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.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.