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 it comes to the landscaping and irrigation trades, getting the right products into customers' hands at the right time is more than just good distribution practice. It is critical to operations.
That's because commercial landscapers and contractors schedule jobs, hire workers, and order supplies based on specific construction schedules. If they miss appointments because the materials they need aren't available, the contractors risk being fined for the delays. Therefore, a reliable source of supply is a must for these businesses.
That's where Ewing Irrigation Products comes in. The Phoenix-based company, which describes itself as the largest family-owned supplier of irrigation and landscaping products in the nation, has built its business by focusing on service.
Ewing operates 200 stores throughout the South and Southwest to serve its customers, which include commercial and residential landscapers, parks and golf courses, and water management agencies. The stores (or branches, as Ewing calls them) are fed from the company's main distribution center in Phoenix and eight "micro" DCs (a ninth micro DC will soon open in Heyward, Calif.). Because of the nature of the business, Ewing has to have an extremely flexible fulfillment system. "We offer everything from a 20-foot-long, 10-inch-wide pipe down to small drip emitters used in irrigation," says Terry Williams, Ewing's vice president of customer experience. "So, it can be very challenging in how we handle it all."
In a bid to streamline operations, the company in 2008 replaced the paper-based fulfillment system at the 95,000-square-foot Phoenix DC with a new warehouse management system (WMS) from Manhattan Associates. At the same time, it integrated RF-based scanning to direct the picking operations.
While the move led to some efficiency gains, it quickly became clear the scanners weren't a good fit with Ewing's operations. For one thing, associates found it tough to juggle a scanner while selecting heavy or unwieldy items like wheelbarrows, bags of mulch, and rolls of turf.
"The RF units were cumbersome for our employees," says Tony Saurer, Ewing's supply chain manager. "They had to put down the RF unit, pick the product, then try to pick up the RF unit again. Workers were always worrying about where the RF gun was."
And that wasn't the only drawback. Accuracy levels were falling short of what the company had hoped for. Most of the errors were occurring in the active pick zone, where a lot of small items are jammed into tight pick slots. Many of the items aren't easily distinguishable from one another—for example, an imprint on the top of a nozzle might be the only visible difference between two models. Workers were forced to rely on the error-prone process of matching up numbers on a pick slot and a tiny screen. The source of the problem lay in the break in eye contact as associates glanced between slot and screen—it was all too easy for them to look back to the wrong slot when they made their picks. Over time, it became more and more evident the facility needed a different picking solution.
HEAR! HEAR!
The answer to Ewing's problems came in the form of voice technology. In 2012, the company rolled out Vocollect's VoiceDirect system at the Phoenix DC. Today, the voice system, working in conjunction with the WMS, directs fulfillment activities in both the active and reserve picking areas of the facility.
The shift to voice has solved the two biggest problems Ewing was experiencing with scanners. Because it provides for hands-free operation (workers receive instructions via headsets), the voice system eliminates the need for associates to juggle a scanner while picking up an item like a 50-pound bag of fertilizer. It has also improved safety by reducing the risk that a worker will drop a heavy item on someone's foot while fumbling with a scanner.
On top of that, the voice technology has nearly eliminated the accuracy problems in the active picking area. With the new system, workers no longer have to glance back and forth between the pick slot and a screen. Instead, they simply read off a check digit attached to the pick location to confirm they're in the right spot. "Voice allows them to maintain a visual with the product and location they are picking from," notes Saurer.
To further enhance accuracy, the picker also reads off the last four digits of the pallet or carton ID to confirm the correct item has been selected.
As a result of the move to voice, picking accuracy has shot up to over 99 percent. That's a hefty 15 percent higher than it was back in the days of the paper-based picking system.
QUICK AND EASY
In addition to the accuracy gains, the company reports that the voice system has streamlined the processing of "multipicks," orders that call for multiple cartons of the same stock-keeping unit (SKU). Under the scanner-based system, picking 25 cartons of, say, a particular spray head model was not much different from picking 25 assorted cartons because the picker still had to scan each carton individually to confirm its selection.
With the voice system, the need for repetitive processing is history. When picking a series of cartons, the worker simply confirms the location, and then reads off the last four digits of the ID for the first carton, followed by the corresponding digits for the last carton. That signals to the software that all of the cartons in between have also been selected—there's no longer any need to enter data for each carton. Managers estimate that this capability alone has cut the time needed to pick a series of cartons from two minutes to about 30 seconds.
As for the actual switchover from scanners to voice, Ewing reports that the voice system proved easy for workers to learn. On top of that, voice turned out to be particularly well suited for the Phoenix facility, whose workforce is about 90 percent Latino. Non-native speakers of English often find it easier to follow voice commands than to try to read screen-based data in English. Currently, all workers at Ewing have chosen English for their voice directions, but the system also offers the option of Spanish prompts.
Though the implementation went smoothly overall, Ewing did encounter one initial speed bump. The difficulty concerned large-quantity orders, which Ewing prefers to pick directly from the reserve area rather than first transfer the stock to an active pick zone. The problem was, Manhattan did not offer a workflow to use voice for reserve picking. And writing a customized software interface would have been cost prohibitive.
But the problem didn't prove to be insurmountable. Working with its vendors, Ewing found a workaround using Vocollect's VoiceExpress application, which turns screen data into voice commands. The WMS generates a "green screen" of data, which then can be "screen scraped" into the VoiceExpress software. The software interprets the data and creates text-to-speech directions for workers.
THE GRASS IS GREENER ...
So how has the voice system worked out? Pretty well, by all accounts. In addition to the accuracy improvements, the company has seen picking productivity jump 20 percent since moving from scanning to voice.
As for labor requirements, the facility has realized a significant reduction in labor needs since the days of the paper-based system. Back then, it required 12 people working 12 hours a day, six days a week, to serve just 100 branches. Now, the company serves 200 branches weekly with the same number of people working a standard eight-hour shift, five days a week. Overtime has been eliminated at the Phoenix facility, which currently ships about 2,000 cartons a day.
Best of all, taken together, these advancements have improved service and product availability to Ewing's customers.
"We looked at this implementation as something that would help our employees and also encourage our customers to want to do business with us," says Williams. "Our main goal is service. And from a company standpoint, this is absolutely helping the customers. Everyone is smiling."
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."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.