with the company's strategic goals. If pick to light emerges as the logical choice from the standpoint of productivity, space constraints, and accuracy, it will likely prove to be the economical choice as well.
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.