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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."