In an exclusive interview with DC Velocity, Kathy Fulton of the American Logistics Aid Network talks about the supply chain community’s role in disaster response and why the Covid-19 relief effort has been different from all the rest.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
For the past 15 years, the American Logistics Aid Network has been on the front lines of nearly every major catastrophe the world has endured. Better known as ALAN, this consortium of transportation companies, third-party service providers, and warehouse operators helps coordinate the logistics community’s response in times of crisis.
Covid-19 has presented a slightly different agenda from the earthquakes, tornados, and famines that the members of ALAN typically address. But as Executive Director Kathy Fulton explains, it’s just another moment for the heroes of the supply chain to shine.
Q: Can you describe the work of ALAN?
A: ALAN works with businesses, nonprofits, and government to harness logistics knowledge, expertise, and resources to serve communities that have been affected by crisis. We do that in a variety of ways. We work with nonprofit organizations to help them find pro bono transportation and material handling equipment. We work with businesses that want to help but may not otherwise have an outlet to do so.
We also provide businesses with information about what’s happening in the affected area. And we work with government entities to help them better understand how business is operating and what’s happening with freight flows and the transportation sector. Government entities then have a better idea of what their response should be. That is what we do. We’re saving lives through logistics.
Q: ALAN was created in response to infrastructure failures in a time of critical need. Can you describe what took place?
A: Sure. Hurricane Katrina brought some unique logistical challenges when it slammed into the Gulf Coast in 2005. Although relief supplies came pouring in from across the country, there were problems getting them into the survivors’ hands. People were hungry and couldn’t get what they needed because either businesses or government couldn’t get the necessary logistics in place.
So, at the Council of Supply Chain Management Professionals’ (CSCMP) annual conference that year, a group got together and said, “Look, we do this year-round. We move products literally around the world every single day. It seems like we ought to be able to use our knowledge and expertise to help solve these challenges.”
That was really the birth of ALAN, which started out as a consortium of 13 industry and trade associations. Today, that’s grown to somewhere north of 30 organizations that we work with on an ongoing basis.
Q: What part of the supply chain do they cover?
A: Everything. We work with everyone from manufacturers through operations and supply chain management and on to the transportation and broker community.
And there are some nontraditional associations we partner with, like the moving and storage industry and the bottled water association because they have logistics assets and requirements. We work to provide the logistics behind the basic things that are needed in any disaster, like food, water, shelter, and medicine.
Q: So unlike a traditional relief organization, you’re not raising funds to buy supplies and ship them. You’re more of a matchmaker that connects relief organizations in need of services or equipment with companies that can fill those needs?
A: Yes, that’s right. The model doesn’t always make sense to people who take a more traditional view of humanitarian relief work because we’re not directly putting products on trucks. We are helping to put somebody else’s product on a truck or in a warehouse.
So we are not procuring things like supplies or equipment. We are literally finding people who need resources, finding people who have these resources, and making an introduction and letting that relationship go from there.
Q: ALAN usually mobilizes in response to disasters in a localized area. In the case of Covid-19, it’s a worldwide event. How is your role different now?
A: Sometime in January and February, even before the coronavirus outbreak reached the U.S., we realized our role had changed because this is not geographically concentrated. It’s not like a storm in the Southeast United States or a tornado that only affects a couple of communities. This is everybody all at once.
The geographic scale of what we’re doing right now across the nation is new for us. But the types of requests are very similar to what we see in any other event—nourishment, hydration, medical care, and shelter. Those are the things people need. Those don’t go away. In fact, some of those things are amplified.
For example, we work with a lot of food banks. Some of those organizations saw a two, three, four, or five-hundred percent increase in requests. That requires additional transportation to move supplies to the warehouse. We’re also getting requests for support for last-mile deliveries. Again, the scale is increased, the intensity is increased, but they’re still the same types of requests that we’ve been seeing for 15 years.
Q: It is a daunting task with all the needs that are there.
A: Just the pace is interesting. It hasn’t slowed down, honestly. Businesses have figured out how to keep toilet paper and other staples on retail shelves for the most part. But the unemployment numbers are staggering, and that’s causing more strain for our primary partners in the nonprofit community.
Q: Have you noticed any particular problems or resource shortages?
A: Right now, there is plenty of available capacity in the transportation networks. The problem is, it may be too much capacity. We are starting to see smaller fleets parking their trucks. The concern is that if we lose those trucks, will we have enough capacity to respond if there’s another major shock?
Another potential trouble spot is the availability of volunteers within the humanitarian space. A lot of the people who volunteer are at higher risk of contracting Covid-19. Nonprofits are having to look for new and unique ways to run their operations because they don’t have that consistent level of volunteers that they’re accustomed to.
Q: We are recognizing heroes of the supply chain in this issue. Could you give us some examples of companies that have gone above and beyond in this time of crisis?
A: Everyone, once they understood the problem, started to look at how they might be able to leverage their available resources. Whatever the core business, they began asking themselves what they could do to support the relief effort. So that means the chemical community and even distilleries have started manufacturing hand sanitizer, which I think is a really creative solution.
We’re also seeing companies whose transportation business has slowed and are looking for ways to keep their employees busy and who want to contribute. So they’re saying, “Look, we may not have commercial product to move right now, but we will help haul personal protective equipment or food or whatever it may be.”
The cool thing about it is the logistics community is right there at the forefront. Many are being hit hard for a variety of reasons, but they are stepping up and serving.
Q: With so many people out of work, food banks serve a critical need right now. Are you seeing demand for material handling equipment like conveyors, forklifts, and racking to help food banks handle the surge in volume?
A: Yes. We’ve gotten requests for conveyors and supplies as well as boxes and stuff like that to package food in. A lot of those requests are for equipment that’s easy to install, such as gravity-feed conveyor, as well as anything to increase throughput, especially when you have a limited workforce and more volunteers.
Q: I’m sure there are people with supply chains skills and assets out there who want to help. How can they find out what’s needed?
A: They can always visit our website, www.alanaid.org. We’ve posted a list of needs there, and we keep it up to date. Or they can just call us.
The other thing is, if they don’t see a request that fits with what they want to offer, let us know anyway. There is a way to contact us on the website with those kinds of offers. We work to match them with someone with a corresponding need.
Q: If someone doesn’t have services or equipment to offer, can they make a cash donation?
A: Yes, absolutely. We operate on a small budget, and that budget has been strained like everyone else’s because of the Covid-19 response. People who want to support us financially can donate through our website. Those funds help us cover our expenses for technology and all of the other things that allow us to coordinate more effectively.
Q: Although the country is reopening, it will still take some time to get back to normal, especially with all the job losses. What do you expect to be the biggest needs for the next few months?
A: Right now, we’re seeing a lot of requests for transportation service—someone to haul the food from the field to the food bank and out to the people who need it. That is definitely going to continue as we go through the summer. We have enough food and we can process enough food, but there are some kinks in the processing supply chain.
Another challenge is that states have different policies for reopening, and those policies can vary from county to county. It can be difficult for someone operating a supply chain to navigate all of the different policy restrictions. So we’ve created a map that shows all of those policy restrictions by county. You can go to www.alanaid.org/map and request access. We have an incredible team of volunteers who are updating it on an ongoing basis. Every time a policy changes, they are making that update, and you can see it there live and in living color.
Q: Are there any lessons we’ve learned from the first wave that could be applied to future waves should there be any?
A: Yes. One of the really cool things about my job is that I have a front row seat to the crisis response. We convene with all of the associations we partner with once a week and talk about problems that affect all of the members.
The policies and the internal ways in which companies are protecting their employees had to be developed in real time and some are here to stay. I would consider all of that part of the lessons learned and lessons applied. I think we also learned from countries that dealt with this before us and have helped shape the response in the U.S.
The biggest thing is that it’s not just during times of crisis that supply chain folks are heroes. However, it often takes a disaster to make people aware of the critical role of the forklift operator or the truck driver in making sure they have the food and the water and the medical care they need every day. It is really cool to see that they’re being recognized now. They have always been heroes, but now the rest of the world knows it.
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]."