Improper battery rotation was costing DSC Logistics big money. An automated lift truck battery management system put a stop to that—and paid for itself in a few weeks.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Old habits die hard ... especially when it comes to swapping out lead-acid lift truck batteries. Observe forklift operators in a battery room, and you're likely to see them do one of two things: walk up and down the aisles looking at batteries before choosing the one that looks newest, or nip inside and grab the battery that's closest to the entrance. It's hard to blame them for going either of those routes. Most people will assume that the newest piece of equipment will be the best performer. And operators don't want to spend more time "out of the saddle" than they have to, especially if their pay is based on productivity.
Understandable as those habits may be, they almost guarantee that operators will fail to choose a battery that has been properly charged and fully cooled. That's a problem, because routinely selecting and using the "wrong" batteries will cause their performance and longevity to degrade. That, in turn, translates into more frequent changes during a shift as well as the need to keep a larger number of batteries on hand.
Until three years ago, that was the situation at the University Park, Ill., distribution center (DC) operated by the third-party logistics (3PL) company DSC Logistics. When managers noticed a pattern of unusually frequent changes and shorter-than-expected battery life, they found that incorrect battery selection was to blame. After their original solution produced disappointing results, they turned to an automated battery management system that not only eliminated those problems but also paid for itself in a matter of weeks.
FREQUENT CHANGES RAISE RED FLAGS
The 575,000-square-foot DC operates three shifts five days a week, handling mostly dry and some refrigerated food at the pallet, layer, and individual case level. University Park has a fleet of 45 forklifts, including 22 standup counterbalanced trucks, 11 standup deep-reach trucks, one order picker, and four pallet jacks, all manufactured by Crown Equipment Corp. (The balance are short-term rental trucks.) The fleet is powered by a pool of 85 batteries, all of them purchased from EnerSys, including a single model for all of the standup counterbalanced and deep-reach trucks. That degree of standardization pays off by simplifying vehicle maintenance and operator/technician training; it also helps to keep purchase prices reasonable, says Jim Chamberlain, DSC's senior director of industrial engineering and continual improvement.
While reviewing reports in DSC's labor management system (LMS) some years ago, Chamberlain and his colleagues noticed that lift truck operators frequently made more than one battery change per shift. Short battery run times were compromising productivity, but that wasn't the only problem. There also appeared to be a correlation between the frequent changes and the batteries' shorter-than-expected lifespans.
Observation revealed that improper battery selection was to blame, so the operations and industrial engineering teams came up with a "first in, first out" process to help drivers choose batteries that had been charged and fully cooled. In the battery changing area, there would be one empty storage slot; drivers were told to always put their used battery in that slot and take the fresh one immediately to the right.
"In theory, if everyone [follows the procedure], drivers will never get back to the battery they just put in until they have come all the way around [the storage slots]," Chamberlain explains. But even with that simple visual system, compliance was spotty, he says.
This method produced limited improvement, so DSC asked its battery supplier for ideas. EnerSys suggested an automated battery management system that could address all of its customer's concerns.
SURPRISE TEST RESULTS
The automated battery management system installed by EnerSys, called EZ Select, ensures that all batteries are evenly rotated. "The system monitors the chargers, and when a charge is complete, that battery goes into a queue organized by cool-down time," explains Paul Roeser, national accounts manager for EnerSys.
At DSC's University Park facility, when an operator enters the battery changing area, he or she uses an automatic battery-change cart to insert the depleted battery into an empty slot before hooking the battery up to a charger. Next, the operator looks at EZ Select's light-emitting diode (LED) display panel, which is mounted on a pole at one end of the battery-charging area. The display panel indicates the number of the charger position where the next available properly charged (and longest-cooled) battery is located, Roeser explains. The operator uses the cart to extract the fresh battery, rolls it back to the lift truck, and installs it in the vehicle.
If an operator attempts to take a battery other than the one indicated on the screen, an alarm immediately sounds. The battery management system also applies a date and time stamp to the error, a feature that identifies which operators are making the mistakes. That allows DSC to coach employees who need more training, an approach that quickly paid off. "Now, the employees get it: If we all follow this, then we'll all get good batteries," Chamberlain says. "It's actually fostered more of a team mentality."
Before EnerSys and DSC turned on all the system's capabilities, they ran it "blind" for a week, recording activity but without providing any instructions to operators. The purpose was to get an accurate baseline of operators' current behaviors. The results, in Chamberlain's description, were "startling." It turned out that operators were choosing the right battery only 3 percent of the time. The system documented that they were choosing whichever battery was closest, most convenient, or newest. The blind test, moreover, showed why run times and life spans were so short: The average cool-down time for the batteries the operators selected was just two hours, Chamberlain says.
LESS COST, MORE EFFICIENCY
The automated battery management system, together with operator training, has helped DSC Logistics all but eliminate battery-selection errors. When the system was first installed in 2012, the accuracy of battery selection soared to over 96 percent from 3 percent, and the average cool-down time for each battery rose to 10 hours from two. As a result, Chamberlain says, "We are getting proper run times now ... We've pretty much gone from two to around one change per shift."
Those changes have also improved average battery life spans. "We conservatively estimate that we put an additional six months on a battery's life with this system," but it can be considerably more, depending on the circumstances, says Roeser of EnerSys.
Automated selection has also reduced the time spent changing batteries at the University Park DC by 430 hours annually. There are two reasons for that, Roeser says: Operators no longer walk around looking at batteries before deciding which one to take, and the number of battery changes per shift has been greatly reduced.
Because all of the batteries are properly charged and cooled, more of them are available for use at any one time. That has allowed the three-shift operation to cut down on the number of batteries it maintains per truck from 2.5 to just over two.
An EnerSys analyst monitors the data the EZ Select system uploads daily. The vendor uses that information to identify potential problems with batteries or chargers. Based on trend data, the company can recommend an action plan to drive out costs, Roeser says.
Chamberlain notes that this type of analysis allowed the system, which required an initial investment of less than $24,000, to essentially pay for itself in just one month. To accommodate additional business, DSC had been planning to add another lift truck to its fleet. "With the information from the battery management system, we realized that we already had a healthy ratio of batteries to trucks, and that we could add a truck without buying any additional batteries, chargers, or stands," he recalls. According to EnerSys, DSC achieved savings of $25,000 in the first year after installation and is projecting annual savings in future years of about $31,000.
That was enough to convince Chamberlain and his colleagues to spread the word about the benefits of automated battery selection. "We have this system now in 11 of our logistics centers," he says. "Our goal is to continue rolling them out because they have had such a positive impact on our business."
The system's impact extends well beyond time and cost reduction, in Chamberlain's view. "Our customers are always challenging us to improve what we do for them and how our business is run," he says. Automated battery management has helped DSC meet that expectation. "What it has done is take something that for us was subjective and inconsistent, and turned it into something controlled and standardized," he says. "There really isn't a downside."
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]."