In our continuing series of discussions with top supply-chain company executives, Stan Normand offers advice for starting an automation project and discusses the impacts that AI and machine learning will have on future robotic systems.
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.
Stanislas Normand is managing director of Exotec North America, where he works to drive the adoption of the company’s warehouse robotics solutions in the North American market. During his time at Exotec, Normand has held multiple positions and played a key role in the company’s rapid international expansion. He holds a master's degree in economics and finance from École Polytechnique in France.
Q: Stan, how would you describe the current state of the material handling automation market?
A: Customer demand for everything from faster year-round shipping to consistent order accuracy is expected to continue to grow despite the long and ever-changing list of challenges warehouses are facing now and in the future.
We’re seeing that the main challenges confronting brands right now are labor shortages, pressure for cost reductions, and uncertainty:
Labor shortages: Despite supply chain challenges easing up, the availability of labor is still a huge issue.
Cost reduction: In this uncertain environment, customers are increasingly looking to reduce costs to shore up against macroeconomic fluctuations.
Uncertainty:Customers increasingly are looking for flexibility because they want to be reactive to changes in their business and external factors.
Supply chain disruptions and labor shortages aren’t going away anytime soon. Since companies can’t control these mounting challenges, it’s important to focus on the control you do have, and that’s finding a solution to combat them. Warehouse robotic solutions lead the fulfillment industry in delivering the optimal mix of performance and flexibility to ensure customer order expectations are met and exceeded.
Q: What are your hopes for Exotec in the North American market now that you have been appointed managing director?
A: With the increase in demand for warehouse automation, my team and I are focused on growing our NA presence and delivering solutions that create warehouses where people work smarter, not harder, through robotics.
In March 2023, we reached a milestone of 5,000 robots built in record time—just three months after hitting the 4,000-robots milestone. This achievement is representative of Exotec's rapidly growing manufacturing capabilities and the growing demand for Exotec’s products. We have already made significant strides in making warehouse jobs less physically demanding. Exotec robots have saved warehouse workers from having to walk more than 16 million miles.
In December 2022, we officially opened Exotec’s North American headquarters in Atlanta, which supports and facilitates our growing business in North America, which is expected to represent as much as 40% of Exotec’s global business by 2025. We’re focused on growing our company in the region, which includes a goal of doubling our headcount by 2024.
Q: Your background is in economics and finance. How are you able to leverage that experience in your current role?
A: A background in economics is an asset in any industry, but particularly for a position in sales and operations. It gives you a set of tools to understand the market’s mechanisms and the drivers behind its growth, and companies can leverage that knowledge to their benefit.
With the current post-pandemic supply chain disorganization, worldwide inflation, and labor shortages, being able to understand how, despite that uncertainty, we can still leverage those challenges as business opportunities for Exotec is important for leading our business in North America.
My five years of experience with Exotec across different roles has also allowed me to develop a strong technical understanding of our products and understand how our solutions can be impactful for our customers. This helps me make quick decisions in a fast-moving and competitive environment.
Q: Does the approach to automation differ between the European and North American markets?
A: While there are differences in culture and business norms, many warehouses across the globe are facing similar challenges. They’re looking for reliability, efficiency, and adaptability in their warehouse, and robotic solutions can help to achieve that. Our solutions are equipped to adapt to any warehouse, regardless of its needs or size, so while our approach to automation does not change from region to region, our ability to customize solutions to our customers’ needs allows us to conduct impactful business across the world.
Q: What advice would you give someone looking to launch their first automation project?
A: Warehouse automation helps customers find answers for common issues within their supply chain. Those problems can range from a lack of resiliency in an unsure environment to difficulties with scaling in a fast-growing market. My advice for someone looking to build more automation into their operations is to really put effort into understanding what problem they’re looking to solve. Is it inadequate storage capacity? Is it throughput limitations? Is it labor shortages? Robotic systems provide a versatile and all-around solution for many typical operations shortcomings, but they don’t all address the same issues. So, it’s important to ensure that the selected solution will be the best fit for your specific needs.
The second piece of advice I can offer is to look for a solution that will minimize disruption to your operations. The initial automation project can be challenging for organizations that have to adapt to new technologies while also adapting to new ways of working. This often requires a strong change-management approach. With that in mind, the best solution will often be one that leverages technology to its full ability, to deliver massive improvements while implementing simple interfaces and an intuitive user experience. Shorter installation times can also be a huge plus to limit the impact of that disruption.
Q: How will the rapid developments in AI and machine learning affect future automation and robotic designs?
A: Rapid advancements in AI and machine learning have impacted many industries, and robotics is no exception. It’s easy to see how AI/ML has the potential to create more intelligent, adaptive, and effective robots. What’s hard to tell now is whether AI has a real purpose or place in warehouse robotics today, where perfection is so important. AI may not be at a place yet where it’s stable enough for business-centric use cases, like warehouse robotics.
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]."