Installing a warehouse management system is a crucial first step for any high-speed e-commerce fulfillment operation. But integrating that software with the latest systems and technologies can take things to a whole new level.
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.
Any company that operates a distribution center recognizes the importance of being nimble in its daily operations, as businesses of all stripes scramble to meet escalating customer demands in a tumultuous market. Fortunately, logistics technology and automated equipment providers seem to introduce new tools every month that are designed with agility in mind.
But that expanding toolbox comes with its own demands. In the warehouse tech world, no solution is an island. In order to reach their full potential, these new tools—whether they’re wireless scanners, tablets, autonomous mobile robots (AMRs), goods-to-person (GTP) systems, or specialized software apps—must be tightly integrated with the warehouse management system (WMS) that controls daily operations in today’s high-tech DCs. And making that happen is easier said than done.
“Interfaces are easy. Integrations are hard,” says Mark Fralick, chief technology officer at warehouse software developer Softeon. Teaching two devices to exchange data is a fairly simple task, but training them to work in an orchestrated fashion gets tricky, he says. What’s missing in many cases is a “vendor-agnostic” mechanism that allows technologies from disparate providers to work together toward shared goals.
For example, some companies need a tight connection between e-commerce platforms and pick-and-pack operations, while others need a way to integrate their fulfillment and shipping activities. Here are two real-life examples of companies that successfully integrated their new WMS systems with other technologies.
CRAFTING A SOLUTION
Crafter’s Companion is a craft and art materials retailer headquartered in Durham, England. Founded in 2005, the company now employs more than 200 workers and exports products from its warehouses in northeastern England and Corona, California, to more than 40 countries across Europe, Asia, Australia, and North and South America. Crafter’s Companion operates as a multichannel retailer, selling its products directly to consumers online and through its retail stores, as well as via its trade, wholesale, and TV shopping partners.
As part of a recent effort to boost warehouse efficiency, the company implemented a cloud-based e-commerce WMS from software developer Descartes Systems Group. Among other advantages, the e-commerce WMS, which is designed to help direct-to-consumer brands and e-commerce retailers streamline their order fulfillment processes, helps ensure that users are able to ship on time, ship the right items, not oversell existing inventory, and have full transparency into warehouse operations, according to the developer. In order to make that possible, the solution comes pre-integrated with major e-commerce platforms, like ChannelAdvisor, Shopify Plus, and Brightpearl. Order information is automatically available to be executed via mobile-driven multi-order pick-and-pack processes and then fed into a variety of parcel shipment systems.
For Crafter’s Companion, the new solution was a game-changer, the two companies say. In addition to realizing higher customer satisfaction levels as a result of faster order processing, the retailer saw a significant drop in fulfillment errors—a result of adding barcode-based scanning to its existing pick-and-pack process.
“The software is helping us operate to our full potential,” said Mark Allsop, CEO of Crafter’s Companion, in a release. “With the new solution, we have achieved a 25% increase in fulfillment efficiency with an error rate of less than 1%.”
HARVESTING FULFILLMENT SUCCESS
The online retailer Titan Brands specializes in fitness equipment, commercial and farm attachments, and outdoor items, with corporate headquarters in Memphis, Tennessee, and DCs in Memphis; Horn Lake, Mississippi; Visalia, California; and Mechanicsburg, Pennsylvania. According to its website, the company’s mission is to “provide customers with premium products without the premium cost,” which it does through “superior product acquisition, leading-edge e-commerce capabilities, … and world-class service.”
In line with that strategy, the company recently launched a project to transform its end-user experience, with goals that included providing real-time inventory information, increased delivery date accuracy, and a shorter customer service cycle. To help make that happen, the company partnered with software developer Körber Business Area Supply Chain, implementing an integrated combination of Körber’s order management system (OMS)—which tracks a customer’s purchase throughout its lifecycle, from order to fulfillment to returns—and Körber’s WMS.
Over the course of the project, Titan Brands essentially overhauled its supply chain by increasing real-time visibility, optimizing fulfillment and labor productivity within the DC, and eliminating error-prone processes, according to Körber. In the process, it has reduced back-orders by 70% and inventory adjustments by more than 90%. On top of that, the retailer has achieved an order-to-ship cycle of hours, instead of days.
“Modernizing the supply chain is a substantial undertaking for e-commerce retailers across the globe and one that requires comprehensive solutions to address each aspect of performance,” Sean Elliott, CTO software, Körber Business Area Supply Chain, said in a release. “Körber’s streamlined OMS and WMS provide the solutions that today’s retailers need to remain competitive through optimization and accuracy.”
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.