Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
E-commerce growth may have slowed, but as the daily parade of delivery vans on residential streets attests, demand for direct-to-consumer deliveries remains strong. Consumers want their orders now, putting pressure on retailers to provide fast, free delivery of everything from pet food to potato chips.
To meet those expectations, more companies are taking advantage of microfulfillment centers. As their name suggests, these facilities are small, ranging in size from 5,000 to 20,000 square feet. (Some definitions have them topping out at 10,000 square feet.) With thousands of fast-moving items squeezed into a small footprint, aisles are narrow and sometimes congested with pedestrian and forklift traffic.
Microfulfillment centers can be standalone facilities, attached to or located inside a retail store or distribution center, or in a former storefront. To optimize last-mile delivery times and reduce transportation costs, they typically are located in densely populated areas. And because they only store enough inventory for a day or two, they require frequent replenishment, which adds to congestion.
So: High volumes, tight quarters, and a time crunch. What types of lift trucks are best suited to these conditions? Here are some things to keep in mind when choosing equipment.
BASIC CONSIDERATIONS
In space-constrained environments, says Bill Pedriana, chief marketing officer for forklift maker Big Joe, three design considerations are especially important: compact size and turning radius, for maneuverability in tight spaces; lower truck weights, to reduce the possibility of injury in areas with many potential “pinch points”; and a high degree of operator control at the slower travel speeds required in confined, high-traffic areas.
Ease of operation counts too. Not all microfulfillment centers have a dedicated forklift driver on staff—someone whose sole job is forklift operation. “In the smaller ones attached to a retail store, I’ve seen them use a lot of people who are also working in the store,” says George Towne, director, major accounts, retail and e-commerce for equipment manufacturer Yale Materials Handling Corp. “Of course they are trained on the lift trucks, but they toggle back and forth between the different jobs.” When operators aren’t full-time specialists, it’s important that trucks’ controls be “both highly intuitive and highly accurate,” Pedriana says.
In many cases, products have already been broken down into delivery-size orders, or kitted or queued up for delivery routes, so associates will have fewer handling tasks than in large DCs, says Bill Byrd, senior manager–national account sales for forklift maker Toyota Material Handling. In addition, while bigger DCs usually require different types of lift trucks for specific product configurations or different storage systems, that’s rarely the case in these small facilities. For those reasons, he says, “you may want a versatile truck that can handle most or all of the tasks you need to do.”
That doesn’t mean every microfulfillment center should rely on a single type of lift truck, though. “If you don’t use the correct equipment for an application,” warns Tim Osmulski, director, supply chain and logistics segment for forklift manufacturer The Raymond Corp., “it will slow down the operation” by making the driver’s job more time-consuming—exactly what you don’t want in a high-velocity environment.
MADE FOR SMALL SPACES
ELEVATING PLATFORMS LIKE CROWN EQUIPMENT’S WAVE ARE POPULAR IN RETAIL BACKROOMS AND MICROFULFILLMENT CENTERS.
In the smallest facilities, such as retail backrooms and urban fulfillment locations, multipurpose elevated platforms (MPEPs) are popular. (See the sidebar “Make way for MPEPs.”) Designed for confined spaces—as narrow as 32 inches for one model on the market—and light loads, they’re billed as a safer, more productive replacement for the rolling ladders traditionally used in stockrooms for tasks like inventory stocking and order picking. MPEPs essentially combine the attributes of elevating work platforms and order pickers, but they’re much smaller than full-sized order pickers, and there is no overhead guard or requirement for a harness. Examples of MPEPs offered by forklift makers include Crown Equipment Corp.’s Wave, Clark Material Handling Co.’s Order Selector Quick Pick, Raymond’s Sprint 2.0, and Big Joe’s Joey.
In addition to consumer-ready orders, microfulfillment centers handle inbound cartons and pallets, so motorized single- and multi-level pallet trucks are in wide use. Walkie types eliminate the need for operators to jump on and off the truck while picking orders and are appropriate in facilities where they’re not in use all day long, as opposed to high-throughput environments where associates are constantly picking, Towne says. Where medium- and longer-distance horizontal transport is required, ride-on models that reduce travel times and physical stress on operators are useful. (Paul Short, president–North America for equipment maker Combilift, notes that for safety reasons, small facilities with narrow aisles and a lot of pedestrian traffic often don’t want a lot of ride-on equipment and instead prefer walkies that are designed for narrow aisles.)
COMBILIFT’S SIDE-POSITIONED TILLER ARM REMOVES OPERATORS FROM THE “CRUSH ZONE” BETWEEN THE REAR OF THE TRUCK AND THE RACKING.
Two examples of pallet trucks specifically designed for constrained spaces include Combilift’s pedestrian stackers, which are operated from the side rather than from behind; and one from Toyota Material Handling that can operate at reduced speed with the control handle at an angle of just 10 degrees.
For narrow aisles with mid-height and high racking, selection considerations include the width of the spaces where trucks will operate, how quickly products are moving in and out, racking heights and depths, and whether the forklift will be used for just one or multiple tasks, says Michael Brunnet, warehouse and systems truck sales manager with Mitsubishi Logisnext Americas and an expert on the company’s Jungheinrich product line.
In facilities where operators are picking individual items in medium or high racks and then taking them to packing stations, order pickers that lift and lower the operator are most productive. Maximum heights vary, but 30-plus feet is common.
Three-wheel counterbalanced standup and sit-down forklifts are popular in back-of-store operations and microfulfillment centers with fast-moving products. This configuration has a shorter turning radius than four-wheel trucks and is highly maneuverable. These trucks typically offer stacking heights of 15 to 18 feet and work best in aisles that are 11 to 13 feet wide, according to Brunnet.
Standup counterbalanced forklifts with a 3,000-pound capacity work well where pallets aren’t very heavy and product moves in and out quickly, says Byrd of Toyota. These trucks are versatile: They can unload trailers, transport pallets, and put away product in double-height racking, he notes. They’re compact and easy for operators to get on and off, and they can handle the mixed pallets often seen in microfulfillment centers.
For higher-density storage in aisles that are eight to nine feet wide, straddle stackers (which typically have lift heights of 10 to 16 feet) or reach trucks (20 feet up to 40 feet or more) should be on the short list. In fact, “the reach truck was invented for this!” says Susan Comfort, senior manager, technology solutions and marketing for The Raymond Corp. Both types of trucks have base “straddle” legs that help to stabilize the truck as it supports the load, a design that allows for a shorter chassis with a tight turning radius, she notes.
In the narrowest aisles, VNA (very narrow aisle) equipment is the way to go. Turret trucks, which can lift as high as 60 feet and may follow tracks, guidewires, or transponders on set paths, are an option for the very highest racking. Articulating forklifts are highly efficient when maneuverability is important for productivity; operators can swivel the forks, mast, and front wheels as a unit, shortening the truck’s length profile and allowing the forks to move into and out of racks at right angles to the chassis. One example is Combilift’s Aisle Master, which performs efficiently in aisles as narrow as six feet. Another is Narrow Aisle Inc.’s Flexi product line.
SAFETY AND ERGONOMICS
Design features and technology that are geared toward narrow, congested environments can help microfulfillment centers improve operator and pedestrian safety. One example of the former is the tiller arm with electric controls that is standard on all of Combilift’s pedestrian trucks. The tiller arm allows the operator to drive the vehicle from either the left or right side of the machine instead of from the rear. This removes the operator from the dangerous “crush zone” between the rear of the truck and the racking during putaway or picking, and it provides better visibility of both forks and load, Short says.
On the technology side, pedestrian-detection systems are seeing wider adoption. Examples include Toyota’s SEnS Smart Environment Sensor, which uses cameras to detect human activity behind the forklift and gives the operator both visual and audible alerts; Jungheinrich’s Personnel Protection System (PPS), which uses sensors to detect pedestrians and slows or stops the truck when needed; and a module of the Yale Reliant operator-assist system that detects transmitter tags on pedestrians and other trucks and decelerates the truck, giving the operator additional time to steer away or stop if needed. Some safety systems, including Yale’s, also offer object-detection and real-time location sensing, which let users set location-based rules like equipment exclusion zones and end-of-aisle slowdowns.
Technology that, in essence, takes some of the decision-making away and makes certain actions fail-safe can help operators use equipment safely in small, congested spaces with limited visibility, says Brunnet. He cites the example of a guidance system that includes RFID (radio-frequency identification) transponders embedded in the floor and that disengages the steering of Jungheinrich’s VNA and turret trucks when they are in an aisle and brings them to a controlled stop before they exit an aisle.
Similarly, Yale Reliant’s advanced operator awareness system, which Towne describes as “like having a trainer on board with the operator,” helps drivers operate the truck correctly. The system monitors truck speed, load position, load weight, and steering angle to calculate the combined center of gravity of the truck and load. This allows the solution to safely adjust truck performance if factors such as the speed, fork height, or weight exceed a designated threshold.
A logical question is whether ergonomics and operator comfort must be sacrificed in a space-constrained environment. Combilift’s Short emphatically says no. The company’s Aisle Master VNA truck “is as comfortable as a sit-down counterbalanced forklift,” and deliberately so, he says. “We do not think comfort should ever be sacrificed,” he explains. The primary reason, of course, is respect for the operator’s well-being. Another is that when lift trucks are comfortable and ergonomically appropriate, operators are more efficient and productive.
Still, some might be inclined to equate “small space” with “extremely basic.” Raymond’s Osmulski has seen small but busy facilities try to get by with only manual pallet jacks. But moving loads all day with manual equipment is hard on the body, and from an ergonomic point of view, electric pallet trucks are well worth the additional expense, in his view.
Nevertheless, in applications where usage hours are low and loads are light, buyers on a budget may decide to forgo some comforts. V. Mariotti S.r.l., which says it makes “the world’s smallest compact riders,” offers a forklift model “without the extra comfort features” of its more expensive (but still remarkably small) trucks.
AUTOMATE OR NOT?
Driverless forklifts and autonomous mobile robots (AMRs) are becoming ubiquitous in large e-commerce fulfillment centers, but that’s unlikely to happen in microfulfillment centers. In Short’s experience, the setup and integration costs for automation don’t scale down much for small facilities. However, he also notes that automation makes more economic sense and is less risky when microfulfillment is located within a larger DC that already has the necessary equipment, technology systems, and infrastructure.
On top of that, successful automation requires “repetitive action, load commonality, and load integrity”—none of which are characteristic of most microfulfillment centers, Brunnet says. Autonomous vehicles may also need more clearance than many pedestrian-filled microfulfillment centers offer, he adds.
Some, though, do see a place for automated trucks in small facilities. Raymond’s Comfort, for one, posits that using them in even limited applications would allow the redeployment of humans to non-routine tasks. Automating simple workflows could also eliminate the need for associates to shift from one task to another, a common (and productivity-busting) situation in small facilities, says Big Joe’s Pedriana. Semiautonomous machines that supplement human effort, without the capital expense of full automation, may be a practical choice, he adds. For example, an associate working in a pick module could place orders on an autonomous truck like Big Joe’s “BUD” user-directed pallet mover and send it to a pack station, without having to leave the picking area.
Toyota’s Byrd thinks we’re years away from seeing a lot of forklift automation in direct-to-consumer fulfillment. “Until we have better machine learning that gives the autonomous forklift the ability to recognize different types, sizes, and form features of packages and loads,” he says, driverless trucks are unlikely to gain wide acceptance in small e-commerce environments.
MAKE WAY FOR MPEPs
Multi-purpose elevated platforms (MPEPs)—mobile equipment that raises the operator on an enclosed platform—are replacing the rolling ladders used in stockrooms for tasks like inventory stocking, order picking, and other work that must be performed at height. They’re different enough from other industrial trucks and are becoming so popular that they’ll soon have their own industrial truck classification subgroup and safety standard.
The Industrial Truck Association (ITA) maintains classifications for the many different types of industrial trucks. Currently, trucks are organized into Classes 1 through 7; within each class are subgroups based on such characteristics as operator position, tire type, power source, and lift height. ITA and its members use these designations for statistical purposes when tracking orders and shipments of the various types of industrial trucks, explains ITA President Brian Feehan.
MPEPs have been available for a while, and ITA already captures market data for them. However, because they essentially are “a cross between an order picker and a mobile utility platform,” as Feehan puts it, they straddle the B56 industrial truck safety standards administered by the Industrial Truck Standards Development Foundation (ITSDF) and the A92 standards for mobile elevated work platforms, which are different and are administered by another organization.
An ITSDF committee is currently developing new safety standards specifically for MPEPs “to make sure we have the right standards in place that reflect the correct use of these products,” Feehan says. The new standard will be designated B56.15; once that’s in place, a new lift truck classification is expected to follow.
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]."