Though intended for drivers, the warning applies equally to business relationships. That is, what we think we see may not be a wholly accurate depiction of reality.
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.
If you can read that warning in your outside car mirror, you're not paying nearly enough attention to the core issue, driving without committing either suicide or manslaughter. But it is disastrously easy to become mesmerized by mentally Photoshopped images and contemplate the magnificence of a false—sometimes referred to as "enhanced"—image.
Business relationships are a little like that, too, in that what we think we see may not be a wholly accurate depiction of reality. And in the new age of collaboration, successful supply chain management demands robust, rock-solid, and really long-term relationships.
Those are not the last century's 3Rs of elementary education, but the new century's hallmarks of effective hand-in-glove, arm-in-arm, joined-at-the-hip planning, operations, and continuous improvement that make for happy customers, employees, and shareholders.
But even some really smart people don't get the essentials of how to build and maintain those intimate relationships that transcend mere opportunistic cooperation.
PSEUDO-SCIENCE AND THE STUDY OF RELATIONSHIPS
Some observation and writing in the field appears to have missed the lifeboat and is going down with the Titanic. A common failing among the sinking cynics is to examine a business relationship as if it were a fire. It gets lit; it catches; it roars to life; it stays hot for a period; it begins to fade; and it finally dies out, pretty much useless in the end stages even though technically still alive. Their typical scenario is to outline the stages of a relationship, which got me to immediately contemplating Elisabeth Kübler-Ross's stages of death and dying:
Stage I, Establishment. This is the initial connection, the friend or foe, fight or flight moment in which we decide whether to work and play well together or fight common foes at arm's length, with limited communications, closed minds, and protected, privileged information for our eyes only.
Stage II, Acceptance. Here, we mutually decide that the other has credibility as well as the competency, the access, the power, the judgment, and the breadth to get done what needs doing.
Stage III, Action. Action takes time to genuinely initiate, because, to be most effective, it must be based on trust, which takes a long, long time to be fully embraced (by both parties to a relationship). Broken or violated trust can, long-term, derail the relationship, but with sufficient competence, tasks can be completed, even if suboptimally. But the quality and effectiveness of the relationship can seldom return to the previous level.
Stage IV, Wind-Down. Inevitably, relationships dissolve over time. The deal was only for a year. The project is over. There are no more goals to meet. It's been fun, but the sun has long set, and all we have left are dying embers.
THE MISSING LINK
All those are essentially so, if one imagines the parallel of a fire that is lit and left to follow its own course. Many fires on beaches at sundown that fuel summer romances do, in fact, play out in about that way. But for those who are serious about fires—or relationships—it's a much different story. Remember the under-appreciated film "Quest For Fire," with Rae Dawn Chong? Fire was a wonder and a life-giving tool for early humankind, kept perpetually burning. One village let its fire go out and dispatched a team to venture forth to find new fire, without which the village would fail and disappear.
GOOD FIRE; GOOD RELATIONSHIPS
The stages outlined above make no sense in a world in which either fire or relationships are vital survival elements, and the inevitability of winding down relationships in that context is absurd. To stay with fire for a moment, if one is serious about a life-giving fire, it is observed, evaluated, and tended accordingly throughput its life.
Good tinder is used to enhance a good start. The best wood to be found is laid on the fire, and new fuel is added throughout its life—not too early and not too late. The placement of the original and the additional logs is carefully thought through. If a spot is not burning well, judicious application of air is used to help the flame sustainably engage that particular log.
In business relationships, increasingly in supply chain business relationships, good fires are being built with the objective of not inevitably winding down. We look hard within ourselves to find the right mix and match of team components to provide the tinder for a great Stage I, Establishment. We invest in bringing genuine talent to the table, with the right styles to match up with the other side and create a fast and positive Stage II, Acceptance.
We hire deliberately with values that support and enhance trust, and plan meticulously and creatively, to make Stage III, Action, effective in time, resources, and outcomes. Throughout, we assess the health of the relationship, the strength of the fire, and add as appropriate, new wood and/or blasts of air to make the fire and the relationship both strong and longer lasting. The objective, of course, is to not ever have to face the Stage IV Wind-Down. And constant care and feeding of the fire and the players in the relationship can be marvelously effective in delaying, deferring, or demolishing Wind-Down as a daily concern.
THE REALITY
Do relationships end? Sure. But not always, not early, not without a fight, and not inevitably. Does everybody get, and buy into, the perpetual relationship idea? Of course not. But the naysayers' numbers are shrinking as long-standing relationships continue to stand.
Is relationship management easy once you know how? No! It is hard work, takes incredible attention to detail, and eats resources for breakfast. But it is easier—and less costly—than losing a relationship partner and working like a rented mule to find a new one. Is it a matter of charm and personality? Not really, although a sunny disposition doesn't hurt. At the end of the day, trust is vital, competency is key, and a willingness to laugh is icing on the cupcake. Plus, a willingness to go out and put a log on the fire yourself can go a long way.
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]."