In our continuing series of discussions with top supply-chain company executives, Paul Jensen, senior vice president supply chain solutions for Ruan, discusses the logistics industry, labor issues, and the post-pandemic market.
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.
Paul Jensen leads the Supply Chain Solutions Division for Ruan, a multifaceted supply chain company that provides dedicated contract transportation, managed transportation, value-added warehousing, and brokerage support services. Jensen joined the Des Moines, Iowa-based company in 2016 as vice president of logistics. Prior to that, he worked in logistics management positions for DuPont Pioneer and the Jacobson Companies. Jensen additionally served in the U.S. Navy as a submarine officer and nuclear engineer, retiring from the Navy Reserves in 2010 with the rank of commander. He is a graduate of Iowa State University with a Bachelor of Science degree in physics.
Q: How do you view the current state of the logistics market?
A: The overall logistics market is capacity-constrained in almost every area of the supply chain. Challenges with equipment and technology availability, labor tightness, facility availability, driver capacity, and container capacity are all creating bottlenecks in the nation’s supply chain. Each of these factors is creating cost pressures and delays in sourcing, manufacturing, and distribution.
Q: What are customers’ greatest needs as we emerge from the pandemic?
A: The capacity constraints throughout supply chains have shown the value of strategic planning, end-to-end visibility, and innovation. Our customers need the ability to quickly adapt to the changing supply chain landscape. Ruan can provide dynamic optimization based on the availability of material, capacity, or any other constrained resource in the supply chain to help our customers beat their competition to market. Delivering visibility to material flows—from raw materials to finished goods—enables proactive planning.
Q: What are the advantages of being a company that offers both transportation and warehousing services to its clients?
A: Understanding what it takes to run a world-class warehouse makes Ruan a better transportation provider. Understanding what it takes to run a world-class transportation operation makes Ruan a better warehouse operator. In addition, when Ruan operates a customer’s warehouse and transportation network, we utilize our visibility tools to be more responsive to impending disruptions and to mitigate their impacts.
An integrated warehouse and transportation solution also eliminates process hand-offs between third parties or between our operations and the customer’s operations because we control the end-to-end processes, resulting in a smoothing effect to their supply chains. End-to-end management of a customer’s distribution also results in a lower overall cost of operation.
Q: Are there any initiatives that Ruan is undertaking to better serve its clients?
A: Ruan has undertaken an organization-wide freight visibility initiative that integrates data from the various operations’ platforms to create a single point of visibility for our customers. We provide real-time ETAs based on shipment tracking and positioning at the shipment, stop, order, line, or part-number level. Visibility can be auto-triggered based on event management criteria or displayed on demand using a secure URL.
Q: Labor seems to be an issue with everyone in the industry. What do you do to attract and retain good people?
A: Labor is a challenge throughout our economy as we begin to emerge from the pandemic. Ruan is driven by our “People First” Guiding Principle and our strong desire to be a great place to work, beginning with the solution design process. Ensuring that we meet customer objectives while creating attractive positions for our truck-driving team members and warehouse associates drives satisfaction and long-term success for all parties.
Q: Are there particular technologies that Ruan is looking at to enhance operations?
A: Ruan has a team of information technology professionals that support our robotic process automation (RPA) platform. Using state-of-the-art technology, our team develops bots that perform routine data entry, manipulation, management, and auditing so that our team members can focus on the exceptions and add value. RPA technology also touches the day-to-day operations in back-office functions like payroll and invoicing. Operationally, our customers benefit from enhanced speed of information delivery and improvements in the quality and consistency of data used to optimize and manage the business.
Q: What do you think Ruan brings as a company that differentiates it from its competitors?
A: One of Ruan’s biggest differentiators is our skill at fully executing an end-to-end solution, integrating each aspect of the logistics network that supports our customers’ supply chains. Our ability to “think like a shipper”—whether operating a warehouse, managing a dedicated fleet, or executing a customer’s transportation network—positions us to create significant value within our customers’ operations.
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
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%."