In the face of spiraling unemployment claims triggered by coronavirus shutdowns, grocery chain The Kroger Family of Companies has hired more than 100,000 workers in the past eight weeks, including those from sectors hardest hit by the economic shock of the pandemic, like restaurants, hotels, and food service distributors.
Supply chain snarls and work-from-home policies have caused spikes for essential goods like food and medical gear, while nearly idling other sectors of the economy. As a supermarket retailer, Kroger has seen a jump in demand for its products, helping drive the hiring increase.
Kroger's workforce topped 460,000 associates prior to the crisis, so its recent hiring efforts have helped provide continuous access to food and essential products during the pandemic. To handle the increase workforce, Kroger initiated an expedited hiring process in early March to shorten the time between application and employment, onboarding new hires in an average of 72 hours. Kroger also adjusted its new hire approach to focus on tasks as opposed to role-based development, allowing new hires to more quickly acclimate to their roles and expectations, the company said.
"Throughout the pandemic, Kroger's top priority has been to provide and maintain a safe environment for our associates and customers with open stores, comprehensive e-commerce solutions, and an efficiently operating supply chain," Rodney McMullen, Kroger's chairman and CEO, said in a release. "Since March, we have invested to reward our associates and safeguard our associates, customers and communities."
And in other examples of the logistics industry dedicating its assets to the coronavirus fight:
Liquid and powder coatings supplier Axalta has shifted the manufacturing capabilities of its facility in Tlalnepantla, Mexico, to produce more than 1,000 liters of hand sanitizer, which is being donated to local healthcare facilities, first responders, and other essential businesses. These efforts complement Axalta's global support of coronavirus relief efforts which include sending personal protective equipment (PPE) to hospitals in the U.S., France, Belgium, and Germany, and providing more than 5,000 seat covers to medical professionals who can use the seat covers in their own cars to reduce the risk of transmitting the coronavirus when they are visiting those diagnosed with the virus. "Several Axalta plants in Latin America, Europe, and the United States have shifted production from paint to hand sanitizer to help meet the growing need of this product in countries around the globe," Daniel Salcido, Axalta's president of Latin America North, said in a release. "Axalta has already donated thousands of liters of hand sanitizer to support the local communities where our employees live, work and raise their families. We will continue to do our part for our customers, employees and all those on the front lines of this pandemic that are helping to keep us safe."
Aerospace and defense contractor Lockheed Martin Corp. has donated cargo capacity on its corporate aircraft as an in-kind donation to support the federal government's Covid-19 response for medical transplants, helping ensure that that life-saving products from European donors would reach American patients on time. The flights help ensure the timely delivery of bone marrow and blood stem cells for transplant, a need that arose when the National Marrow Donor Program (NMDP)/Be The Match ran out of available European Union couriers to deliver life-saving cells to U.S. patients, since tens of thousands of commercial flights had been canceled during the pandemic. Lockheed Martin will be providing weekly air transport based on government medical need – flying government medical teams to the most critical, high-priority locations around the country and/or flying to support bone marrow transport to help with the government's coronavirus response.
E-commerce micro-warehousing platform provider Ohi is helping to keep restaurants in business despite social distancing policies during the pandemic. Ohi has helped the San Fransisco-based wine bar Noeteca pivot from food service into another industry, transforming their brick-and-mortar restaurant into a micro warehouse that supports delivery throughout California for e-commerce brands such as HAUS, Juneshine, and Taika Coffee. Coronavirus has significantly accelerated consumers’ desire for instantaneous commerce across all categories, and Ohi is also working with a variety of brands across the beverage, beauty, health/ wellness, and apparel/footwear spaces, enabling them to reach customers with same-day service during today's new, remote landscape, the firm said.
Less than truckload (LTL) freight management software provider Carrier Logistics Inc. (CLI) has introduced a free, artificial intelligence (AI)-based tool for determining the exact location type for a pick-up or delivery during the Covid-19 crisis. The “LOCI” tool helps clients to plan and dispatch the right driver with the right equipment by interfacing with the firm’s transportation management software (TMS). For example, the tool offers over 115 categories of locations—covering everything from “airport” to “zoo”—to provide much more detail than the classic binary choice between residential and commercial. “Right now, many carriers are servicing different customers and locations than they have in the past,” CLI President Ben Wiesen said in a release. “And we know that staff at the carriers is in a state of flux, with people covering dispatch who might not have the tribal knowledge about the customer base. And of course, we know how confusing that can be. In order to assist our clients during these turbulent times, (and even as the economy starts to open up) we are offering this emerging technology for free through June 30, 2020.”
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]."