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.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
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.
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.