David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
When consumer products giant Amway decided to move its Midwest fulfillment operations to a building on its main campus in Ada, Mich., managers saw their chance for a clean sweep. From the outset, they rejected the idea of replicating the setup of the retailer's former regional facility, located just a few miles away. Instead, they would use the opportunity to redesign the fulfillment process and introduce more automation.
What prompted the move was a change in the retailer's operations. The old building had been a dual-purpose facility, used for shipping both catalog orders and orders from Amway's "Independent Business Owners," or IBOs—the local folks nationwide who market Amway products to their friends and neighbors. But the retailer had recently shut down the catalog business, making the old process obsolete. At that point, the company decided it would be better served by shifting fulfillment to a 600,000-square-foot facility that had formerly supported manufacturing.
Although the move offered an opportunity to start with a clean slate, the design team also faced some challenges. One of the big questions involved the conveyors that would be used to whisk items through the facility (95 percent of Amway's products are conveyable). The company was hoping to improve on the system at the old facility, which had featured eight miles of conveyor belt. In particular, it was looking for units that would be quieter and more energy-efficient than their predecessors. It also wanted models that would provide better accumulation and gapping.
There were other requirements as well. The system would have to be capable of accommodating wide fluctuations in volume. Amway's orders rise sharply during the last week of each month, as its IBOs push to meet their goals. During peak periods, as many as 24,000 cartons move through the facility each day. That number is expected to jump to well over 30,000 when the full ramp-up is completed.
Then there was the matter of wide variations in product weights and sizes. Since its founding in 1959 as a seller of household cleaners, Amway has expanded and diversified into such product lines as nutritional supplements, jewelry and accessories, and health and beauty aids. That meant the conveyors selected would have to be capable of transporting anything from an empty carton weighing a few ounces up to an order weighing 50 pounds.
ON A ROLL
With the help of Bastian Solutions, a systems design and integration firm that also acts as a distributor for Hytrol Conveyor Co., Amway found the solution it was seeking. The system the two partners came up with features not just one type of conveyor, but a combination of roller, belt, spiral, curved, incline, gravity, accumulating, and trash conveyors that serve just about every area of the DC. The conveyors in the new system, most of which were supplied by Hytrol, are equally capable of gently handling a big box of dog food as a carton containing a single tube of lipstick.
"We have a wide range of conveyors. There is a purpose behind every type," explains Paul Slack, senior engineer. "Within a line, we go smoothly from one type to another—whatever is best to do the job."
Rollers are employed for basic transport in this extensive network (there are over 400,000 total rollers found within the system's conveyors). Belt conveyors are used in areas for accumulating, weighing, and scanning, among others. The system has 36 scanners arrayed along its various paths.
Among the workhorses of the system are Hytrol's E24 modular conveyors, which provide zero pressure accumulation and gapping with the added benefit of plug-and-play connectivity. That makes them easy to install and later reconfigure. Their 24-volt design also provides efficient, quiet operation. Rollers shut down when there is no product present to convey.
JUST SKIP IT
Another benefit of Amway's new conveyor design is that it can accommodate zone skipping. In the old building, orders had to pass through all pick zones whether the zones contained items needed for the order or not. In the new facility, that's no longer necessary. Under the current setup, the facility's RedPrairie warehouse management system is able to route cartons so they bypass zones that do not contain any picks.
The conveyors serve a pick-to-belt area, where full cases are selected; a split case area; and a pick-to-combine area, where small-carton items and split-case items are consolidated into a single outbound carton to save on shipping. Picking in these areas is directed by a combination of pick-to-light and pick-by-voice technologies, with both systems supplied by Bastian.
DIVERSIONARY TACTICS
Bastian also provided several ZIPline zero pressure accumulation conveyors that feature a "tacky," or rough-surfaced, belt that allows for quick acceleration and deceleration without product slippage. These are deployed in areas where product is to be inserted or diverted. In all, the system at Amway features 51 total conveyor diverts.
Among those diverts is a section that feeds three French-made packaging systems from B+ Equipment and its American partner, Sealed Air Corp. These machines "right size" cartons by folding down the top edges to meet the height of the tallest item in the carton. The system then glues a lid onto the box.
In addition to routing items to the various picking areas, the conveyors also serve document insertion areas, the print-and-apply applicators, and the packaging area. In-line scales built into the conveyors also perform weight verification at several stages along the conveyor journey to assure that true weight matches expected weight.
Once all products have been packaged, the cartons enter a 4-to-1 sawtooth merge that lines them up for sorting via a narrow-belt sorter. Wheels at the 16 diverts pop up at a 30-degree angle between the conveying bands of the sorter to nudge products down spurs to awaiting docks. This unit is able to sort 90 cartons a minute, serving four pallet build areas and 12 shipping lanes. Cartons are floor loaded onto trailers aided by a telescoping extendible conveyor supplied by Adjustoveyor.
Editor's note: The facility described in this story is featured in "Move it!," a new Web-based TV series that takes viewers inside the operations of leading companies and introduces them to the people, cutting-edge technologies, and strategies that make it all work. To view the episode and see Amway's conveyors in action, visit www.moveitshow.com.
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]."