In Person interview: Gary Cash of Matthews Automation Solutions
In our continuing series of discussions with top supply-chain company executives, Gary Cash of Matthews Automation Solutions discusses the warehouse software and controls markets and the impact of IoT technologies.
Gary Cash has spent his 30-year career designing automated material handling and manufacturing systems with a focus on software and controls. He is currently vice president and general manager of Cincinnati-based Matthews Automation Solutions, a business unit of Matthews International. In that role, Cash is responsible for the strategic direction of the combined Pyramid and Compass businesses, which provide warehouse execution software and control systems for distribution and fulfillment centers.
Cash’s systems experience also includes product development for sortation systems, conveyors, palletizers, print-and-apply systems, automated storage and retrieval systems (AS/RS), and picking systems. He holds a bachelor’s degree in electrical engineering from Cleveland State University and an MBA from John Carroll University.
Q:As we begin a new year, how do you view the state of the warehouse management systems and controls markets?
A: The markets for WMS/WES/WCS software and controls remain strong. Much of it is driven by the continued shift to e-commerce and the need to meet ever-increasing service and performance expectations. However, I believe the most important trend is to install more integrated and comprehensive software solutions that can continuously monitor performance, move work to where it is needed, and intelligently adapt as the workload changes throughout the day.
Q:How has the Covid-19 pandemic affected your customers and the systems they need?
A: Covid-19 has impacted our customers in a few ways. As we have all seen, the shift from brick-and-mortar–based retail to e-commerce has accelerated to accommodate consumers’ desire to avoid crowds and contact with others.
On top of that, many new ways of delivering product are becoming more commonplace, such as buy online/pick up in store (BOPIS), home deliveries, and micro-fulfillment. Within distribution centers, software systems are now tasked with managing newer systems and technologies, such as AMRs (autonomous mobile robots), to minimize the number of people required in an area.
We also are changing how workload planning occurs, now accounting for social distancing needs with ongoing monitoring of workers’ locations throughout their shifts.
Q: How do you expect the internet of things (IoT) to affect the controls industry in the coming years?
A: IoT is generally thought of as the connection of smart devices to the internet. In the world of distribution centers, we typically gather information from devices and publish it within a local network to help users with their decision-making. As a provider of warehouse execution software, we take advantage of the thousands of data points generated by these sensors to continuously evaluate how a system is running. Our flow management software looks for opportunities to pull in more work where needed or to redirect it, allowing the system to automatically maximize throughput in all areas of an operation. Our software and controls depend on this IoT approach for the real-time feedback needed for evaluating flow management decisions.
Q:Business units within the Matthews family offer a wide range of solutions, including software and material handling equipment. What kinds of synergies are created between your brands?
A: The Matthews Automation Solutions brands include Pyramid, Compass, Lightning Pick, RAF, and Guidance Automation. All were brought together through a deep understanding of our customers’ needs, with the agility to combine our industry-leading products and third-party systems to create innovative solutions. As one Matthews group, we can deliver fully integrated, end-to-end material handling systems. Yet with multiple best-of-breed brands and a deep network of proven relationships with top-tier partners, we don’t approach automation with a monolithic, one-size-fits-all strategy.
We have found that, even in distribution centers that share similar product types and throughput, customers need flexible automation aligned with their unique needs and culture. Matthews’ strategy, therefore, is to combine our proven, standard software modules with the best hardware fit for the customer’s specific processes. We’re “hardware agnostic,” so we ensure the correct products are utilized for their singular applications. In fact, our software and controls engineering team thrives and excels when challenged by some of these unique requirements.
Q: Are you working on any current projects or products that you wish to share?
A: Light-directed systems are easy to deploy and deliver rapid boosts in productivity and efficiency. We’re working with several food-related brands challenged with sudden, massive increases in omnichannel order volume. Pick-to-light and put walls, for example, are helping meal-kit delivery services meet skyrocketing e-commerce demand. The same solutions enable other brands to successfully supply major retailers with fresh, ready-to-eat meals.
In addition to “classic” pick-to-light projects, there is rising adoption of light sleds, light frames, and picking carts that leverage the technology’s inherent flexibility to support multiple order selection and sortation techniques.
Autonomous mobile robots also offer opportunities to integrate with lights, conveyor, and other automation to optimize dynamic fulfillment environments. Whether these projects involve Matthews AMRs or other manufacturers’ robots, we’re focused on the solid integration necessary for reliable, impactful solutions.
Q:What do you think is the most important thing that companies should focus on now in their supply chains?
A: As we’ve learned from Covid-19, building flexibility is critical for adapting to changing market conditions, global supply chain risks, and major shifts in shopping behavior. Software designed to manage complex workflows can make fast changes to improve deliveries to stores, parcel shipping, or store pickup as needed.
The advent of more integrated WES software provides detailed process visibility, maximizing throughput and efficiency throughout these workflows. This includes a wide range of real-time status updates on conveyor system sensors, the quantity and mix of incoming orders, the current workload at any point in the system, and other critical information. Advanced algorithms monitor that data and adjust automated subsystems throughout the day to maintain optimal work balance and flow. Whether customers use waveless or wave-based order processing strategies, WES is a real competitive advantage for those who have it.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.