Innovations in voice, wearable, and robotic picking technologies are helping companies boost productivity in the distribution center through faster, more accurate piece-picking operations.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Innovation is reshaping the picking-technologies landscape as tech providers seek to meet customers' growing need to increase productivity and throughput in their distribution centers. Driven by a shift in fulfillment trends toward smaller orders and increased piece-picking, suppliers are serving up a host of innovative solutions that can make workers more efficient and push organizations farther down the road toward automation. Industry experts say smarter, more intuitive voice technology; wearable products that streamline manual picking; and advanced robotics that speed up the sorting process in piece-picking operations are just a few of the newest advancements helping DCs meet those goals.
Process improvement is at the heart of the issue and the key driver of today's more advanced technologies, according to Scott Deutsch, Americas president for supply chain execution and voice software solutions provider Ehrhardt Partner Group (EPG). Deutsch says cost reduction used to be the primary reason for investing in productivity-enhancing voice-picking technologies in particular. Today, he says, organizations are focused on streamlining operations to manage the growing complexity of the picking process—while also getting orders out the door faster and more accurately.
"If you think about it, 10 years ago a lot of companies would [just] ship cases to their local retail location," Deutsch explains. "Today, businesses fulfill orders from the warehouse as well as the retail store. Customers can place orders wherever and however they want, and they can pick it up at the store or have it delivered to their home. [As a result,] if companies are [processing] 150 orders a day, they want to know how they get to 180 a day. Today, that is the big driver."
GIVING NEW VOICE TO PICKING
Advanced voice software uses deep neural networks—the same kind Apple and Amazon use to power virtual assistants like Siri and Alexa—that can provide a more than 25-percent increase in voice-recognition accuracy, says Scott Deutsch of Ehrhardt Partner Group. This is vital for use in noisy warehouses, he says.
Modern voice solutions can increase employee productivity by more than 10 percent, according to EPG, which offers its Lydia Voice solution for warehouse and logistics operations. This is due in part to technological advances such as smarter voice-recognition technology, which is one of the biggest changes the voice segment has experienced in the past 10 years, Deutsch says. Advanced voice software solutions now use deep neural networks—the same kind Apple and Amazon use to power virtual assistants like Siri and Alexa—that can provide a more than 25-percent increase in voice-recognition accuracy, he adds. This is vital for use in noisy warehouses, where near perfection is required to ensure that the right products are picked, packed, and shipped consistently, he says.
Deutsch adds that today's more advanced technology also eliminates the need for voice template training, in which each employee would typically spend 30 to 40 minutes training the system to recognize his or her voice in order for it to work effectively. In addition to raising productivity levels, this advancement allows for greater buy-in at warehouses and DCs, where employment levels often fluctuate due to high turnover and strong seasonal demand for labor.
"[Extensive training] would be acceptable if you only had full-time employees and they never left," Deutsch explains. "That's the old way of doing voice recognition. Today, because of our deep neural network, employees can just start talking [and the system will work]."
In addition to individual productivity improvements, today's more advanced voice-picking technology also contributes to increased order throughput across the facility, which is another key management goal, Deutsch notes. He points to the complexity and high cost of expanding a facility or relocating to accommodate business growth in today's fast-paced omnichannel environment.
"Businesses are growing, and they are looking for ways to improve the overall process [to accommodate] that growth," he explains. "Customers are asking, 'How do I get [higher] throughput at my existing facility?' If you can delay the lease or construction of a new building, that's a direct impact to the bottom line."
WEARABLES GET SMARTER
A hand wrap with scanner can be used for applications that don't require hand protection or for those that require workers to wear heavy-duty gloves, such as cold-storage environments.
Experts also point to innovations in wearable picking technologies, especially those focused on worker comfort and buy-in. With voice systems, users have more choices in how they wear the hardware today; some newer solutions allow workers to choose between a headset or a wearable vest, for instance. The trend is also emerging among makers of bar-code scanning devices, as companies develop ergonomic scanning solutions that streamline the manual picking process. Munich, Germany-based startup ProGlove is one example. The firm has developed a wearable hands-free scanning solution that company leaders say can save up to four seconds per scan and speed up the overall picking process by as much as 50 percent. ProGlove offers a lightweight industrial glove with an attachable scanning module that allows workers to use both hands to grab and move items instead of repeatedly picking up and putting down a handheld scanner. Especially suited to fast-paced operations—those with 200 or so scans per station per day—the hardware-only solution works wirelessly and integrates with a company's existing software system.
"There is certainly a business case for this if you are scanning a lot," says Adam Brown, the company's U.S. marketing manager, emphasizing the worker-comfort aspect of the product. "From the end user's perspective, there are not a lot of products in the industrial space that think about the user in the creation of the product. Users get excited about this. In the world of bar-code scanning, that's not something you see every day."
The glove comes in a range of sizes, and ProGlove also offers a hand wrap for applications that don't require hand protection as well as for those that require workers to wear heavy-duty gloves, such as cold-storage environments.
Brown adds that solutions such as ProGlove's help bridge the gap between the manual and automated solutions found in most warehouses and DCs today.
"In this middle ground we're in, where some of the process is automated but humans are still involved, making [workers] as effective and as efficient as they can be is really important," he says.
SORTING OUT NEW SOLUTIONS
Kindred's Sort robotic arm separates items into predetermined slots. Employees then unload the sorted, completed orders.
The buzz over DC automation is spurring interest in robotic picking solutions as well. Robotics company Kindred offers a key example with its piece-picking solution called "Sort." Used by retailers in omnichannel and e-commerce fulfillment centers, Sort is an artificial intelligence (AI)-driven robotic solution that automates the manual process of sorting multiple SKU (stock-keeping unit) batches into a single customer order. Using vision, grasping, and manipulation technology, Sort consists of a robotic arm that separates items into predetermined slots that are laid out in a circular pattern around the arm. Employees then unload the sorted, completed orders. Sort is designed for organizations that are looking for ways to reduce their dependence on labor and boost throughput, according to Monique Apter, Kindred's vice president of sales. She says the solution is currently best suited for applications in the apparel industry but adds that Kindred is working on expanding into a wider array of general-merchandise items, such as shoes and cosmetics.
Apter says artificial intelligence and advanced algorithms are allowing companies like Kindred to apply robotics to more complex piece-picking operations—and as a result, help their customers address some of the major growth- and management-related issues of the day.
"The two challenges we consistently hear about from our customers are dealing with massive labor shortages and the demand for faster delivery," she explains, pointing to the explosive growth in online spending predicted over the next several years and noting that in the U.S. alone, e-commerce is seeing double-digit growth year after year. "With the advanced AI algorithms that Kindred has developed, we are able to teach robots to grasp and manipulate items of varying shapes and sizes in an environment that continuously changes. This breakthrough has made it possible to easily incorporate robotic solutions into fulfillment centers."
ProGlove's Brown adds that most organizations will continue to test and incorporate different kinds of picking technologies as they work to address omnichannel demands, labor challenges, and other industry issues. He emphasizes the evolution of distribution center technologies in general and the ongoing journey toward automation that most organizations are navigating.
"Companies are using a lot of different technologies. There is a lot of interplay between solutions," he says, noting that customers often ask how they can eventually integrate ProGlove's solution with vision technology like Google Glass, as one example. "We seem to be in a testing phase, where companies are not just changing things [completely]. They don't know what is going to be the ultimate solution ... so it seems like they don't want to invest only in one thing. Customers are saying, how do we take this to the next level?"
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."