InPerson interview: Scott Mullins of Lucas Systems
In our continuing series of discussions with top supply-chain company executives, Scott Mullins discusses applications for voice technology and how artificial intelligence is impacting warehouse operations.
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.
Scott Mullins is the EVP of operations and COO at Lucas Systems, where he leads several cross-functional teams, including engineering, operations, and support. Mullins has more than 30 years of experience with supply chain and health-care organizations, having previously served as chief technology officer at Annexus Health, vice president of technology for health-care supply chain company Pensiamo, and as vice president of product development and senior director of software development at Intalere. Mullins has a Bachelor of Science degree in information science from the University of Pittsburgh.
Q: How would you describe the current state of the voice and software markets?
A: The industry is thriving and growing consistently, bringing substantial value along with it. With labor shortages expected to continue, there’s a focus on developing products and features aimed at minimizing the need for labor. A significant portion of the market’s innovation revolves around enterprise software, particularly modular solutions and applications like voice technology—things like highly intuitive voice recognition, which requires minimal training, and the integration of AI and machine learning to cut down on-floor worker travel.
Uncertainties in the supply chain, market fluctuations, and inflationary pressures make investing in large-scale, capital-intensive solutions risky. Being able to implement cost-effective software solutions within a shorter time frame is a crucial advantage. The demand lies in software that’s both user-friendly and flexible, capable of seamlessly exchanging data with various WMS, ERP, or warehouse execution systems. The key is to have a solution that doesn’t heavily rely on IT resources and can be quickly put into action, bringing a critical edge in optimizing operations and enabling scalability as operational needs change.
Q: Voice technology is most often associated with picking, but it can be used in many other applications as well. Where else are customers currently looking to deploy voice?
A: Picking is really just the tip of the iceberg. You can use voice on its own or together with scanning, and possibly even vision, to improve the execution of tasks throughout the warehouse.
For example, with inventory checks, speech recognition can be used for verbal confirmation of inventory levels during regular checks, ensuring real-time accuracy in the system without needing manual data entry. During cycle counting, speech recognition can guide workers by providing audible counting instructions, minimizing errors and accelerating the counting process.
For task assignment and allocation, warehouse supervisors can use voice to assign tasks, providing real-time instructions and updates for quicker response times and efficient task execution. In cross-docking situations, where products are moving from inbound to outbound shipments, voice can verify that the correct items are being moved without manual scanning. The list is really extensive, spanning almost all of your warehouse functions.
Q: Do you have any particular projects under development that you wish to share?
A: Over the past 25+ years, the Lucas team has consistently broken new ground in process and technology when it comes to simplifying complex logistics challenges. While we’re always driving the evolution of our core voice-recognition capabilities, we’re also looking for areas to empower warehouse workers and managers through the continued progression and enhancement of solutions like our Dynamic Work Optimization software, which helps customers reduce on-floor travel 30 to 50% by optimizing work assignments and by defining optimal pick sequences or paths.
One new project we’re really excited about and proud of is our partnership with Carnegie Mellon University, which is aimed at solving packaging and sustainability challenges in the warehouse. The research is focused on developing ways to reduce waste by optimizing the way warehouses pack and package multiple items in a single order.
Q: How are the recent advances in artificial intelligence affecting research and product development?
A: AI has the potential to significantly transform activities like picking, product slotting, developing worker travel routes, and the coordination of workers and robots. Advanced analytics, machine learning algorithms, and ideas like digital twins are pivotal for helping us explore ongoing optimization, increased adaptability, and greater flexibility.
For example, AI has the capability to understand the typical time required to complete tasks by analyzing performance data collected from various operational aspects. It considers factors like user, task type, work environment, starting and ending locations, the product being handled, quantity, and more. This learning process empowers machine learning to establish standards that go way beyond the accuracy of standards developed through traditional labor standards engineering.
One big advantage of machine learning models is the ability to continuously improve. As operational modifications are introduced, the machine learning approach automatically adapts and adjusts. This dynamic capability ensures that solutions can stay in sync and continuously optimize operations with evolving circumstances. It can really be a game-changer.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”