Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Sure, you may have gotten a good price on that scan gun, with its blazing-fast read rates and rock-solid wireless connection. But how good is that mobile device at its most important job: keeping your DC workforce happy enough that they show up for their next shift? After all, a handheld computer is not much use unless there’s a hand to hold it.
Turnover remains high in logistics; the churn rate among employees in the transportation, warehousing, and utilities sectors in 2021 was 49.0%, compared to the national average of 47.2%,according to the Bureau of Labor Statistics’ latest "Job Openings and Labor Turnover Survey" report. That trend has been exacerbated by a post-pandemic shift to gig work and short-term contract jobs. And recruiting replacement staff hasn’t been easy, with unemployment rates running below 4% in recent months.
When labor is tight, workforce retention is the key to success in managing a warehousing and fulfillment operation. And providing cool technology is a powerful strategy for keeping workers happy on the job, according to Zebra Technology Corp.’s “Warehousing Vision Study.”
The Zebra survey found that technology can help attract workers—83% of associates claim they are more likely to sign on with an employer that provides them with updated tech tools versus one that provides older devices or none at all. And it can also help with retention—92% of warehouse associates agree on some level that technology advancements will make a warehouse environment more attractive to workers.
Determining what type of technology to invest in is one of the biggest issues facing businesses and IT decision-makers today. So what should you look for in the mobile devices you give your workers to help ensure they’ll keep showing up day after day?
STICKING WITH THE TRIED-AND-TRUE
Experts say that where mobile technology is concerned, the logistics sector is currently in a time of transition from an older generation of devices—ones featuring physical buttons and text-based interfaces—to newer touchscreen, app-based models. In that regard, the warehousing industry lags behind the world of consumer electronics, which long ago discarded Palm Pilot- and Blackberry-style devices in favor of Apple- and Android-based smartphones.
As for why the sector has been slow to catch up, part of the reason is that the old-fashioned warehouse devices simply work well, says Mark Wheeler, director of supply chain solutions at Zebra. “We are midstream in the transition because if it works in the warehouse, you need a good reason to change it. When you change devices, you have to deal with change management, testing, and process definition. So we’re still in a time of transition to mobile devices with more advanced features, like wearables and voice interfaces.”
But even as the market evolves, there will probably always be demand for some of the features found on the older-generation handhelds, such as physical buttons, Wheeler says. “Do we still need hard keys? Yes, because you can touch them without looking at the screen. You can do ‘blind keying,’” he explains. “If a job is highly repetitive, like picking, replenishment, or scan verification, then [users] know what the device is going to show before it does it. So you still see [text-] and character-based user experiences; they’re prevalent and effective.”
Though the latest models may not look all that different from their predecessors, their capabilities are typically light-years ahead of those found on the earlier devices. One reason is the rise of fifth-generation (5G) wireless networks, which offer far more bandwidth and lower latency than legacy systems, supporting sensor-based data collection, Wheeler says. Instead of scanning one item at a time, sensor-based devices can gather information from many inputs automatically—including radio-frequency identification (RFID) tags, machine vision images, and, of course, the classic bar code. For instance, some models can take a picture of a shelf full of boxes or totes and scan all of the bar codes visible in the image with a single click.
SCAN GUNS THAT SEE DOUBLE
It’s not hard to see the appeal of a device that both expedites the scanning process and offers ergonomic benefits. Those attributes are crucial at a time when companies are concerned about worker fatigue, according to Ilhan Kolko, chief product officer and president of North America for ProGlove, a company that makes wearable scanners. “The labor shortage makes retention the number-one priority. That shortage and its stress on supply chains—Covid and its aftermath being a major stress—is putting a spotlight on human wellbeing, which is long overdue.”
Mobile technology can help in that regard by enabling workers to complete their tasks—whether it’s picking orders, sorting parcels, or some other job—with a single device, Kolko says. He adds that to address that need, ProGlove offers multiscanning devices that allowworkers who are picking multiple orders to read six or eight bar codes at a time.
Mobile computer developer Scandit sells a similar device. The company says its MatrixScan model can read multiple bar codes at one time by taking a picture of a shelf or rack and scanning all of the codes captured in the shot.
While that capability represents a significant improvement over scanning individual items in sequence, it’s just the first step toward the ultimate goal of connecting warehouse workers to a much wider array of codes, tags, and other information sources, says Chris Annese, Scandit’s vice president sales for the Americas. He adds that as a move in that direction, the company has developed a sophisticated software platform that lets users capture data not just from bar codes, but also from text, ID tags, and other sources.
“This approach gives superpowers to transportation and logistics workers because it digitizes their workflow from end to end,” Annese says. “That increases efficiency and productivity by simplifying and automating tasks, whether it involves van loading, proof of delivery, pickup and dropoff, or whatever. Digitalization has become reality.”
Despite that promise, “smart data capture” has been slow to gain traction in the logistics sector. There are a couple of reasons for that, Annese says. One is that advances in battery technology have not kept up with other advancements in handheld computers, preventing many devices from functioning throughout a full eight-hour shift, he says. Another is the prevalence in the DC market of classic laser scanners, which Annese describes as purpose-built, dedicated devices that are designed to do one task only: scan bar codes. These obstacles notwithstanding, Annese believes the tide will turn as companies begin to realize that workers need devices like smartphones and tablets to transition to the era of smart data capture.
THE ALWAYS-CONNECTED WORKER
One factor that’s likely to accelerate the transition to multipurpose smart devices in the warehouse is the workers themselves—or to be precise, their expectations regarding the technology they use on the job. “Now our customers are asking for smart devices because those are also coming into their daily lives,” Kolko says. “We enjoy the apps in our daily lives, with all the user experience options. No one wants to step down from those when you use business devices.”
Market statistics back him up. The adoption of wearable technology such as fitness trackers and smart watches has risen quickly among American consumers in recent years,according to the National Telecommunications and Information Administration’s “Internet Use Survey.” That research showed that the percentage of people who use wearable technology had risen to 16.19% of the U.S. population in November 2021 from 8.17% in November 2017.
As mobile devices become smarter, faster, and easier to use, the logistics workforce is reaping the benefits. Armed with better technology, warehouse staffers can become more productive on every shift, “build” a better synchronization between the physical and digital worlds, and—crucially—enjoy their jobs more. These new tools are not yet commonplace, but change is coming.
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]."