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.
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
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.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
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.