United Stationers' new high-tech voice system was supposed to solve problems with picking errors. No one guessed it would boost productivity by a whopping 28 percent.
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.
When United Stationers first announced plans to convert 33 DCs over to voice technology, the talk was all about accuracy. Frustrated by an ongoing problem with picking errors, management at the $4.4 billion office and stationery supplier had decided the time had come for a change. It would scuttle its paper-based picking system and replace that system with something more accurate.
But ask company executives about their voice system today and you're more likely to hear about productivity than accuracy. "Our picking productivity increased 28 percent," boasts Bill Stark, vice president of engineering. "It has really taken hours out of our day and we have seen true savings."
What Stark learned was something DCs managers across the country have discovered in recent years. Voice systems have a big edge over paper- and scan-based picking systems when it comes to speed. There are a couple of reasons for that. For one thing, voice systems eliminate the need for workers to carry—or consult—paper pick lists or scanners. Instead, voice systems (which convert data from the facility's warehouse management system into audible form) let workers receive picking directions through headsets, leaving their hands free.
For another, today's voice systems make use of voice recognition software, which enables two-way communication. Workers can "talk" to the system simply by speaking into their headsets' microphones, getting instant responses to their requests to confirm a pick or repeat the directions. Beyond that, workers can ask the system for performance updates throughout the day, which allows them to adjust their pace if they find they're in danger of falling short of their goals.
Easy listening
United Stationers' experience with voice technology dates back to 2003. Management was becoming increasingly disillusioned with its paper-based system and was looking for a way to boost picking accuracy in the DCs, which stock everything from pens and pencils to notebooks, computer equipment, filing cabinets and janitorial supplies (more than 40,000 items in all). On the advice of its systems integrator, Dematic, the company volume centers process as many as 32,000. With voice tech- decided to give voice technology a try.
Though the companies considered other picking technologies, voice proved to be the hands-down favorite. Part of its appeal lay in its reputation for accuracy and ease of installation. Scalability was a consideration as well. United Stationers operates 34 DCs of varying sizes. While its smaller facilities might only process 3,000 lines a day, its highestvolume centers process as many as 32,000.With voice technology, the company was able to outfit even the largest facilities simply by adding more units.
Dematic selected Vocollect's Talkman voice-directed system for use in two pilot projects, conducted in 2003. Once everyone was satisfied that the voice system could meet United Stationers' needs, Dematic rolled out the Vocollect system to 31 other facilities during 2004 and 2005, with the last system coming online last summer. Currently, 33 of United Stationers' 34 distribution facilities are using voice systems (the lone holdout is a small, low-volume facility in Texas). Currently, 1,000 Talkman units are in use systemwide.
Stark reports that voice technology has lived up to its reputation for being easy to install and easy to use. Workers had no trouble adapting to the voice systems, he says, noting that they became proficient within a couple of days. "It really has been one of the easiest systems we have implemented," he says. "It was much faster to come up to speed than other warehouse technologies and automation we have had— much quicker than we expected."
Added responsibilities
United Stationers first put the technology to work in its DCs' busy split-case areas (broken-case items account for 85 percent of United Stationers' outbound volume). Later, it expanded the technology to its full-case (bulk) picking and replenishment operations. Stark and his team are currently looking into the viability of using voice technology for put-away and cycle counting. "Once you have the platform in place, it is very easy to expand functionality to other parts of the building," notes Stark.
That's not to say that United Stationers hasn't done some tweaking along the way. For example, with split-case picking, it ended up incorporating bar-code scanning into the process to assure accuracy. In most of the company's centers, the split-case picking areas consist of thousands of small pick faces that hold a vast array of small items, like paper clips, staples and notepads. These pick slots are so small that it's hard to incorporate a multi-digit check system into the process for verifying the pick's location.
Adding a bar-code scan to confirm the location quickly solved that problem. Once the voice system has directed the picker to the required location, it asks the worker to scan a bar code attached to the rack to confirm that it's the proper picking slot. The worker then scans the code using a wrist scanner (wrist models were chosen to keep workers' hands free). After it verifies the location, the system tells the worker how many items to select. After complet ing the task, the worker notifies the system that he or she is ready for the next pick. Combining voice with location scanning has boosted picking accuracy to better than 99.7 percent.
In the full-case pick area, by contrast, scanning is not used. Instead, the worker speaks a check digit into his or her microphone. The check digit consists of a two- or three-digit number or letter combination posted at the rack location. The system uses the check digit to link the location to the product it contains. Once the worker speaks the correct check digit into the system, he or she receives directions regarding how many cases to select.
Fast track
Today, with voice technology in place, merchandise moves through the buildings noticeably faster than it did just three years ago. As a result, the company's DCs have been able to absorb additional growth without increasing facility size or staff.
In addition, the accuracy gains have allowed United Stationers to eliminate several quality control stations in each building that were once needed to verify the accuracy of the split-case picks. That labor has now been reallocated to other parts of the facilities.
The system also allows the company to track errors and take corrective action if necessary. "If a customer reports a short, we can go into the voice system and find the history of who picked it, where the product was located and what time it was picked," says Stark. "We can then make sure the right product is in the right location." He adds that he gets fewer calls from customers now, as the data usually confirm that the "errors" occur on the customers' end.
That performance information isn't confined to a single facility; it's also available systemwide. At any given time, Stark can monitor the performance at any building within his network, which allows him to benchmark one facility against another. That, in itself, represents a major leap forward, he says. "We did not have any of that in the past," he notes. "Having that kind of data in your hands is very powerful."
plays well with others
Voice technology's days as a loner are over. These days, it's being teamed with a variety of other technologies to create powerful new systems. "It is no longer just a voice system alone in the corner of the warehouse," says Jason Wilburn, marketing and product manager for Sewickley, Pa.-based Lucas Systems. "It's now integrated into the entire [array of] warehouse systems."
That's not to say companies can no longer buy turnkey voice systems that include all of the hardware and communications devices needed. They still have that option. Pittsburgh-based Vocollect, for one, offers complete turnkey systems.
But today, they have other choices as well. For example, Lucas Systems, Vocollect and Lawrenceville, N.J.-based Voxware all offer software that will work with multimodal data devices, such as mobile computers, scanners and handheld PCs. That means a single device can be used for multiple warehouse operations—picking, receiving, put-away, replenishment, inventory control, cycle counting, capturing catch weight data and shipping. "It opens up the hardware layer so that voice can be part of many more warehouse applications working with a range of devices and a number of functions," says Jef Morrow, vice president of corporate marketing for Voxware.
This also opens the door to combining voice with other automatic identification technologies. That might mean, for example, that the same device that directs picking can also be used to scan a bar code in applications where scanning is the mode of choice.
In the not-so-distant future, RFID could be added to the mix. "You can take voice as a technology that directs work and combine it with RFID, which is a technology designed to capture and verify data," says Larry Sweeney, vice president of product management for Vocollect. "We are now beginning to explore ... value-added applications for combining the two technologies."
The combination of voice and RFID systems offers tantalizing possibilities. For instance, with a dual system, a worker would no longer have to read a check digit into the voice system to verify the pick location. Instead, that worker could simply use a handheld RFID reader to verify the location by reading a tag. At that point, the voice system could take over, providing special picking instructions if necessary. Similarly, a dual voice/RFID system could instantly alert the picker if he or she ends up in the wrong location. If the RFID tag read indicated an error in location, the data could be automatically sent to the voice system, which would create a message advising the picker of the problem. Voice capabilities could even be incorporated into a system to add data to read-write tags, allowing a picker to leave a voice message on a tag for track and trace purposes.
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.
The overall national industrial real estate vacancy rate edged higher in the fourth quarter, although it still remains well below pre-pandemic levels, according to an analysis by Cushman & Wakefield.
Vacancy rates shrunk during the pandemic to historically low levels as e-commerce sales—and demand for warehouse space—boomed in response to massive numbers of people working and living from home. That frantic pace is now cooling off but real estate demand remains elevated from a long-term perspective.
“We've witnessed an uptick among firms looking to lease larger buildings to support their omnichannel fulfillment strategies and maintain inventory for their e-commerce, wholesale, and retail stock. This trend is not just about space, but about efficiency and customer satisfaction,” Jason Tolliver, President, Logistics & Industrial Services, said in a release. “Meanwhile, we're also seeing a flurry of activity to support forward-deployed stock models, a strategy that keeps products closer to the market they serve and where customers order them, promising quicker deliveries and happier customers.“
The latest figures show that industrial vacancy is likely nearing its peak for this cooling cycle in the coming quarters, Cushman & Wakefield analysts said.
Compared to the third quarter, the vacancy rate climbed 20 basis points to 6.7%, but that level was still 30 basis points below the 10-year, pre-pandemic average. Likewise, overall net absorption in the fourth quarter—a term for the amount of newly developed property leased by clients—measured 36.8 million square feet, up from the 33.3 million square feet recorded in the third quarter, but down 20% on a year-over-year basis.
In step with those statistics, real estate developers slowed their plans to erect more buildings. New construction deliveries continued to decelerate for the second straight quarter. Just 85.3 million square feet of new industrial product was completed in the fourth quarter, down 8% quarter-over-quarter and 48% versus one year ago.
Likewise, only four geographic markets saw more than 20 million square feet of completions year-to-date, compared to 10 markets in 2023. Meanwhile, as construction starts remained tempered overall, the under-development pipeline has continued to thin out, dropping by 36% annually to its lowest level (290.5 million square feet) since the third quarter of 2018.
Despite the dip in demand last quarter, the market for industrial space remains relatively healthy, Cushman & Wakefield said.
“After a year of hesitancy, logistics is entering a new, sustained growth phase,” Tolliver said. “Corporate capital is being deployed to optimize supply chains, diversify networks, and minimize potential risks. What's particularly encouraging is the proactive approach of retailers, wholesalers, and 3PLs, who are not just reacting to the market, but shaping it. 2025 will be a year characterized by this bias for action.”
The three companies say the deal will allow clients to both define ideal set-ups for new warehouses and to continuously enhance existing facilities with Mega, an Nvidia Omniverse blueprint for large-scale industrial digital twins. The strategy includes a digital twin powered by physical AI – AI models that embody principles and qualities of the physical world – to improve the performance of intelligent warehouses that operate with automated forklifts, smart cameras and automation and robotics solutions.
The partners’ approach will take advantage of digital twins to plan warehouses and train robots, they said. “Future warehouses will function like massive autonomous robots, orchestrating fleets of robots within them,” Jensen Huang, founder and CEO of Nvidia, said in a release. “By integrating Omniverse and Mega into their solutions, Kion and Accenture can dramatically accelerate the development of industrial AI and autonomy for the world’s distribution and logistics ecosystem.”
Kion said it will use Nvidia’s technology to provide digital twins of warehouses that allows facility operators to design the most efficient and safe warehouse configuration without interrupting operations for testing. That includes optimizing the number of robots, workers, and automation equipment. The digital twin provides a testing ground for all aspects of warehouse operations, including facility layouts, the behavior of robot fleets, and the optimal number of workers and intelligent vehicles, the company said.
In that approach, the digital twin doesn’t stop at simulating and testing configurations, but it also trains the warehouse robots to handle changing conditions such as demand, inventory fluctuation, and layout changes. Integrated with Kion’s warehouse management software (WMS), the digital twin assigns tasks like moving goods from buffer zones to storage locations to virtual robots. And powered by advanced AI, the virtual robots plan, execute, and refine these tasks in a continuous loop, simulating and ultimately optimizing real-world operations with infinite scenarios, Kion said.
Under terms of the deal, Sick and Endress+Hauser will each hold 50% of a joint venture called "Endress+Hauser SICK GmbH+Co. KG," which will strengthen the development and production of analyzer and gas flow meter technologies. According to Sick, its gas flow meters make it possible to switch to low-emission and non-fossil energy sources, for example, and the process analyzers allow reliable monitoring of emissions.
As part of the partnership, the product solutions manufactured together will now be marketed by Endress+Hauser, allowing customers to use a broader product portfolio distributed from a single source via that company’s global sales centers.
Under terms of the contract between the two companies—which was signed in the summer of 2024— around 800 Sick employees located in 42 countries will transfer to Endress+Hauser, including workers in the global sales and service units of Sick’s “Cleaner Industries” division.
“This partnership is a perfect match,” Peter Selders, CEO of the Endress+Hauser Group, said in a release. “It creates new opportunities for growth and development, particularly in the sustainable transformation of the process industry. By joining forces, we offer added value to our customers. Our combined efforts will make us faster and ultimately more successful than if we acted alone. In this case, one and one equals more than two.”
According to Sick, the move means that its current customers will continue to find familiar Sick contacts available at Endress+Hauser for consulting, sales, and service of process automation solutions. The company says this approach allows it to focus on its core business of factory and logistics automation to meet global demand for automation and digitalization.
Sick says its core business has always been in factory and logistics automation, which accounts for more than 80% of sales, and this area remains unaffected by the new joint venture. In Sick’s view, automation is crucial for industrial companies to secure their productivity despite limited resources. And Sick’s sensor solutions are a critical part of industrial automation, which increases productivity through artificial intelligence and the digital networking of production and supply chains.
He replaces Loren Swakow, the company’s president for the past eight years, who built a reputation for providing innovative and high-performance material handling solutions, Noblelift North America said.
Pedriana had previously served as chief marketing officer at Big Joe Forklifts, where he led the development of products like the Joey series of access vehicles and their cobot pallet truck concept.
According to the company, Noblelift North America sells its material handling equipment in more than 100 countries, including a catalog of products such as electric pallet trucks, sit-down forklifts, rough terrain forklifts, narrow aisle forklifts, walkie-stackers, order pickers, electric pallet trucks, scissor lifts, tuggers/tow tractors, scrubbers, sweepers, automated guided vehicles (AGV’s), lift tables, and manual pallet jacks.
"As part of Noblelift’s focus on delivering exceptional customer experiences, we are excited to have Bill Pedriana join us in this pivotal leadership role," Wendy Mao, CEO at Noblelift Intelligent Equipment Co. Ltd., the China-based parent company of Noblelift North America, said in a release. “His passion for the industry, proven ability to execute innovative strategies, and dedication to customer satisfaction make him the perfect leader to guide Noblelift into our next phase of growth.”