KPM changes its fulfillment "landscape" with voice
Though the outdoor power equipment it sells is state of the art, small distributor KPM was making do with manual processes in its own operations. Then it discovered an affordable voice solution.
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.
Who says you have to be a big company to pick orders with voice technology?
Even small companies can now take advantage of the benefits (think higher productivity, better accuracy, and hands-free picking) that voice provides. KPM Exceptional is one company that has learned this first hand.
Founded in 1955, KPM is a wholesale distributor of outdoor power equipment for professional landscapers. Its customers include hundreds of independent dealers located throughout the Northeast.
The company currently serves those customers out of two distribution facilities in Kenvil, N.J. One of the buildings stores equipment and accessories (such as lawn tractors, mowers, leaf blowers, snowplows, and heaters), while a smaller facility nearby holds about 11,000 stock-keeping units (SKUs) of service and replacement parts. This summer, the company will move into a new 100,000-square-foot building that's now under construction. The facility will house KPM's corporate offices as well as a warehouse that will handle both the equipment and the replacement/service parts.
Before upgrading its picking technology last spring, the company relied on a paper-based manual system in both of the facilities. That worked well enough, but KPM felt it could do better, says Jesse Hellyer, the company's IT manager. "Our motto is 'Striving to do what works for your business,' so we have a culture of working to do things better," he explains. "We'd been improving our manual processes to the point where they worked very well for us. However, we needed to make a jump to continue to scale with the business. In order to do that, we started looking at other technologies."
As for what KPM's managers were seeking in a picking system, three things topped the list. First, they wanted a system that would allow for multiple orders to be picked simultaneously (orders in the current buildings are picked one at a time, which creates unnecessary travel and hinders productivity). They also wanted a technology that could easily scale up to allow for growth in the business.
Finally, KPM wanted a technology that would track employee performance and provide management reports on that performance. "Because [the paper-based system] was a manual process, we really did not have our arms around what was going on in the operation in terms of how people were spending their time and ways to optimize their time," says Hellyer.
VOICE IS THE CHOICE
To find the best solution for its needs, KPM investigated radio-frequency (RF), pick-to-light, and voice-directed offerings. But it quickly discovered that most of those technologies require a large capital outlay, putting them beyond a small distributor's reach. The search was further complicated by the fact that while KPM uses sophisticated software designed in-house for managing its orders, inventory, and billing, it does not have a warehouse management system, which is what most warehouses use to direct automated picking operations.
After looking at the alternatives, KPM chose the Lydia Plug and Play voice solution from topVox. The system is designed for small to medium-sized businesses that do not yet possess a lot of sophisticated technology. It allows companies with as few as five pickers to automate their order selection processes, which was one of the attractions for KPM, according to Hellyer. "We are different from the standard voice user," he says. "We have a very small warehouse to be adopting voice technology."
The solution consists of the topVox Lydia software platform working in conjunction with a Voxter voice unit that's worn on the worker's belt. The Voxter unit is connected to a headset that allows the worker to hear verbal directions and respond back. Currently, only five voice units are in use, but the system can be scaled for up to 25 simultaneous users simply by adding more Voxter devices and the accompanying headsets.
As the name implies, the Lydia Plug and Play voice solution features plug-and-play integration and does not require a warehouse management system for operation. For instance, in KPM's case, the company's proprietary software simply exports orders as they are released for shipment into the Plug and Play system. The voice system, in turn, determines the optimal pick paths for gathering the orders.
"The interfacing between our two systems was probably the simplest portion of the project for us," reports Hellyer. On top of that, he says, the Plug and Play software is highly customizable, which meant that KPM didn't have to make wholesale changes to its processes. For instance, the company uses product numbers—rather than the more traditional check digits mounted on a storage rack—to confirm that the right items are being selected. The topVox system was able to accommodate that.
KPM began picking its parts orders with the Lydia voice system in April 2014. The company wanted to give employees experience working with voice through its busy spring and summer seasons, and before moving to the new building. This will avoid the need for associates to learn both a new system and the processes used in a new facility at the same time.
LISTEN, PICK, REPEAT
With the new system in place, order picking is a snap. To begin the process, an associate reads the invoice number for an order into his or her headset. The system then directs the worker to the location of the first pick. Hellyer notes that one of the advantages of voice over RF is its ability to give users instructions on the go—there's no need for them to stop walking to read a screen.
Upon arrival at the appropriate rack or bin, the worker reads off the last two digits of the product number to confirm that the correct part is being picked. The system then tells him or her how many of that item to select.
Since associates no longer have to hold paper, their hands are free to handle the parts—a big plus in an operation that deals in items like sharp mower blades and heavy wheels. Warehouse manager Mark Pobihun says he appreciates that feature. "I really like the hands-free picking," he says. "And I like the call-back of the last two digits. It makes it impossible to make an error."
The parts are brought back to order bins—although in the case of very small parts, workers first make a detour to a counter where they put the parts into plastic bags before placing them in a bin. Once all of the items for an order have been gathered, the bin is pushed along a nonpowered conveyor to a pack station, where the items are confirmed against a packing list and placed in a carton for shipping.
Currently, about 200 orders are processed each day, with the average order consisting of six lines. For now, orders are picked one at a time, though that will change in the new building.
GAINING 'SOUND' BENEFITS
Since moving to Lydia Plug and Play, KPM has begun to realize the many benefits that automation can bring. For instance, workers appreciate the speed and ease of picking. "Before, we [had to grab paper] from the printer and go pick our parts, and it was very slow. Picking up paper all day gets annoying," says Shane Cole, a parts picker at KPM. "With voice, you just say 'next order' and Lydia tells you where to go, and then you put it in a bin and your order is done."
Training new workers is a simple matter with voice. "We had a new guy come in. We set him up with Lydia for maybe an hour and he understood how it worked—like instantly," adds Cole.
Several of the workers at KPM speak Spanish as their first language. The Lydia system offers the option of delivering picking instructions in Spanish, though at this point, all of the workers have chosen to receive commands in English. On top of that, the system understands their accents (and New Jersey accents, at that!) with very high recognition levels. And with the topVox system, there's no need for users to record a voice template beforehand, as is the case with other "speaker-dependent" voice systems.
While workers are picking, Lydia exports performance data back to KPM's labor management software to track their work. "I like the productivity reports and the ability to assign orders to individual pickers," says Pobihun. The performance information has also proved valuable in coaching workers who need extra help.
The picking accuracy achieved with the system has allowed the company to cut back on quality checks for outgoing shipments. Based on the accuracy and productivity improvements alone, KPM calculates that the system paid for itself in only about six months.
Once it relocates to the new building later this year, KPM plans to use voice to pick equipment and accessories in addition to the parts. At that point, the company will also begin using the system to direct the picking of multiple orders simultaneously. The plan is for workers to push wheeled carts outfitted with bins along their pick paths. The items will be picked in batches and separated into the bins, which will represent individual orders. Picking multiple orders at once will boost productivity by eliminating much of the travel time associated with discrete order picking. In later phases of the project, the company will expand the use of voice technology to receiving and putaway.
Making the jump to an automated system has been a huge step for a small distributor like KPM. But it promises to be an investment that will allow the company to grow as its volume increases and as it expands the use of voice to new applications.
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]."