InPerson interview: Scott Mullins of Lucas Systems
In our continuing series of discussions with top supply-chain company executives, Scott Mullins discusses applications for voice technology and how artificial intelligence is impacting warehouse operations.
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.
Scott Mullins is the EVP of operations and COO at Lucas Systems, where he leads several cross-functional teams, including engineering, operations, and support. Mullins has more than 30 years of experience with supply chain and health-care organizations, having previously served as chief technology officer at Annexus Health, vice president of technology for health-care supply chain company Pensiamo, and as vice president of product development and senior director of software development at Intalere. Mullins has a Bachelor of Science degree in information science from the University of Pittsburgh.
Q: How would you describe the current state of the voice and software markets?
A: The industry is thriving and growing consistently, bringing substantial value along with it. With labor shortages expected to continue, there’s a focus on developing products and features aimed at minimizing the need for labor. A significant portion of the market’s innovation revolves around enterprise software, particularly modular solutions and applications like voice technology—things like highly intuitive voice recognition, which requires minimal training, and the integration of AI and machine learning to cut down on-floor worker travel.
Uncertainties in the supply chain, market fluctuations, and inflationary pressures make investing in large-scale, capital-intensive solutions risky. Being able to implement cost-effective software solutions within a shorter time frame is a crucial advantage. The demand lies in software that’s both user-friendly and flexible, capable of seamlessly exchanging data with various WMS, ERP, or warehouse execution systems. The key is to have a solution that doesn’t heavily rely on IT resources and can be quickly put into action, bringing a critical edge in optimizing operations and enabling scalability as operational needs change.
Q: Voice technology is most often associated with picking, but it can be used in many other applications as well. Where else are customers currently looking to deploy voice?
A: Picking is really just the tip of the iceberg. You can use voice on its own or together with scanning, and possibly even vision, to improve the execution of tasks throughout the warehouse.
For example, with inventory checks, speech recognition can be used for verbal confirmation of inventory levels during regular checks, ensuring real-time accuracy in the system without needing manual data entry. During cycle counting, speech recognition can guide workers by providing audible counting instructions, minimizing errors and accelerating the counting process.
For task assignment and allocation, warehouse supervisors can use voice to assign tasks, providing real-time instructions and updates for quicker response times and efficient task execution. In cross-docking situations, where products are moving from inbound to outbound shipments, voice can verify that the correct items are being moved without manual scanning. The list is really extensive, spanning almost all of your warehouse functions.
Q: Do you have any particular projects under development that you wish to share?
A: Over the past 25+ years, the Lucas team has consistently broken new ground in process and technology when it comes to simplifying complex logistics challenges. While we’re always driving the evolution of our core voice-recognition capabilities, we’re also looking for areas to empower warehouse workers and managers through the continued progression and enhancement of solutions like our Dynamic Work Optimization software, which helps customers reduce on-floor travel 30 to 50% by optimizing work assignments and by defining optimal pick sequences or paths.
One new project we’re really excited about and proud of is our partnership with Carnegie Mellon University, which is aimed at solving packaging and sustainability challenges in the warehouse. The research is focused on developing ways to reduce waste by optimizing the way warehouses pack and package multiple items in a single order.
Q: How are the recent advances in artificial intelligence affecting research and product development?
A: AI has the potential to significantly transform activities like picking, product slotting, developing worker travel routes, and the coordination of workers and robots. Advanced analytics, machine learning algorithms, and ideas like digital twins are pivotal for helping us explore ongoing optimization, increased adaptability, and greater flexibility.
For example, AI has the capability to understand the typical time required to complete tasks by analyzing performance data collected from various operational aspects. It considers factors like user, task type, work environment, starting and ending locations, the product being handled, quantity, and more. This learning process empowers machine learning to establish standards that go way beyond the accuracy of standards developed through traditional labor standards engineering.
One big advantage of machine learning models is the ability to continuously improve. As operational modifications are introduced, the machine learning approach automatically adapts and adjusts. This dynamic capability ensures that solutions can stay in sync and continuously optimize operations with evolving circumstances. It can really be a game-changer.
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.