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?"
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]."