Logistics Viewpoints

A complete analysis of logistics trends, technologies, and services

Adoption of Consumer-Grade Mobility in the Warehouse

Mobile Technologies | By •

ARC Advisory Group and DC Velocity magazine recently concluded a web survey on the current use and future plans for mobile computing in the warehouse. Detailed findings from the research will be published soon. However, I would like to take this opportunity to discuss the results from a small subset of the research – namely the use of consumer-grade mobility in the warehouse.

Consumer Devices are Affordable and Intuitive

The use of Android-based devices in the warehouse is no longer an emerging practice. The Android operating system is running smartphones across the globe, and leading handheld providers such as Zebra and Honeywell now offer a number of ruggedized devices that run on Android as well. But only 2 years ago this wasn’t the case. It was a novel practice back then and it was primarily seen as an intuitive option that would enable new workers to get up-to-speed and productive as soon as possible. At the time, I wrote about SingPost’s development of a warehouse app to run on consumer-grade Android devices for use by new hires and temporary workers. This solution provided notable benefits to the company’s e-commerce fulfillment operations. Namely, it reduced employee training times due to the intuitive nature of the user interface and it also reduced IT costs due to the low price point of consumer devices that the company was able to utilize for picking tasks. The device set-up wasn’t ideal for all workers but well-suited for certain operations. This case and some other examples piqued my interest in determining the degree to which consumer-grade device use in warehouses had expanded over the last two years.

Prevalence of Consumer-Grade Device Usage

In our recently completed survey, only 3 percent of respondents stated that use of consumer-grade handhelds is widespread in their warehouse operations. Meanwhile, 35 percent indicated that they use these devices selectively and 62 percent stated that they do not equip warehouse workers with consumer-grade mobile devices.  These results were in line with what I expected – namely that consumer-grade devices are used selectively to supplement the primary devices used at the facility. More specifically, I expected respondents to use these devices to equip seasonal or other new workers.  We tested this assumption by directly asking survey participants about their approach to equipping temporary warehouse workers during periodic volume increases such as peak holiday season. The results from this inquiry did not meet my expectations. Our results indicated that warehouses often have excess legacy rugged devices in stock and deploy them when needed to support seasonal warehouse labor surges. One respondent from a 3PL simply stated, “We have an excess of old units that we use when necessary.” And for those organizations that did purchase or lease devices to equip temporary workers, high-performance devices were still more frequently chosen than consumer-grade devices. These responses reinforce a theme reflected in many other parts of this survey – warehouses are resistant to change in their technology platform and when change does occur, it will likely be done incrementally. In contrast to handhelds, tablet usage in the warehouse does not have to overcome the inertia of legacy technology.

Tablet Usage in the Warehouse

Tablets, such as the iPad and similar devices running Android or Microsoft operating systems, have experienced exceptional growth in consumer and business use. The warehouse also has use cases for tablets. Most notably, WMS providers such as Manhattan Associates, JDA Software, and HighJump have developed applications for supervisors or consultants to use on tablets while roaming the warehouse floor. We asked logistics professionals to indicate the degree to which certain categories of warehouse workers in their organizations were utilizing tablets. Surprisingly, vehicle mounted tablets (ie forklifts) was the most prevalent use case, followed by warehouse supervisors, pack stations, and finally picking tasks. One respondent commented that workers at his company are using Microsoft Surface devices for their vehicle-mounted tablets and have had zero damaged units over 2 years. We followed-up with a question on anticipated change in tablet usage over the next three years.  Over 60 percent of respondents indicated that they expect supervisor use to increase. Surprisingly, over 40 percent expect use of tablets to increase for the picking function. Finally, over 30 percent of respondents expected increase use of tablets at, pack stations and on vehicle assisted/mounted use cases.

Final Word

Overall, these findings indicate that I previously underestimated the value of having ruggedized handheld devices in the warehouse. In contrast, tablets do not have the same propensity to damage and also do not have the same history of warehouse usage as handhelds. Therefore, there is less resistant to these new devices being adopted for new roles such as supervisory, consulting, or even as an interface between robots and warehouse workers.

Distribution Center 3.0 – Thriving During Peaks and Beyond

Guest Commentary | By •

aklineToday’s digital culture has put tremendous pressure on distribution centers (DC) and warehouses, forcing them to drastically increase their pace of fulfillment to meet growing consumer expectations. This 24/7 ecommerce-driven industry transformation is causing greater peaks in demand that stretch equipment and people like never before. The impact of these peaks can have a domino effect through the supply chain – from DCs, to suppliers, to manufacturers and everyone in between.

With these changes, many are asking – how do we scale to address performance during peak periods?

To design an agile approach to business that can strategically respond to predictable peak seasons and unpredictable demand spikes, it is wise to consider both human resources and systems together as complementary assets that can overcome your operational challenges.

People, Productivity and Peak Operations
Alongside digital, the evolving workforce is also driving change. Pew Research reports that millennials are currently the largest generation in the U.S. labor force. By 2020 it’s expected that they will make up more than half of the global workforce. This means that millennials will likely be brought into the DC as temporary help during peak seasons because, according to research from Duke University , they are tech savvy and less expensive to employ.

Inevitable peaks in demand and the evolving workforce raise the stakes for making new hires and seasonal help productive. The key to optimizing peak operations today is to prioritize, not marginalize, these workers.

First, focus on creating an engaging employee experience by equipping workers with devices they are most familiar with, for example, a smartphone-like device with an app-based experience to reduce the amount of time it takes them to get up to speed. For instance, on-screen buttons, color interface and use of imagery are closer to the mobile apps people use on a regular basis, which helps the employee become adept at using technology in hours, not weeks.

Additionally, using visual cues and pictures of objects enables employees to pick faster and more accurately based on what he/she is seeing. This serves to increase accuracy since the picker can verify that the item matches the picture on the device screen. It’s a win-win for the employee, who is set up for success, and the employer, who has created a more productive worker.

According to Gallup research , millennials want frequent and continual feedback on job performance. Another way to bridge the engagement gap is to equip managers with mobile technology in the DCs to help them provide more direct feedback on the floor. This simple strategy can distinguish businesses today from competition.

Systems Strategy for Peak Responsiveness
In addition to preparing big orders for stores and large wholesale customers, the DC must also be able to respond dynamically to one-off fulfillment demands as well as manage resources and equipment to meet order spikes.

Order streaming is the best approach to maximize equipment utilization and labor productivity because of its ability to dynamically adjust picking priorities on-the-fly and help keep labor resources and sortation equipment humming along at a regular pace, reducing the amount of downtime for labor and sortation processes.

The chief strength of wave-based fulfillment is batch throughput efficiency – the ability to aggregate demand into bulk picking brings significant performance advantages. However, in direct-to-consumer environments, order streaming is effective at leveraging these strengths while also delivering efficiency by responding to the ever-changing order priorities we are seeing more and more today, such as unpredictable quantities of next-day or same-day shipping items.

It’s this unique ability of order streaming to ensure that orders are fulfilled in the right sequence based on those priorities and its enablement of last minute allocation changes that ensure the hottest item gets out the door on time and in a prioritized fashion. This functionality plays a critical role in designing a DC to optimize for peak performance during high order periods.

Order steaming provides a holistic view of all inventory, shipping and receiving functions tied together into a single control system, offering a better approach that balances picking and replenishment to optimize flow across all components. When implemented as another fulfillment option from within an existing Warehouse Management System, order streaming doesn’t require training users on multiple technologies or maintaining multiple configuration sets or integration points, further eliminating obstacles for speedy performance delivery.

Today’s supply chain leaders need to be adept with both people and technology. In the DC 3.0, technology will take both temporary and long-term workers to new levels of productivity, and the more efficient and simple to use and understand, the better. Making a small change today to put processes in place that drive efficiency and profitability can reap benefits in the future and will ensure that you are ready to hit the ground running with high-volume performance.

Adam Kline is Director of Product Management at Manhattan Associates responsible for driving strategy for the company’s Warehouse Management for IBM i (WMi) and Supply Chain Intelligence (SCI) products. He is also responsible for Manhattan’s strategy for the Manufacturing vertical. Adam joined Manhattan in 1997 in Research & Development, then assumed a role in Product Management. He has experience across the Retail, Pharmaceutical and Life Sciences, Food and Beverage, Consumer Goods, and Manufacturing industries.

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1 Fry, Richard. “Millennials surpass Gen Xers as the largest generation in the U.S. labor force.” Pew Research Center. May 11, 2015
2 “CFO Survey: Few Companies Making Special Effort to Attract Millennials or Achieve Board Diversity Targets.” Duke University. Dec. 10, 2014
3“Employee Engagement in the U.S. Stagnant in 2015.” Gallup. Jan. 13, 2016.

Android OS at a Warehouse Near You?

Mobile Technologies | By •

Mobile computing and RF guns have been an essential tool in real-time warehouses for years. They’re certainly nothing new. However, ARC’s research into the WMS market shows that mobile apps are receiving substantial R&D dollars from a number of WMS vendors. There is widespread development of new mobile warehousing applications designed for Android operating systems for use on cost-effective, consumer-like hardware. These applications are also being developed by third-party consultants, and large WMS end-users to cost-effectively scale their warehouse operations with intuitive mobile interfaces.

A couple years ago I wrote a Logistics Viewpoint post (Fleet Telematics Competition Benefits Customers) that described how modern mobility was essentially a disruptive technology, displacing traditional fleet telematics solutions. I believe that modern consumer-like mobility is now having the same effect on mobile computing in the warehouse. Lower cost per device and ease of use for workers are the primary reasons for using mobile warehouse applications running Android OS on consumer-like devices. Both of these features lead to quicker time to value per warehouse worker. Therefore, the leading use-case is for seasonal workers or other situations where the warehouse needs to scale up operations quickly.

Modern Consumer Mobility in Warehouse

Examples of New Mobile Applications for the Warehouse

  • HighJump, since the merger with Accellos, has placed a primary emphasis on developing its HighJump One platform that features an HTML5 user experience with a mobile layout guide. However, HighJump customers have been developing their own mobile applications with HighJump’s historical development architecture for years. One large HighJump Warehouse Advantage customer in Asia developed warehouse picking and packing applications for Android mobile devices to be used by temporary workers during large seasonal peaks. Lower cost per device, ease of use, and reduced training time are the comparative advantages of this mobility option.
  • Manhattan Associates recently released a new mobile picking application that runs on Android or iOS and is geared toward e-commerce fulfillment that experiences extreme peak season fluctuations that require seasonal workers to support the increased warehouse volumes. The intuitive user interface is designed with the goal of reducing employee training time to get workers productive more quickly. The screen layout incorporates touch responsive areas that are familiar to smart phone users and can pull item images or descriptions to assist in visual identification. And the display can be set to landscape or portrait mode to accommodate the task at hand. The application also integrates to labor management so information such as estimated vs. actual task completion times can be recorded and displayed.
  • Symphony EYC, formerly Aldata, offers a voice picking solution that runs on an Android device and combines with it RF scanning and other traditional data capture mechanisms. Symphony EYC highlights the benefits of using one mobile environment across a company’s warehouse operations and also notes the substantial cost advantage of many devices that currently run Android OS.

Final Word
Many consumer-like devices running Android have a lower price-point than traditional ruggedized mobile computers that typically run Windows. However, many of the ruggedized devices incorporate ruggedized components that last longer, but have a higher upfront cost. Therefore, devices with higher upfront costs may provide more competitive costs over longer time horizons. Also, hardware and communication performance of lower-priced solutions must be reviewed to determine if it meets an organization’s requirements for its given operations.

Have mobile warehouse applications, running on Android OS and lower cost devices, reached a level of functionality that make these options a viable alternative for more than just the temporary peak season workers? And will these capabilities evolve in a way that this alternative becomes a disruptive technology to the traditional warehouse mobility market. What do you think? Feel free to send your comments to the author at creiser@arcweb.com.

5 Supply Chain Trends You Can’t Ignore (Takeaways from Accellos Conference)

Cloud/Software-as-a-Service | By •

Are you working in a Company of Yesterday or a Company of Tomorrow?

I love that question, which is from a blog posting by supply chain executive and consultant Tony Martins, who was my guest on Talking Logistics earlier this year; Tony was also a panelist in the Mega Trends Impacting Supply Chains session I moderated at last week’s CSCMP conference.

I’ve been asking audiences that question the past few months whenever I give keynote presentations because it opens the door to other questions, such as How do you know if you work in a Company of Yesterday? and What are the attributes of a Company of Tomorrow?

I raised those questions in my keynote presentation last month at the Accellos Visions User Group 2013 conference. Many of the customers in attendance were 3PLs, so I framed my presentation around the following five supply chain trends 3PLs (and their customers) can’t afford to ignore.

Social, Mobile, Cloud are Transforming IT. I’ve written extensively about these topics over the past few years (see, for example, “A Pulse on Social Networking for Supply Chain Management”), so I won’t repeat myself here, other than to underscore an overriding trend related to Social, Mobile, and Cloud: the ongoing consumerization of IT — defined by Wikipedia as “the growing tendency for new information technology to emerge first in the consumer market and then spread into business and government organizations” — which is a key reason why software vendors are starting to compete on ease-of-use and UI design.

Software is Not Enough: The Emergence of Supply Chain Operating Networks. As I discussed earlier this year on Talking Logistics, Supply Chain Operating Networks bring together trading partner connectivity with cloud/SaaS applications. Instead of companies creating hundreds or thousands of one- to-one connections with their trading partners, they make a single connection to the business network, where their trading partners and thousands of other companies are also connected. In addition, they use the cloud applications that reside on the network to communicate, collaborate, and execute business processes in more efficient, scalable, and innovative ways.

Time to Rethink Supply Chain Risk Management. Put differently, companies need to embed supply chain risk management within their corporate DNA. The goal is to incorporate risk in the decision-making process at all levels of the supply chain, just like cost is today. In other words, supply chain professionals need to get to the point where talking and thinking about risk is as common and instinctual as talking and thinking about cost and service. For related commentary, see “Rethinking Supply Chain Risk Management” and “Many Companies are Falling Short on Supply Chain Risk Management.”

Talent Becoming a Competitive Differentiator. Why must 3PLs — as well as manufacturers, retailers, and distributors — think more strategically about talent management? Because best-in-class execution depends on best-in-class people (see “The Case for Competing on Logistics Talent”). But as I highlighted in my posting last week, and the Red Sox have exemplified this baseball season, talent alone is not enough for success. The people you hire, as well as those you already have on your team, including your executive leaders, must also have the right attitude if you want to make it to the World Series of your industry.

Beyond Operational Excellence: 3PLs as Consultants, Technology Providers, and Facilitators of Peer-to-Peer Learning. Simply put, providing operational excellence is no longer enough for success — it’s simply the ticket to the dance. Providing business intelligence and insights, as well access to supply chain experts and innovative technology, are what customers expect from their 3PL partners today (see “4 Important Factors to Consider When Evaluating 3PL Partners”).

While at the conference, I also had the opportunity to conduct video interviews with several of Accellos’ 3PL customers to learn more about the challenges and opportunities they face, and how those factors are influencing their technology investments and priorities.

I encourage you to watch the brief interviews to get the full story on their case studies. But here are a few clips that underscore some of the trends I discussed earlier.

First, here’s Kevin on why Goggin Warehousing chose to deploy Accellos’ warehouse management system (WMS) in the cloud:


And with regards to operational excellence not being enough, here’s Wade from Derby Supply Chain Solutions on the biggest challenge (or “gap” as he refers to it) facing the logistics industry in the years ahead:


And finally, here’s Gustavo about the factors that led Frialsa to look for a modern and scalable logistics software solution. Simply put, the company’s manual processes and legacy software solutions could not scale, quickly and cost-effectively, with its rapid pace of growth — a challenge many 3PLs I’ve spoken with this year are also facing.

Guest Commentary: Improved Logistics is in Your Pocket

Guest Commentary | By •

With today’s smartphones, you can sharpen your game by juggling a multitude of tasks each day without letting anything slip through the cracks. How could you handle hundreds of emails, phone calls, text messages and meeting schedules each day without it? Improved mobile coverage and Wi-Fi connectivity make sure that you are connected at all times to all of this necessary information. When you travel on business, various apps — weather, maps, music, clock, camera, GPS, QR Reader, games, and airline apps — make sure that you get to your destination efficiently. Some of us who like to stay ahead of the workload use social media tools to answer LinkedIn requests, Facebook questions, and review new Twitter messages for our business. If you are meeting an important client for dinner in a neutral city, you can check reviews on Yelp for a great local restaurant and schedule dinner reservations using your smartphone. The list of possibilities goes on and on, and it is hard to believe this has all happened within the last few years.

Many of your more sophisticated logistics operations have also enjoyed improved efficiency from local voice and mobile devices that scan moving inventory to update your cross-docks, warehouses, and transportation management systems. Even the top 25 supply chains in the world have small suppliers, small carriers, freight forwarders, subcontractors, brokers, and drayage carriers that may not be able to connect via 40-year-old EDI messages or 9-year-old AS2 (soon to be AS3) transfers. Blind spots in logistics always lead to increased uncertainty, which then leads to increased safety stock and carrying costs. Small suppliers in China or other parts of the world with 150 day lead times drive warehouse workers and the people scheduling a retailer’s store promotions crazy when a dozen ocean containers show up without any advance notice. Small carriers that provide excellent service to their shippers may not have systems in place to accept EDI 204 tender messages and provide EDI 214 status updates, but their drivers do have smartphones in their pockets. With the upcoming driver shortage forecast, we will need smartphones to facilitate communications and improve our partnerships.

The recent convergence of smartphone technology, cloud computing, and cutting edge logistics technology providers working with industry experts is quickly removing the roadblocks of the past. Logistics technology providers are now delivering social technologies to enhance the capabilities of smartphones by allowing the sharing of purchase orders, acceptance/adjustments to orders, manufacturing dates, departure times, shipment status updates, tracking the shipment on a map, and capturing proof of delivery signatures from carriers all enabled on a smartphone app. If you have a damaged shipment you can use your smartphone to attach a photo, video, and claims document to that particular shipment for all global participants involved with the shipment to see and make necessary comments in real time. Smartphones can also enable small carriers to quickly accept loads on their mobile device and allow the GPS to provide status updates on their shipments, thus improving efficiency and customer service.

So, if your teenagers can use “Find My Friend” to get precise smartphone GPS updates every 15 seconds of where all their buddies are located, then we should all strive to pinpoint our shipments, trigger alerts, and calculate ETA’s before these teenagers enter the workplace and roll their eyes at us. The next time you go on a family trip be thankful for the guidance system in your vehicle or on your smartphone as the kids can calculate the answer to “Are we there yet?” or even better, you can avoid the “Are we taking the scenic route again?” question by not getting lost while you are worried about your logistics operation while you are away.

Mark Nix serves as Cloud Logistics‘ chief executive officer and a member of the Board of Directors. Mr. Nix has 28 years of supply chain software experience in helping clients of every size address their global needs. Mr. Nix serves as a Partner with Nix Venture Partners, is on the Board of Directors with the One Step Closer Foundation, and advises various charities. Mr. Nix served as VP of Major Account Sales at Manhattan Associates, an EVP with One Network Enterprises, and worked with IBM’s Nistevo division, Metasys, and the TranScape/Vocam/PBTS divisions of PBI. He holds a Bachelor of Science degree from The University of Tennessee.

Guest Commentary: Lifestyle Trends Driving Supply Chain Innovation

Guest Commentary | By •

In the supply chain software industry, uncertainty is certain and anticipating what’s next is what makes our days interesting. The innovations we develop must meet constantly shifting market demands and customer priorities, and it’s important to not only understand that the changes are happening, but also the drivers behind those changes. Here are a few of the macro-level lifestyle trends we are seeing influence supply chain management and software solutions.

The consumerization of IT: Thanks to the constant connection we have to our mobile phones, tablets, and other devices, the expectations we have of information technology are shifting. We want software that is intuitive, robust and nice to look at. We want our work hardware and software experience to be as easy to use as our home devices. Not only does this expectation push IT developers, but it has raised some tough questions for companies, such as whether workers should be allowed to use their personal devices on the job, or how they can be integrated into daily tasks. This new reality of constant connectivity is driving enterprise software to act more like a consumer style application and raising questions about how a consumer device can be applicable to the supply chain world.

Data wherever, whenever: We are able to seamlessly sync our phones with our computers, share photos in the cloud and access most of our information anywhere at any time. This lifestyle has spilled over into the business world as well, as developers determine new ways to make data accessible across channels and locations. The need for a manager to access reports and important KPIs on his or her personal device from work, home or on the road, for example, has made this expectation a business necessity and one that will be a constant theme in supply chain innovation in the foreseeable future.

Orders wherever, whenever: In other words, tracking and maximizing the fulfillment of orders flooding in from a multitude of channels, such as websites, phone calls, resellers, and brick-and-mortar shops. Supply chain technology must be able to make intelligent decisions about how and where orders are filled (or split up) based on geography, product, delivery dates and more. Warehouse management systems that can take into account an increasing number of variables and route the order accordingly – and then work with a transportation management system to ship those goods – will be the backbone of a modern warehouse and will fulfill the customer expectation of fast, accurate service no matter how the order was placed.

These lifestyle trends are affecting how supply chain professionals perform their job and interact with information. By ensuring that innovations put smart software in our hands and real-time data at our fingertips, the supply chain industry can increasingly operate proactively and nimbly as the market demands assuredly shift again.

Chuck Fuerst is the director of product strategy at HighJump Software. He has more than 15 years of experience in the technology market, working for supply chain and ERP software companies to deliver innovative solutions. Chuck is responsible for monitoring supply chain industry and technology trends and identifying ways to enhance the value of products for HighJump’s customers. He holds a bachelor’s degree in marketing management and innovation from Concordia University.

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