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.
When employees at Awana don their voice headsets and begin their daily shifts, they're doing much more than simply filling orders. They are experiencing a mature technology that has evolved well beyond its roots in order picking.
Awana is a direct distributor of educational materials and products for church youth groups, serving more than 11,200 churches representing over 100 denominations. The Chicago-area company began its voice journey 11 years ago when it installed the Jennifer voice system from Lucas Systems to direct its order selection activities. Things quickly snowballed from there. "We started with picking and immediately saw that the payback was so significant that we added other functions within six months," recalls Steve Hale, director of distribution. Those functions included receiving, putaway, and returns.
Awana's history with voice mirrors the way the application of these systems has evolved. While picking has always been the sweet spot for voice, many users have successfully expanded the technology into other areas, including replenishment, cycle counting, load building, and shipping. In fact, just about any warehouse function can be voice-enabled, often with little, if any, incremental expense. Once a company has made the initial investment in hardware and software, there is little cost to extend voice to these other tasks.
Awana recently upgraded to new voice software that allows workers to run their mobile voice applications on smartphones and to combine scanning and device displays with voice, leveraging one of the many developments that have taken place in voice-directed technology in recent years. But as game-changing as this and other hardware-related advancements may be, perhaps the biggest change going on in voice is its newfound ability to optimize processes and manage worker performance.
NOT YOUR FATHER'S SYSTEM
If you haven't examined the capabilities that voice can offer for a while, it might be worth another look. By all accounts, the technology has come a long way in the last decade and a half.
"In the early days of voice, it was cumbersome and expensive," recalls Keith Phillips, president and CEO of voice system provider Voxware. "I'm not sure the market really understands how much voice has evolved over the past 15 years," he adds. "It's a totally different technology than it was even five years ago."
Both the hardware and software for voice systems have steadily improved. Batteries last longer, the units are smaller and lighter, and the addition of Bluetooth has eliminated the need for a wire to connect the voice terminal to a headset.
During the past few years, voice providers also began moving from systems that worked only on dedicated voice terminals to more flexible software that can run on a variety of devices, many of which feature screens and built-in scanners. This advancement allows users to incorporate scanning into activities prompted by the voice system, allowing them to, say, scan a bar code on an incoming pallet rather than read 16 digits into the system.
Food and pharmaceutical distributors are taking things a step further, combining voice with scanning to gather data on their products-in-process to comply with pedigree laws and to establish chain-of-custody documentation. Lot numbers, expiration dates, and product weights are among the data that can either be scanned or "voiced" into the record.
The trend toward incorporating voice technology into screen-based devices has also helped streamline DC operations. For instance, the screen might display additional instructions or information about the product, including a photo to assure the right item is picked. In some cases, the device might be an electronic tablet that can be mounted onto a lift truck and used with a wireless headset, which allows the worker to hop off the truck to perform a task directed by voice software that's either resident on or relayed through the tablet.
Voice is also being used in conjunction with pick-to-light and put-to-light technologies. As Ken Ruehrdanz, manager of distribution systems market at solutions supplier and integrator Dematic, explains, a put-wall technology can be combined with voice for effective picking of multiple orders. The put-wall consists of stacked cubbies, similar to large mail slots, where products for specific customers can be gathered. "A user can deploy voice-directed technology to batch pick all needed orders and then use the light-directed put-wall to separate the items into individual customer orders," he says.
NEW VOICES BEING HEARD
While the expansion of voice to other hardware devices has undoubtedly boosted the technology's flexibility and value, the real breakthroughs have come on the software end. The newest software offerings take data collected from various warehouse functions and process it through analytic algorithms to optimize warehouse workflows and improve labor management.
"What we are seeing now is that voice systems are becoming an information source that can be combined with a warehouse management system (WMS) that then becomes a productivity hub," says Jason Franklin, product manager, labor and business intelligence at Intelligrated, a manufacturer of automated material handling systems. In addition to being integrated with the WMS, voice data can also be exchanged with warehouse control systems and other software to optimize warehouse processes. That means that if, say, a bottleneck develops in packing, the software could redirect workers from picking to the pack area to improve downstream flow. "Voice is a piece of the puzzle that when combined with data from these other systems, can take things to a whole new level," Franklin adds.
One company that now offers optimization tools is Lucas, which includes these capabilities in the latest version of its Mobile Work Execution Software Suite. Among other capabilities, the software can perform smart batching. Typically, a voice system receives pick assignments from a WMS. But if the facility isn't using a WMS or if it's using a WMS that cannot batch, the voice software can "look" at the items needed for orders and perform batching on the fly.
Another capability available in many of the voice software suites is the ability to interleave tasks. With interleaving, an employee who is picking items for orders might be asked to replenish a location before selecting items from that slot. Or he/she could be prompted to count the items at that location for inventory purposes once a pick is completed. Or a worker who has finished picking cartons might be directed to stack them on a pallet and load them onto an outbound trailer. As with batching, these interleaving tasks can also be done independently of a warehouse management system.
Performance management is quickly becoming a "must have" feature in voice systems as well. Supervisors can now dial in and listen to the voice system's prompts to see how a worker is responding. "That allows coaching to build up that individual's performance," Franklin says.
The labor management capabilities also include dashboards that allow supervisors to view individual performance in real time. This monitoring capability can be relayed to a manager's mobile device for on-the-floor adjustments. Key performance indicators (KPIs) and other performance benchmarks can be loaded into the system to provide performance comparisons to establish standards.
Jay Blinderman, director of product marketing for Honeywell's Vocollect Solutions division, says the newest version of his company's Workflow Performance Solution can "help take average performers and help them to excel." Blinderman explains that the system measures time stamps of various activities, such as travel to a pick location and time spent actually picking, and determines if the worker is meeting performance expectations. Along the way, the software can provide voice reminders to the worker to help him or her stay on track.
SOUND OF THE FUTURE
As for what's next, given the growing number of mobile platforms now in use, it's probably no surprise that voice companies are looking to make their systems as device-agnostic as possible. For instance, Jeff Slevin, COO of Lucas Systems, says that his company is now delivering its Jennifer applications on smartphones running the Android operating system in addition to traditional warehouse devices running Windows Mobile. "We are working to provide the greatest flexibility possible on the mobile device side," Slevin says.
With some solutions, workers using different operating platforms can run the same systems side by side, which makes upgrades easy and allows users in different parts of the DC to use the best device for the job (for instance, workers in a freezer could use a freezer-rated Windows device while their counterparts in ambient areas could use an Android unit.) Awana, for example, has chosen to run the latest upgrade of its Lucas Jennifer solution on Motorola Luge Android smartphones. The smartphones, which use Bluetooth to connect to the workers' headsets, are used in a protective case that can fit in a pocket or be attached to a belt.
Intelligrated's voice system runs on a server and is not dependent on the software residing internally on the individual device. A worker with a smartphone can actually dial the server on his phone to log into the system. Doug Brown, Intelligrated's head of product strategy for voice solutions, says this means that voice can be used anywhere, as the systems can be deployed independently of an IT infrastructure or Wi-Fi network.
One of the places vendors expect to see voice deployed in the future is the retail store. Nearly all of the major voice vendors have pilot programs under way to use voice for tracking store inventory, replenishing store shelves, and filling orders in an omnichannel retail environment. The same ability to track, monitor performance, and provide productivity and accuracy that voice has traditionally provided to the warehouse can now be available anywhere—anywhere a phone can be used, that is.
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."