Continued Q4 decline in new Industrial Manufacturing with 118 planned projects in November 2022
IMI SalesLeads announced the November 2022 results for the newly planned capital project spending report for the Industrial Manufacturing industry. The Firm tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms Q4 Projects Totals to be October with 129 new projects and November with 118 new projects in the Industrial Manufacturing sector. The following are selected highlights on new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Manufacturing/Production Facilities – 106 New Projects Distribution and Industrial Warehouse – 41 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 45 New Projects Expansion – 39 New Projects Renovations/Equipment Upgrades – 33 New Projects Plant Closings – 13 New Projects Industrial Manufacturing – By Project Location (Top 10 States) Indiana – 7 Minnesota – 7 North Carolina – 7 Ohio – 6 Pennsylvania – 6 California – 5 Georgia – 5 Iowa – 5 New York – 5 Quebec – 5 Largest Planned Project During the month of November, our research team identified 16 new Industrial Manufacturing facility construction projects with an estimated value of $100 million or more. The largest project is owned by Freyr Battery, which is planning to invest $2.5 billion in the construction of a manufacturing facility in NEWNAN, GA. They are currently seeking approval for the project. Construction is expected to start in 2025. Top 10 Tracked Industrial Manufacturing Projects QUEBEC: Automotive mfr. is planning to invest $700 million in the construction of a battery manufacturing facility in BECANCOUR, QC. They are currently seeking approval for the project. Construction is expected to start in 2023. ARIZONA: Consumer goods mfr. is planning to invest $500 million in the construction of a manufacturing facility at Inland Port Arizona in COOLIDGE, AZ. They are currently seeking approval for the project. Construction is expected to start in 2023, with completion slated for 2025. MAINE: Paper product mfr. is planning to invest $418 million for the renovation and equipment upgrades on its manufacturing facility in SKOWHEGAN, ME. They are currently seeking approval for the project. NEW YORK: Industrial tool and equipment mfr. is planning to invest $319 Million for the construction of a manufacturing facility on Stamp Drive in ALABAMA, NY. They are currently seeking approval for the project. Construction will occur in multiple phases, with the completion of Phase 1 slated for late 2024. INDIANA: Semiconductor mfr. is planning to invest $236 million for the construction of a 100,000 SF manufacturing facility in ODON, IN. They have recently received approval for the project. Completion is slated for 2024. GEORGIA: The apparel company is planning to invest $87 million in the construction of a manufacturing and distribution center in ELLABELL, GA. They are currently seeking approval for the project. MISSISSIPPI: Packaging product mfr. is planning to invest $79 million for the expansion and equipment upgrades at their manufacturing facility in PELAHATCHIE, MS. They have recently received approval for the project. UTAH: Telecommunication equipment mfr. is expanding and planning to invest $73 million for the construction of two manufacturing facilities in SALT LAKE CITY, UT. Completion is slated for Summer 2023. WISCONSIN: A pharmaceutical company is planning to invest $60 million for the expansion of a recently acquired processing facility in EAU CLAIRE, WI. They are currently seeking approval for the project. GEORGIA: Ammunition mfr. is planning to invest $60 million for the construction of a 300,000 SF manufacturing and warehouse facility in ELLABELL, GA. They have recently received approval for the project. They will relocate their operations upon completion. About the Author: Since 1959, SalesLeads, based out of Jacksonville, FL has been providing Industrial Project Reports on companies that are planning significant capital investments in their industrial facilities throughout North America. Our professional research team identifies new construction, expansion, relocation, major renovation, equipment upgrades, and plant closing project opportunities so that our clients can focus sales and marketing resources on the target accounts that have an impending need for their products, services, and indirect materials.
Nucor Warehouse Systems announces Reed Reynolds’ promotion to Commercial Director
Nucor Warehouse Systems (NWS) has promoted Reed Reynolds to Commercial Director effective Jan.1, 2023. In this new position, he will be the head of all sales teams for NWS. Reynolds previously joined the team as the Chief Operating Officer of Hannibal in 2018 and after Nucor acquired Hannibal in 2021, he became the Division Manager. Reed played a pivotal role in growing the business along with the acquisitions of Hannibal and Elite Storage Solutions, and ultimately the transition of Nucor Warehouse Systems. “I’m grateful for this opportunity to help move Nucor Warehouse Systems’ goals forward in this new capacity,” said Reynolds. “Nucor Warehouse Systems has a team of top-level professionals who do the best job on every project and I can’t wait to see what we will accomplish together, in the days ahead.” Prior to his time at Nucor Warehouse Systems, Reynolds worked at California Steel Industries (CSI) for 14 years in various leadership roles in the commercial group and was sales manager when he left CSI in 2018.
Episode 339: HomeRoots
CEO and founder of HomeRoots, Gil Bar-Lev joins this week’s episode of The New Warehouse to discuss offering a business-to-business (B2B) shopping and fulfillment experience that matches business-to-consumer (B2C).HomeRoots is a B2B selling platform for furniture, lighting, and home decor manufacturers interested in selling in the North American market. HomeRoots strives to provide an informative, simple, and secure way to make the B2B online shopping experience as convenient and easy as B2C. Key Takeaways While Gil was good at coding, his passion for shipping and logistics shaped his career path and ultimately led him to founding HomeRoots. A former software engineer passionate about shipping and logistics, Gil always felt the need to improve b2b shipping solutions. While Gil was pretty good at coding, he was more interested in implementing the code and seeing it in the real world. This curiosity and his experience in software development put him on a different career path, with him operating as a translator between developers and the business. After working with customers throughout the years, Gil learned about many challenges of managing inventory and moving products. HomeRoots offers access to available products. Second, their system knows how to generate quality descriptions and enhance the content to generate as many views as possible. Lastly, HomeRoots provides domestic storage and fulfillment services. These three services are ideal for furniture manufacturers typically offering heavy or bulky items. The ability to provide a B2B shopping and fulfillment experience that is on par with B2C differentiates HomeRoots. Many times, B2B shopping requires a follow-up phone call, an email, or even a fax. Gil felt this experience didn’t need to be so different and inefficient. HomeRoots strives to provide a much more convenient and efficient shopping experience at the same level as B2C that consumers know and enjoy. Episode 339: HomeRoots
November 2022 Logistics Manager’s Index Report®
LMI® at 53.6 Growth is INCREASING AT AN INCREASING RATE for: NOTHING Growth is INCREASING AT A DECREASING RATE for: Inventory Costs, Inventory Levels, Warehousing Prices Warehousing Utilization, Transportation Capacity, and Transportation Utilization Warehousing Capacity and Transportation Prices are CONTRACTING The Logistics Managers’ Index reads in at 53.6 in November, down (-3.9) from October’s reading of 57.5. This is the third month out of the last four that the overall index has read in below 60.0. It is also the second lowest overall reading in the history of the index, only surpassing the reading of 51.3 from April 2020 at the height of COVID-19 lockdowns, however, as the rating is over 50.0, we do still register a very moderate rate of growth. In a change from what we have observed throughout 2022, inventory metrics are now settling into more sustainable rates of growth. Inventory Levels have decreased significantly, particularly for Upstream respondents. This is likely indicative of goods being positioned downstream for the holiday season, and more importantly for supply chains, being purchased by consumers. Despite the reductions in inventories, Warehousing Capacity remains tight, which in turn ensures continued expansion in Warehousing Prices. On the flip side, the transportation market continues to fall from the dizzying heights that had become the norm during 2021. This is epitomized by Transportation Prices, which read in at 37.4 – the most severe rate of contraction we have measured in the over six years of the Logistics Managers’ Index. Researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score is a combination of eight unique components that make up the logistics industry, including inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50.0 indicates September and October, transportation metrics continue to be a drag on the logistics industry, while warehousing remains strong, and inventories finally begin to moderate away from the record levels reached earlier this year. The slowdown in the overall index is largely due to the long-anticipated wind-down in inventories. Our Inventory Levels metric, which came in over 80.0 in February, reads in at 54.8 in November, down (-10.7) significantly from October’s reading of 65.5. This is indicative of two things: the movement of goods downstream towards retailers, and the sale of those goods as holiday spending picks up. Spending growth remained strong to kick off the holiday season. Online consumers spent just over $35 billion during the period from Thanksgiving to Cyber Monday. This shows a significant level of growth from 2021, although it should be noted that “buy now, pay later” transactions were up considerably – perhaps underlying the ongoing inflation issues[1], [2], [3]. The growth was not limited to eCommerce, as an estimated 196.7 million shoppers headed back to stores in-person during the holiday shopping weekend. The National Retail Federation expects overall holiday sales to be up 6-8% from 2021, although some of that increase will certainly be fueled by inflation[4]. In general, consumer spending – long one of the primary drivers of the US economy – remains strong, with spending up 0.8% in October, representing the strongest increase since June. This spending may have been somewhat tempered by inflation, which while still down read in at 6% year-over-year for personal consumption expenditures[5]. This capped a third quarter in which the U.S. economy grew at a revised rate of 2.9%, a marked shift from the contraction observed in the first half of 2022[6]. At the same time, the cost of holding inventories is still expanding significantly at a level of 73.4, but at a slower rate (-7.5) than what we saw in October. This is likely the result of the shifting of inventories downstream. Some retailers like Lowe’s and Walmart have built their stores of goods up in anticipation of strong holiday spending. Some of the inventory shed by primary retailers has also trickled down to secondary market retailers like TJX and Burlington[7]. There has been a lot of effort in 2022 to run inventories down after the overages we saw early this year. It will be very interesting to observe whether or not inventories build up again in a significant way in 2023. If one was only to observe international imports, one may lean towards “not”. The slowdown in inventory imports is somewhat unprecedented. In the first week of December, the price of a 40-foot container going from East Asia to the North American West Coast cost $1,426. This is approximately a third of the cost shippers were paying as recently as mid-September, and only a fraction of the $20,000 per container average observed in 2021[8]. The PMI’s manufacturing index fell into contraction territory (at 49.0) for the first time since May of 2020. This drop was fueled by the continued drops in new orders. The PMI measure of manufacturer inventory grew at a very slow rate of 50.9[9], if this number drops below 50 and new orders continue to lag, it will be a sign that manufacturers are indeed expecting some type of slowdown. This slowdown has led to the official declaration of the end of the backup that plagued the Ports of Los Angeles and Long Beach over the last few years. January’s queue of 109 ships – ships that carried the inventory that led to this year-long glut – down to zero in the last week of November[10]. It should of course be noted that some of the slowdown in traffic in the San Pedro Bay is due to ships being re-routed to other East and Gulf Coast ports. There are also several orders that cannot be filled due to China’s zero-Covid policy. Both Volkswagen and Honda were forced to halt production at their Chinese plants due to forced lockdowns. The slowdown is being felt
JLT Mobile Computers unlocks greater operational efficiencies for warehouse forklift fleets with innovative software dashboard
JLT Mobile Computers, a developer of reliable computing solutions for demanding environments, has launched JLT Insights, a new data-driven software dashboard for industries with warehouses. The customizable software solution enables warehouse and IT managers to monitor their vehicle-mount terminals (VMT) and gain greater operational insights. Based on various data points collected from within the IT device and its sensors, JLT Insights empowers customers to optimize the daily operations of their harsh work environments as well as their host vehicles. These new capabilities are made possible thanks to information delivered by sensors embedded in the JLT6012 Series VMTs. As well as informing users of the health of their IT assets, accelerometers and other sensors within the VMTs can deliver information relating to forklift movement, speed, acceleration, impact, location, and time. Access to this digital data opens huge possibilities for warehouse and IT managers to streamline and enhance their picking and logistic operations. By identifying bottlenecks, network connectivity issues, high-traffic areas, driving dynamics, accident-prone zones, and various IT health signals, uptime can be optimized, flow can be improved, and general operations enhanced with regards to both efficiency and safety. Impacts are a fact of life in forklift operations. But when you combine impacts with location data, you can ascertain higher safety risk areas and/or physical bottlenecks within logistic operations. Combine impacts with time and JLT Insights users can identify shift patterns, while time and location will highlight overly long local dwell times or indicate heavy traffic areas. According to Andreas Nivard, General Manager at JLT Software Solutions: “The JLT6012 Series VMTs from JLT Mobile Computers incorporate sensor technology similar to what you would find in a cellphone. By leveraging the data generated by these sensors, we are now delivering even more value-add features through software solutions. “The real power behind JLT’s new hard- and software-combined approach,” he continues, “comes from using JLT Insights to combine and contextualize the data captured via the sensors. This data can then be compared before displaying the results in an easy-to-use and -understand digital dashboard, full of useful information for warehouse and IT managers.” The software is configurable to the customer’s application. JLT engineers will help users to define which data is most useful to capture and formulate the queries which indicate the most relevant actionable information. The identified data points can be configured by JLT, local partners, or customers themselves to add the biggest operational value for continued improvement. There are multiple possibilities for operational improvement, but the primary driver behind the dashboard’s development is to increase uptime, by highlighting and predicting issues before they occur. This gives companies the ability to develop and deliver remedies before these issues turn into far more costly downtime. “The ability to spot problems before they result in downtime is a huge plus for us,” explains Fredrik Edvardsen, IT Manager at IV Produkt, a company based in Växjö, Sweden that develops and manufactures innovative solutions for air handling. “We now have proactive insights into many more operational features, including power supplies, disk space, forklift run times, and service intervals.” JLT Insights is available today for new and existing users of JLT6012 Windows 10 VMTs on a per-month and device-cost basis. “The dashboard comes in two tiers,” Andreas explains. “The first gives all the essential information from the IT and dynamics sensors, including event-based notifications, while the next tier up adds statistics and allows users to write queries that can compare and action one dataset versus another.” For new JLT6012 VMT buyers, the software will be preinstalled on the units. Existing owners can contact JLT via the website for downloading the software. In addition to the JLT6012 unit, JLT Insights can be used with other Windows 10 VMTs from JLT, albeit with limited functionality because previous generations do not include built-in sensors. Support for the Android-based JLT6012A™ VMT is in development and will be released in the first half of next year. Many more features are on the roadmap, and JLT is accepting suggestions from its user base. “We’ve worked closely with JLT in testing out the software and suggesting features as part of their pilot program,” says Martin Carlsson, Warehouse Manager at IV Produkt. “We feel like JLT has really listened to our needs and we now eagerly anticipate using JLT Insights over the next 6 months to make data-driven decisions to increase productivity in our warehouse.”
Secro wins approval from the International Group of P&I Clubs
The transformational electronic platform provides speed and security The International Group of P&I Clubs (the Group) added Secro as an approved electronic bill of lading provider. Established in 2021, Secro is an independent technology company helping buyers and sellers of bulk commodities to digitize their core business workflows and optimize working capital. Approval by the Group ensures that liabilities arising with respect to the carriage of cargo under such paperless trading are covered. The legal documentation and terms of use associated with the use and operation of the Secro system, as well as the Secro electronic bill of lading, were reviewed and approved by the Group. Secro, which is a proud member of BIMCO, provides a frictionless digital trade documentation platform that is safe, trustable, and seamless. The customer is onboarded to the Secro platform with a nimble click-through process and can collaborate with its trading partners in minutes. Internal due diligence is simplified by robust yet concise terms of use and conditions of carriage. Further, the Secro platform enables the customer to invite its trading partners on the platform, for free, just by sharing a secure link at any given stage of the transaction, allowing unprecedented flexibility. Secro Co-Founder and CEO, Michele Sancricca stated: “Our customers asked us to build a platform to easily create securely exchanged electronic bills of lading with anyone in the world without the need for cumbersome private agreements. This innovative approach delivers the ease of adoption that legacy providers did not achieve.” Truly viable electronic bills of lading, able to replace traditional paper-based documents, have been a chimera for decades. Thanks to Secro proprietary technology’s compliance with the latest digital trade laws, for the first time the adoption of electronic bills of lading really offers speed, security, and cost savings. With Secro’s ease of use and the Group’s approval, traders, shippers, banks, and ship owners can digitally transact with confidence. Sancricca wants the maritime community to appreciate that this is just the beginning for Secro. “Secro E-bill of lading is only the first product we are launching in this arena. Customers will find in Secro a one-stop-shop to digitize their end-to-end trade workflows.” At SHIPPINGInsight 2022, Secro received the organization’s Innovation Award by securing the most support from investors and shipowners in the SHARK TANK. Secro is currently available to selected customers with the public launch expected during Q1 2023.
Hikvision launches new Learning and Development Campaign: Free virtual classroom training for integrators
Virtual training is designed to increase product knowledge among installing technicians and salespeople, including Dec. 9 educational webinar about the program’s value Hikvision, a world manufacturer and supplier of security products and solutions that deliver the ideal combination of high performance and extreme value, is proud to launch its Learning and Development (L&D) campaign encouraging security businesses to sign up for its virtual training courses. Integrators and installing technicians are encouraged to sign up online for the free Instructor Led virtual training courses, each designed to educate on a variety of Hikvision products with varying skill levels. A short webinar on Friday, December 9 will help dealers—both business owners and managers—understand the value of virtual training. “It is important we deliver flexible, free virtual training for our customers. Giving their team members access to new product knowledge and practice helps integrators’ salespeople feel comfortable presenting these solutions to end users and gives technicians the skillset to easily install and troubleshoot in the field, ” said John Xiao, Vice President of Marketing, Hikvision USA. “Our online courses are ideal for those technicians who do not want to travel or attend-in person training, but would still like to receive personalized instruction on some of the most popular Hikvision solutions.” All Hikvision virtual training courses are free and can be accessed anywhere via an internet connection. Course instructors can interact with attendees in real-time, offering a personalized learning experience in a low-stress setting. A virtual environment also allows attendees to experience or practice with products they have not yet experienced in person to improve their competency prior to installation. This helps technicians and salespeople achieve expert-level product knowledge that ultimately improves sales and boosts customer satisfaction. As a part of Hikvision’s Learning and Development Campaign, those interested in the virtual training courses can attend an online, informative webinar on December 9, 2022. This short webinar is designed to help business owners, managers, dealers, and technicians understand how easy virtual training is and how course attendance can benefit operations overall. To view the virtual classroom training calendar, please visit: catalog.hikvisionlearning.com/event-calendar/ To register for the informational webinar, please visit: https://hikvision.webex.com/weblink/register/rd84535c9214bf1a51a94660a1b96b447
KION Group plans expansion of production at Reutlingen site
Plan to increase production by up to 60 percent KION Warehouse Systems (KWS) company premises are to be expanded by at least 2600 square meters New build on the south side of the plant in close cooperation with political bodies and in compliance with nature conservation legislation A clear commitment by KION to KWS and Reutlingen KION Group is strengthening its position in Reutlingen with plans to expand its plant. The intralogistics group is investing a double-digit million Euro amount in the project. “By expanding the production by some 60 percent, we are sending an important message about the future. We expect to see sustainable market growth in the field of narrow aisle trucks and vertical order pickers and have planned accordingly,” says Rob Smith, CEO of KION GROUP AG. “Expanding the site will help to further strengthen our excellent position as a global intralogistics provider.” The subsidiary KION Warehouse Systems (KWS), which is based in the district of Mittelstadt, is the Group’s competence center for the development and production of system technology vehicles for the KION brands. Volker Bonk, Managing Director of KION Warehouse Systems, presented together with Thomas Keck, Mayor of the City of Reutlingen, Roland Wintzen, Deputy Mayor responsible for Finance and Economic Affairs, and Wilhelm Haug, District Mayor of Mittelstadt the current planning status at an on-site meeting. The plan is to expand the existing production halls by moving the plant bypass road, with the aim to extend the production space to the south. KWS intends to buy the wooded area there, which is currently owned by the city of Reutlingen. This solution will enable internal production processes to be significantly improved using minimal additional space. Overall, the expansion will comprise at least 2600 square meters, 2200 of which are for the expansion of the production hall. Extensive investments are also planned for the existing facilities and machinery, as well as a general modernization of the processes on site. Once the relevant bodies have issued their approval, construction is planned to start in fall 2023, with the expanded production facilities in operation from 2025. “KION’s location policy and corporate strategy is both flexible and reliable. With this project, the intralogistics group is once again sending a positive signal in terms of the economy, the labor market, and specifically Reutlingen as a location for business,” says Thomas Keck, Mayor of the City of Reutlingen. More Than 400 Jobs Safeguarded in Reutlingen The increase in production capacity will also have an impact on employment at the site: The workforce has already grown from 250 employees in 2010 to over 400 today. Around 130 of these KWS employees currently come from the city of Reutlingen and 280 from the district of Reutlingen. The planned expansion will safeguard the 400 existing jobs and enable the creation of new ones. “Reutlingen is the biggest and most important site for our global narrow aisle trucks business,” says Volker Bonk, Managing Director of KWS. The planned investment makes one thing clear, he says: “Our heart is here in the city. This expansion will give us even more flexibility and ensure that KWS can maintain an optimal position in the dynamic intralogistics market for years to come.” In order to meet the legal planning requirements for the expansion to the south of the plant, a development plan process has to be completed and a change needs to be made to the land-use plan. The development plan is on the agenda for Mittelstadt District Council today, November 28, 2022. KWS is already working in close consultation with the relevant bodies in the city. The planned expansion will also be carried out in strict compliance with nature conservation regulations. As part of this requirement, external areas to provide the necessary forestry and nature conservation compensation have to be found during the development plan process. Suitable reforestation areas have already been identified within the urban area of Reutlingen in preparation for this. The following areas, in particular, are being considered for reforestation: the “Hinterer Zaun” and “Eichwäldle” areas in the district of Reutlingen and the “Oberer Auchtert” area in the district of Mittelstadt.
Episode 335: New Gen Architects
If you want to scale your business or add tools to your warehouse, you will want to tune in to this episode. The New Warehouse welcomes Kimberlee Owens, Principal Architect for New Gen Architects. New Gen Architects focuses on supply chain transformation and finding the right end-to-end solutions to increase productivity and optimize supply chains. Kevin and Kimberlee discuss warehouse tools and how to select the right ones for your operation, and what happens if you don’t. Key Takeaways Kimberlee says when businesses have clearly defined organizational goals and objectives, it is much easier to identify and implement the right tool. This strategic planning allows New Gen Architects to evaluate options, analyze the market, and see how the tools stack up to their competitors. This strong understanding of internal needs defines the roadmap for businesses to grow. Understanding the business needs can prevent implementations from going sideways. Kimberlee shares a story of New Gen Architects coming in to right the ship for a customer who was promised an Enterprise Resource Planning (ERP) tool would solve all of their problems. Unfortunately for the customer, their implementation partner failed to scope the job correctly. She considers herself a “matchmaker” of sorts and adds through a deep understanding of the customer’s processes and identifying what they want to achieve, you can locate the ideal match for the organization and avoid many headaches. Kimberlee describes tools are anything from barcode scanners to gold-standard Warehouse Management Systems (WMS) and Inventory Management Systems (IMS). She sees many companies are looking to improve efficiencies through automation and reduce manual steps. She shares how companies are highly interested in data capture for enhanced analytics and insights. One way Kimberlee says businesses can identify that they need to implement new tools or processes is when they find themselves trying to throw more labor at the problem to no avail. Kimberlee believes data validity and security also play a critical role in identifying the need to step up to the next tool. Companies using antiquated tools that require manual workarounds, tools that cannot integrate with other systems, or are vulnerable to security threats need to level up or run a greater risk of disruptions to their operations. Sharing and transferring data can lead to inaccurate data, ultimately impacting decision-making. Kimberlee stresses precise requirements, a feedback loop, change management, support, and product champion as keys to success when choosing and implementing a new tool or system. New Gen Architects believes when companies can check these boxes, they ensure employees utilize the tools as intended and contribute to the overall adoption and success of the tools. The New Warehouse Podcast EP 355: New Gen Architects
AutoStore appoints Mats Hovland Vikse as new CEO
AutoStore Holdings Ltd. (AutoStore) has announced the appointment of current Chief Revenue Officer Mats Hovland Vikse as CEO, effective January 1, 2023. Current CEO Karl Johan Lier will retire as part of an orderly and planned transition. Lier will be employed in AutoStore until March 2023. Under Lier’s leadership as CEO, and Hovland Vikse’s tenure as CRO, AutoStore reached over 1,000 systems sold in 46 countries, with over 42,000 robots presenting an impressive ~5 billion bins. “Mats is a key figure behind the AutoStore growth,” said Co-Chairman Jim Carlisle. “Both the Board and Karl Johan agree the his demonstrated strategic leadership, relentless focus on commercialization, and deep internal support make him the clear choice for the role.” “We are well positioned for continued strong growth with outstanding margins given our product capabilities, distribution network, and business model,” Hovland Vikse commented. “I am honored by the opportunity and have unwavering confidence in the future of AutoStore,” he continued. “It has been a privilege to lead AutoStore from the outset and see the products and company grow as it has through great people, culture, and passion. I’m very pleased to leave the CEO role in Mats’ capable hands as he has been an outstanding contributor to the AutoStore journey from his very first day with the company five years ago,” CEO Karl Johan Lier said. “We would like to thank Karl Johan for his leadership,” Carlisle added. “Karl Johan has been pivotal to the company’s success, and we wish him the very best in retirement.”
Automatic loading from Caljan helps parcel carries and online retailers meet tight delivery windows
Caljan AutoLoader moves loose cargo into trailers at high speed — without any human involvement. Building on more than 50 years of logistic innovation, Caljan announces the latest addition to their range of Performer Telescopic Conveyor Solutions with the new AutoLoader. The AutoLoader offers fast, automatic loading 24/7, making it easier to meet small windows and short delivery times. Ensure same-day delivery with fast, automatic loading Online shoppers today prefer fast and flexible delivery options to suit their busy schedules. With up to 88% of customers worldwide willing to pay more for same-day or faster delivery, extended waiting times become a deal breaker when choosing your next digital shopping platform. For that reason, meeting highly restricted windows has become critical to online retailers, their 3PL partners, and parcel carriers, all of whom are under pressure to meet customer expectations. To ease the challenges of the growing eCommerce sector, Caljan AutoLoader increases the throughput of loose cargo by automating the loading process. Parcels and polybags are loaded non-stop into any truck or trailer, removing the bottlenecks to ensure all cargo leaves the warehouse on time. Even distribution for a fill factor of 80% The AutoLoader fills the trailer by moving from side to side, releasing the cargo with perfect precision to close vacant gaps in the vehicle. The wedge-shaped base gently pushes packages aside to utilize the entire space — resulting in a fill factor of 80%. Items mix smoothly as they fill the space, making it easy to handle all types of cargo in one load. With minimal supervision required, the AutoLoader cuts the cost of each package handled. This even includes padded envelopes and slippery polybags, which can be a real headache to a loading process. Safe handling of cargo During operation, the AutoLoader detects obstacles and moves automatically to avoid collisions. With a release height of approx. 7”, items are carefully placed to prevent package damage. Sensors adjust the position of the conveyor to suit the height of the parcel, making room for packages of all sizes. “The height detection system of the AutoLoader creates a free flow of cargo during loading. Sensors angle the conveyor to eliminate risks of parcels hitting the trailer roof,” explains Product Manager Jens Erik Langdahl. Make use of your workforce where it adds the most value Rushing to meet strict deadlines can cause people to cut corners where they otherwise wouldn’t. Automating the loading process therefore significantly reduces risks of injury to the workforce. The AutoLoader takes care of the hard physical labor, allowing operators to work where they add the most value. An audio or visual signal, indicating when the equipment is in operation, can be fitted to the AutoLoader upon request. The conveyor can also be supplied with a safety light barrier that stops all conveyor movement if you move into its immediate vicinity.
AutoStore introduces a new tool that utilizes data to make warehousing more efficient
Unify Analytics™ is a new cloud-based service and data platform from AutoStore™. It enables businesses using AutoStore, an automated storage and retrieval system, to gain access to data-led insights from their system and easily identify the cause of operational challenges. Unify Analytics is available in two versions, a web application where businesses can view real-time statistics and analytics, and an API that enables seamless integration with any external third-party applications. “Businesses can reap multiple benefits by combining automated storage and retrieval, and data-led insights. This data analysis tool will allow businesses to be more proactive and respond rapidly to real-time challenges,” says Andreas Munch, Product Manager at AutoStore. Unify Analytics consists of several performance analysis dashboards that provide graphical presentations of operational information. Examples of available data are uptime and number of stops within the system; waiting time per bin; average distance per robot; and the number of tasks a customer has prepared in the system (each hour). It also shows if the software and firmware have been updated. “Data is only effective if we measure the right metrics. We currently include a selected list of key metrics and will develop and add new features to the software gradually, in close dialogue with our users,” says Munch. In the next stages of the technology, AutoStore developers plan to include an alert functionality. End-users will get a notification via email or SMS when set conditions are triggered, allowing businesses to respond quickly to operational challenges. A single data platform The AutoStore System generates vast amounts of information on a continuous basis, making it valuable to have a technology that organizes all data onto a single platform, is highly protected, and meets security requirements. “The new analytics tool secures access to real-time and logged data and is only accessible to designated end-users and distribution partners. We automatically deploy software updates when they are available, without any system downtime,” says Munch. Unify Analytics is intuitive and easy to use and does not require any training or extensive technical skills to implement. The web platform and API are available from November 15th.
Seeq appoints George Skaryak as Chief Revenue Officer
Seeq Corporation, a provider of manufacturing and industrial Internet of Things (IoT) advanced analytics software, announced the appointment of George Skaryak as Chief Revenue Officer (CRO), a new member of the Seeq executive leadership team. Skaryak will lead all aspects of the company’s go-to-market, sales, and business development, focusing on new revenue opportunities. “This is an exciting time of growth for Seeq, and we’re thrilled to add a sales leader with a proven track record of growing SaaS businesses to bring more value to our customers,” says Dr. Lisa Graham, CEO at Seeq. “George’s rich background in enterprise sales and passion for hiring and training sales teams will be an invaluable addition to the executive team.” Skaryak brings more than 30 years of experience leading large teams and driving growth across many industries. Previously, Skaryak served as EVP of Worldwide Sales for Cyara, a leading customer experience assurance platform, where he was responsible for sales growth and leadership. Additionally, he has held various sales leadership roles at large and high-growth software companies, including IBM, 41st Parameter, Monster, and MetricStream. “Seeq has an undeniable product-market fit and an enthusiastic customer base, making this a pivotal time of growth for the company and the ideal time to join,” says Skaryak. “I look forward to collaborating with my Seeq colleagues to align sales, partners, customer success, and marketing through a unified approach to further accelerate Seeq’s global growth.” Seeq enables companies to address their key initiatives in workforce transition, digital transformation, and sustainability with self-serve advanced analytics that can access and leverage vast amounts of historically unused data. Engineers and scientists in process manufacturing organizations can rapidly analyze, predict, collaborate, and share insights to accelerate better production outcomes. Seeq customers include companies in the oil and gas, pharmaceutical, chemical, energy, power and utility, mining, food and beverage, pulp and paper, and other process industries. Investors in Seeq include Insight Ventures, Saudi Aramco Energy Ventures, Altira Group, Chevron Technology Ventures, and Cisco Investments. Seeq is available worldwide through a global partner network of system integrators, which provides training and resale support for Seeq in over 40 countries, in addition to its direct sales organization in North America and Europe. Drawing from his broad industry experience, Skaryak will help further Seeq’s revenue growth as its first CRO, advancing the company’s mission of empowering manufacturers to optimize business outcomes with advanced analytics. Skaryak holds a B.S. from California Polytechnic State University and is based in Pittsburgh, PA.
Episode 330: Hoj Innovations
Tim Hoj, CEO of Hoj Innovations, joins Kevin on today’s episode of The New Warehouse podcast to discuss everything from micro-fulfillment to how Hoj Innovations can increase fulfillment rates from 30% – 50%. Hoj Innovations has been offering material handling solutions and improving fulfillment operations for nearly sixty years. Tim describes the company as a diverse material-handling company offering services, hardware, software, data automation, and engineered solutions. You won’t want to miss this episode! Key Takeaways Tim shares the humble beginnings of Hoj Innovations that began with his father starting the company. Over the years, the company evolved from selling products for material handling solutions to a complete solutions provider. Tim explains how his father’s perspective on efficient operations and the dividends they pay are at the core of the company’s beliefs. Approximately fifteen years ago, the company pivoted to provide solutions specific to each customer’s operations, fostering an environment of continuous improvement and enabling fulfillment to be a core competency. Tim details how each customer delivers an “Ah Ha” moment, which helped build the WMS solution they have today. Hoj Innovations recognized early on the potential of using devices like iPads in the warehouse and developing WMS solutions that weren’t cost-prohibitive to start-ups and SMBs. Tim shares how their Warehouse OS is more of an empowerment tool than a traditional WMS, meaning that in addition to conventional features, the Warehouse OS delivers speed, flexibility, and efficiency for the operator. The picking apps from Hoj Innovations deliver some fantastic results. They are easily improving labor rates and fulfillment by 30% to 50%. Not many companies would put this to the test, but as you see here, they are able to cut picking time in half for half the cost. The New Warehouse Podcast EP 330: Hoj Innovations
Episode 327: Siena Analytics at MODEX 2022
Welcome to the new warehouse podcast, live from MODEX 2022. Kevin’s guest today is John Dwinell, founder of Siena Analytics. Siena Analytics is a software company that primarily operates within the four walls of the warehouse. Siena can capture and harness tremendous amounts of data so that warehouses can make better decisions in terms of automation and even suppliers. Kevin and John discuss the value of collecting and analyzing data in the warehouse space and how it will impact the future of warehousing. Key Takeaways Warehouses looking to transition from manual to automation benefit from data collection as they have a deeper understanding of what’s happening in their warehouse operations and where to best invest in automation. John shares how Siena Analytics leverages camera and sensor technology to capture pictures of all six sides of every package that flows through a warehouse. This visibility level helps them see where products are flowing well and where problems might occur. They can also see which areas are running efficiently and which ones need some improvement. Kevin asks John how they can break down that massive amount of data into something warehouses can digest and put to work. John shares that time sequencing plays an important role and the ability to index many different categories. For example, if users wanted to review a product type or filter by problems, Siena Analytics could do this and have it feed into a simplified dashboard. John adds that AI models play a significant role in understanding an operation’s good and bad. With AI, they can identify and make minor corrections to the operation to get everything running smoothly. Without the capabilities of AI, it wouldn’t be worth capturing that data. The more variations you can remove, the easier it is to implement automation. John shares what it is like to onboard a new customer that didn’t have access to this type of information. As they gather data, they get feedback immediately, which helps them identify pain points. They add AI models as needed so the customer can make the right decisions on where to put investments. The New Warehouse Podcast EP 327: Siena Analytics at MODEX 2022
Manhattan Beer Distributors selects Westfalia Technologies for warehouse automation
Westfalia Technologies, Inc., a provider of logistics solutions for manufacturers and distributors, announces its automation technology will be installed in two site locations for Manhattan Beer Distributors, a major New York City-based beer and beverage distributor. Westfalia was selected to provide machine controls software and WES software for an order release module (ORM) at Manhattan Beer’s location in the Bronx as well as a turn-key automated storage and retrieval system (AS/RS) at the Suffern, NY facility. The ORM implementation in the Bronx operates as an automated case release system and an order-building system. This automation technology will serve as case picking for Manhattan Beer’s top SKUs. After receiving orders from the warehouse management system (WMS), the ORM automatically generates mixed SKU layers and picks the necessary cases to form those layers, eliminating the need for manual picking. After the cases are automatically picked, they are sent to the palletized for automatic palletization or to a manual palletizing station when appropriate. The ORM is controlled by Westfalia’s Savanna.NET® Warehouse Execution System (WES), interfacing with the existing systems in the Bronx facility. The ORM is expected to go live this month. Like the ORM, Savanna.NET® will also control the AS/RS and integrate with Manhattan Beer’s existing solutions at the Suffern distribution center. The building will have an inbound section to retrieve beer from freight and rail shipments, and the AS/RS will handle both full and mixed pallets. The AS/RS will feature more than 22,000 pallet positions and three aisles supporting up to 3,000-pound pallets. The multi-deep system will be seven levels high and be housed in a 55-foot-tall building. “At any given time we have 4 to 5 million cases of beer stored throughout our five facilities,” said Michael McCarthy, Senior Vice President of Operations at Manhattan Beer. “Not only are these systems going to help with hiring and staffing, but it’s extremely difficult and costly to expand in the New York real estate market. Westfalia’s AS/RS is going to significantly improve our storage density.” The Greenfield project will connect two existing buildings in Suffern with the AS/RS implementation located in between (refer to the image below). With innovative designs utilizing features like triple rail support, the AS/RS handles all beer pallets on the equipment (from MillerCoors plastic pallets to a wide variety of Corona pallets), regardless of pallet differentiations from brand to brand. “Consider the wide variation of pallet types in the beer industry,” said Borja Salanova, Senior Solutions Consultant at Westfalia. “Our capacity to handle them is one of the most noteworthy aspects of this project. A Westfalia AS/RS in the beer industry is a true way to help streamline operations.” “I admire Westfalia for their patience–you could say we dated for a long time before we got married,” said Mitchel Bergson, Chief Transformation Officer at Manhattan Beer. “Most importantly, we felt trust with the Westfalia team. If we ever have an issue, I can call Dan Labell (President of Westfalia), and he takes my call. Their experience in the beverage industry, especially in wine and spirits and soft drinks, also gave us confidence in our choice of Westfalia as our warehouse automation provider.”
154 New Industrial Manufacturing Development Projects showed improved performance in September 2022
IMI SalesLeads announced today the September 2022 results for the newly planned capital project spending report for the Industrial Manufacturing industry. The 154 new projects increased from August 2022 140 manufacturing projects, however, down from 162 in September 2021. The Firm tracks North American planned industrial capital project activity; including facility expansions, new plant construction, and significant equipment modernization projects. Research confirms 154 new projects in the Industrial Manufacturing sector. The following are selected highlights on new Industrial Manufacturing industry construction news. Industrial Manufacturing – By Project Type Manufacturing/Production Facilities – 133 New Projects Distribution and Industrial Warehouse – 61 New Projects Industrial Manufacturing – By Project Scope/Activity New Construction – 59 New Projects Expansion – 43 New Projects Renovations/Equipment Upgrades – 44 New Projects Plant Closings – 16 New Projects Industrial Manufacturing – By Project Location (Top 10 States) North Carolina – 10 Ohio – 10 Indiana – 9 Texas – 9 California – 8 Pennsylvania – 7 Wisconsin – 7 Michigan – 6 Alabama – 5 Georgia – 5 Largest Planned Project During the month of September, our research team identified 19 new Industrial Manufacturing facility construction projects with an estimated value of $100 million or more. The largest project is owned by Micron Technology, Inc., which is planning to invest $15 billion in the construction of a manufacturing facility in BOISE, ID. They are currently seeking approval for the project. Top 10 Tracked Industrial Manufacturing Projects MICHIGAN: Battery component mfr. is planning to invest $3.6 billion for the construction of a manufacturing facility on 18 Mile Rd. in BIG RAPIDS, MI. They are currently seeking approval for the project. KENTUCKY: Automotive mfr. is planning to invest $700 million for the renovation and equipment upgrades at their manufacturing facility in LOUISVILLE, KY. They have recently received approval for the project. INDIANA: Automotive mfr. is expanding and planning to invest $491 million for a 6,000 SF expansion, renovation, and equipment upgrades on their manufacturing facility in MARION, IN. They are currently seeking approval for the project. Construction is expected to start in early 2023. TEXAS: EV mfr. is planning to invest $365 million in the construction of a lithium-hydroxide refining plant in ROBSTOWN, TX. They are currently seeking approval for the project. Construction is expected to start in late 2022, with completion slated for 2024. ARIZONA: Plant-based packaging product mfr. is planning to invest $280 million for the renovation and equipment upgrades on their manufacturing facility in GILBERT, AZ. Completion is slated for late 2023. SOUTH CAROLINA: Automotive component mfr. is planning to invest $200 million for the renovation and equipment upgrades on their manufacturing facility in ANDERSON, SC. Completion is slated for 2026. MISSOURI: Consumer products mfr. is planning to invest $180 million for the expansion, renovations, and equipment upgrades on their processing facility in ST. LOUIS, MO. They are currently seeking approval for the project. OHIO: Truck mfr. is planning to invest $150 million for the expansion of its manufacturing facility in NEW PHILADELPHIA, OH. They are currently seeking approval for the project. TEXAS: Steel tube mfr. is planning to invest $75 million in the construction of a 125,000 SF manufacturing facility in SEGUIN, TX. They have recently received approval for the project. ALABAMA: Laminated timber products mfr. is planning to invest $62 million in the construction of a 140,000 SF manufacturing facility in DOTHAN, AL. Completion is slated for 2024. The project also includes equipment upgrades on their existing manufacturing facility in DOTHAN, AL. About SalesLeads, Inc. Since 1959, SalesLeads, based in Jacksonville, FL is a leader in delivering industrial capital project intelligence and prospecting services for sales and marketing teams to ensure a predictable and scalable pipeline. Our Industrial Market Intelligence, IMI identifies timely insights on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization, and plant closings in industrial facilities. The Outsourced Prospecting Services, an extension to your sales team, is designed to drive growth with qualified meetings and appointments for your internal sales team.
A ‘time to shine’ for warehouses
Pandemic conditions have improved, but the new era of labor shortages and increased demand continues for warehouses. In this environment, some say a steady increase of automation within warehouses is occurring. This month, Material Handling Wholesaler talks with industry leaders about how they see automated processes building new opportunities in warehouses across the industry. A ‘time to shine’ for warehouses At AutoScheduler, CEO Keith Moore said the company aims to be “the brain” inside distribution centers. The company launched two years ago inside Procter & Gamble, where Moore said the business founders “cut our teeth.” AutoScheduler.AI is a warehouse resource planning and optimization platform that “dynamically orchestrates all activities on top of your existing warehouse management system in real-time,” the business website said. The solution is designed to focus on and optimize all of a warehouse’s critical activities, including dock scheduling, loading, unloading, case picking, and creation of transfer orders, the site said. “With more supply chain challenges than ever, AutoScheduler combines data from numerous systems into a single operational plan for warehouses and distribution centers. It takes disparate data, identifies bottlenecks, and prescriptively creates plans to orchestrate campus operations for optimized efficiency,” the website said. The aim of the company is to help planning to be more effective, according to Moore, who said today AutoScheduler workers with some of the largest consumer goods providers in the industry. As a solution designed to work on top of a Warehouse Management System to orchestrate plans and processes, AutoScheduler is able to work many moves ahead of what is occurring, according to Moore. He said this is not unlike how technology is now able to orchestrate outcomes in a chess game. In chess, there are 64 squares and 16 pieces under a player’s control, and “since 1997, it has been impossible for a person to beat a computer,” said Moore, noting how many moves ahead a computer can see. Similarly, AutoScheduler is designed to incorporate a bigger picture in coordinating items, people, and equipment. The more complexity, the more opportunity, according to Moore. In the current environment, Moore said he believes inventory concerns for warehouses might “smooth out a bit” but labor will remain in demand. “That’s part of why automation has become so popular over the past few years,” he said, noting there are fewer employees working many years on a job, making it more difficult for companies to build the productivity and consistency desired. “People are understanding they need to do something to get consistent productivity out of the warehouse, to be able to meet the demand in a consistent way,” Moore said. “The challenge is, people that run operations, they’ve been in supply chain and logistics for a while and they’re not technologists,” he said. This is where AutoScheduler can help, according to Moore. He said AutoScheduler solutions help to orchestrate planning systems, making sure all of the processes flow and work together. In general, Moore thinks productivity rates are a little lower today versus five years ago due in part to the impacts of labor shortage. “It’s hard to replace a really experienced forklift driver,” Moore said. That said, he also believes warehousing and operation teams are more innovative now. “Warehouses are probably getting the investment needed,” said Moore, who said there are more technologists and more investment in automation overall. And as focus outside the industry focuses on supply chain and material handling in general, Moore added that it is a “remarkable” industry to work in. “It’s warehousing’s time to shine,” he said. “We can take opportunities and take advantage of what we have to innovate and drive value.” Automation advances Tecsys is also offering solutions for warehouses across the globe. The company’s supply chain solutions software is currently used in over 100 countries across the world, according to Adam Polka, Director of Public Relations. “Our solutions and services create clarity out of operational complexity with end-to-end supply chain visibility. Our customers reduce operating costs, improve customer service, and uncover optimization opportunities,” said the business website. Bill Denbigh, Vice President of Marketing, described how many of the company’s Nordic partners have incorporated automation in operations of all sizes. “They look at automation as part of being a solution to the future. I think there is a realization that adopting advanced supply chain solutions isn’t anymore just for the big boys,” Denbigh said. As automation solutions are explored in companies of all sizes, tighter circumstances are sometimes a driver, according to Denbigh. “I’ve got to get today’s orders out by 2 p.m. or I’ve got real estate issues I can’t outgrow anymore. Or I want to offer my customers a service that my competitors don’t offer or can’t,” he said. Automation offers ways to personalize, create unique packaging options, and more, according to Denbigh. He is seeing more engineering work in warehousing, describing one of Tecsys’ customers, a third-party logistics provider, that has many engineers on site. “They take an organization in and say, ‘We’re going to design a system for you. Specific racking, processes, we’re going to allow you to do these things,” Denbigh said. He also described how one of Tecsys’ customers designed systems to create the special sustainable packaging their own customers wanted. “It’s not going to slow down. It’s going to be a force,” he said, of automated advances, describing how his wife’s shampoo company sends her the product she wants when she needs it and with her name on the label. All of this requires a sophisticated process. “Think of the technologies that are required to supply that,” said Denbigh, noting how well this tailored approach works. “It’s locked in my wife as a consumer,” he said. A grocery retailer, however, would not require this type of system, according to Denbigh. So, he envisions a future of specialization within warehouses. Tecsys offers diverse solutions, from a simple warehouse management system that is implemented from the first touch to life in 28 days to an enterprise-grade system in which a project can be six to eight months, according to Polka. “Automation is not one thing,” he said, advising businesses to consider what a
Episode 325: Zebra’s Vision Study
On this episode of the new warehouse podcast, Mark Wheeler, Director of Supply Chain Solutions at Zebra, joins Kevin to discuss the results of Zebra’s vision study. Listeners may be familiar with Zebra’s core product lines, such as mobile computers, barcode scanners, and printers. In recent years, they have acquired Fetch Robotics and offered additional solutions such as machine vision, fixed industrial scanning, and software & analytics. Key Takeaways What is edge technology, you ask? Mark explains it is the technology that connects us to the physical world. The connection the human has with a scanner, sensor, or other mobile technology that connects what is physically happening on the floor back to the ERP, WMS, or TMS is edge technology. Each year, Zebra invests in a vision study to capture the voice of the market. To get an accurate pulse on the warehouse, Zebra intentionally sought out warehouse associates to participate in the survey. Mark shares results are similar to what you would expect regarding labor challenges and retaining talent. He felt the most significant revelation was the opinion of warehouse associates showing higher favorability towards technology than decision-makers. Employees not receiving a pay increase but finding increased job satisfaction because of the implementation of technology was most eye-opening to Kevin. Making people’s jobs easier through technology is a valuable path to improving employee satisfaction and productivity. This sentiment also speaks to the softening opinion that automation and robots will replace humans when most data points to a more collaborative future. Kevin and Mark discuss how many technologies, such as robotics and wearables, weren’t financially viable for smaller and medium-sized businesses in the past. Lower costs, enhanced capabilities, and the tight labor market have lowered the barrier of entry for SMBs. Improved accessibility allows them to harness the same efficiencies as more prominent players and compete effectively. Mark believes we will see continued applications of sensors and RFID as we move to this invisible supply chain. He sees cycle counting, for instance, as something that will be performed in real-time using some sort of sensor or scanning technology. He also feels that we will continue to see industries looking for ways to capture data constantly through scanning and then integrating other technologies, such as machine learning, for continuous improvement. Listen to the episode below and leave your thoughts in the comments. The New Warehouse Podcast Episode 325: Zebra’s Vision Study
Episode 324: Smart Warehousing and Big Data
Welcome to The New Warehouse podcast. If you are curious about big data in warehousing, this is the episode for you. Today, we’re excited to have Learie Hercules, aka “Herc” and CTO at Smart Warehousing, on the show. Smart Warehousing is a company that leverages big data infrastructure and machine learning to optimize the movement of products from A to B across its thirty-eight warehouses. Kevin and Herc discuss how cloud-based data storage and big data drive innovation in the warehousing space. Key Takeaways Herc explains what differentiates Smart Warehousing is its ability to service both direct to consumers and retailers. He adds that this also provides insight into what technologies retailers are introducing and how they approach the market. These insights help to inform Smart Warehousing as they build out their technology stack – giving them a competitive advantage. Since they have virtualized their capacity across their network and utilize demand forecasting models, they can place products closer to the consumer, which helps achieve cheaper price points. Kevin and Herc discuss the old-school mentality often found in warehousing and how that is shifting to a more technology-driven mindset. Startups, in particular, have been active in the warehousing space to solve many of the challenges in warehousing and capitalize on opportunities. Herc believes micro-fulfillment mobility will be the next big thing from a technology standpoint in material handling and warehousing. He also teases several exciting announcements from Smart Warehousing in the coming months. Herc believes Smart Warehousing’s distributive model saves companies a lot of money while decreasing their inventory footprint. He adds how retailers are navigating away from the traditional centralized distribution model because of the potential points of failure. Smart Warehousing distributes products based on zones, so if there is a disruption in one area, they can fulfill products from another location without impacting the customer. He believes this allows them to move products more efficiently and become a more resilient supply chain. Like Amazon, Smart Warehousing does the forecasting regarding where the inventory needs to be. When onboarding new customers, Smart Warehousing reviews the previous thirteen months of order history and runs its forecasting models. From there, the customer brings in their product, and Smart Warehousing takes care of the rest. They also discuss how AI and machine learning are changing the game for predicting demand, inventory, and safety stock levels to optimize orders. Herc explains how their architecture records every event in a warehouse, enabling them to fine-tune their algorithms continually. He adds how this is creating a whole new revenue model as they can create visibility platforms with their capability to ingest data from any source at high speed and process it in sub-seconds. We continue to see more robotics, AI, and machine learning applications in warehousing, and the labor challenges only drive up the demand. Listen to the episode below and leave your thoughts in the comments. The New Warehouse Podcast Episode 324: Smart Warehousing and Big Data