We stand at the precipice of a gap of our own collective making, a gap that deepens and widens with every failure to address the root causes of our talent shortfall.
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.
I've been increasingly dismayed by the much-heralded and little-resolved skills and experience shortfalls in The Great Supply Chain Management Race—the so-called talent gap.
The "gap" terminology obscures the depth and severity of the challenge. It's a chasm, a gaping crack in the infrastructure. We don't have enough warm bodies to perform the simplest execution tasks, with a further dropoff in adequate numbers when basic arithmetic and/or communication abilities are added to organizational expectations—and needs.
When higher skill levels are requirements for analysis, planning, coding, data management, and other such esoterica, the situation becomes downright embarrassing—and dangerously vulnerable in global competition. In this more demanding arena, we do a most commendable job of education and preparation, but we can scarcely hope to produce enough working talent to meet needs (especially when manufacturing and other sectors would poach our best and brightest without the merest twinge of conscience).
Of course, our managers at various levels are oblivious to factors of time and change, and what it takes to be effective in the 21st century, wedded as they are to discredited models of yesteryear. That old practices and shopworn tactics serve to drive off otherwise enthusiastic and engaged staff only makes things worse.
And our greatest deficiency remains, imho, the yawning abyss of the authentic leadership we crave and have little chance of finding. That shortfall creates a domino cascade of talent shortage throughout an organization.
HOOVERVILLE REDUX
Meanwhile, unemployment is pervasive enough that accounting trickeration is necessary to disguise that a pleasingly plump image is actually morbidly obese. The almost-always-ballyhooed unemployment rate is a pleasant fiction that has little genuine meaning or utility. It, for example, does not recognize the underemployed or the discouraged who no longer bother seeking employment. The portion of the population able to work that is actually working is a frail 62.7 percent and continues to drop.
Politicians, unable to restrain themselves, are what we might politely call nonspecific about creating new jobs, "well-paying jobs," that will restore American prosperity. What they don't talk about, and most likely are clueless about, is the reality that jobs have changed, in numbers to produce given quantities, in content, and in basic skills requirements. Steelmaking, for instance, now requires a few hundred people to make the same steel that took several thousand a generation or two ago.
TECHNOLOGY TO THE RESCUE?
We have all kinds of mobile, wearable, multicapable technologies to help us do our jobs better—faster, more accurately, and more transparently. In a somewhat static environment, this must translate to reduced, or more slowly growing, work forces.
The march of robotics is under way. Can some robotics applications actually add jobs, or a least avoid cutbacks? Sure. In healthy organizations with open needs, growth potential, and an appetite for investment in retraining. But in the larger case, I suspect, the Bean Counter Brigade is looking for, and rewarded for finding, ways to reduce costs, a code phrase for reducing headcount.
This desperate clinging to last-century paradigms is a refuge for those unable to innovate and motivate at a new-century pace. I fear that the dinosaurs are not going to wade into La Brea willingly and are likely to be with us, in uncomfortable numbers, for another generation (one hopes not two).
What will almost surely make this worse is the move to elevate minimum wages. Here's my not-always-popular position: Every adult working at a full-time job should be receiving a living wage. Part-time jobs should pay an hourly rate equivalent to a full-time living wage. Full-time is neither permanent nor year-round. Lower-wage "job lite" options should be available as learner positions for younger employees.
However, we define these things, the minimum wage is trending—fast—toward $15 per hour. Time to get real. A capable lift truck operator or a speedy, versatile order selector is worth more—lots more—than someone asking "Would you like fries with that?" But the industry has been paying execution staff at fast-food levels for a long time, with increases coming in response to competition for a diminished labor pool. The result? Rapidly rising wages in supply chain execution will make it even more attractive to pursue robotic and automated material handling solutions, pushing more experienced employees out on the street.
A GLIMPSE INTO A BRIEFLY ILLUMINATED DARK FUTURE
So, where does all this lead us? So few leaders that they can't spare themselves to lead the country for a while. Managers who have yet to master managing but are persuaded that they are leaders, to the detriment of people and enterprises. Highly rewarded and prized technogeek employees. Well-compensated staff, who have developed and maintain relevant skills. A few functionaries who excite their leaders by seeking, adopting, embracing, and even creating change as (or before) environments and requirements evolve—or erupt.
And then, the rest. An army, easy to stir to mindless action with time on their hands, limited skills, less knowledge of what it takes to be a part of a functioning society—and no money to do much with, save stock up on Kools or cannabis, try to keep up with Anheuser-Busch's production, and some vague notion that their plight is all the fault of Carlos Slim or an Ethiopian cab driver working two jobs to feed his family.
We stand at the precipice of a gap of our own collective making, a gap that deepens and widens with every failure to address root causes of our talent woes. A merit-based class system is nearing open class warfare, made increasingly more possible as the divide between haves, have nots, don't wants, and can't dos grows without much serious effort to realign those who might be salvageable, re-educate those without the most basic tools, and retrain those who have a usable foundation.
Those robots are going to be needing programming, maintenance, and repair. We all have a lot at stake in restoring balance within the economic ecosystem of the nation.
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]."