In our continuing series of discussions with top supply-chain company executives, Keith Moore discusses warehouse optimization and good labor management.
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.
Keith Moore is CEO of AutoScheduler.AI, a warehouse resource planning and optimization platform that integrates with a customer's warehouse management system to orchestrate and optimize all activities at the site. Prior to venturing into the supply chain business, Moore was a director of product management at software startup SparkCognition. He is a graduate of the University of Tennessee, where he earned a Bachelor of Science degree in mechanical engineering.
Q: Autoscheduler provides tools for warehouse orchestration—a term some readers may not be familiar with. Could you explain what warehouse orchestration means?
A: Warehouse orchestration tools are software control layers that synthesize data from existing systems to eliminate costly delays, streamline inefficient workflows, and [prevent the waste of] resources in distribution operations. These platforms empower warehouses to optimize operations, enhance productivity, and improve order accuracy by dynamically prioritizing work continuously to ensure that the operation is always running optimally. This leads to faster trailer turn times, reduced costs, and a network that runs like clockwork, even during fluctuating demands.
Q: How is orchestration different from a typical warehouse management system?
A: A warehouse management system (WMS) focuses on tracking inventory and managing warehouse operations. Warehouse orchestration goes a step further by integrating and optimizing all aspects of warehouse activities in a capacity-constrained way. Orchestration provides a dynamic, real-time layer that coordinates various systems and processes, enabling more agile and responsive operations. It enhances decision-making by considering multiple variables and constraints.
Q: How does warehouse orchestration help facilities make their workers more productive?
A: Two ways to make labor in a warehouse more productive are to work harder and to work smarter. For teams that want to work harder, most companies use a labor management system to track individual performances against an expected standard. Warehouse orchestration technology focuses on the other side of the coin, helping warehouses "work smarter."
Warehouse orchestration technology optimizes labor by providing real-time insights into workload demands and resource availability based on actual fluctuating constraints around the building. It enables dynamic task assignments based on current priorities and worker skills, ensuring that labor is allocated where it's needed most, even accounting for equipment availability, flow constraints, and overall work speed. This approach reduces idle time, balances workloads, and enhances employee productivity.
Q: How can visibility improve operations?
A: Due to the software ecosystem in place today, most distribution operations are highly reactive environments where there is always a "hair on fire" problem that needs to be solved. By leveraging orchestration technologies, this problem is mitigated because you're providing the site with added visibility into the past, present, and future state of the operation. This opens up a vast number of doors for distribution leadership. They go from learning about a problem after it's happened to gaining the ability to inform customers and transportation teams about potential service issues that are 24 hours away.
The third-party logistics provider (3PL) LVK will partner with Instawork, whose app connects hourly professionals with local jobs, with the partners saying the move will answer a structural shortage of warehouse workers.
The deal will work by integrating LVK’s warehouse operations software with Instawork's network of vetted hourly workers, creating a lever to scale up warehouse operations across North America, they said.
That step is necessary because the warehouse industry can’t find enough workers to support its continued expansion to meet surging consumer demand. In fact, Instawork’s State of Warehouse Labor report has found that 43% of businesses had to forego revenue as a result of insufficient staffing.
"By joining forces with LVK, we are taking a significant step towards empowering warehouses with the tools and labor they need to thrive in today's fast-paced environment," Alex Vinden, General Manager of Light Industrial for Instawork, said in a release. "Together, we are poised to deliver unparalleled value to warehouse operators, ensuring they can meet customer demands with precision and agility."
According to Maggie Barnett, CEO of LVK, the new linkage will equip warehouses with both the labor and the technology they need in today's competitive landscape. "LVK is excited to partner with Instawork to bring transformative solutions to the warehouse industry," Barnett said. "Our combined expertise will empower warehouse operators to enhance their operations, reduce costs, and improve service levels, ultimately driving success in a competitive landscape."
The deal will create a combination of two labor management system providers, delivering visibility into network performance, labor productivity, and profitability management at every level of a company’s operations, from the warehouse floor to the executive suite, Bellevue, Washington-based Easy Metrics said.
Terms of the deal were not disclosed, but Easy Metrics is backed by Nexa Equity, a San Francisco-based private equity firm. The combined company will serve over 550 facilities and provide its users with advanced strategic insights, such as facility benchmarking, forecasting, and cost-to-serve analysis by customer and process.
And more features are on the way. According to the firms, customers of both Easy Metrics and TZA will soon benefit from accelerated investments in product innovation. New functionalities set to roll out in 2025 and beyond will include advanced tools for managing customer profitability and AI-driven features to enhance operational decision-making, they said.
San Francisco-based Simbe’s “Tally” robot cruises stores aisles conducting inventory counts by scanning items with computer vision to identify exact product location, stock level, and pricing & promotion information. That information streamlines inventory management and store operations, the company says.
Now, the results of the firm’s first annual “Store Team Technology Sentiment Report” show that deploying robots for inventory counts also helps retain workers. By automating monotonous tasks, Tally saves workers up to 50 hours each week, and 3 of 4 store managers say those employees better support shoppers as a result.
The statistics come from an April online survey of 174 store managers who have used the Tally robot for six months or more.
In other results, a majority of employees reported feeling more fulfilled by their work since their stores adopted Tally technology. That improves store worker retention, since job fulfilment has been identified as a major variable keeping workers on the job, Simbe said.
In addition, Three fourths of store managers say Tally creates better processes for their team, through features such as pick path optimization, which lets store teams quickly and easily find items for online orders, which cuts order fulfillment times in half.
Finally, 85% of store managers using Tally said that the robot helps them sell more and encourages consumer loyalty, by freeing up employees to help shoppers, Simbe said.
Easy Metrics, a Bellevue, Washington-based labor analytics platform for warehouses and manufacturers, has landed $31 million in funding and plans to use it to accelerate product development, expand organizational capacity, and pursue strategic acquisitions.
The funding came from private equity firm Nexa Equity. Terms of the deal were not disclosed.
Founded in 2012, Easy Metrics says its products—such as labor management system (LMS) software—provide actionable insights into operational cost and performance, site profitability, and labor productivity. That empowers operations teams to cut waste, drive efficiencies, and create a more engaged and productive workforce. The company currently serves over 250 facilities across more than 50 customers that range from fortune 500 enterprises to mid-market businesses.
“Easy Metrics’ labor analytics solution is becoming increasingly vital for warehouses and manufacturers due to shifts in labor dynamics and the supply chain,” Joey Maloney, Partner at Nexa Equity, said in a release. “We are very excited to partner with Dean and the Easy Metrics team, which has leveraged their deep industry expertise to build a best-in-class product that addresses critical operational needs.”
E-commerce giant Amazon has seen its expansion into the European Union (EU) market slowed in recent days, as regulators fined the company about $35 million for using “excessively intrusive” warehouse labor software and blocked its $1.4 billion acquisition of consumer robotics vendor iRobot.
In the first instance, the French Data Protection Authority known by the acronym for its French-language initials, CNIL, said last week that it levied the fine on Amazon France Logistique, the Seattle-based firm’s warehouse management arm in the country.
According to CNIL, the company had set up an excessively intrusive system for monitoring employee activity and performance, and had conducted video surveillance without providing sufficient information or security.
Specifically, Amazon was collecting and analyzing the data generated by the barcode scanner guns issued to each warehouse employee, and measuring the exact time it took individuals to complete tasks such as storage or removal of an item from the shelves, and the length of idle time between tasks. The CNIL ruled that it was illegal to set up a system measuring work interruptions with such accuracy, potentially requiring employees to justify every break or interruption. The board also said it was excessive for Amazon to keep that data and the resulting statistical indicators on its employees and temporary workers for a period of 31 days.
“Such systems kept employees under close surveillance for all tasks carried out with scanners and thus put them under continuous pressure. It also took into account the large number of people involved (several thousand) and considered that the constraints imposed on employees through this computer monitoring contributed directly to the company's economic gains and gave it a competitive advantage over other companies in online sales market.”
Amazon has disputed the ruling, calling it factually incorrect and noting that the investigation was conducted without visiting any company sites. “We strongly disagree with the CNIL’s conclusions which are factually incorrect and we reserve the right to file an appeal. Warehouse management systems are industry standard and are necessary for ensuring the safety, quality, and efficiency of operations and to track the storage of inventory and processing of packages on time and in line with customer expectations,” a company spokesperson said.
In an unrelated matter, Amazon took a second blow from EU business regulators this week, who opposed the company’s planned acquisition of Bedford, Massachusetts-based consumer robot maker iRobot, which is known for its automated “Roomba” vacuum cleaner. According to published reports, European Commission antitrust regulators were concerned that Amazon would thwart iRobot rivals on its online marketplace, especially in France, Germany, Italy, and Spain.