Newcastle Systems Worker Satisfaction Survey just released
The 2024 Newcastle Systems Worker Satisfaction Survey provides a comprehensive look into warehouse workers’ daily experiences and satisfaction levels across the United States. Conducted by Newcastle Systems, a leader in ergonomic mobile-powered workstations, this first-of-its-kind survey draws insights from more than 200 warehouse workers, revealing their challenges, what makes them happy, and the steps employers can take to improve their working conditions and satisfaction. Key Findings Warehouse Worker Challenges Warehouse work is physically demanding, with many workers experiencing significant fatigue due to long hours, repetitive tasks, and fluctuating warehouse temperatures. The survey found that 22.5% of respondents identified the physicality of their job as the greatest source of fatigue, while 21% cited long workdays. Despite these challenges, the warehousing sector remains a critical part of the U.S. economy, employing approximately 1.851 million people as of late 2023. Worker Satisfaction The survey highlighted that employee satisfaction is closely tied to how valued workers feel by their employers. While 39% of respondents felt “somewhat valued,” a concerning 5% felt “not valued at all.” The number one factor contributing to job satisfaction, as reported by 33% of workers, is fair and competitive pay. This finding underscores the importance of equitable compensation and supportive working conditions in retaining a dedicated workforce, especially in the face of labor shortages and increasing eCommerce demands. Investing in the Workforce The survey revealed shared concerns across generations of warehouse workers, particularly regarding inadequate tools and outdated equipment. About 10% of respondents, translating to nearly 200,000 workers nationwide, reported lacking the tools needed to complete their jobs effectively. The top three concerns among workers were the need for better safety measures, equipment upgrades to enhance efficiency, and improvements to warehouse cooling and heating systems. Addressing these issues is critical for employers aiming to boost employee morale, productivity, and satisfaction. The Role of Technology and Ergonomics Technology and ergonomics play a crucial role in modern warehouse operations. The survey found that most respondents were moderately comfortable integrating robotics and other automated solutions into their work environment. Ergonomic tools, such as mobile-powered workstations, wearable barcode scanners, and cobots, were particularly favored by workers, with 20% reporting that these tools make their jobs more enjoyable. These findings suggest that a hybrid approach, combining manual labor with automated solutions, can optimize workflow and enhance job satisfaction. Regional Differences The survey also revealed regional differences in worker perceptions. The South had the highest number of respondents (39.6%), followed by the Midwest (28%), the West (20%), and the Northeast (12%). Interestingly, the greatest source of fatigue varied by region, with workers in the Northeast and West most affected by the physicality of the job and long hours. At the same time, those in the South and Midwest were more concerned with inadequate breaks. Maximizing ROI To maximize their employee’s return on investment (ROI), employers must improve workplace conditions, offer fair compensation, and enhance communication with workers. Proactive measures, such as updating safety protocols, providing ergonomic tools, and improving HVAC systems, can significantly enhance employee satisfaction and productivity. As warehouse workers are integral to the growing eCommerce sector, investing in their well-being is crucial for long-term success. Conclusion The 2024 Newcastle Systems Worker Satisfaction Survey offers valuable insights into the challenges and needs of warehouse workers across the U.S. By addressing the issues highlighted in the report—such as the need for better pay, improved working conditions, and the integration of ergonomic and technological solutions—employers can create a more positive and productive work environment, ultimately driving success in the evolving landscape of warehouse operations. To view the survey, click here.
AutoScheduler.AI finalist in CSCMP 3Vs Business Innovation Award
Second Consecutive Year Being Named One of Three Finalists for 3V Awards AutoScheduler.AI has announced the company has been named a top 3 finalist in the 3Vs Business Innovation Awards. As a finalist, AutoScheduler.AI is one of the top three companies in the business innovation category, and it will present its case at the upcoming CSCMP Conference. “AutoScheduler.AI is honored to be named to this prestigious list for the second consecutive year,” says Keith Moore, CEO of AutoScheduler.AI. “This year we introduced AutoPilot Central, which provides a birds-eye view of multi-site data for centralized command and control of an entire distributed warehouse network, helping to mitigate the risk of not meeting customers’ fulfillment times, thus improving customer service and satisfaction.” According to an AGILE Business Media and Events announcement, “Due to the overwhelming number of exceptional entries, there was a delay in this announcement, and we apologize for the wait. After thorough deliberation, our panel has made their selections. We extend our heartfelt gratitude to everyone who submitted entries; each was truly innovative and impressive. With great excitement, AGILE now reveals the judges’ top finalists for both the 3 Vs Business Innovation Award and the Best Overall Startup Award contests. These companies captivated the judges and earned their positions through outstanding efforts.” AutoPilot Central gathers information from each WMS running AutoPilot and provides centralized warehouse orchestration where executives gain visibility across all sites. The AutoScheduler platform visualizes all operations at the distribution center, takes into account all warehouse constraints, applies advanced technology such as artificial intelligence and machine learning, and then optimizes labor, robotics, touches, and inventory to drive efficiencies. AutoScheduler.AI will present its pitch live in the Innovation Theater at EDGE 2024 in Nashville, on Monday, September 30, 2024, and winners will be announced for each contest.
Episode 513: Dock Doors and more with The Miner Corporation
On today’s episode of The New Warehouse Podcast, we discuss dock doors and more with Dennis Sanacore, Senior Vice President of Sales at The Miner Corporation. We cover the aspects of warehouse operations, focusing on dock doors and the innovative approaches to managing them. The Miner Corporation, a leader in industrial services, offers a unique perspective on enhancing operational efficiency through advanced dock solutions and proactive maintenance strategies. Innovative Dock Door Designs and Their Impact Modern warehouses face numerous challenges, but few components are as crucial as the dock door. Dennis Sanacore explains, “People think a door is a door, but in the business, there’s a uniqueness to every single application which causes challenges for customers.” The selection of dock doors varies greatly depending on the operational needs—whether it’s insulation requirements for climate control or durability for high-traffic docks. Introducing impactable doors and protective designs minimizes maintenance needs and boosts operational continuity. “Impactable doors are probably 2-3 times the cost of a regular sectional door, but they come with less maintenance and less downtime,” which Sanacore highlights as essential for maintaining flow and safety at the docks. How Dock Doors Impact Energy Efficiency A significant innovation in dock management is the focus on energy conservation and efficiency. Dennis notes the importance of adequately sealing dock areas to prevent energy waste, “We’ve come up with a couple of different programs… it’s going to save them 5 million a year. It will reduce emissions by 21,000 metric tons and save them $75,000 at that facility.” These programs promote sustainability and offer substantial cost savings, proving crucial for businesses looking to optimize their operational expenditure while enhancing their environmental impact. Dock Technology and Proactive Maintenance Looking ahead, Dennis discusses integrating data-driven solutions and proactive maintenance programs that are becoming more prevalent. “We’re trying to take maintenance to the next level by digitizing it,” he says, emphasizing their SafeCHECK app to streamline maintenance processes and prevent downtime. Such advancements are crucial for enhancing the reliability and efficiency of warehouse operations. Key Takeaways Impactable doors reduce maintenance costs and improve operational durability. Advanced sealing solutions can significantly cut energy costs and reduce environmental impact. Proactive, data-driven maintenance programs are essential for minimizing downtime and optimizing dock operations. The New Warehouse Podcast Episode 513: Dock Doors and More with The Miner Corporation
The Warehouse Automation Journey: Moving from understanding to action
When writing our book The Warehouse Revolution – Automate or Terminate, we were committed to creating a comprehensive overview of the warehouse automation space. We knew a rapidly growing number of companies were soon to embark on a challenging journey, yet they had no way to get up to speed quickly. Since its publication, and after multiple conversations with readers and corporate leaders, they most commonly ask: “Ok, now I understand the context and the technologies, but how do I turn it all into action?” For the last ten years, Logistics, Warehousing, and Supply Chain operations have been severely strained and continue to be today. Some of this strain can be attributed to episodic events like the pandemic, geopolitical conflicts, or recent disturbances in significant trading routes. The main cause, however, has been a permanent transformation of the role that supply chain operations play in the global economy and, more directly, in company business performance. On the distribution side of logistics, e-commerce has changed the business metrics by which logistics centers and professionals are measured. Order fulfillment lead time and order accuracy measurements replace shipping volume and cost per shipment metrics. We have gone from order lead times of weeks or even months to hours. On the supply side, just-in-time manufacturing has reduced in-transit inventory quantities, which, combined with globally stretched supply chains, result in very fragile supply lines. To compound the problem, qualified labor has become scarcer, more expensive, and less attainable where it is needed most, near large urban areas that drive the need for shorter shipment and distribution times. Despite the increased use of air freight, the speed at which we can transport goods economically has not improved enough. In the case of distribution, improvements in physical speed have been negligible. The nodes in the supply chain (ports, distribution, and fulfillment centers) bear the brunt of the needed changes. Industry leaders are applying a blend of automated equipment and advanced information systems to tackle these challenges. It used to be the case that executives could tolerate suboptimal performance of their supply chains without putting their company’s survival in danger. This is no longer the case. If shipping times or order accuracy are uncompetitive, customers will go elsewhere. Even minor hiccups in supply chains may result in production disruptions that break commitments or impair product availability. In The Warehouse Revolution, we discuss the case for automation in detail and describe the many processes and technical options that should be focus areas for companies of all types and sizes. The risk and complexity of automation may be daunting for many small- and medium-sized businesses. Breaking down the components of risk is critical. To achieve this and ultimately address the risks, it is crucial for companies to execute multiple non-trivial, internal sub-projects: 1. Operational Process Assessment: Once the operation crosses a threshold of volume and complexity, logistics and material handling systems show behaviors that are difficult to understand and predict without the help of sophisticated analytics and optimization tools. Identifying bottlenecks, the impact of order mix in volume, determining multi-product and multi-echelon inventory policies, order release, batching, etc., requires specialized knowledge and non-trivial effort. 2. Technology Assessment: By their very nature, material handling projects deal with the intersection of the physical world with the information world. They require expertise in building construction, including fire and other regulations, mechanical equipment and layout, electrical power, electronics and communications, real-time and enterprise software, human factors, and ergonomics. Technology in all these disciplines evolves rapidly and needs to be selected, applied, and integrated together. 3. Project Execution Assessment: No individual or small team can master all required technologies, and very few organizations can either. Professionalized project and program management becomes a critical element in the success of these projects. In many cases, this capability is provided by the project’s primary systems integrator. Only very large companies implement a sufficient number of projects over time to justify the development of this capability in-house. 4. Organizational Change Assessment: Even projects with stellar design and execution will fail if the organization that needs to implement them is not ready or is unwilling to embrace them. In extreme cases, some even suffer from active sabotage. Organizational communication, training, and change management cannot be ignored or relegated to an HR topic. They need to be an integral part of the project. While these challenges are very real, they are not insurmountable if appropriately addressed, but the investment required will be significant, and the executive team must understand the associated ROI clearly. The ROI may be realized by reducing the overall operating costs or enhancing revenues. Cost reduction is by no means a certain outcome of an automation project. The real effect of automation projects is a change in the operation’s cost structure. There will be a shift from variable costs associated with direct hourly labor to indirect costs based on a combination of financial investments, equipment maintenance, operational expenses, and salaried labor. This means that the per-unit costs before and after the project depend heavily on the volume at which the system will perform. Lower volumes favor an operation with a more variable cost structure, while higher volumes can more easily justify a larger investment. It is essential to consider how costs change if the volume begins to exceed an operation’s capacity. The change may be incremental in less automated operations and addressed with overtime or extra labor. For automated operations, the limits to the system may be much more strict and require upgrades or significant reconfiguration of the system. Executives and project leaders must determine the performance profile of the operation (order and item variability, volume, etc.) and decide on its design capacity. As shown in the figure taken from the book, the capacity may differ significantly from the simple average of expected volumes. On the revenue front, apart from the apparent effect of capacity increases to support more business, automation can improve customer satisfaction by increasing order accuracy, reducing order lead time, and making order fulfillment
Episode 512: Transparency in freight management with CargoShot
On today’s episode of The New Warehouse Podcast featuring Jeff Jaeger, we tackle the subject of transparency in freight. Jeff, the co-founder of CargoShot, shares how his company is enhancing supply chain accountability through its innovative proof-of-condition solutions. Jeff shares his journey from moving heavy equipment worldwide for the Marine Corps to spearheading a startup that tackles the costly issues of freight claims and chargebacks. Dive into this insightful conversation to discover how CargoShot is revolutionizing the logistics industry by providing product condition transparency throughout the supply chain. The High Cost of Freight Claims Jeff outlines the significant pain point in the logistics industry: excessive freight claims and penalties. He recounts feeling helpless against fines and penalties assessed by big box retailers, “I didn’t think we were as bad as what we were getting penalized for, so I started taking photos, and I started sending them with the time and date stamp so they could clearly see the product.” Jeff saw significant relief from fines and penalties by proving they had done the work correctly. This issue propelled him to create a scalable solution that reduces erroneous charges by providing clear, irrefutable evidence of freight conditions upon shipment. Ensuring Freight Claim Accountability CargoShot addresses these challenges with its innovative mobile app, which allows users to capture and store real-time photographic evidence of freight conditions. Jeff explains the app’s functionality: “You can take that information to prove that you did your job right, or in the cases that if you didn’t, use it as a coaching/training session for your team, and speed up resolution time with the client.” By automating and simplifying the proof-of-condition process, CargoShot drastically reduces the likelihood of unwarranted penalties, fostering greater accountability and efficiency. Optimizing Transparency in Freight Management Looking forward, Jeff is excited about the potential for new technologies to mitigate freight claim issues further. He shares insights into upcoming features, “We’re working on technology using computer vision, machine learning, and artificial intelligence to be proactive.” These developments aim to preemptively identify potential issues before they result in fines, setting a new standard for proactive management in logistics. CargoShot aims to establish a seamless chain of custody from the initial warehouse receipt to the final delivery, involving every stakeholder along the way. The goal is to ensure that if an issue arises, accountability is accurately assigned, not merely defaulted. Key Takeaways CargoShot drives unnecessary costs out of the supply chain by streamlining freight claims, damage, fines, and penalties. The mobile app is hardware-agnostic and offers scalable solutions across multiple locations. Enhanced data capturing leads to improved supply chain accountability and efficiency. The New Warehouse Podcast Episode 512: Transparency in Freight Management with CargoShot
Episode 511: Harnessing AI for Warehouse Optimization
Today’s episode of The New Warehouse Podcast delves into the topic of AI for warehouse optimization with Pete Grett, founder and CEO of The Black Rock Group. Pete, an AI evangelist with a deep background in tech and supply chain management, shares his journey from a 19-year-old temp worker in a warehouse to leading a consulting firm. Today, we explore how AI is revolutionizing warehouse operations, the myths and realities of AI, and actionable strategies to leverage this technology for better decision-making and efficiency. From Warehouse Floor to Tech Leadership Pete’s journey began humbly as a temp worker, driven by ambition and a desire to climb the operations ladder. He transitioned into IT while implementing a new warehouse management system, which set the stage for founding The Blackrock Group. “One of the things we really focus on is having people who have been operators. We want to be practitioners of what we preach,” Pete emphasizes. This experience helps bridge the gap between IT and business, ensuring that technological investments can deliver maximum ROI. Using AI for Warehouse Optimization AI is rapidly transforming various aspects of warehouse operations, offering significant benefits in efficiency and productivity. Pete notes, “Our tagline that I really believe in is, make better decisions, solve problems faster.” AI can enhance tasks like labor management, quality checks, and warehouse slotting by providing swift and accurate analysis. For instance, AI can quickly crunch data to identify inefficiencies and suggest improvements, a task that previously required sophisticated software and extensive time. Pete explains the value of using AI for warehouse optimization, “How can we improve an individual’s job and make them more efficient and productive? The warehouse is a great example. Are you over-counting or over-auditing? With analysis from AI, you can focus your attention on where labor drives value.” This capability allows for more focused and meaningful use of resources, making AI an invaluable tool in the modern warehouse. Preparing for AI Integration Integrating AI into warehouse operations requires preparation, particularly regarding data quality and accessibility. Pete advises, “Having access to your data, having as good a data as you can have, understanding where it comes from, what it means—those are essential pieces.” Companies should invest in their data infrastructure and consider affordable AI services to start small and scale up as they see benefits. For example, Pete believes even a simple $20 monthly subscription to ChatGPT can provide substantial analytical power. He explains The Blackrock Group’s approach to integration, “We try to make it affordable enough so that these are OPEX expenses that don’t take a lot of authorization. It’s just so low cost that the customer will earn the investment back pretty quickly.” Key Takeaways on AI for Warehouse Optimization Experience on the warehouse floor is crucial for implementing tech solutions that work seamlessly in real-world scenarios. AI can transform warehouse operations by improving decision-making and efficiency through rapid data analysis and actionable insights. Ensuring high quality is essential for successful AI integration. Affordable AI services can help businesses start small and scale as needed. AI can optimize labor management, quality checks, and warehouse slotting, leading to significant productivity gains. The New Warehouse Podcast Episode 511: Harnessing AI for Warehouse Optimization
Bobcat celebrates $3.26M renovation at Buford facility
Bobcat Company recently brought material handling into the Bobcat brand, transitioning from Doosan Industrial Vehicle to Bobcat in early 2024. The investment in the Buford facility modernized conference rooms, break rooms and office spaces, improved the interior design, finishing and furnishing to align with other Bobcat locations, and updated exterior signage. Featuring open seating and no cubicles, the enhanced spaces support cross-functional teamwork and engagement. “Investing in our facilities and operations to create collaborative, inspiring workplaces is one of many ways that Bobcat supports our employees,” said Mike Ballweber, president, Doosan Bobcat North America. “Fostering our company’s success alongside the dedicated team in Buford is a priority for us. We are thrilled to provide them with a work environment that encourages collaboration and drives innovation.” The 200,000-square-foot Buford facility houses a state-of-the-art parts operation which supplies over 30,000 line items to support its affiliate groups. Additionally, the material handling product line includes 179 separate models with a full range of diesel, gas, liquid propane gas and electric forklifts, with capacities ranging from 3,000 to 55,000 pounds. “The growth of the Bobcat brand into the material handling industry allows us to provide even more solutions to help our customers accomplish more,” said Jarrod Steck, Bobcat vice president of material handling products. “Our Buford team has grown by 40 percent in the last year and is still growing. Bobcat’s investment in both people and facility illustrate our level of commitment to growing Bobcat’s presence in this important market.” More than 180 employees work at the Buford location – a significant increase since 2022. Employment opportunities are available in product support, sales administration and product and parts areas. Shultz + Associates Architects supported the architecture plans, while Omega Construction served as the general contractor of the facility renovations. In addition to its operations in Buford, Bobcat has an extensive presence throughout the U.S., as well as globally.
Episode 510: Addressing lost and stolen packages with Deliverlitics
Today’s episode of The New Warehouse Podcast features Bobby McKinnon, Co-Founder and CEO of Deliverlitics. Deliverlitics is dedicated to solving a significant issue in the delivery and e-commerce industry: lost and stolen packages. With increased e-commerce activities, this problem has become more prevalent, impacting consumers and businesses. Bobby shares insights on how Deliverlitics leverages AI to tackle this challenge effectively. Bobby McKinnon’s Journey to Deliverlitics Bobby McKinnon’s background is diverse and impressive. After spending half a decade as an Army logistics and supply chain officer, he transitioned to the corporate world, gaining experience at Nike and a blockchain data analytics startup. His military experience, particularly in high-pressure logistics environments, equipped him with the skills to lead and innovate in the supply chain sector. “The military gave me a set of tools and passions for leading organizations that have pushed me to where I am today,” Bobby explains. His journey culminated in co-founding Deliverlitics, driven by a desire to address the pervasive issue of lost and stolen packages. The Problem of Lost and Stolen Packages The rise in e-commerce has exacerbated the issue of lost and stolen packages, creating significant challenges for retailers and consumers alike. Bobby categorizes the problem into three main areas: misplaced items, package theft, and first-party fraud. “Somewhere in the neighborhood of $15 to $20 billion is what it’ll end up being lost or stolen this year across all of e-commerce,” he notes. Examples like the man dressed as a trash bag stealing packages highlight the creativity of thieves. Moreover, first-party fraud, where customers falsely claim packages are missing, adds to the financial burden on businesses. Deliverlitics’ AI-Driven Solution Deliverlitics addresses these challenges through innovative AI solutions. By analyzing vast amounts of data, they predict and mitigate the risk of package loss and theft. This analysis allows them to provide specific recommendations to mitigate the identified risks. Bobby elaborates, “AI allows us to sift through these things, find the points of correlation, find the things that are causing these events to occur or contributing to their propensity to happen. And then we can predict them.” Their Shopify plugin, for example, assesses the risk of each order in real-time, providing recommendations like adding signature verification or redirecting to a secure location. This proactive approach protects businesses and enhances the consumer experience by reducing friction and maintaining trust. Key Takeaways Innovative AI Solutions: Deliverlitics uses AI to analyze data and predict risks associated with package delivery. Significant Financial Impact: The e-commerce industry loses billions annually due to lost and stolen packages. Proactive Recommendations: Their system provides real-time recommendations to mitigate risks, improving both business operations and customer satisfaction. The New Warehouse Podcast Episode 510: Addressing Lost and Stolen Packages with Deliverlitics
Kenco to install AutoStore at Jeffersonville, Indiana Distribution Center
With systems integration partner KPI Solutions, Kenco’s new automated storage and retrieval system will shorten click-to-delivery times for the 3PL’s eCommerce customers starting this summer Kenco has announced the implementation of AutoStore™ at the company’s Jeffersonville, Ind. distribution center. Set to go live in summer 2024, the AutoStore system – designed and implemented by KPI Solutions – will service Kenco’s eCommerce customers and open the door for businesses of all sizes to access a technology typically only available to larger companies. Once complete, the AutoStore system will include 49,000 bins, 130 grid robots, 10 picking ports and four replenishment ports. Kenco estimates 15 million units will travel through the system per year. The announcement reinforces Kenco’s dedication to automation and warehouse transformation, coming on the heels of Kenco’s introduction of Automation Guidance. A part of their comprehensive Material Handling Solutions offering, this consultative offering will help clients upgrade existing facilities with automated material handling equipment assets to meet today’s warehouse needs. “At Kenco, we’re dedicated to continuously improving our operations,” said Jason Minghini, Senior Vice President of Operations at Kenco. “By implementing AutoStore’s proven solution, not only are we optimizing our space and workforce, we’re taking our eCommerce fulfillment solutions to the next level by providing even shorter click-to-delivery times for all customers in this market.” Jeffersonville is Kenco’s second AutoStore installation. While the first serves a single client, the newest installation is larger and will efficiently process orders from multiple customers for an optimized operation. “The system and reserve storage will take up about one-fourth of one of the facilities on our campus,“ said Jeffersonville Senior Director of Site Logistics, Bill Dragoo. “Installation is going smoothly, and we’re excited to see the full benefits of the solution come to life this summer.” As an ASRS, AutoStore harnesses the power of warehouse robots for 24/7 order fulfillment within a cubic layout up to quadruple the storage capacity of traditional warehouse racking. The goods-to-person (G2P) system maximizes existing labor and space, reinforcing supply chain dependability. “We are proud and happy to partner with Kenco to manage their warehouse space innovatively and efficiently, empowering their customers to achieve incredible results,” said Mike Harding, Account Executive at KPI Solutions. “This AutoStore system will boost labor productivity and enable scalability while improving delivery times for consumers across North America.”
Olvi Brewery expands with second automated warehouse from Cimcorp
Cimcorp’s automation boosts storage capacity and enhances operational efficiency, helping the Finnish brewery handle growing production volumes and seasonal demands Cimcorp has announced it has supplied a new high-bay automated warehouse to its longtime customer Olvi , one of the leading beverage producers in Finland and the Baltic region. This is the second automated warehouse Cimcorp has implemented at Olvi’s headquarters in Iisalmi, Finland, cementing a strong partnership spanning nearly two decades. By providing more storage capacity, the new automated warehouse supports Olvi’s growing production volumes and levels out the seasonal demands of the brewing industry. In the beverage industry, demand swings dramatically between seasons, with the potential to cause bottlenecks in production and distribution on peak days. At Olvi, Cimcorp’s automation mitigates these risks and enhances operational capabilities, ensuring the brewery can better manage inventory and ultimately provide superior service to its customers. Benefits of Cimcorp’s high-bay automated warehouse include: Increased efficiency and throughput: Automated storage and retrieval systems (AS/RS) quickly and accurately move products in and out of storage, speeding up the picking process. The warehouse can also operate 24/7 without the need for breaks. Improved customer satisfaction: Increased speed and accuracy in order picking lead to faster fulfillment times, complete order accuracy, less product damage, and enhanced customer satisfaction. Space optimization: The high-bay warehouse utilizes vertical space, allowing for greater storage capacity within a smaller footprint. This enables a wider product range. “Our existing high-bay warehouse was implemented with Cimcorp in 2014. This second warehouse enables us to increase storage capacity and secure the reliability of deliveries for our customers, especially during seasonal peaks. We need to be agile and respond to the fast order-delivery rhythm whenever the sun starts shining,” said Ilkka Heikkilä, Logistics Supervisor at Olvi. “We appreciate Cimcorp’s reliability and technical solutions that are tailored to our needs. Having a local partner who understands our ways of working and production needs—without compromising the daily output—is invaluable.” The partnership between Cimcorp and Olvi began in 2005 when Cimcorp installed an automated order-picking system featuring gantry robots for the brewery. Collaboration between the companies has continued over the years, including installing the original high-bay warehouse with a Warehouse Control System (WCS), an innovative keg-picking solution, and a robotic dolly-picking system. To support its automation, Olvi utilizes Cimcorp’s 24/7 helpdesk service, benefiting from support in Finnish and in the same time zone. Cimcorp’s helpdesk team is knowledgeable and familiar with Olvi’s systems and processes, allowing them to provide the exceptional service and proactive maintenance needed to ensure reliability throughout the system’s entire lifecycle. “Our fruitful collaboration with Olvi spans nearly 20 years,” said Riku Puska, Sales Manager, Warehouse & Distribution, Cimcorp Group. “Designing future development and innovating together have been the cornerstones of this partnership. Being available for our customers 24/7 and responding quickly to any requests are very important to us. Delivering peace of mind is part of our DNA.”
Episode 509: The Eighth Notch is streamlining last-mile delivery
Today, Mike Robinson, the Head of Retail Solutions and a founding member of The Eighth Notch, joins the show to discuss how The Eighth Notch is streamlining last-mile delivery. In this episode, we explore The Eighth Notch’s unique approach to addressing delivery coordination challenges, particularly in the last mile of e-commerce deliveries. Mike shares insights into their innovative solutions that aim to improve sustainability and efficiency in the delivery process. The Origin and Mission of The Eighth Notch Mike provides an intriguing background story, describing himself as an “accidental retailer” and sharing how his career trajectory led him to become a founding member of The Eighth Notch. He recounts his experiences at major retailers like Gap and Macy’s, where he witnessed the exponential growth of e-commerce and the consequent logistical challenges. This experience sparked his desire to focus on improving rather than just expanding e-commerce operations. The name “The Eighth Notch” itself is a tribute to the founder’s father, a railroad engineer. The term signifies the highest power setting on a locomotive, symbolizing their commitment to peak performance in delivery logistics. Tackling Delivery Coordination Issues The Eighth Notch’s primary goal is to reduce the frequency and inefficiency of delivery trucks by better coordinating deliveries. Mike explains that the current state is unsustainable economically and environmentally and that it is“done in an unsynchronized, uncoordinated manner.” The Eighth Notch aims to optimize delivery schedules, ensuring multiple packages arrive simultaneously. Mike illustrates how the company created a three-way gain-share model where the carrier gets their share, the retailer gets an incentive for changing their behavior, and they get a component of the savings. Enhancing Consumer Experience and Sustainability A key aspect of The Eighth Notch’s strategy is consumer education and engagement. While the end consumer might not be directly aware of the behind-the-scenes coordination, The Eighth Notch is providing consumers with the benefit of fewer, more consolidated deliveries, which reduces carbon emissions and enhances convenience. The company is also looking into offering consumers choices at checkout, similar to Amazon’s sustainable delivery options. This shift towards consumer-enlisted sustainability aligns with growing environmental consciousness among shoppers. Key Takeaways from The Eighth Notch Efficiency through Coordination: The Eighth Notch focuses on synchronizing deliveries to reduce frequency and enhance efficiency. Economic and Environmental Benefits: Their model saves costs and reduces carbon emissions, benefiting carriers, retailers, and the environment. Consumer Engagement: Offering sustainable delivery options at checkout can drive consumer engagement and loyalty. The New Warehouse Podcast Episode 509: The Eighth Notch is Streamlining Last-Mile Delivery
Episode 508: Synchronizing manufacturing and warehousing with Nulogy
Welcome to another episode of The New Warehouse Podcast! Today, Jason Tham, co-founder and CEO of Nulogy, joins the show to discuss the intersection of manufacturing and warehousing and the critical role of digitalization. Nulogy, a software company specializing in multi-enterprise platforms, aims to enhance visibility and orchestration in supply chains. Jason shares insights on how data synchronization bridges the gap between manufacturing and warehousing, benefiting 3PLs involved in kitting or co-packing and ultimately streamlining the entire supply chain. The Genesis of Nulogy Jason’s journey into supply chain optimization began with firsthand experiences in the consumer packaged goods sector. Witnessing the disjointed data flow and inefficiencies in manufacturing lines at companies like Kellogg’s, he identified a significant gap in visibility, particularly with third-party contract manufacturers and packagers. Jason emphasizes, “If we didn’t have the status of how a product was being made… it was really disjointed,” highlighting the need for better data synchronization. This realization, coupled with his engineering background and exposure to network-building in the telecom space, led to the creation of Nulogy. The Interplay of Manufacturing and Warehousing Traditionally, brands managed their manufacturing and warehousing in-house, relying on ERP systems for visibility. However, the evolution towards specialization has seen brands, 3PLs, and contract manufacturers focus on their core strengths, necessitating better integration and synchronization. Jason notes, “You want to postpone that activity to the latest point because if you’re investing… too early on and then invariably, let’s say that thing doesn’t sell… then you’ve put capital to work, and it doesn’t sell that finished good.” Digitalization minimizes waste and enhances customization by capturing real-time data, reducing transport costs, and ensuring higher quality and timely delivery. He shares, “If I can leverage postponement, capitalize on customization, reduce the touches…I can offer my customers the ability to not only warehouse the product but also do some manufacturing, kitting, and co-packing. There will be less made-to-stock, hence lower carrying costs.” Enabling Harmonized Supply Chains Nulogy captures and connects data across multiple supply chain tiers. Jason explains, “What we focus on in Nulogy is capturing data at that shop floor level… and then federating for that multi-party or multi-enterprise.” By enabling real-time data sharing and collaboration, Nulogy improves synchronization and orchestration across various nodes in the supply chain. This enhances decision-making, reduces the bullwhip effect, and fosters a resilient, responsive, and sustainable supply chain ecosystem. Key Takeaways Nulogy’s platform captures and shares real-time data across the supply chain, improving decision-making and reducing waste. Digitalization allows the postponement of manufacturing activities, reducing carrying costs and enhancing product customization. Multi-enterprise solutions foster collaboration, ensuring all parties in the supply chain work in harmony for better outcomes. The New Warehouse Podcast Episode 508: Synchronizing Manufacturing and Warehousing with Nulogy
Kito Crosby announced significant investment in Peerless chain manufacturing equipment
Kito Crosby, a global leader in the lifting and securement industry, proudly announces the completion of a major investment at its flagship manufacturing site of Peerless branded products in Winona, Minnesota. The multi-year, multi-million-dollar, project involved the design, installation, and startup of an advanced continuous plating system utilized in chain production. This state-of-the-art system adds a unique and proprietary coating to a chain that prevents rust and corrosion to our already world-class product. Designed to further enhance product quality and employee safety, the new plating system incorporates new features, such as automated monitoring and increased air handling systems. “This line was designed with our customers and team members in mind,” said George Kosidowski, President of Peerless. “The investment will enhance our internal processes, which will improve our service levels to customers and scale our operations for increased demand.” The Winona plant, like all Kito Crosby manufacturing facilities worldwide, is heavily vertically integrated, with a Peerless chain manufactured in the United States from raw material to finished product on site. A special ribbon-cutting ceremony was held in July with Winona team members and Kito Crosby leaders, local dignitaries, and the International Association of Machinists & Aerospace Workers (IAMAW) leadership. Continuous plated chains are used across multiple industries, including food processing, cargo control, trailer safety, and hardware.
Moderna Products quadruples its capacity for plastic pet supplies with an automated warehouse from Mecalux
The sustainable accessories manufacturer expects to double its sales amidst the expansion of an industry set to reach $500 billion by 2030. Its facilities in Izegem (Belgium) manage over 1,500 pallets daily, producing, storing, and distributing feeders, water bowls, and beds to more than 79 countries. logo. With the pet industry growing rapidly — projected to reach a value of $500 billion by 2030, according to Bloomberg — Moderna Products aims to double its sales in the next five years. The company will continue providing litter boxes, beds, carriers, feeders, and water dispensers for pets in over 79 countries worldwide. “We manufacture plastic injection molded products in two large centers in Izegem and South Carolina. We’re proud to say we manage the entire supply chain, spanning product development, production, storage, and distribution,” says Bart Bonte, owner and CEO of Moderna Products. The third-generation family business invests in “the most advanced technologies to remain competitive.Our priority is to use highly energy-efficient storage and production systems while maintaining our return on investment,” says Bonte. Moderna Products is committed to eco-friendly practices, signing a Green Pact and equipping its headquarters with solar panels. The manufacturer of sustainable plastic pet products has automated the movements of 1,500 pallets a day with an energy-efficient rack-supported building. Measuring 131′ high by 328′ long, the facility constructed by Mecalux accommodates 12,560 pallets. Additionally, Moderna Products manages all operations with Easy WMS. This software solution monitors every step — from order receipt to shipping — providing complete control over the company’s pet supplies. Moderna Products has also installed the WMS for Manufacturing module to integrate the warehouse with the production lines and gain end-to-end traceability of its raw materials. “Automation was the logical step. Our logistics processes had to align with the robotic advancements already underway in our production operations. We opted for automation to expand our space, enhance safety, and make our processes more environmentally friendly. As a result, we no longer require traditional lighting,” says Bonte. Automation, the backbone of the facility, ensures the uninterrupted flow of goods between the center’s various zones. Five twin-mast stacker cranes handle pallet movements inside the storage aisles. Meanwhile, a conveyor system transports pet products to the manufacturing and picking areas. With these upgrades in place, Moderna Products looks forward to continuing its commitment to caring for dogs and cats, which it has done since 1980.
Episode 506: Automated Storage and Retrieval Systems (ASRS) with Element Logic
The New Warehouse Podcast episode features Christian Rognes, the Chief Product Officer at Element Logic. Element Logic is the first and largest AutoStore partner, specializing in automated storage and retrieval systems (ASRS). In this episode, we delve into the evolution of ASRS, Element Logic’s journey, and its innovative approach to warehouse automation. The Evolution of ASRS Systems Element Logic has pioneered the ASRS market, and Christian Rognes shares insights into the journey from manual to automated systems. He emphasizes, “The first battle that we had to fight was between manual and automation.” Over the years, ASRS technology has rapidly evolved, driven by the need for efficiency and precision in e-commerce. Christian highlights that Europe has been a front-runner in adopting these systems, noting, “We have approximately 30 to 40 percent of the install base worldwide.” While most of Element Logic’s install base resides in Europe, Christian sees huge growth potential in the U.S. Differentiating in a Crowded Market Christian explains that with many companies offering similar technologies, Element Logic stands out by focusing on user-centric solutions. “It’s really about finding what’s unique with Element Logic and how we can play on those competitive assets.” By integrating AutoStore with other technologies and optimizing its software, Element Logic ensures seamless warehouse operations. The holistic approach to warehouse management is crucial, especially in complex markets like the U.S., where customized solutions are necessary to meet diverse needs. Enhancing the Warehouse User Experience A major focus for Element Logic is improving the user experience in warehouses. Christian discusses the importance of understanding the needs of warehouse workers, saying, “We really have to flip this around and talk to the users.” By developing products that address the specific pain points of warehouse operations, Element Logic aims to enhance productivity and worker satisfaction. This user-centric approach improves efficiency and contributes to better working conditions, which is a significant aspect of their mission. Key Takeaways on Automated Storage and Retrieval Systems Element Logic holds 30-40% of the global AutoStore install base. The shift from manual to automated systems is crucial for modern warehousing. Differentiation through user-centric solutions is key in a competitive market. Improving user experience in warehouses enhances productivity and worker satisfaction. The New Warehouse Podcast Episode 506: Automated Storage and Retrieval Systems (ASRS) with Element Logic
Unipipe Solutions highlights UnipipeHP Aluminum Piping Systems
The Most Robust, Cost-Effective, and Easy-to-Install Piping System Available, for Pressures up to 1015 PSI Unipipe Solutions, an industrial piping sector, highlights the UnipipeHP Aluminum Piping System for High-Pressure Compressed Air Applications. The UnipipeHP is an advanced aluminum piping system specifically engineered for the highest-pressure applications. Featuring a robust design and superior performance, the UnipipeHP system is rated for up to 1015 PSI (70 BAR). It is cost-effective and easy to install and maintain, making it ideal for various demanding applications, including multi-fluid systems, high-pressure compressed air, and nitrogen systems. UnipipeHP sets itself apart with its heavy wall tubing and rigorous inspection standards, ensuring reliability and safety. The fittings for UnipipeHP are identical in design to those of the standard UnipipeAIR system, rated for 232 PSI (15 BAR), maintaining consistency while offering enhanced pressure capabilities. The UnipipeHP system is available in sizes up to 2-½” (63mm), while the UnipipeAIR system is available in sizes up to 10” (250mm). This flexibility allows for the completion of even the largest projects without the need for specialized tools or skilled labor. One of the standout features of the Unipipe system, including UnipipeHP, is its unique stainless steel gripping ring. This innovative design ensures quick and secure installation without the need for special tools, crimping, or grooving. The installation process takes half the time of traditional piping options and is significantly faster than copper piping. The system’s lightweight nature—75% lighter than iron pipe—allows for single-person installation of systems up to 6 inches in diameter. Unipipe systems boast the most secure fittings in the market. The proprietary stainless steel clamp ring in every fitting bites into the aluminum pipe, creating a connection rated for over five times the pressure of other systems. This clamp ring ensures 100% contact around the pipe, tightening further as pressure increases. Additionally, a plastic ring identifies the fluid and working pressure for each system, enhancing usability and safety. In terms of cost-effectiveness, Unipipe systems provide the lowest cost of ownership. When considering both material and labor costs, Unipipe proves to be the most economical choice, saving 30% to 40% over traditional piping methods. Unipipe systems are suitable for ultra-clean environments and outperform traditional piping methods such as black iron pipe and copper. Black iron pipe is heavy, prone to internal rusting, and labor-intensive to install, while copper is both expensive and slow to install. In contrast, Unipipe systems are faster, easier to install, lighter in weight, and ideally suited for compressed air applications. Unipipe systems are ideal for ultra-clean environments and Unipipe fittings are universally compatible with most other aluminum systems currently on the market, ensuring a seamless integration process. All Unipipe pipe and fittings come with a 20-year guarantee against manufacturer’s defects, provided they are installed and supported according to the Unipipe installation instructions.
Episode 505: Celebrating heroes in transportation with Road Dog Coffee
Welcome to The New Warehouse Podcast! In this episode, we dive into the world of coffee with a mission. Our guest is Spencer Squier, CEO and founder of Road Dog Coffee, a unique company that serves truckers and logistics professionals. Spencer shares the journey of creating a coffee brand that delivers premium coffee and honors truckers’ vital role in our economy. Road Dog Coffee’s innovative approach stems from Spencer’s deep roots in the transportation industry and his passion for supporting the often-overlooked heroes of the highways. The Birth of Road Dog Coffee Road Dog Coffee was born from a profound respect for truckers and a love for coffee. Spencer, with a background in transportation, recognized the need to spotlight the importance of truckers, especially during the pandemic. “I’ve always loved coffee. I’ve always had a passion for coffee. I’m a big coffee drinker. And I love trucking, and I love our truckers and our logistics professionals because they all go hand in hand.” This vision led to creating a brand that provides premium coffee specifically for truckers and logistics heroes, ensuring they can access quality brews even on the road. Promoting the Contribution of Truckers Spencer shares the dual mission of Road Dog, “We have a kind of a two-pronged business model. We’ve got the educational and awareness side of things. And we have the accessibility side of things.” The brand educates the public about the critical role of truckers through various channels, including the informative content on their coffee bags. On the accessibility front, Road Dog Coffee ensures that truckers can access premium coffee, a rarity at typical truck stops, thus enhancing their daily experience. Expanding Impact and Future Plans The reception to Road Dog Coffee has been overwhelmingly positive, with truckers appreciating the tailored blends. Long Haul Blend: Medium roast coffee designed for all-day drinking. Expedite Blend: Dark roast coffee for late hours, known as “dark as night.” Black Dog Blend: High-caffeine, ultra-dark roast coffee inspired by an urban legend. Spencer shares, “It’s been perceived very well…our long haul blend is a medium roast. It’s designed to drink all day long.” Looking ahead, Road Dog Coffee aims to broaden its impact through initiatives like the RDCC fund, which will support industry-related charities. Spencer’s vision includes expanding product lines to cater to the younger generation and enhancing brand visibility in wholesale channels. Key Takeaways from Road Dog Coffee Road Dog Coffee provides high-quality coffee tailored to the needs of truckers and logistics professionals. The brand promotes the importance of truckers to the economy, aiming to change public perceptions. The unique blends and mission of Road Dog Coffee have been well-received within the trucking community. Plans include launching new products and establishing a charitable fund to support the trucking industry. The New Warehouse Podcast Episode 505: Celebrating Heroes in Transportation with Road Dog Coffee
Centralized Warehouse Orchestration: Revolutionizing efficiency for shippers
The distribution process is burdened with consumer expectations demanding faster deliveries, warehouse labor shortages, scarcity of physical storage space, and siloed supply chain data. Companies are taxed to improve distribution and warehouse processes to improve customer satisfaction, lower costs, and increase productivity. Artificial Intelligence (AI) and Machine Learning (ML) have emerged as transformative technologies within the supply chain, including in the warehouse. AI-powered solutions enhance warehouse operations and improve efficiencies. AI can sit on top of a warehouse management system (WMS) to dynamically orchestrate all activities within the warehouse to make the WMS more responsive. By integrating various aspects of warehouse operations through centralized warehouse orchestration, companies drive value by gaining efficiencies, reducing costs, and enhancing service levels. A centralized warehouse orchestration solution uses advanced technologies, such as artificial intelligence, analytics, and machine learning, to manage and optimize warehouse processes. In other words, it acts as the brain of warehouse operations, coordinating activities, optimizing processes, and ensuring seamless integration of all supply chain components. For multi-site operations, warehouse executives gain a bird’s eye view of what is happening at each site. A centralized warehouse orchestration system creates a comprehensive view of the entire distributed warehouse network, allowing executives to identify potential flow issues, which customers/shipments are at risk, and where action needs to be taken to avoid a service disruption. Benefits for Shippers A centralized warehouse orchestration platform enhances shippers’ operational capabilities, helping them gain a competitive edge. These benefits include: Increased Efficiency: Centralized orchestration streamlines warehouse operations, reducing manual labor and minimizing errors. This leads to faster and more accurate order fulfillment and better resource utilization. Cost Reduction: By optimizing inventory levels, automating processes, and making more efficient use of resources, shippers can reduce costs and waste. Improved Visibility and Control: Centralized warehouse orchestration systems give shippers real-time visibility into their warehouse network, allowing faster shipment tracking, proactive issue management, and more informed decision-making. Enhanced Customer Satisfaction: Customers get their orders at the right time and in the right amount by improving on-time, in-full fulfillment. This improves customer satisfaction, increasing customer loyalty and a competitive edge. Better Risk Management: Real-time data and analytics enable shippers to identify and mitigate risks more effectively. Managers can identify bottlenecks within the supply chain with a centralized view of the entire network of distribution centers and warehouses. Management can respond quickly to disruptions, such as delays or inventory shortages, minimizing the impact on their operations and customers. How a Centralized Warehouse Orchestration Solution Works A centralized warehouse orchestration solution works with existing systems, such as a WMS, Warehouse Execution Systems (WES), and Warehouse Control Systems (WCS). The tool integrates data from across supply chain systems, including inventory management, yard management, labor management, ERP, and warehouse systems, to create a centralized overview of information that facilitates decision-making. This integration ensures a seamless data flow and coordination across supply chain operations. It also allows for a single interface capable of managing the four critical pillars of warehouse orchestration: labor planning, inventory management, human-robotic interactions, and space optimization. Let’s look at each of these pillars and how a centralized warehouse orchestration solution benefits each function: Labor Planning – By monitoring the number of workers at each site, a centralized warehouse orchestration platform can compare how well a site works with a certain amount of labor versus others that use more or fewer workers. A centralized warehouse orchestration solution ensures that labor resources are utilized effectively, enhancing warehouse efficiency and productivity. It can also forecast labor demand based on historical data and predictive analytics, adjusting staff levels proactively or reducing overstaffing, which can save costs. Inventory Management—Provides a unified view of inventory levels across multiple warehouse locations to improve inventory management by enabling accurate tracking, forecasting, and stock replenishment. The solution leverages a real-time data-driven approach for proactive decision-making on warehouse performance, shipment statuses, and bottlenecks. This approach helps to optimize operations and improve efficiencies while allowing the business to quickly scale up or down based on seasonality and other activities. Space Optimization—A centralized warehouse orchestration platform facilitates space optimization by integrating various warehouse systems to maximize the efficient use of available space. With real-time data, the system can evaluate and adjust slotting arrangements to best use space. With a real-time view of inventory levels and locations, the system can enable better space management by ensuring that products are stored in the best locations. A centralized warehouse orchestration solution can facilitate cross-docking to minimize storage time and reduce space usage. Incoming goods are directed to outbound shipments without long-term storage. Smaller shipments can be consolidated into fewer, larger ones that take up less space. Human-Robotic Interactions—A centralized warehouse orchestration solution improves human-robotic interactions by coordinating the activities of human workers and robotic systems. The system provides a unified interface for real-time monitoring of human workers’ and robots’ activities and statuses. Information can be collected and analyzed from human and robotic activities to identify inefficiencies and performance bottlenecks. Managers gain insights from data analytics for continuous improvement of human-robotic workflows. Centralized warehouse orchestration is revolutionizing the supply chain industry by integrating and optimizing warehouse operations, giving managers a bird’s eye view and visibility into what is happening across the network to mitigate risks better and enhance customer satisfaction. About the Author: Michael Perdue is a Solutions Engineer at AutoScheduler.AI, an innovative Warehouse Orchestration Platform and WMS Accelerator. As a solutions engineer, Michael helps teams with strategies that deliver value to their supply chain operations. He worked for multiple SaaS companies before transitioning to the logistics world. He recently worked at a Third-Party Logistics company, gaining operational experience helping companies in the Food Industry, Cold Storage, Manufacturing, Retail, and CPG space. He has experience running teams in distribution centers and has gained tremendous insight into areas where optimization and improvements can occur in multiple warehouse settings.
Future proof your supply chain: Embracing automation and AI
Supply chain leaders are turning to automation and AI to enhance operational efficiency, reduce costs, and elevate the customer experience Automation in both process and physical forms has been around dating back as far as the Industrial Revolution. However, it wasn’t until the 1980s that automation began to emerge in supply chains. Back then, warehouse automation—such as automated storage and retrieval systems (ASRS), sortation systems, and conveyors—involved expensive physical infrastructure and millions of dollars in capital. What’s more, as business models evolved or companies created new models, these approaches struggled to be responsive. Fast forward to today. With advances in technology that include AI/machine learning and RPA in the form of software robotics, modern automation such as AMRs and other automated systems are much more conducive for pilots with small investments—providing the ability to prove value before a larger commitment is made. This benefit is just one of several reasons supply chain leaders need to embrace the enormous potential for advances in automation and AI technologies, which will continue to gain momentum for years to come. Additional benefits include: A solution to labor shortages: Finding enough workers with the right skill sets has opened the door for the adoption of warehouse automation, including the use of automated sorting systems, picking and packing automation, robotic automation, and autonomous vehicles. In addition to reducing dependence on human labor, these solutions can increase efficiency by operating 24/7 without fatigue. This translates into reduced costs and higher productivity levels, helping warehouses meet customer demands even during peak periods. Additionally, automation systems can minimize the risk of injuries to human workers by performing hazardous tasks. Enhanced customer experience: Brands and retailers are investing heavily in automation and AI to meet consumer demands for fast and reliable delivery. For example, AI helps companies optimize routes and provide accurate delivery estimates. Additionally, AI-driven chatbots can track orders, handle routine inquiries, and offer product recommendations—enabling companies to minimize response times and allow human customer service representatives to focus on complex issues. Improved accuracy/reduced errors: Precision is one of the most significant advantages of warehouse automation. The implementation of automated systems can drastically reduce human errors, which can lead to more accurate order fulfillment and inventory management. This can go a long way in maintaining customer satisfaction while reducing waste. Enhanced demand forecasting: AI technology excels at forecasting demand by extracting insights from extensive repositories of data, including numerous sources such as past sales records, customer transactions, social media mentions, and prevailing economic indicators—helping supply chain and logistics organizations maintain the delicate balance between consumer demand and supply. Additionally, AI projection tools can help facilitate better collaboration between supply chain partners by allowing demand forecast data to be shared with suppliers. This helps businesses optimize inventory levels and minimize stockouts while creating a harmonized supply chain system. Real-time visibility: Today’s businesses need to have complete, real-time supply chain visibility. AI-powered systems provide this level of visibility by integrating data from various sources such as suppliers, manufacturers, logistics providers, and retailers. This helps businesses track inventory levels, monitor shipments, identify bottlenecks, and respond quickly to disruptions or changes in demand—which enhances overall supply chain agility. Take the First Step—Consult with a Supply Chain and Logistics Expert Before investing in automation and AI, supply chain leaders need to understand the complex nature of these technologies as well as the current and future state of the market. This can be effectively accomplished by leveraging the expertise of a supply chain logistics and implementation partner—one that can help you deliver a customer experience that will build brand loyalty and accelerate growth. About the Author: Recognized for industry thought leadership and customer value creation, Jagan Reddy brings 25 years of experience in building and delivering supply chain and logistics solutions to his position as Managing Partner of Netlogistik US.
New AI-Powered Dynamic Slotting simplifies warehouse reslotting with click of a button
Distribution center technology provider Lucas Systems announced its next generation of Dynamic Slotting, a warehouse game changer for making in-the-moment slotting decisions thanks to the powerful use of AI. With a few button pushes on an easy-to-use interface, Lucas Systems software will intelligently sift through an abundance of warehouse data to serve up optimal slotting recommendations. The results take minutes to generate, whereas traditional slotting analysis often takes months to complete using engineering resources or consultants. Dynamic Slotting’s recommendations identify product moves with the biggest potential payback. Hundreds of parameters are taken into account, including demand seasonality, item size, SKU velocity, and costs. Its similarity detection prevents placing related items side by side to reduce picking errors. Lucas Systems, which provides software to workers in more than 400 warehouses across four continents, says its Dynamic Slotting solution replaces what is typically a cumbersome, long, and expensive process that is seldom done. Dynamic Slotting allows warehouse operators to reslot every day, keeping warehouse slotting in optimal shape. “This is a game changer for how the industry operates. Traditional slotting is fraught with challenges,” Lucas Systems CTO Scott Mullins explains. “Dynamic Slotting gives on-floor managers and supervisors the power to optimally reslot on the fly.” The powerful technology in Lucas Systems’ AI-driven Dynamic Slotting applies machine-learning algorithms to recommend which products should be moved. It also learns the spatial characteristics of a warehouse and predicts task time based on activity-level data. The model then continues to ‘learn,’ providing continuous optimization as conditions change. “It’s the type of slotting that every supervisor or manager can use,” says Mullins. “This ease-of-use means reslotting can be done more often by those on the floor, which is key to overall optimization.” Rotary Corporation, a global supplier of outdoor power equipment parts, has been partnering with Lucas Systems on its Dynamic Slotting solution. “The ability to quickly and frequently make optimal slotting decisions is extremely impactful because it contributes to optimal picking efficiencies, cost savings, and meeting our customer promises,” says Rotary Corporation COO Donald Fountain. “If we are making those decisions in an agile way – dynamically – we are gaining the most efficiencies.” Lucas Systems’ Dynamic Slotting promises a 20-40% increase in throughput because it recommends the best locations for inventory based on SKU velocity, SKU affinity, product/slot information, pick paths, and other data. Specifically, it promises: Increase of 5-20% in productivity 10-20% labor cost savings 1-5% improvement in accuracy