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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."