Distribution centers across the country are on the verge of replacing their fleets of mobile computers, as Microsoft backs out of the market. But experts say there's more to a refresh cycle than just swapping one brand of handheld for another.
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.
Managers today need wide-ranging technology expertise to keep up with the fast-changing demands of logistics and fulfillment operations. On any given day, their challenges could range from installing the robotic and automated systems required to keep up with Amazon.com Inc. to deploying the augmented reality (AR), gamification, and social media tools many DCs have introduced as a way to engage millennials.
There's another issue that demands a more timely response, however, and finding the right answer could be more complex than it seems.
That issue concerns the ubiquitous mobile devices—think bar-code scanners and tablets—that have become deeply entrenched in today's warehouse and fulfillment operations. Many—if not most—of those mobile devices run on the Windows 10 Mobile operating system (OS), which means they are about to become "unsupported" devices. In December, Redmond, Washington-based Microsoft Corp. will end its support for those units, meaning it will stop providing security patches and antivirus updates. After that point, the Windows-powered devices will still work, but they will be increasingly vulnerable to hacks and cyberattacks, putting both customer and corporate data at risk.
Interviews with vendors and customers indicate that many companies will migrate to Google Inc.'s Android operating system, while a smaller number may switch to Apple Inc.'s iOS platform. But whatever choice they make, experts warn that the replacement process is more complex than just making a straight trade.
HIGH-STAKES DECISION
As for what makes the process so complicated, a number of factors come into play. Part of the answer lies in the extent to which the devices have infiltrated today's warehouse operations, according to Marco Nielsen, vice president of managed mobility services at Stratix, a Peachtree Corners, Georgia-based managed mobile services provider. As companies scramble to keep up with demands for faster, more accurate shipments, they've become extremely reliant on automated devices, he noted in a paper titled Mobile Tech in the Supply Chain: How technology enables supply chain innovation. "It's not easy to find a warehouse today that doesn't depend heavily on the wearable computers, bar-code scanners, and forklift-mounted terminals used for most aspects of inventory control, shipping, and handling," he wrote.
Another part of the answer lies in the interconnectedness of today's DC operations. "The same device that enables a picker to select the right merchandise for a store or an individual customer can instantaneously contribute to another task such as inventory control," Nielsen noted in his paper. In this type of integrated environment, a change-out of something as simple as a handheld will also affect a broad range of connected technologies throughout the DC, according to a white paper from Barcoding Inc. and Samsung titled Manufacturing Modernization: How to Get There.
Still another complication for companies looking to upgrade their mobile devices concerns the wireless networks that keep them connected. A handheld computer is only as good as the data it can share, and networks are changing fast.
The second-generation (2G) and third-generation (3G) networks that have long supported our basic cellphones will soon be set aside in favor of far faster 4G and 5G networks, according to Robert Puric, senior director, field mobility - enterprise mobile computing, at data-capture specialist Zebra Technologies.
The major wireless carriers have already announced they will no longer support 3G devices on their networks by the end of 2020, so mobile computer vendors such as Lincolnshire, Illinois-based Zebra have started adding updated chipsets and radios to their latest product lines, Puric says.
The change will affect transportation and logistics companies as well as retail users, but it won't happen overnight. Some major cities now support 5G networks, but the system won't cover the entire U.S. for three or four more years, Puric says. In the meantime, 4G is expected to be the de facto wireless standard well into the late 2020s.
DON'T BE AN OSTRICH
With Microsoft's end-of-support date looming, many companies have yet to put a solid transition plan in place, according to Shane Snyder, president of Barcoding Inc., which is a Baltimore-based provider of data-capture and supply chain analytics solutions.
Some are behaving like an ostrich with its head in the sand, asking "If it still works, why do we need to replace it?" While continuing to use legacy devices might be the simplest solution, it's also a risky one given the threat of cyberattacks and security breaches, Snyder says.
Others plan to simply replace each of their Windows-based devices with an Android device, integrating them into their operations with no other changes. That might be quick and easy, but it's also a missed opportunity to make improvements to business and labor processes, Snyder says. By doing a simple one-to-one replacement, companies lose out on a chance to reassess how they're using those mobile devices, whether they're using too many, and if they could be using them in a more optimal way.
Instead, Barcoding recommends that companies conduct a complete inventory of their existing mobile devices and then check with their operations teams to make sure all of the units are actually being used. It's not unusual for businesses to discover that some of their devices are sitting idle and therefore won't have to be replaced, Snyder says.
Beyond that, Barcoding urges DC leaders to collaborate with the end-users in the selection and implementation process, including having them test the new devices before a full-blown rollout.
With processes, people, and the broader technology ecosystem to consider, swapping out the humble handheld isn't as simple as it might seem. But in today's interconnected environment, taking the time to do it right can bring payoffs in nearly every aspect of a DC's operations.
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]."