For years, the standard answer (in the DC, at least) was the warehouse management system. But nowadays, the answer is more and more likely to be a warehouse control system.
James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
At first glance, Koch Entertainment's DC in Port Washington, N.Y., would seem an unlikely candidate for a software or technology upgrade. Heavily automated by any normal standard, the center is equipped for robotic picking and features an automated storage and retrieval system crane for handling large orders. Nonetheless, when it went to install equipment for filling small orders of CDs and DVDs, the company also invested in more software. The software it chose is what's known as a warehouse control system (WCS); its job will be to control the equipment dedicated to the fulfillment of small orders.
It's not that the Port Washington DC didn't have warehousing software in place. It did. The center has been using a homegrown warehouse management system (WMS) to oversee inventory operations for years. What prompted the investment in a WCS was the desire to keep small orders from clogging the existing automated material handling system, explains Philip Wulff, Koch Entertainment's vice president of distribution. Now that it has the new WCS to run the equipment used to ship, manifest, pack and label small orders, the company is able to keep the two types of fulfillment operations entirely separate.
Koch Entertainment isn't alone. As the size of the average order shrinks in an era of quick replenishment and Internet retailing, many distribution centers find themselves scrambling to keep up with a flood of small orders. Often as not, a WCS turns out to be the solution. "Smaller order quantities introduce more complexity into warehouses. That, in turn, results in the need for computer support to run the operation," says Steve Mulaik, a consultant with The Progress Group in Atlanta.
Not only does today's warehouse control software have the functionality for the job, but these systems are often more affordable than other software packages. They're also faster to install and respond more quickly to the demands of daily operations. "Warehouse control systems let the warehouse handle transactions in real time," says Jack Kuchta, an executive vice president with the consulting firm Gross & Associates in Woodbridge, N.J. "WCS are part of the trend toward flexibility driven by IT [information technology] people so they can add one element of functionality without having to change the whole system."
Traffic cop for the DC
Part of the warehouse control systems' attraction is that they help lighten the load of a DC's existing warehouse management system or even enterprise resource planning (ERP) software, a general business application that also oversees manufacturing and finance.
Though originally marketed as a "best of breed" system with limited functionality, the warehouse management system has, over the years, become the DC's jack of all trades. Along with traditional tasks like inventory management, order fulfillment and shipping, today's systems may also handle forecasting, demand planning, slotting and even labor tracking. "WMS gets involved in business issues ... that aren't related to the work being done on the warehouse floor," says Sam Flanders, president of 2wmc.com, a material handling consulting firm located in Portsmouth, N.H.
Because they're already handling so many other tasks, WMS packages often don't contain the code needed to command complex material handling equipment. And even if they do, they're generally not nimble enough to respond quickly to transactional requests. "When you have a highly automated building, the product flows are so customized that it's not feasible to use a warehouse management system because decisions must be made in real time," says Mulaik. "WMS are not built for speed," adds Stephen Martyn, chief executive officer of Glen Road Systems Inc. (GRSI) in Conshohocken, Pa., the company that supplied the WCS for Koch Entertainment's distribution center.
That's where the WCS comes into play. Warehouse control software is specifically designed to serve as a traffic cop for machines and equipment in the warehouse, coordinating the various subsystems that handle product flow. "The WMS guys are about moving information on logistics and transportation," says Martyn. "WCS is down in the dirty world of PLCs (programmable logic controllers) and subsystems." The WCS, for example, might tell a diverter on a conveyor to direct a case down a specific chute, instruct a robot to pull a package from a storage rack, or signal a label system to stick a label on a package traveling along a conveyor belt. "It coordinates all the work on the floor," says Flanders. "It tells the system what work to do."
WCS in the middle
That ability to control an array of subsystems has become a major selling point for WCS. As technology prices drop, more DCs are going for the "add-ons: " pick-to-light systems, radio-frequency identification technology and voice-directed picking systems, for example. And each of those add-ons requires software to link the equipment to a host computer. All too often, however, companies find that their WMS or ERP system isn't capable of running add-on equipment. "People are putting in ERP packages and they're finding out that when the vendor said we had everything—they don't," says Mulaik.
What's more, the vendors may be reluctant to remedy the situation. In many cases, ERP and WMS vendors are not inclined to make modifications or additions to their software packages to run these bolt-on systems. And even when WMS vendors are willing to write the special code to interface with, say, a voice system, it can be very expensive. Small wonder that companies that find themselves in this situation often turn to a WCS. "It's simpler to deploy and less risk to a company to buy a WCS," explains Flanders of 2wmc.com.
In effect, the WCS sits between the host system—like the WMS—and the add-on equipment. "WCS is technically 'middleware' between the WMS and ERP systems and voice systems and automated conveyors," says Kuchta of Gross & Associates.
But today's warehouse control systems are much more than just an interface between the WMS and the equipment. They can be programmed with the logic to act on the information from the host system and then devise instructions to carry out a specific set of tasks. "While the WMS manages the overall activities in the operation, the WCS software executes the material flow dispatching and routing while it makes storage location decisions as well as manages the execution of order fulfillment," says Ken Ruehrdanz, industry manager at Dematic GmbH & Co. Kg., a global supplier of logistics automation equipment headquartered in Offenbach, Germany.
For instance, the WCS might take information from the WMS on the number of replenishment orders and convert that information to specific instructions for the equipment—say, batching orders to eliminate unnecessary travel for the order selector. Mulaik notes that the WCS can also be programmed to coordinate receiving tasks or group orders together for batch picking.
As often as not, companies find that a warehouse control system can accomplish these tasks much more simply and easily than a WMS or ERP can. As an example, Mulaik cites the case of a retailer that recently installed a WCS to manage the tasks associated with its radio-frequency system. That retailer, which receives 80,000 cases a day, found that the WCS could provide a smoother user interface than its WMS could, he reports. Instead of requiring workers to go through 12 fields to enter data on cases being received, as the WMS did, the WCS was able to handle the task with one screen.
WCS sold separately
In the past, WCS were generally sold as part of a package with the equipment they controlled. Back when the warehouse control system's primary function was to direct the movement of pallets and cases along a conveyor, for example, the companies that supplied the automated material handling equipment also provided the warehouse control system. That's still the case today with many makers of voice and radio-frequency systems, which supply the WCS needed to link their equipment to the WMS.
Take voice technology vendor Lucas Systems Inc. in Sewickley, Pa., for example. Although it does not offer WCS per se, it does provide middleware software bundled into its voice system package to enable the customer to take full advantage of the technology. "We do a software application that would resemble a WCS," says Jason Wilburn, director of marketing for Lucas Systems. The application takes orders from a WMS and comes up with the pick sequence. (Wilburn notes that it can even arrange the pick sequence in the warehouse bay according to the height of the user.)
But the days when warehouse control software was only sold as part of a package are gone. Marketplace demand has led to the rise of a cottage industry selling standalone WCS packages. "WCS vendors are starting to decouple themselves from equipment vendors and becoming separate entities unto themselves," Kuchta says.
Because the WCS makers are independents, their software can run equipment made by a variety of manufacturers. In some cases, the WCS modules come off the shelf pre-built. In others, the WCS provider will configure his WCS to the client's specific needs."Nowadays most WCS installations are not custom jobs," Kuchta reports. "Most WCS are being marketed as stand-alone products having hooks into types of equipment like voice or pick-to-light systems."
Bright future
It's not hard to understand why suppliers of WCS are bullish on their future. The shift away from pallet and case handling toward the fulfillment of small orders creates a wide-open market opportunity for their systems. So does the trend among DCs to knit together networks of complex subsystems.
What's also fueling vendors' optimism is the prospect of a new role for the WCS. It's becoming increasingly apparent that in the future, warehouse control systems will not only drive equipment—but people as well. As they get smarter, WCS are beginning to take on responsibility for coordinating the activities of workers by providing instructions for picking, receiving and put-away.
"It used to be that WCS was just talking to conveyors," says Mulaik. That's now starting to change. "Warehouse control systems are no longer just for automation. We can use the WCS to tell people what to do."
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
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.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!