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.
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
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%."