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%."
Terms of the deal were not disclosed, but Aptean said the move will add new capabilities to its warehouse management and supply chain management offerings for manufacturers, wholesalers, distributors, retailers, and 3PLs. Aptean currently provides enterprise resource planning (ERP), transportation management systems (TMS), and product lifecycle management (PLM) platforms.
Founded in 1980 and headquartered in Durham, U.K., Indigo Software provides software designed for mid-market organizations, giving users real-time visibility and management from the initial receipt of stock all the way through to final dispatch of the finished product. That enables organizations to optimize an array of warehouse operations including receiving, storage, picking, packing, and shipping, the firm says.
Specific sectors served by Indigo Software include the food and beverage, fashion and apparel, fast moving consumer goods, automotive, manufacturing, 3PL, chemicals, and wholesale / distribution verticals.
Building products distribution company QXO Inc., the startup created last year by XPO Logistics founder Brad Jacobs, has raised a $5 billion war-chest and intends to spend the money to grow its business through acquisitions, the company said Monday.
Greenwich, Connecticut-based QXO gained the backing through a $620 million round unveiled yesterday, which come immediately after it raised another $3.5 billion last week. Those investments followed the company’s initial backing, which included $900 million from Jacobs’ own investment firm, Jacobs Private Equity, and $100 million from Sequoia Heritage and other co-investors.
In addition to providing financial leverage, the latest round provides QXO with a high profile executive, naming former Trump Administration official Jared Kushner to a board seat. That arrangement comes as $150 million of the funding comes from the investment firm Affinity Partners, which was founded by Kushner.
According to QXO, its business model will center on providing technology solutions to clients in the manufacturing, distribution, and service sectors. The young company hasn’t yet acquired any firms in its target area of the construction and infrastructure products distribution sector, but it plans to ultimately make those providers more profitable by improving their technology and logistics practices.
In the meantime, QXO’s current revenue comes only from SilverSun Technologies, the small tech firm it bought as a staging area for its larger ambitions. Now a division of QXO, that firm still operates as a value-added reseller of business software for applications such as accounting, financial reporting, enterprise resource planning (ERP), warehouse management systems (WMS), customer relationship management (CRM), and business intelligence.
Editor's note:This article was revised on July 25 to clarify QXO’s business model.
Alpharetta, Georgia-based Aptean said the move adds new capabilities to its warehouse management and supply chain management offerings for wholesalers, importers, manufacturers, retailers, and 3PLs. Terms of the deal were not disclosed.
PLT offers an integrated suite of solutions including picking, stock management, receiving, reverse logistics, order management, dispatch control, and load bay management. The PLT platform is designed to manage operations across single-site and multi-site systems, with industry expertise across the 3PL logistics, bulk commodities, chemicals, cold storage, grocery, pharmaceutical, wholesale / distribution, manufacturing, and retail verticals.
Aptean’s latest acquisition follows its move in 2023 to buy TOTALogistix, a provider of transportation management system (TMS) software, and its 2022 purchase of the British ERP vendor Merlin Business Software Ltd.
Sometimes the most difficult part of implementing automation is getting it to play nicely with your other technology solutions.
Hagen Group, a multinational manufacturer and distributor of pet products, is a case in point. In a bid to reduce its dependence on temporary labor at its Las Vegas distribution facility, Hagen had decided to implement 6 River Systems’ (6RS) “Chuck” autonomous mobile robots (AMRs)—a solution it hoped would prove easy to install as it would require no major changes to the DC’s layout. However, when Hagen tried to integrate the robots with its existing warehouse management system (WMS), it ran into a problem: The WMS lacked the built-in application programming interface (API) needed to leverage the AMRs’ full capabilities.
UPGRADING INFRASTRUCTURE
Hagen explored a number of options for solving this problem, but most of them proved unsatisfactory. For instance, the company could have integrated an API into its existing WMS or upgraded to an entirely new WMS—but both of those options would have been quite costly. Alternatively, it could have asked 6RS to change the AMRs’ standard APIs to integrate with the company’s existing WMS, but that would have reduced the AMRs’ functionality and meant additional costs in the future.
The fourth choice proved to be the most promising for Hagen—incorporating SVT Robotics’ Softbot platform. This tech-agnostic software program would be able to take Hagen’s WMS flat files (simple data files presented in table form), standardize them, and then orchestrate orders for the Chuck AMRs. The solution would require no changes to the 6RS APIs, and Hagen wouldn’t have to sacrifice any AMR functionality. Furthermore, when Hagen is ready to upgrade its WMS to a full API version, SVT Robotics will be able to seamlessly switch the AMRs over to the new system in a matter of hours.
With the Softbot platform, implementation proved to be relatively painless, according to the two companies. The few hiccups that arose during the standard integration testing shortly before the system went live were promptly resolved by SVT’s deployment team.
SOLID RESULTS
By all accounts, the integration has been an unqualified success. “The biggest milestone is that our AMRs are communicating with our WMS,” Arash Shahreva, director of operations at Hagen Group, said in a case study. “That is a bridge that was not existent before, and SVT was able to create this custom bridge for us [that] allows [for communication] between our WMS and 6 River Systems.”
The benefits didn’t end there. For instance, once the robots went live, Hagen saw a whopping 295% increase in order picking productivity. On top of that, it has seen a significant reduction in the time needed to train new-hires and a marked improvement in employee retention, as warehouse associates have found working with the AMRs to be less physically taxing than their previous jobs.
And finally, when the time comes for Hagen to make further upgrades—say, transitioning to a new WMS or implementing Chucks at additional facilities—the process promises to be quick and easy, as the integration groundwork is already in place.
Choosing and implementing software systems for your business is never easy, especially when trying to figure out the best technology for your warehouse management and transportation management needs. Big box retailer Ocean State Job Lot worked with boutique consulting firm Alpine Supply Chain Solutions to manage this process recently, and the two companies discussed the ins and outs of selection and implementation in an afternoon session on day one of the Warehousing Education and Research Council’s (WERC) 2024 Conference, taking place this week in Dallas.
Alpine’s Greg Utter described the unique project, which involved implementing both a warehouse management system (WMS) and a transportation management system (TMS) under one project umbrella. The Northeast retailer runs 153 stores in nine states, supported by a single, 1.2 million square-foot distribution center (DC) in Rhode Island. Ocean State’s Director for DC Support, Tracy Ruzzo, explained the technology shortcomings that were keeping the company from meeting its long-term objectives: In short, the company’s “archaic” systems made onboarding employees difficult, created challenges to expanding its online business, and limited visibility across the organization, among other issues.
Utter and Ruzzo discussed how the companies worked together to plan for and choose the new technology, including outlining steps and best practices as well as offering some lessons learned. To date, Ocean State has implemented the first phase of a new TMS and is planning for phase two, followed by a WMS implementation.
WERC 2024 takes place through Wednesday, June 5 at the Hilton Anatole in Dallas.