With the right adjustments to DC design and strategy, wearable computers can deliver the accuracy and efficiency needed to keep up with the rising demands of e-commerce fulfillment.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Stop by your local Best Buy or Staples, and you'll see that wearable computers are among the most popular consumer electronics on retail shelves, from the Fitbit and Apple Watch to a host of other devices that track our heartbeats, footsteps, and more.
Wearable technology is good for more than just checking texts and shedding pounds, however. The portable devices can also help warehouse workers boost their efficiency by 10 to 20 percent.
When DC employees don a voice-command headset, finger-trigger glove, belt-mounted scanner, or Google Glass goggles, they gain a two-way communication channel with crucial software platforms such as the warehouse management system (WMS) or labor management system (LMS).
With both hands freed up for picking and a direct line feeding them instructions for the next task, workers with wearable computers can get their work done faster and more accurately than their colleagues who have to walk back to the lift truck or the end of the aisle for new instructions after every pick.
E-COMMERCE DRIVES DEMAND FOR WEARABLES
Another factor driving the adoption of wearable computers is the struggle to meet the demands of fulfilling online orders placed by individual consumers.
"Warehouses are seeing a change in material handling demands as they deal with smaller, more frequent picks because of e-commerce and direct-to-consumer orders," says Mark Wheeler, director of supply chain solutions at Zebra Technologies. "With this changing order profile, the case for hands-free computing remains solid."
Ironically, logistics managers tend to look at wearable computing devices only after they've tweaked everything else in the DC, such as the layout or the fulfillment process, Wheeler says. When they finally look at ergonomics, they quickly discover that arm-mounted or voice-directed devices that free up workers' hands can go a long way toward helping them pick faster.
The use of wearable computers can also pay off in preventing mispicks and mistakes—a crucial attribute in an e-commerce environment, where online retailers are rushing to deliver individual items to buyers' homes overnight.
"The value of wearable tech is as much about accuracy as productivity. In e-commerce, it has to be 100 percent right; there's a premium put on order accuracy," Wheeler says. "So you have to be sure that technology is not getting in the way of (accuracy) because a user is distracted by handling the device."
JUST ONE PART OF THE PICTURE
That's not to say that managers can automatically boost productivity simply by dropping wearables into a DC operation. As with any technology, wearable tech has to be judiciously incorporated into the process, experts warn.
"There are process changes the customer has to accept to make the improvements come to life," says Jim Gaskell, director of global technology business development at Crown Equipment Corp. "Everybody on the consumer side buys wearables because they're cool. But it takes a little more than that to use them effectively in the warehouse."
For example, a warehouse manager may distribute voice headsets to workers on the floor, but the system won't boost a team's picking speed if the WMS is running on a slow or buggy computer.
"I've seen people hit the button after making a pick and then stand around waiting for the next command. You have to make sure there's no latency in how the WMS spits out the next order. Otherwise, there goes your improvement," Gaskell says.
Even if everything is working properly, DCs may find they have to make tweaks to their operations to get the most from their investment in wearables. For example, in order to capitalize on the speed made possible by wearable devices, some facilities may have to re-slot fast-moving goods with an eye toward cutting down on order pickers' travel distances.
Similarly, facilities that handle case-picking may find they have to re-slot inventory items to facilitate the building of optimal pallet loads. Just as baggers at a grocery store place the heaviest items on the bottom so a water jug doesn't smash a loaf of bread, warehouse pickers have to stack cases on pallets so that the lightest goods are on top. To get the biggest return on its investment in high-speed wearable computing devices, a DC may have to rearrange its goods in a pattern that allows workers to follow this principle.
In addition to that, DCs may find that once they begin using wearables for order picking, they have to update the time standards in their labor management systems. Wearable devices usually enable users to get tasks done faster, but unless the LMS is updated to reflect higher performance targets, employees may simply use the technology to reach their quota faster and then slack off.
And finally, though it may sound obvious, implementing wearable computers works best when customers think about why they're buying the tools before choosing a new "toy." Finger-trigger controls for semi-autonomous lift trucks are neat gadgets, but sometimes a simple headset is a better fit for the job.
NEW AND IMPROVED
Just as happens in the world of consumer electronics, users of wearable computers in the workplace are never quite satisfied. As soon as they become accustomed to using the devices, they start looking for upgrades. As for what they want, vendors say the requests include calls for lighter, more comfortable designs as well as longer-lasting batteries.
However, many of these upgrades are harder to make in devices used in the warehouse than for consumer electronics, Zebra's Wheeler says. For instance, when wearables are used constantly throughout the day and through successive work shifts, their batteries run down much faster than a basic smartphone's would. The drag on the battery is even greater when users operate the mobile device in a cooler or freezer, or when they use a voice-directed function.
And the user demands don't stop there. Vendors of wearable computers also report that they're fielding requests for enhanced wireless performance that can keep up with order pickers who are constantly on the move, as well as keys designed to allow users to operate the devices without stopping to look at them.
And it almost goes without saying, users want all this in a device that's rugged enough to survive a tough double shift. "If a computer is wearable on the hip or arm, it probably won't be dropped," Wheeler says, "but on the warehouse floor, it is certainly in harm's way. It will get smacked around quite a bit, so it should still be able to break away for safety."
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.