In our continuing series of discussions with top supply-chain company executives, Aaron Jones of Bastian Solutions discusses the impact of the coronavirus, support for STEM education, and life as a systems integrator.
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.
Since becoming president of Bastian Solutions in 2014, Aaron Jones has led this growing material handling systems integrator through its successful transition to a subsidiary of Toyota Advanced Logistics. Jones has been with Bastian Solutions since 2010, serving as a regional manager, national director, and vice president before taking on his current role as president. He previously worked as a product design engineer at Ford Motor Co./Visteon Corp. From 1997 to 2000, he played professional baseball within the New York Yankees organization.
Jones has received several patents for Bastian Solutions in robotic applications and automated guided vehicles (AGVs). He also led three strategic acquisitions for the company in the software, consulting, and AGV functional areas. Under his leadership, Bastian Solutions has twice been recognized as one of the Best Places to Work in Indiana by the Indiana Chamber of Commerce. The Indianapolis Business Journal named Bastian Solutions the area’s largest engineering firm in 2020.
Jones holds a master’s degree in engineering management from Wayne State University in Detroit and a bachelor’s degree in mechanical engineering from Southern Illinois University, where he was an All-American baseball player. He recently spoke with DC Velocity Editorial Director David Maloney.
Q: How has the Covid-19 pandemic affected your company and customers so far?
A: The challenges we face as a company and the challenges our customers face are present every day. With that said, we’ve worked incredibly hard to put the necessary safety precautions in place for our employees and for our customers to keep projects on track. The execution and delivery of these projects has changed, but they’re still moving forward. Each is maintaining social distancing and following the necessary precautions with respect to sanitation and PPE. Securing these materials has been challenging, but a top priority for us is keeping our project teams and manufacturing employees safe.
Our next priority has been ensuring the success of current projects and supporting our customers however we can. With the pandemic, of course, there are greater global supply chain challenges, but we have worked hard to limit those—which is a significant benefit of being an independent systems integrator as opposed to relying only on our internal manufacturing. As a global integrator, we can reach out to a wide range of supply networks. If there are delivery or supply chain issues in a certain region or country, we can go to a different region to help mitigate those issues for our clients.
Q: Has the pandemic changed any plans or major initiatives slated for the remainder of the year?
A: The pandemic hasn’t changed any of our overall plans. In fact, we feel that coming out of this pandemic, there is going to be even more demand for the goods and services we provide.
While it hasn’t changed any of our plans, it has inherently delayed them for a few months. We continue to hire and expand through the pandemic, though not as quickly as we had hoped. Once we come through this pandemic, there is going to be greater demand for advanced technologies that provide supply chain visibility and agile operations, areas in which our products and services can truly help; thus, we want to continue to invest in our team and look to the future.
As for our customers, we seem to have two types at the moment: those who have invested in automation (and they sure are happy that they have invested), and those who wish they had automated their facilities before this pandemic. Our goal is to assist those companies in planning for and creating post-Covid operations to address changes in consumer behavior. For example, with most stores in the country closed, the only way to reach clients is digitally—which has made home delivery and curbside pickup imperative.
When you look at the results of the pandemic, as we rebound from the social changes we are left with, we will see a greater sense of social distancing, which goes hand in hand with automated fulfillment systems. There will be lasting changes, so we look forward to supporting our customers through it all.
Q: Bastian Solutions is now part of Toyota Advanced Logistics, which also includes Vanderlande, and is a sister company to Toyota Forklifts and Raymond under the Toyota Industries Corp. (TICO) umbrella. Have you been able to create synergies or joint projects with the other brands?
A: When you look at Toyota’s interest in acquiring Bastian Solutions and Vanderlande, its goal and mission was to provide the greatest level of full turnkey solutions in automation across the globe, which is now largely in effect.
Within TICO, we have a laser focus on global markets of all sizes. There has been very strong correlation across all the TICO companies and our customers to continue to provide our clients with the most comprehensive solutions in the world.
Fork trucks are becoming more and more a part of integrated solutions each year, thanks to their growing sophistication and expanding capabilities. The industry is at a stage where we are getting close to fully automated distribution facilities, and I think going forward, fork vehicles will be so well integrated into the automated systems that they’ll largely be viewed as another piece of equipment, like you’d look at a robot or an AS/RS crane.
Q: Last year, Bastian Solutions opened an advanced manufacturing facility in Indiana. What does that facility provide for you in terms of capabilities and capacities?
A: The primary focus of the facility is to manufacture conveyor, but our commitment to the market and our clients, first and foremost, is that we are an independent integrator. In the last 65 years, we have supplied a large variety of technologies, including a large variety of conveyor—that isn’t going to change with our strong focus on integration. This facility in Indiana provides us with a high-quality conveyor option for our clients; however, we do still leverage other trusted conveyor suppliers that we’ve integrated with for many years. We are consistently reminded that this is the advantage we provide our clients and our first commitment is to our customers. We are going to provide them with the best product available for their system, regardless of where that product comes from.
Q: Bastian Solutions has been recognized as one of the best places to work in Indiana. To what do you attribute that success?
A: We are very proud to have received this award for the second time. Based on an independent employee survey, I can attribute the success to a very keen focus on the satisfaction and feedback of our employees. We listen and look for ways to make their time at Bastian Solutions more enjoyable.
In this day and age, employees have options. Social media is a friend or enemy, depending on how companies treat their employees. Companies must be flexible, progressive, and accommodating. Our human resources team, along with our leadership team, continues to monitor feedback and working conditions, always looking for ways to excel. I look at this award as a report card for how we did this year. We continue to look for innovative ways to serve our employees and will hopefully receive the award for many years to come.
Q: In your career, you worked at Ford Motor Co. and played professional baseball in the Yankees organization. What did those experiences teach you about leadership and team building that you now apply to your role as president of Bastian Solutions?
A: I couldn’t ask for a better experience at either organization. In the mid-90s, the Yankees were leaders in attracting cultural diversification. We had around 60% of the entire organization come from outside the U.S. The cultural differences were significant, and it was a tough adjustment for some players from other countries. I had to learn to function on a diverse team. I think the biggest thing that the Yankees and professional sports taught me was a keen desire to win, but more importantly, it taught me how to lose gracefully. Playing 160 games a year and racking up 100 wins is a good team, but you still lost 60 times. Baseball and athletics at that level taught me how to succeed and fail with grace.
My time with Ford and Visteon taught me how to respect diversification not only on your teams but also by market and country. I also learned about large-scale manufacturing and supply chain. One of my first tours was of an assembly line of a major automotive factory, and it was very eye opening.
Q: You’ve been an advocate for STEM (science, technology, engineering, and math) education. Why is this critical to the future of the industry?
A: The industry is undoubtedly changing at an incredible speed. I have confidence in saying that while the job market has changed significantly over the last 20 years, the change over the next 20 years will happen at an even faster pace.
With regard to STEM and being of an engineering background, I like to encourage schools to not only consider the engineers and scientists that these programs will turn out, but even more so, the technicians. The available secure and stable jobs in the future will require a technical understanding and competence. When I encourage these schools, I emphasize that even with a great track record of producing engineers, we need to also focus on the technicians who might not go through a typical four-year or two-year degree program—we need to give them the technological background to be successful as well.
In many cases, if we put the right programs in place, a senior in high school can graduate with a two-year degree in some sort of technical field and get a really good job. The competencies required to operate automated equipment and understand sensors and PLCs [programmable logic controllers] and software programs do not require someone to write the code or to design the technology, but to understand how everything works, be able to operate it, and be a system expert.
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]."