Cookware company Meyer knew that overhauling its poorly performing palletizer and conveyors could improve productivity at the dock. What the company didn't expect was to stumble upon a whole new use for the equipment.
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.
As part of your maintenance routine, do you evaluate your material handling systems to make sure they're meeting expectations? If not, maybe you should. Doing this type of periodic analysis can be well worth the effort. In addition to exposing existing problems, this sort of exercise may point you to new ways to use the equipment.
Consider the case of cookware distributor Meyer Corp., U.S. In 2009, the company, whose products include such well-known brands as Anolon, Circulon, and Farberware, was uncomfortably aware that its existing palletizer and supporting conveyor system wasn't performing to standard.
The palletizer had been installed five years previously to speed up the inbound container unloading process. The idea was that as trucks arrived at dock doors, merchandise would be unloaded and whisked to the palletizer by a spaghetti-like network of conveyors. The palletizer would then automatically stack the items on pallets, and the pallets would be sent to storage.
Had the equipment worked correctly, it should have increased throughput twofold over offloading containers manually. But Meyer was never really able to get the conveyors and the palletizer to play well together. "It never really reached its potential," says Mark Warcholski, Meyer's director of warehouse operations. It got to the point where the system was down more than it was up, he says.
Because the system was so unreliable, it was never embraced by the team, Warcholski adds. Eventually, DC employees became so disillusioned with the equipment that many simply bypassed the palletizer and supporting conveyors and sent trucks to regular dock doors for manual unloading, according to Dave Rebata of Flostor, an integrator that stepped in to help Meyer address the issue.
Too many integrators
As for the source of the problem, Warcholski does not blame the equipment itself. There was nothing wrong with the palletizer's hardware, he says. Instead, he believes that Meyer used too many integrators to incorporate the palletizer into its overall material handling system. This lack of cohesiveness caused continual failures for the palletizer and kept it from working smoothly with the company's conveyor systems.
It was obvious to Warcholski and his team that something had to be done. The company couldn't afford to carry what was essentially a non-performing asset on its books. Replacement wasn't an option either—particularly as Meyer was already in the middle of an AS/RS installation project at its main DC in Fairfield, Calif., where it was consolidating distribution operations. The team would have to find a way to make the existing asset work in harmony with the rest of the equipment—in other words, solve the integration problem.
Coincidentally, Warcholski's team was already working with an integrator, Flostor, on another project—one that involved the installation of a pick module at the Fairfield DC. It was during a budget meeting with Flostor that a member of Warcholski's team had a unique idea: Why not use the same conveyors and controls that were already being used to feed the palletizer on the inbound side to move outbound products from the pick module to the correct outbound trailer? In other words, connect the conveyors to the planned pick module, add a sortation system to the existing conveyors, and then extend the conveyors into trucks for outbound delivery. "The more we looked at it, the more we thought, 'Yeah, that's a really good idea,'" recalls Rebata.
First step: brain surgery
But first, the team needed to get the palletizer to do what it was designed to do. "We basically had to gut the current system and give it a new brain," explains Warcholski. "That doesn't mean we were disassembling any of the mechanical pieces. It was really looking into the software and partnering back up with the manufacturer, Columbia, and getting it working the way it needed to."
This time around, Meyer was determined not to repeat past mistakes. "When we [first set up the system], there were too many people involved," says Warcholski. "This time, we went with Flostor and told them, 'You're the single integrator.'"
After partnering with Columbia to work out the bugs in the system, Flostor began looking at the mechanics of incorporating the palletizer case conveyor into the outbound flow. Could the conveyor be easily switched from running in one direction for inbound receiving to running the opposite way for outbound deliveries? Was there a way to set up the system so that Meyer could quickly turn off the palletizer and turn on the sorter as part of its daily operations?
After studying the problem, the integrator decided the answer to both questions was yes. Working together with Meyer, Flostor successfully assembled a pick module that could interface with the palletizer and be used for outbound sortation. This was no small accomplishment, according to Rebata. "It's very unusual for somebody to come in and do this using an existing system," he says. "By the time that system is up and running the way it should be for one process, it's very difficult to make it turn on a dime and work for another process. A lot of work has to go behind it."
Two for one
But it was this decision to use the conveyor system in two different ways that really made the project a success, according to Warcholski. Not only was Meyer finally able to use the equipment for its intended purpose, but the company was also able to use it in a totally different capacity.
By all accounts, the project has resulted in significant operational benefits. "It increased our volume capacity twofold, allowed us to reduce labor, and increased our productivity," says Warcholski. Now, during non-peak season, the swing shift uses the palletizer on the inbound side, and the day shift uses it to process outbound cases. This has allowed the company to reduce its non-peak outbound shifts from two to one.
Better yet, the solution proved economical. By reusing an existing system, the company was able to avoid making a $2 million investment in new conveyors and controls. In addition, the implementation time was much shorter than if Meyer had started from scratch. Meyer began to see the payback immediately, according to Warcholski.
Meyer is not done with reviewing its palletizer and conveyor system (or for that matter, the other systems that were installed around it). Based on the success of the project, the company says that over the next three to five years, it will be continually looking at its systems to make sure they're performing at optimal levels—and being put to maximum use.
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]."