Voice technology: It’s not just for picking anymore
Pick-by-voice solutions have been streamlining the picking process in warehouses and distribution centers for years. Now the technology is being applied widely to other workflows, driving even more efficiency in today’s fast-paced DCs.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Voice-directed picking solutions have been transforming distribution centers (DCs) for years, but today voice technology is being applied beyond picking to yield even greater efficiencies within the four walls of the DC. It’s not uncommon for companies to use voice-based solutions for receiving, cycle counting, packing and loading, and more these days—and experts say interest is growing as DCs struggle to find enough workers to handle ever-higher order volumes.
“In the past few years, there has been more interest in automating additional workflows in the warehouse using voice,” explains Keith Phillips, president and CEO of voice-technology solutions provider Voxware. “We started [using] voice for other processes in the warehouse back in 2015. Adoption was relatively slow back then, but as we’ve gone forward and come out of the pandemic, the demand on distribution operations has increased significantly … [so] everyone has been looking for ways to gain more efficiency.”
And they’re turning to voice because of its solid track record in the warehouse and DC. The experts say pick-by-voice solutions are easy to deploy, cut picking time, and improve accuracy by audibly directing pickers to the correct bin, shelf, or aisle along the optimal pick path. The hands-free, eyes-free solution allows pickers to focus on visually locating and selecting the correct item; there are no paper-based lists to refer to or written instructions to follow. A device—most commonly a headset or dedicated terminal—guides the worker through the entire process.
Those attributes, combined with an increasingly advanced technology landscape, make voice a prime candidate for automating all those other workflows as well.
“Today, people want to use voice the way they want to use voice,” explains Bob Bova, president and CEO of voice automation technology company AccuSpeechMobile. “It is a mature technology, but what customers expect now is completely different from what they expected in 2010.”
BEYOND PICKING
Technology advances are a big part of why voice has become so ubiquitous. Today, most voice-based technology systems are user-independent, meaning that workers don’t have to spend time training the system to recognize their voice before getting to work. New users can be up and running with the technology in minutes simply by listening to instructions and responding with a spoken confirmation or commands. Natural language processing—which allows computers to understand text and spoken words in much the same way that humans do—has enabled those advances.
And although the use of voice in the warehouse has moved beyond picking, it almost always is introduced there first. Bova says voice-directed picking is the highest-density application in most warehouses and DCs, and that many of AccuSpeechMobile’s clients ask about expanding it to other workflows after they’ve experienced improvements in picking speed and accuracy. He says common expansion areas include receiving, packing, shipping, putaway, cycle counting, replenishment, and restocking.
Indeed, today’s voice-picking solutions are part of a much broader category that is frequently referred to as “voice-enabled workflow management.” And the shift has been happening over time, as Phillips and others have pointed out. A 2020 white paper from Honeywell Voice, a division of industrial systems company Honeywell, refers to the technology as a “robust solution that consistently delivers business results in multiple workflows in a wide variety of essential DC processes and workflows.” Voice tech is a central element of the company’s “guided work solutions” business, which brings together voice software, hardware, support, and enablement tools in one platform.
And in every application, better productivity and accuracy are the ultimate end goals.
“All customers work very hard optimizing applications [and] workflows, as they are constantly trying to find any strategy that can increase productivity and eliminate errors,” Bova says, adding that AccuSpeechMobile’s device-based approach makes it easy for customers to test new workflows before rolling them out in the DC; there are no servers or middleware involved in the application, and no need to make changes to a company’s back-end system before applying the technology to a new process. “Some applications show a big leap; others are more modest. The critical factor here is that since we make it easy to try it, customers can leverage voice automation in any application they feel might benefit. This empowers operations managers to test the project on a device or two and get user feedback.”
A case in point: AccuSpeechMobile customer Cabela’s, an outfitter and sporting goods chain, has voice-enabled workflows across a handful of national DCs and 70 retail stores. The system is being used on a range of hardware platforms to coordinate workflows for the company’s omnichannel distribution operations. Cabela’s voice-enabled workflows include picking, cycle counting, packing, put-to-store, shipping, pick-to-replenishment, receiving, retail operations, cross-docking, and inventory auditing. In a published case study about the project, the company points to double-digit productivity and error-reduction improvements as a result of those implementations.
“The scope of voice deployment is across all four of our distribution centers and across every one of our 70 retail stores,” according to Cabela’s spokesperson Brent Glassmaker. “With each process, we achieved new benefits and improvements every time.”
BUILDING PALLETS, CARTONS
Voice technology can also help companies improve the way they prepare orders for delivery. Phillips points to recent customer projects that have voice-enabled pallet and carton building as examples. Voxware created a software solution within its Voice Management Suite (VMS) that directs workers through the warehouse based on where items should be placed in a carton, tote, or pallet for optimal shipping and delivery. When putting together a pick assignment, the VMS accounts for each product’s weight and dimensions in determining the right container and pick path for the order.
“The system will look at the assignment, pull in the dimensions and weight information, and tell the selector what size carton to put on their cart to go through for picking—so that items go [into the container] in the correct order,” Phillips explains. “It’s a highly configurable solution, and it’s something that’s been really valuable to customers.”
One automotive industry customer is using the solution for carton building, and a food industry customer is using it to build pallets. In both cases, higher productivity and greater accuracy are the primary results. Phillips says, on average, most voice-enabled operations will lead to a 30% increase in productivity and 99.99% accuracy.
Those results are helping to propel voice technology even further: A 2023 market research report from Fortune Business Insights forecasts a nearly 25% compound annual growth rate (CAGR) in the global speech and voice technology market over the next seven years, rising to a value of nearly $60 billion in 2030 from roughly $13 billion this year. The report doesn’t track growth in warehousing and logistics specifically, but it did find that retail and e-commerce are some of the largest users of the technology.
Phillips and Bova likewise see warehouse operations as a market ripe for growth.
“Nobody tracks adoption of voice in the [warehousing and logistics] marketplace, but there are still a ton of companies that are picking on paper—and a lot of them are not small companies,” Phillips says. “We’re working with several right now that have multiple warehouses [and] hundreds of selectors, and they’re picking on paper. There is definitely a lot of room for expansion in the voice market.”
For Bova, it’s the increasingly complex nature of supply chains that is making the biggest difference in the adoption of voice-enabled technology.
“I really think that the folks that are on the front lines, [who are dealing with] the complexity and the diversification of the supply chain in general, are handling what might be the most difficult part of any company’s business today,” he says. “It really is a wonderful feeling for us when we can show customers how [voice technology] works—and that they can use it how they want to use it. The whole idea is to take some pressure off those guys [in warehousing and supply chain].”
Riding the high-tech wave
Voice-based technology is part of a larger wave of automation that is transforming warehouse operations—and it’s a trend that’s here to stay.
Warehouse optimization software developer and voice technology provider Lucas Systems put some data behind all the claims about the benefits of automation in a 2022 survey titled Voice of the Warehouse Worker. The survey polled 500 U.S. on-floor warehouse workers about their experiences, expectations, and perceptions of technology tools—everything from voice-directed solutions to robotics—and found that most employees would take a pay cut and switch jobs to use technology that will help them do their jobs better. By the numbers, the survey found that:
Nearly three-quarters of on-floor workers said they would consider a pay cut at another company for an opportunity to use technology that would help them in their job.
Three-quarters said physical strain in their jobs takes a bigger toll on them than mental strain; the leading cause of physical strain is carrying and/or lifting followed by walking and/or traveling.
Top causes of mental strain include meeting performance or incentive goals and objectives (25%) and safely maneuvering around the warehouse (20%).
Workers see robots as productive allies but fear increased quotas. Still, more than two in five said robots will reduce physical stress (46%) or help them achieve better speed in item picking (44%) or better accuracy (40%).
Workers said they perceive their company’s technology as an investment in them.
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.
In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.
The five trends range from the promise of agentic AI to the struggle over which C-suite role should oversee data and AI responsibilities. At a glance, they reveal that:
Leaders will grapple with both the promise and hype around agentic AI. Agentic AI—which handles tasks independently—is on the rise, in the form of generative AI bots that can perform some content-creation tasks. But the authors say it will be a while before such tools can handle major tasks—like make a travel reservation or conduct a banking transaction.
The time has come to measure results from generative AI experiments. The authors say very few companies are carefully measuring productivity gains from AI projects—particularly when it comes to figuring out what their knowledge-based workers are doing with the freed-up time those projects provide. Doing so is vital to profiting from AI investments.
The reality about data-driven culture sets in. The authors found that 92% of survey respondents feel that cultural and change management challenges are the primary barriers to becoming data- and AI-driven—indicating that the shift to AI is about much more than just the technology.
Unstructured data is important again. The ability to apply Generative AI tools to manage unstructured data—such as text, images, and video—is putting a renewed focus on getting all that data into shape, which takes a whole lot of human effort. As the authors explain “organizations need to pick the best examples of each document type, tag or graph the content, and get it loaded into the system.” And many companies simply aren’t there yet.
Who should run data and AI? Expect continued struggle. Should these roles be concentrated on the business or tech side of the organization? Opinions differ, and as the roles themselves continue to evolve, the authors say companies should expect to continue to wrestle with responsibilities and reporting structures.
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
As U.S. small and medium-sized enterprises (SMEs) face an uncertain business landscape in 2025, a substantial majority (67%) expect positive growth in the new year compared to 2024, according to a survey from DHL.
However, the survey also showed that businesses could face a rocky road to reach that goal, as they navigate a complex environment of regulatory/policy shifts and global market volatility. Both those issues were cited as top challenges by 36% of respondents, followed by staffing/talent retention (11%) and digital threats and cyber attacks (2%).
Against that backdrop, SMEs said that the biggest opportunity for growth in 2025 lies in expanding into new markets (40%), followed by economic improvements (31%) and implementing new technologies (14%).
As the U.S. prepares for a broad shift in political leadership in Washington after a contentious election, the SMEs in DHL’s survey were likely split evenly on their opinion about the impact of regulatory and policy changes. A plurality of 40% were on the fence (uncertain, still evaluating), followed by 24% who believe regulatory changes could negatively impact growth, 20% who see these changes as having a positive impact, and 16% predicting no impact on growth at all.
That uncertainty also triggered a split when respondents were asked how they planned to adjust their strategy in 2025 in response to changes in the policy or regulatory landscape. The largest portion (38%) of SMEs said they remained uncertain or still evaluating, followed by 30% who will make minor adjustments, 19% will maintain their current approach, and 13% who were willing to significantly adjust their approach.