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.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
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."