It is OK to celebrate improvement, new applications for old tools, and the march of progress. But let's save the proclamations and euphoria for those few genuine breakthroughs.
Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
One manifestation of living long is that one has seen, if not everything, at least many things. A manifestation of being on the younger side is that many things are being seen for the first time, and with no other point of reference may, among many options, be categorized as:
Denounced in horror, as the work of Satan
Embraced with gusto, as the next big thing
Ignored, as mere chatter
Heralded as game-changers, as kinks are worked out and weaknesses are shored up
Overshadowed by the simultaneous arrival of other solutions in search of problems.
MARCHING TO THE HEAD OF THE PARADE
Promoting the apparently new concept draws in armies of fervent supporters. The trade press is always on the lookout for compelling and provocative content. Academics do not want to seem to be run over by the bandwagon. Earnest and brilliant practitioners extol the virtues and vision of whatever's next and trumpet the promise and potential of the latest and greatest.
Consultants, of course, cannot afford to suffer body blows to their images if they don't appear to be both wise and current. And industry observers and commentators also are compelled to display relevance, along with brilliant mating plumage.
Research is conducted, surveys are carried out, results and conclusions are published. But take a moment when the next PR tsunami wipes out rational discourse. Is the concept really new? (Aha!) Or simply more effective or efficient (e.g., lower-cost, faster-speed mobile wireless access)? (Duh!)
WHAT'S OLD IS NEW AGAIN
News flash! As we've frequently reported, Sears was doing business-to-consumer (B2C) order fulfillment from a megadistribution center over a century ago. (As was Aaron Montgomery Ward.) The only differences of significance from today? U.S. mail as input vs. e-mail or mobile entry. Physical delivery by a third party unknown today (Railway Express) vs. FedEx, UPS, or, believe it or not, the U.S. Postal Service.
Shared transportation, with either competitive or complementary independent companies, has been significantly enabled by new information technology capabilities and a renewed emphasis on cooperation and collaboration in new-century business models. Of course, 40 years ago, we called this aha! practice "pooling." Duh!
In the day, we lacked the power and scope of planning and execution software. There was no warehouse management software, for example. But we still kept meticulous inventory records (on cards), planned pick waves as best we could by thinking through needs and priorities, and slotted products, sometimes based on affinity, sometimes on source, and sometimes on throughput objectives, and sometimes on customer demand priorities. To be honest, it was not easy, and it was extremely difficult to replicate day after day. But it wasn't that we didn't do these things in an age in which fire was a new and precious resource, and we created art by tracing 'round our hands on cave walls.
We have, it seems, evolved through a series of developments in which the rising generation cries "Aha!" and the old codgers sit at the fire and mutter "Duh!" Occasionally, someone in either camp will see the light and make the connections. That's when the Homer Simpson "D'oh!" kicks in.
WHEN AHAs COLLIDE
In the early days of radio-frequency identification (RFID), which some think we're still in, the literature was full to overflowing, even littered, with pretentious writing positioning its authors to be recognized as prescient. Those enamored of other hot concepts focused on the weaknesses of the emerging technology—challenges in wet environments, conquering metallic obstacles, etc. They said, in essence, "Readable technology in or on a package of chewing gum? Not in my lifetime—or yours! Cost will stop this dead in its tracks."
Guess what, again? In their lifetimes, the moisture and materiel kinks have been largely worked out. Chip costs have plummeted. RFID is no longer limited to high-cost/value applications, such as automobiles, E-ZPass tolls, mink coats, and lift tickets at pricey Alpine retreats. The future is now, and something even brighter is probably just around the corner.
HOW EVOLUTION WORKS
But, face it. RFID is just the latest version of "automatic identification." One beginning was the sudden appearance of strange markings on the sides of railcars and continued into the ubiquitous bar code that has gingerly worked its way onto everything under the sun, and from hesitant limited usage, even rejection, to a prime source of real-time information for businesses.
So, the concept is rock solid and mature. The implementation has been 1) made possible, and 2) continually evolving, owing to technology.
A PARALLEL?
Is there a lesson here, a learning that is useful beyond the parable? An old puzzle for children was the riddle involving the fox, the rabbit, and the lettuce. The challenge for their master was to take them across a river in a boat that would hold only two: the master and one other.
The rabbit cannot be left alone with the lettuce, lest he eat it all up. The fox cannot be left alone with the rabbit, lest he eat it all up. The fox can be left alone with the lettuce, but what's the fun of that? So, how can the master get all three—and himself—across the river?
If we change the cast, the **ital{dramatis personae,} to something completely different, will the options change? Let's say that the boss has a box of apps, a techno-geek, and a sales superstar.
The techno-geek cannot be left alone with the box of apps, lest he bug them all. The sales superstar cannot be left alone with the techno-geek, lest he sell all the apps to the geek. The sales superstar can safely be left with the apps because he doesn't really know how to use them.
AT THE END OF THE DAY
Even with the updates, the core of the riddle does not change. And so it is with many of our Ahas. We have very, very few completely new ideas to contemplate, either in our supply chain and logistics arenas or in life. We do have, thanks to technology and a bent for continuous improvement, many core concepts that grow in power and usefulness over time (while retaining their core concepts and objectives).
It is OK to celebrate improvement, new applications for old tools, and the march of progress. But let's save the coronations, jubilees, proclamations, and euphoria for those few genuine breakthroughs—and begin the work of evolving them to new levels, too.
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
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%."