Despite the sub-zero temps, no one's complaining about working conditions in the freezer of North America's largest refrigerated warehouse. That's because it's "staffed" by a sophisticated mega-AS/RS that performs virtually all of the work.
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.
Working in a freezer for an eight-hour shift is among the most difficult jobs in the supply chain world. In order to spare workers (and forklifts) from having to toil in adverse conditions—think temperatures that dip to a frosty minus 10 degrees Fahrenheit—a new warehouse in Richland, Wash., is instead relying on an automated storage and retrieval system (AS/RS) from Dematic to handle most of the work. The AS/RS is believed to be one of the largest ever built in a freezer. It offers over 36 million cubic feet of storage capacity and can handle throughput volumes in excess of 250 trucks and 20 railcars a day.
The Richland facility, which opened in July, is owned and operated by Preferred Freezer Services, a New Jersey-based company with 35 refrigerated warehouses in the U.S. and a handful of others in Asia.
As a public warehouse company, Preferred Freezer Services built the facility to serve the needs of a specific group of clients, primarily potato growers in the Pacific Northwest. One of the facility's larger customers is Lamb Weston, a supplier of frozen vegetable products that is part of ConAgra Foods.
The new facility offers 455,000 square feet of refrigerated space, with 312,000 of it dedicated to the automated freezer. The AS/RS within measures 116 feet high and features deep-lane racking served by 15 storage/retrieval cranes. The system provides very dense storage for more than 117,000 pallets of frozen french fries, hash browns, and other frozen products. The steel pallet racks, supplied by Frazier Industrial, also serve as the main structural support for the freezer's roof and walls.
HIGH AND MIGHTY
A majority of the goods handled at the new facility arrive in Preferred Freezer Services' company-owned trucks, rather than vehicles operated by its clients or outside carriers. Preferred Freezer has learned that the more of its supply chain it handles itself, the lower the risk that products will be damaged or will jam up its automated handling systems. Therefore, about 65 percent of incoming goods are transported in Preferred Freezer's trucks.
"We want to make sure we control the flow, so we made the decision to use our own people," says Burnie Taylor, director of major capital projects and general manager in Richland.
The trucks pick up finished goods at production plants located within 50 miles of Richland. The vehicles that transport these goods are equipped with conveyance systems inside the 53-foot reefer trailers. Upon arrival at the Richland facility, they're directed to one of four automated docks, where the pallets are conveyed off the trailers and loaded onto a pallet monorail system for transport to the AS/RS. The monorail consists of hanging carts with roller beds. The pallets simply roll off the conveyor and onto the carts. A scanning system then records each pallet number and captures the load's dimensions to ensure it can be handled by the automated system.
The remaining 35 percent of inbound goods (those not arriving on company trucks) enter the facility via commercial trucks. There are six rail doors in the building and 14 other inbound truck docks in addition to the automated doors. Most of the products not delivered by company trucks are either floor stacked, rest on other pallets, or reside on slipsheets. These have to be manually transferred to slave pallets that are suitable for use in the automated system. The pallets are then loaded onto the monorail for transport to the AS/RS.
The AS/RS is spread out over three separate 104,000-square-foot freezer rooms, with five aisles and cranes per room. It features 18 possible points of entry and exit. Typically, nine are assigned to incoming goods and the other nine to outgoing products, though all 18 can serve either purpose. The monorail usually delivers the pallet to the entry point closest to the assigned storage location, where it is automatically discharged onto pallet conveyors to enter the system. From there, a storage/retrieval crane picks up the pallet and ferries it to the assigned lane, Where a deep lane cart know as the "Supercap Cart" (supplied by Automha) takes over and carries the load down the lane to the next available position.
From two to six pallets are stored in each lane, with most lanes devoted to a single stock-keeping unit (SKU). Product is put away in multiple aisles to create redundancy throughout the warehouse. This assures that all SKUs are accessible when a crane is down for maintenance and provides for easy access to faster-moving products.
"We have a lot of flex built into the system to manage inventories," says Taylor. He adds that customers often have different rotations for their goods. Some rotate stock according to first in/first out principles, while others rotate products based on expiration dates.
Full pallets are retrieved from the system via a process that's essentially a reversal of the entry process. The moles retrieve the goods and then transfer the pallets to the storage/retrieval cranes for transport to output stations. From there, the monorail system picks up the pallets for transport to outbound docks.
In addition, Preferred Freezer builds "rainbow" pallets of mixed goods for customers. For these, the monorail delivers pallets to four picking stations, where a Tygard Claw layer picker attachment on a Crown sit-down lift truck is used to assemble the pallets. It removes a layer from the source pallet and deposits it onto an order pallet, building rows of mixed SKUs in the process. Individual cartons are also picked by hand and added to the order pallets. When a completed pallet is ready to ship, it is conveyed to the docks via either the monorail system or lift truck.
Many of the mixed pallets are picked in advance of shipment to balance workflow. In this case, the mixed pallets enter the monorail system for transport back to the AS/RS, where they're held until the shipment date. They are then picked in the same manner as standard full pallets.
HOT RESULTS FOR A COOL SYSTEM
By allowing the AS/RS to do most of the work in the freezer, Preferred Freezer can assign its human employees to areas away from the cold, such as the dock, where temperatures hover at a relatively balmy 40 degrees Fahrenheit. "When you look at the labor force and being an employer of choice in the freezer business, it is an advantage not to have people needing to access the freezer," says Taylor.
While the AS/RS's bone-chilling conditions would make it quite uncomfortable for people to work there, other factors make it downright inhospitable. This is the first freezer system in the country (and the second in North America) to incorporate a low oxygen environment for fire prevention. Nitrogen is introduced to the atmosphere inside to virtually eliminate any chance of combustion. Furthermore, the new installation is a lights-out system.
At present, operations are continuing to ramp up in the new building, which is expected to house 200 million pounds of inventory by next month (it's designed to hold up to 250 million pounds). When it reaches full capacity, the facility is projected to have a throughput of 2 billion pounds of products a year.
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]."