With the right adjustments to DC design and strategy, wearable computers can deliver the accuracy and efficiency needed to keep up with the rising demands of e-commerce fulfillment.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Stop by your local Best Buy or Staples, and you'll see that wearable computers are among the most popular consumer electronics on retail shelves, from the Fitbit and Apple Watch to a host of other devices that track our heartbeats, footsteps, and more.
Wearable technology is good for more than just checking texts and shedding pounds, however. The portable devices can also help warehouse workers boost their efficiency by 10 to 20 percent.
When DC employees don a voice-command headset, finger-trigger glove, belt-mounted scanner, or Google Glass goggles, they gain a two-way communication channel with crucial software platforms such as the warehouse management system (WMS) or labor management system (LMS).
With both hands freed up for picking and a direct line feeding them instructions for the next task, workers with wearable computers can get their work done faster and more accurately than their colleagues who have to walk back to the lift truck or the end of the aisle for new instructions after every pick.
E-COMMERCE DRIVES DEMAND FOR WEARABLES
Another factor driving the adoption of wearable computers is the struggle to meet the demands of fulfilling online orders placed by individual consumers.
"Warehouses are seeing a change in material handling demands as they deal with smaller, more frequent picks because of e-commerce and direct-to-consumer orders," says Mark Wheeler, director of supply chain solutions at Zebra Technologies. "With this changing order profile, the case for hands-free computing remains solid."
Ironically, logistics managers tend to look at wearable computing devices only after they've tweaked everything else in the DC, such as the layout or the fulfillment process, Wheeler says. When they finally look at ergonomics, they quickly discover that arm-mounted or voice-directed devices that free up workers' hands can go a long way toward helping them pick faster.
The use of wearable computers can also pay off in preventing mispicks and mistakes—a crucial attribute in an e-commerce environment, where online retailers are rushing to deliver individual items to buyers' homes overnight.
"The value of wearable tech is as much about accuracy as productivity. In e-commerce, it has to be 100 percent right; there's a premium put on order accuracy," Wheeler says. "So you have to be sure that technology is not getting in the way of (accuracy) because a user is distracted by handling the device."
JUST ONE PART OF THE PICTURE
That's not to say that managers can automatically boost productivity simply by dropping wearables into a DC operation. As with any technology, wearable tech has to be judiciously incorporated into the process, experts warn.
"There are process changes the customer has to accept to make the improvements come to life," says Jim Gaskell, director of global technology business development at Crown Equipment Corp. "Everybody on the consumer side buys wearables because they're cool. But it takes a little more than that to use them effectively in the warehouse."
For example, a warehouse manager may distribute voice headsets to workers on the floor, but the system won't boost a team's picking speed if the WMS is running on a slow or buggy computer.
"I've seen people hit the button after making a pick and then stand around waiting for the next command. You have to make sure there's no latency in how the WMS spits out the next order. Otherwise, there goes your improvement," Gaskell says.
Even if everything is working properly, DCs may find they have to make tweaks to their operations to get the most from their investment in wearables. For example, in order to capitalize on the speed made possible by wearable devices, some facilities may have to re-slot fast-moving goods with an eye toward cutting down on order pickers' travel distances.
Similarly, facilities that handle case-picking may find they have to re-slot inventory items to facilitate the building of optimal pallet loads. Just as baggers at a grocery store place the heaviest items on the bottom so a water jug doesn't smash a loaf of bread, warehouse pickers have to stack cases on pallets so that the lightest goods are on top. To get the biggest return on its investment in high-speed wearable computing devices, a DC may have to rearrange its goods in a pattern that allows workers to follow this principle.
In addition to that, DCs may find that once they begin using wearables for order picking, they have to update the time standards in their labor management systems. Wearable devices usually enable users to get tasks done faster, but unless the LMS is updated to reflect higher performance targets, employees may simply use the technology to reach their quota faster and then slack off.
And finally, though it may sound obvious, implementing wearable computers works best when customers think about why they're buying the tools before choosing a new "toy." Finger-trigger controls for semi-autonomous lift trucks are neat gadgets, but sometimes a simple headset is a better fit for the job.
NEW AND IMPROVED
Just as happens in the world of consumer electronics, users of wearable computers in the workplace are never quite satisfied. As soon as they become accustomed to using the devices, they start looking for upgrades. As for what they want, vendors say the requests include calls for lighter, more comfortable designs as well as longer-lasting batteries.
However, many of these upgrades are harder to make in devices used in the warehouse than for consumer electronics, Zebra's Wheeler says. For instance, when wearables are used constantly throughout the day and through successive work shifts, their batteries run down much faster than a basic smartphone's would. The drag on the battery is even greater when users operate the mobile device in a cooler or freezer, or when they use a voice-directed function.
And the user demands don't stop there. Vendors of wearable computers also report that they're fielding requests for enhanced wireless performance that can keep up with order pickers who are constantly on the move, as well as keys designed to allow users to operate the devices without stopping to look at them.
And it almost goes without saying, users want all this in a device that's rugged enough to survive a tough double shift. "If a computer is wearable on the hip or arm, it probably won't be dropped," Wheeler says, "but on the warehouse floor, it is certainly in harm's way. It will get smacked around quite a bit, so it should still be able to break away for safety."
The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.
The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.
One of the top priorities for the new group is developing an early warning pilot focused on the telecommunications supply chain, which is essential for the three countries’ global, digitized economies, they said. By identifying and monitoring disruption risks to the telecommunications supply chain, this pilot will enhance all three countries’ knowledge of relevant vulnerabilities, criticality, and residual risks. It will also develop procedures for sharing this information and responding cooperatively to disruptions.
According to the U.S. Department of Homeland Security (DHS), the group chose that sector because telecommunications infrastructure is vital to the distribution of public safety information, emergency services, and the day to day lives of many citizens. For example, undersea fiberoptic cables carry over 95% of transoceanic data traffic without which smartphones, financial networks, and communications systems would cease to function reliably.
“The resilience of our critical supply chains is a homeland security and economic security imperative,” Secretary of Homeland Security Alejandro N. Mayorkas said in a release. “Collaboration with international partners allows us to anticipate and mitigate disruptions before they occur. Our new U.S.-U.K.-Australia Supply Chain Resilience Cooperation Group will help ensure that our communities continue to have the essential goods and services they need, when they need them.”
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.
Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.
To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.
“Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins,” Chris Leone, executive vice president, Applications Development, Oracle, said in a release. “The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes.”
According to Oracle, specific upgrades feature changes to its:
Production Supervisor Workbench, which helps organizations improve manufacturing performance by providing real-time insight into work orders and generative AI-powered shift reporting.
Maintenance Supervisor Workbench, which helps organizations increase productivity and reduce asset downtime by resolving maintenance issues faster.
Order Management Enhancements, which help organizations increase operational performance by enabling users to quickly create and find orders, take actions, and engage customers.
Product Lifecycle Management (PLM) Enhancements, which help organizations accelerate product development and go-to-market by enabling users to quickly find items and configure critical objects and navigation paths to meet business-critical priorities.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.