In Person interview: Gary Cash of Matthews Automation Solutions
In our continuing series of discussions with top supply-chain company executives, Gary Cash of Matthews Automation Solutions discusses the warehouse software and controls markets and the impact of IoT technologies.
Gary Cash has spent his 30-year career designing automated material handling and manufacturing systems with a focus on software and controls. He is currently vice president and general manager of Cincinnati-based Matthews Automation Solutions, a business unit of Matthews International. In that role, Cash is responsible for the strategic direction of the combined Pyramid and Compass businesses, which provide warehouse execution software and control systems for distribution and fulfillment centers.
Cash’s systems experience also includes product development for sortation systems, conveyors, palletizers, print-and-apply systems, automated storage and retrieval systems (AS/RS), and picking systems. He holds a bachelor’s degree in electrical engineering from Cleveland State University and an MBA from John Carroll University.
Q:As we begin a new year, how do you view the state of the warehouse management systems and controls markets?
A: The markets for WMS/WES/WCS software and controls remain strong. Much of it is driven by the continued shift to e-commerce and the need to meet ever-increasing service and performance expectations. However, I believe the most important trend is to install more integrated and comprehensive software solutions that can continuously monitor performance, move work to where it is needed, and intelligently adapt as the workload changes throughout the day.
Q:How has the Covid-19 pandemic affected your customers and the systems they need?
A: Covid-19 has impacted our customers in a few ways. As we have all seen, the shift from brick-and-mortar–based retail to e-commerce has accelerated to accommodate consumers’ desire to avoid crowds and contact with others.
On top of that, many new ways of delivering product are becoming more commonplace, such as buy online/pick up in store (BOPIS), home deliveries, and micro-fulfillment. Within distribution centers, software systems are now tasked with managing newer systems and technologies, such as AMRs (autonomous mobile robots), to minimize the number of people required in an area.
We also are changing how workload planning occurs, now accounting for social distancing needs with ongoing monitoring of workers’ locations throughout their shifts.
Q: How do you expect the internet of things (IoT) to affect the controls industry in the coming years?
A: IoT is generally thought of as the connection of smart devices to the internet. In the world of distribution centers, we typically gather information from devices and publish it within a local network to help users with their decision-making. As a provider of warehouse execution software, we take advantage of the thousands of data points generated by these sensors to continuously evaluate how a system is running. Our flow management software looks for opportunities to pull in more work where needed or to redirect it, allowing the system to automatically maximize throughput in all areas of an operation. Our software and controls depend on this IoT approach for the real-time feedback needed for evaluating flow management decisions.
Q:Business units within the Matthews family offer a wide range of solutions, including software and material handling equipment. What kinds of synergies are created between your brands?
A: The Matthews Automation Solutions brands include Pyramid, Compass, Lightning Pick, RAF, and Guidance Automation. All were brought together through a deep understanding of our customers’ needs, with the agility to combine our industry-leading products and third-party systems to create innovative solutions. As one Matthews group, we can deliver fully integrated, end-to-end material handling systems. Yet with multiple best-of-breed brands and a deep network of proven relationships with top-tier partners, we don’t approach automation with a monolithic, one-size-fits-all strategy.
We have found that, even in distribution centers that share similar product types and throughput, customers need flexible automation aligned with their unique needs and culture. Matthews’ strategy, therefore, is to combine our proven, standard software modules with the best hardware fit for the customer’s specific processes. We’re “hardware agnostic,” so we ensure the correct products are utilized for their singular applications. In fact, our software and controls engineering team thrives and excels when challenged by some of these unique requirements.
Q: Are you working on any current projects or products that you wish to share?
A: Light-directed systems are easy to deploy and deliver rapid boosts in productivity and efficiency. We’re working with several food-related brands challenged with sudden, massive increases in omnichannel order volume. Pick-to-light and put walls, for example, are helping meal-kit delivery services meet skyrocketing e-commerce demand. The same solutions enable other brands to successfully supply major retailers with fresh, ready-to-eat meals.
In addition to “classic” pick-to-light projects, there is rising adoption of light sleds, light frames, and picking carts that leverage the technology’s inherent flexibility to support multiple order selection and sortation techniques.
Autonomous mobile robots also offer opportunities to integrate with lights, conveyor, and other automation to optimize dynamic fulfillment environments. Whether these projects involve Matthews AMRs or other manufacturers’ robots, we’re focused on the solid integration necessary for reliable, impactful solutions.
Q:What do you think is the most important thing that companies should focus on now in their supply chains?
A: As we’ve learned from Covid-19, building flexibility is critical for adapting to changing market conditions, global supply chain risks, and major shifts in shopping behavior. Software designed to manage complex workflows can make fast changes to improve deliveries to stores, parcel shipping, or store pickup as needed.
The advent of more integrated WES software provides detailed process visibility, maximizing throughput and efficiency throughout these workflows. This includes a wide range of real-time status updates on conveyor system sensors, the quantity and mix of incoming orders, the current workload at any point in the system, and other critical information. Advanced algorithms monitor that data and adjust automated subsystems throughout the day to maintain optimal work balance and flow. Whether customers use waveless or wave-based order processing strategies, WES is a real competitive advantage for those who have it.
The way that shippers and carriers classify loads of less than truckload (LTL) freight to determine delivery rates is set to change in 2025 for the first time in decades, introducing a new approach that is designed to support more standardized practices.
But the transition may take some time. Businesses throughout the logistics sector will be affected by the transition, since the NMFC is a critical tool for setting prices that is used daily by transportation providers, trucking fleets, third party logistics providers (3PLs), and freight brokers.
For example, the current system creates 18 classes of freight that are identified by numbers from 50 to 500, according to a blog post by Nolan Transportation Group (NTG). Lower classed freight costs less to ship, ranging from basic goods that fit on a standard shrink-wrapped 4X4 pallet (class 50) up to highly valuable or delicate items such as bags of gold dust or boxes of ping pong balls (class 500).
In the future, that system will be streamlined by four new features, NMFTA said:
standardized density scale for LTL freight with no handling, stowability, and liability issues,
unique identifiers for freight with special handling, stowability, or liability needs,
condensed and modernized commodity listings, and
improved usability of the ClassIT classification tool.
The new changes look to simplify the classification by grouping similar articles together and assigning most classes based solely on density – the most measurable of the four characteristics, he said. Exceptions will be handled separately, adding one or more of the three remaining characteristics in cases where density alone is not adequate to determine an accurate class.
When the updates roll out in 2025, many shippers will see shifts in the LTL prices they pay to move loads, because the way their freight is classified – and subsequently billed – might change. To cope with those changes, he said it’s important for shippers to review their pricing agreements and be prepared for these adjustments, while carriers should prepare to manage customer relationships through the transition.
“This shift is a big deal for the LTL industry, and it’s going to require a lot of work upfront,” Davis said. “But ultimately, simplifying the classification system should help reduce friction between shippers and carriers. We want to make the process as straightforward as possible, eliminate unnecessary disputes, and make the system more intuitive for everyone. It’s a change that’s long overdue, and while there might be challenges in the short term, I believe it will benefit the industry in the long run.
Business leaders in the manufacturing and transportation sectors will increasingly turn to technology in 2025 to adapt to developments in a tricky economic environment, according to a report from Forrester.
That approach is needed because companies in asset-intensive industries like manufacturing and transportation quickly feel the pain when energy prices rise, raw materials are harder to access, or borrowing money for capital projects becomes more expensive, according to researcher Paul Miller, vice president and principal analyst at Forrester.
And all of those conditions arose in 2024, forcing leaders to focus even more than usual on managing costs and improving efficiency. Forrester’s latest forecast doesn’t anticipate any dramatic improvement in the global macroeconomic situation in 2025, but it does anticipate several ways that companies will adapt.
For 2025, Forrester predicts that:
over 25% of big last-mile service and delivery fleets in Europe will be electric. Across the continent, parcel delivery firms, utility companies, and local governments operating large fleets of small vans over relatively short distances see electrification as an opportunity to manage costs while lowering carbon emissions.
less than 5% of the robots entering factories and warehouses will walk. While industry coverage often focuses on two-legged robots, Forrester says the compelling use cases for those legs are less common — or obvious — than supporters suggest. The report says that those robots have a wow factor, but they may not have the best form factor for addressing industry’s dull, dirty, and dangerous tasks.
carmakers will make significant cuts to their digital divisions, admitting defeat after the industry invested billions of dollars in recent years to build the capability to design the connected and digital features installed in modern vehicles. Instead, the future of mobility will be underpinned by ecosystems of various technology providers, not necessarily reliant on the same large automaker that made the car itself.
Regular online readers of DC Velocity and Supply Chain Xchange have probably noticed something new during the past few weeks. Our team has been working for months to produce shiny new websites that allow you to find the supply chain news and stories you need more easily.
It is always good for a media brand to undergo a refresh every once in a while. We certainly are not alone in retooling our websites; most of you likely go through that rather complex process every few years. But this was more than just your average refresh. We did it to take advantage of the most recent developments in artificial intelligence (AI).
Most of the AI work will take place behind the scenes. We will not, for instance, use AI to generate our stories. Those will still be written by our award-winning editorial team (I realize I’m biased, but I believe them to be the best in the business). Instead, we will be applying AI to things like graphics, search functions, and prioritizing relevant stories to make it easier for you to find the information you need along with related content.
We have also redesigned the websites’ layouts to make it quick and easy to find articles on specific topics. For example, content on DC Velocity’s new site is divided into five categories: material handling, robotics, transportation, technology, and supply chain services. We also offer a robust video section, including case histories, webcasts, and executive interviews, plus our weekly podcasts.
Over on the Supply Chain Xchange site, we have organized articles into categories that align with the traditional five phases of supply chain management: plan, procure, produce, move, and store. Plus, we added a “tech” category just to round it off. You can also find links to our videos, newsletters, podcasts, webcasts, blogs, and much more on the site.
Our mobile-app users will also notice some enhancements. An increasing number of you are receiving your daily supply chain news on your phones and tablets, so we have revamped our sites for optimal performance on those devices. For instance, you’ll find that related stories will appear right after the article you’re reading in case you want to delve further into the topic.
However you view us, you will find snappier headlines, more graphics and illustrations, and sites that are easier to navigate.
I would personally like to thank our management, IT department, and editors for their work in making this transition a reality. In our more than 20 years as a media company, this is our largest expansion into digital yet.
We hope you enjoy the experience.
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In this chart, the red and green bars represent Trucking Conditions Index for 2024. The blue line represents the Trucking Conditions Index for 2023. The index shows that while business conditions for trucking companies improved in August of 2024 versus July of 2024, they are still overall negative.
FTR’s Trucking Conditions Index improved in August to -1.39 from the reading of -5.59 in July. The Bloomington, Indiana-based firm forecasts that its TCI readings will remain mostly negative-to-neutral through the beginning of 2025.
“Trucking is en route to more favorable conditions next year, but the road remains bumpy as both freight volume and capacity utilization are still soft, keeping rates weak. Our forecasts continue to show the truck freight market starting to favor carriers modestly before the second quarter of next year,” Avery Vise, FTR’s vice president of trucking, said in a release.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index, a positive score represents good, optimistic conditions, and a negative score shows the opposite.
A coalition of truckers is applauding the latest round of $30 million in federal funding to address what they call a “national truck parking crisis,” created when drivers face an imperative to pull over and stop when they cap out their hours of service, yet can seldom find a safe spot for their vehicle.
According to the White House, a total of 44 projects were selected in this round of funding, including projects that improve safety, mobility, and economic competitiveness, constructing major bridges, expanding port capacity, and redesigning interchanges. The money is the latest in a series of large infrastructure investments that have included nearly $12.8 billion in funding through the INFRA and Mega programs for 140 projects across 42 states, Washington D.C., and Puerto Rico. The money funds: 35 bridge projects, 18 port projects, 20 rail projects, and 85 highway improvement projects.
In a statement, the Owner-Operator Independent Drivers Association (OOIDA) said the federal funds would make a big difference in driver safety and transportation networks.
"Lack of safe truck parking has been a top concern of truckers for decades and as a truck driver, I can tell you firsthand that when truckers don’t have a safe place to park, we are put in a no-win situation. We must either continue to drive while fatigued or out of legal driving time, or park in an undesignated and unsafe location like the side of the road or abandoned lot,” OOIDA President Todd Spencer said in a release. “It forces truck drivers to make a choice between safety and following federal Hours-of-Service rules. OOIDA and the 150,000 small business truckers we represent thank Secretary Buttigieg and the Department for their increased focus on resolving an issue that has plagued our industry for decades.”