It used to be that voice technology was used mainly for order picking and ran strictly on industrial-grade proprietary devices. Those days are fast disappearing.
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.
Under pressure to boost warehouse productivity and keep up with the relentless demands of e-commerce fulfillment, many distribution centers are installing voice-directed picking systems for warehouse staff. Compared with manual methods like clipboards and checklists, the technology offers a quick return on that investment by supporting accurate picking and efficient training, proponents say.
Inspired by these results, many users are finding creative new environments for voice technology, expanding it to applications beyond basic order picking and using consumer electronics like smartphones instead of proprietary computers to host the voice software.
As with any new technology, it's virtually guaranteed that companies will continue seeking new ways to apply these systems to benefit their operations. As users push the boundaries of voice into new territory, their effort is already paying off in some corners of the supply chain universe.
A CRESCENDO IN DEMAND
The spread of voice-directed warehouse operations has been driven by a number of factors. Changing shopping patterns have lit a fire under warehouses to find faster, more accurate ways to fulfill online orders from individual consumers. "E-commerce is huge in creating the demand we see, specifically in the picking and packing area," said Keith Phillips, president and CEO of voice solutions developer Voxware Inc.
Testament to voice technology's growing acceptance is an upswell in praise from analysts. A Gartner report titled "Hype Cycle for Supply Chain Execution Technologies, 2015" declared that voice-directed picking for warehouse management had progressed well beyond the experimental stage and had reached "productive maturity." That means that supply chain and IT leaders looking to transform their logistics operations see warehouse voice devices as solid profit drivers, with a more reliable payoff than emerging technologies such as robotics, big data, the Internet of Things, and smart machines, the report said.
At the same time, vendors have continued to refine voice technology by improving software stability, offering a wider configuration of devices, and cutting prices. Taken together, these developments have opened the market to small and mid-range DCs as well as the mega-warehouses, and helped drive a spike in demand for voice-directed products over the last 18 months, Phillips said.
Consumer devices such as the Samsung Galaxy S smartphone and watch shown here are increasingly used in distribution centers. They're usually less expensive than proprietary handhelds. Photo: Lucas Systems
As warehouses roll out more voice-directed systems, many of their younger employees see parallels between this new technology and the voice-controlled videogames, GPS units, and smartphones they use at home.
Inevitably, the question arises: Why not run these voice-directed picking applications on consumer hardware such as smartphones? After all, in addition to their familiar shape and interface, the consumer devices marketed by companies like Samsung, LG Electronics, and Apple are generally less expensive than the proprietary handheld computers deployed in warehouse picking and scanning operations.
And sure enough, a flurry of voice providers have answered the call. A number of suppliers, including Lucas Systems Inc., TopVox Corp., and Voxware, now offer voice picking applications on consumer devices.
VALUE PROPOSITION IS LOUD AND CLEAR
The transition from proprietary hardware to consumer devices promises to be technologically simple, since many providers of voice applications are already running their software on Google's Android operating system, the same OS that drives many consumer hardware platforms.
For example, Lucas applications are in wide use today on Android OS-based devices such as smartphones and tablets, said Ron Kubera, the company's executive vice president and chief marketing officer. Lucas also supports Android smart watches and glasses.
Using the familiar smartphone platform means workers can get up to speed quickly without requiring extra training. "The work force is familiar with the smartphone form factor; their supervisors can't get [the phones] away from them," Kubera said. Attracted by the convenience and cost of smartphones, more warehouse operations are incorporating these tools into their picking processes.
Despite this new array of offerings, with their promise of low hardware costs and high comfort levels for users, there is debate in the voice community about the benefits of hosting warehouse software applications on consumer hardware. The battle lines have formed along predictable sides, with software vendors extolling new consumer devices and hardware vendors supporting the standard proprietary platforms. Opponents' concerns about using consumer smartphones in the warehouse environment include worries about their durability, how to manage multiple cables and accessories, and security problems with locking out distracting apps like texting, games, and social media.
Ring scanners like this one from Honeywell perform better and are more comfortable and durable than previous versions.
Watching from the sidelines is a third camp that includes vendors who remain agnostic about the hardware platforms that support these applications. Michael Womeldorph, senior product manager for voice at Intelligrated Software, echoes the commonly heard concerns about consumer hardware's ruggedness, security, and battery life. Most consumer devices aren't designed to stand up to the rugged warehouse environment or run for lengthy work shifts, he says. It should be noted that vendors of systems that run on smartphones have responded to those concerns by encasing their devices in tough, military-spec protective covers or attaching extra power packs to extend battery life.
Customers are also inquiring about building voice applications on consumer devices like smart watches, although few users have actually deployed them, Womeldorph said. His company is willing to meet those demands, he said.
"We are device agnostic; we will go where our customers want to go," Womeldorph said. "Many times, we are leveraging whatever platform they may already be using, like mobile computers from Zebra or Honeywell, or voice-only devices from Spectralink or Cisco."
Typically, a systems integrator will work with those components, adding a ring scanner or wireless Bluetooth headset for further functionality. "We don't want to lock customers into a certain platform; what we're looking for is simply a telephony platform, whether that's on a phone or a computer," Womeldorph said.
VOICE EXPANDS ITS RANGE
Thanks to the wide array of platform options and to its improved reliability, voice technology is spreading far beyond its original applications in order picking. Industry analysts say users are now applying voice technology to a broad range of warehouse tasks. "The benefits of voice apply to all the workflows within the DC," Lucas's Kubera said. "Picking is the low-hanging fruit, but we're also seeing it used for consolidation, loading, receiving, replenishment, and cycle counting."
"It started with picking, but now voice is also used for replenishment, inventory, and packaging," adds Chris Heslop, global director for workflow solutions at Honeywell Sensing & Productivity Solutions. "In the classic application, the headset would just say 'Go to aisle 7, slot 4, pick 3.' Now, you find voice in other applications in the DC," like fleet maintenance and inspection.
In addition to finding new applications in warehouse operations, voice-directed technology is also paying off through business analytics, Heslop said. A voice application can capture data from every interaction in the DC, send the data to a cloud-based server, and generate reports for managers. Supervisors can examine those numbers to identify the causes of unnecessary delays, track certain shifts or workers, and generate predictive analytics that forecast shortages and delays before they occur.
As voice technology and consumer hardware continue to converge toward a potential shared future in supply chain applications, reluctant vendors could eventually drop their objections and come around to meet that demand. In the end, the old saying may still apply—the customer is always right.
Editor's note: This is a revised version of a story that was posted on July 22, 2016. The story has been updated to provide a more accurate picture of market conditions.
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.