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.
For years, distribution consultants have labored to find ways to reduce travel time in the warehouse operation. Traditionally, that's meant designing distribution center layouts to minimize the distance order pickers had to walk to retrieve items from storage. Common sense dictates that the less time workers spend traveling, the more time they'll have for order picking and the more productive they'll be.
But there's another way to increase picking productivity. Instead of merely reducing travel distances, some companies are opting to eliminate travel time altogether. They're doing this by using automated material handling equipment to deliver items to order pickers who remain in a fixed spot. It's a concept dubbed "goods to person," and a number of material handling equipment manufacturers are touting it as a way to improve warehouse productivity.
Goods-to-person order picking isn't a new concept. Consultant John Hill of TranSystems says the idea has been around since the late 1960s under various names, including "goods to picker." But the concept is attracting renewed interest today as more distribution operations grapple with the challenges of picking individual items, or "eaches," instead of full cases or pallets.
As for the equipment used in goods-to-person picking systems, there are a number of options. For example, some companies use automated storage and retrieval systems (AS/RS) with shuttles to deliver goods to workers. In this type of application, the automated storage and retrieval system uses cranes and conveyance vehicles to remove pallets, totes, or bins from storage racks and deliver them to a station at the end of an aisle. Once the containers arrive at the station, a worker retrieves the items needed and deposits them into the appropriate boxes or totes to fill customers' orders. Automated storage and retrieval systems designed for goods-to-person picking are available from such well-known vendors as Dematic, HK Systems, Knapp Logistics and Automation, and Witron Integrated Logistics.
Another option is to use carousels in conjunction with automatic extractors. Under this approach, the carousel spins to where the desired container is stored and presents it to the automatic extractor. The extractor, which resembles an elevator, then pulls the container from the carousel and deposits it on a conveyor for transport to the pick station. One of the leading suppliers of this type of equipment is Schaefer Systems International.
Perhaps the newest variation on goods-to-person order picking involves the use of robots. With a robotic order fulfillment system, a robot carries products stored on portable shelves to an order picker. Kiva Systems is the best-known vendor of this type of technology.
No matter what type of equipment is used, computer intelligence remains critical to the successful deployment of goods-to-person picking. In fact, recent advances in software programming have taken the systems' ability to optimize the flow of items to a whole new level. Typically, this software functionality is contained in the warehouse control system (WCS), the same application that controls the automated equipment. "WCS software is the enabler that has allowed goods-to-person work stations to obtain ultra-high pick rates," explains Ken Ruehrdanz, who's a distribution and warehousing market manager at Dematic. "The WCS software allows the loads to be retrieved from the storage system and presented to the pick station in a precise sequence."
Although these systems tend to carry a high price tag, they can bring about substantial improvements in throughput. In a recently published white paper, Dematic claims that operations that adopt the goods-to-person approach can achieve pick rates of between 500 and 1,000 lines per hour. For distribution centers seeking to boost throughput in their piece picking operations, goods to person may provide just the kind of "pickup" in productivity they're looking for.
Editor's note: Dematic's white paper, "Goods to Person" Order Fulfillment, can be downloaded for free from DC Velocity's Web site. Go to https://www.dcvelocity.com/whitepapers/.
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.