From traditional to high-tech, goods-to-person picking systems are quickly becoming table stakes for operating in a fast-paced environment marked by tight labor capacity.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Labor challenges and productivity demands have long been pushing business leaders to adopt automated solutions for their warehouses and distribution centers, a trend that accelerated during the Covid-19 pandemic and that shows no signs of abating as 2022 gets underway. Goods-to-person (GTP) picking systems are among the most popular and easiest ways to automate, as both traditional and more advanced systems can yield results quickly and put companies well on their way to meeting their operational goals.
Recent studies attest to those benefits.Gartner research from 2021 predicted that demand for robotic GTP systems would quadruple through 2023, largely to deal with labor challenges. Such systems address the need for social distancing by moving goods from one person to another—and doing it so efficiently that they increase productivity and improve storage density along the way, according to Gartner.
“While the social distancing aspect is an imminent benefit, robotic GTP systems will provide value long after the pandemic is over,” Gartner Analyst Dwight Klappich said in an April 2021 Gartner.com article. “This technology is advanced and economical, and can easily be tailored to work in every kind of warehouse environment.”
But what exactly are GTP systems—robotic or otherwise—and how do they work? Here’s a back-to-basics look at some of the types of GTP technology available today and the benefits they can bring to material handling operations.
DETERMINING WHAT’S RIGHT FOR YOU
Essentially, goods-to-person picking systems deliver items to an operator, so that the operator doesn’t have to travel between locations in a facility. They can be used in retail operations, in warehouses and fulfillment centers, in point-of-use applications in manufacturing and packaging operations, and, increasingly, for merchandise returns. E-commerce fulfillment centers are seeing among the highest rates of GTP adoption, driven mainly by the accelerated growth of online buying since the spring of 2020. The situation was especially acute in the grocery market, where demand for microfulfillment systems—highly automated, small-footprint systems located close to the end-consumer—has skyrocketed over the past two years, according to Kevin Reader, vice president of marketing for logistics solutions provider Knapp. Up-to-the-minute ordering and expectations of fast delivery are driving the need.
“In an environment that’s constantly demanding later order windows during the day and next-day delivery—there’s not much of an option,” Reader says, emphasizing the growth in demand for GTP systems in general. “[This technology] is becoming almost table stakes.”
GTP systems fall into two general categories: 1) Traditional systems such as horizontal or vertical carousels, which present items to pickers in a warehouse or DC operation, as well as vertical lift modules (VLMs), which take advantage of a facility’s ceiling height to store and present items to workers; and 2) More advanced, high-density solutions, including shuttle-based systems and automated storage and retrieval systems (AS/RS), which deliver products to a worker at a pick station. Some advanced solutions also use autonomous mobile robots (AMRs) to deliver products to workers.
Logistics solutions providers work with customers to select the best type of system for their particular application.
Determining the best system hinges on the particular “use case” in the market, according to Laura Bickle, senior offering manager for Honeywell Intelligrated’s warehouse execution software (WES). Use cases can include e-commerce order fulfillment, retail or store fulfillment, omnichannel and combination applications, buffer systems (which accumulate units for grouping, such as for palletization and cartonization), and inventory management. Bickle explains that at Honeywell, GTP stations can be used for multiple functions, including picking items for orders, putting away inventory (for example, replenishing an AS/RS by decanting items from vendor cases into plastic totes that are stored in the AS/RS), and conducting inventory cycle counts.
And although each use case is different, there are some guiding principles for determining the best system for a particular organization.
“There are several factors that need to be considered,” according to Bickle. “What type of products are in the system? How much space is available? What is the density? What is the desired throughput? How are orders to be filled—retail or e-commerce? How many different zones is product coming from, and is buffering needed?”
Bruce Bleikamp, director of product management for material handling solutions provider MHS, agrees, emphasizing that data is the most important part of developing a solution—lots of data.
“We like to look at the orders,” Bleikamp explains. “We typically ask for a year’s worth of data. What are they moving? How many? How is it packaged? … These are things we have to understand. So we ask for a lot of data.”
Reader, of Knapp, adds that it’s also important to understand the role existing software plays in an organization, along with overarching business considerations, and the ebb and flow of orders through the facility.
“Understanding all those elements and the interplay with machine capacity is really critical to making these systems work effectively,” he says.
BENEFITS: WHAT TO EXPECT
Productivity improvement is the primary benefit of installing a GTP system, as these systems allow more picks per operator and help boost overall facility throughput. This is especially beneficial in a tight labor market, Bleikamp points out.
“Everyone is struggling with the ability to get labor,” he says, especially in the warehouse and DC, where picking tasks often involve heavy lifting, lots of walking, and repetitive actions that can lead to stress and injuries. “It’s hard to get people [for those positions], so you have to do more with the resources you have. Automating helps with that.”
Chris Steiner, Americas vice president of solution development for logistics solutions provider Dematic, adds that reducing workers’ travel time through a facility drastically increases performance levels. In a manual operation, a worker typically picks about 100 pieces per hour; reducing travel time via automation can increase that volume up to 700 or more per hour, he says.
“The most expensive parts of the fulfillment supply chain are the first 100 yards and the last mile,” Steiner explains. “[Goods-to-person picking systems] help eliminate that first 100 yards.”
Although labor optimization is key, order quality is “the next frontier” when it comes to benefits and improvements, Steiner adds. Because inventory is tracked, presented, and typically confirmed by the automated system, order fulfillment accuracy skyrockets. What’s more, the controlled environment typically means less product damage and fewer errors. Assisted by the system, workers are less fatigued and make fewer mistakes—all in a better working environment.
“Generally, [these systems] are ergonomic in nature, so it’s a good working environment, which helps with quality [and] employee retention,” Steiner adds.
ALWAYS EVOLVING: WHAT’S NEXT?
As technology evolves, GTP systems are becoming more high-tech and driven by advanced software systems and controls. Reader says there’s been an increase in demand for GTP systems of all types, but particularly in systems that include robotic picking—those that use robotics to automate tasks that require manipulating individual items, as opposed to automating transportation through a facility. Such systems require artificial intelligence (AI), vision systems, cloud technology, and the like to automate the complex tasks of selecting products for an order.
Steiner adds that there’s also growing interest in collaborative robotic solutions—in which robots work alongside associates for picking and related tasks—as well as goods-to-robot solutions, or a combination of both, depending on the organization’s needs and goals. He says many customers are looking to create the right mix of solutions that justify the investment in advanced technology.
“[Customers will] mix robotic picking … with goods-to-person picking,” using robotic picking for steady, non-peak demands, and adding workers during busier periods, he says.
Whatever the mix or level of automation, the experts say demand for GTP systems and their more advanced and evolving counterparts is only set to accelerate over the next few years.
“It’s almost a perfect storm of macro-economic drivers that are driving the need for increased efficiency in the fulfillment space,” Steiner adds, circling back to the labor shortage and supply chain delays that have plagued companies over the past year or so. “But I think it’s consumer behavior that has changed the most. … From the beginning of the pandemic, e-commerce [saw] about eight years’ worth of growth in three months and [that] has continued; it hasn’t leveled off. That has created a significant space of demand that is affecting the [service level agreements] of our customers to their customers, and, in turn, continues to drive the need for increased investment in this type of technology.”
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]."