Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
The trough of a recession might seem an unpropitious time to take the helm of an influential trade association, but you won't hear Michael Mikitka complain. Though he acknowledges that "economics have made membership a more challenging product to sell," Mikitka, who was recently named executive director of the Warehousing Education and Research Council (WERC), is quick to point out that a downturn doesn't diminish the need for professional education and training. As long as there are warehouses, managers will want information on how they can refine and improve their processes—and that is precisely what his group intends to provide.
Education is a subject close to Mikitka's heart. He began his career as a technical writer preparing educational materials for the Property Loss Research Bureau, an insurance trade association. He later moved to a job developing programming for the group's annual conference, a job he parlayed into a similar role at WERC, which he joined in 2000.
Mikitka, who graduated from Illinois State University with a B.A. in industrial/organizational psychology, holds the prestigious Certified Association Executive (CAE) and Certified Meeting Professional (CMP) designations. He met recently with DC VELOCITY Group Editorial Director Mitch Mac Donald to talk about the programs WERC is developing, the group's online initiatives, and why the days of the 500-page book are over.
Q: How would you describe WERC's mission?
A: WERC's mission is to provide resources to the warehousing and distribution industries, whether it's learning opportunities, products, or services. The association has also played a role in raising the profile of warehousing and distribution.
WERC also provides networking opportunities through our events, our committees, and our regional chapters, which extend WERC's reach to the local level.
Q: Could you talk a little about the regional chapters and their activities?
A: Our chapters serve as volunteer-driven extensions of the national organization. The local chapters help us to serve a member who might be working with more limited resources and can't attend the national conference every year. They also allow members to bring their front-line people into association activities, again without the expense of attending the national conference. Our chapters give us the ability to provide learning and enrichment opportunities to larger segments of our members' operational teams through local facility tours, networking events, and speaker presentations.
Q: In the current economic climate, everyone's looking for ideas for cutting costs, streamlining operations, and so forth. Would you say that the role of educationfocused associations like WERC is more important now than it might be in better times?
A: I don't know that I would say more so now. I think that [education support] is what we always provide. That said, our members are certainly like everyone else in business right now in that they're being challenged by the economic environment. So they clearly are looking for more information and ideas to help them not just survive, but perhaps thrive in this downturn. For instance, as business is a bit slower, this is an excellent time to focus on training, and WERC can help with that.
Q: What sorts of programs is WERC currently developing for its members?
A: From an ongoing perspective, there is our annual distribution center metrics and benchmarking study, which we do jointly with DC VELOCITY, Georgia Southern University, and Supply Chain Visions. Having done that for six years, we are now in a position to offer trending information as far as DC metrics go, which I think is valuable and which is something our members have always been looking for.
We're also looking at moving more of our products and resources online, whether through online learning or other programs. We are experimenting with the social networks that are out there—the LinkedIns and the Twitters. We are also always looking to expand our menu of online tools. A good example is our online benchmarking tool. It allows a member company to go in and enter its own DC performance numbers to see how they compare with data from the DC metrics study. So that is giving our members tools and information they need to refine and improve their processes.
Q: It seems most every association is currently facing challenges in maintaining its membership base. How are things trending with WERC?
A: Economics have made membership a more challenging product to sell if you can consider it a stand-alone product. But we are seeing upswings in other areas, like online courses and sales of our publications. Although conference attendance was off a little bit this year, our attendee surveys still show that we deliver a very good product, a very good experience. That's something we remain committed to.
Q: You've now been involved with WERC in some capacity for nine years. What has kept you there for so long?
A: We have a really great membership. I mean, this is a good field. It is a business that has to be responsive, and it expects that same type of responsiveness from an association in terms of the products and services we provide. It is a very realistic group to work with. That is one of the nice things about WERC and our membership and the profession we serve.
Q: How do you stay on top of industry trends and your members' changing information needs? Do you have a formal process for that?
A: We have several ways of gathering that information. We do it through member surveys. We do it through talking with members. We do it through direction from our board of directors regarding trends they are seeing. We also use research that may be presented to us by the educators in our field.
We're also making some changes in the way we present information to members. When we do research, our publications are more targeted than in the past. The days of the 500-page book are over. We're now focusing more on the practical, quick-read type of approach.
The question we ask ourselves when developing products and resources as well as our conference sessions is, What is the takeaway from this particular item? You'll find something to take away from each of our offerings, whether it's a conference session, a facility tour, or an online course. For example, with a conference session, it might be the top five things to look for when choosing a system, or the top three things to avoid when implementing a system.
Q: If you were asked to identify the one industry trend or development that has the greatest potential to benefit the profession going forward, what would it be?
A: Distribution and transportation are closely tied in the supply chain. The transportation infrastructure in the United States is a major opportunity for warehousing, distribution, and logistics in general. As there seems to be a focus in Washington on roads, bridges, and rail, there is the opportunity for cost savings and quicker transit, adding more flexibility to the supply chain.
Q: What advice would you offer to young people looking to pursue a career in the logistics profession?
A: Learn as much about the profession as they can. The best way to do that, I think, is to identify a network of people who can help them learn. That network could be through WERC—either at the local chapter level or the national level. Or it could be through other industry associations. There are certainly other great industry associations out there.
What you don't know in life, good people will teach you. It's a matter of finding the right teachers.
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]."