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AI-Powered Warehousing: How CJ Logistics America and OneTrack Are Transforming Warehouse Operations

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AI-Powered Warehousing: How CJ Logistics America and OneTrack Are Transforming Warehouse Operations

CJ Logistics America, a leader in supply chain innovation, is redefining warehouse efficiency through its partnership with OneTrack. Since 2019, this collaboration has leveraged AI-driven computer vision to enhance safety, productivity, and quality across CJ Logistics America’s North American operations.

Read also: Dynamic Warehouse Evolution: Lucas Systems Unveils Self-Optimizing Tech for Real-Time Efficiency

Smarter Warehouses, Measurable Impact

With over 40 locations utilizing OneTrack’s Warehouse Operating System, CJ Logistics America integrates AI-powered camera sensors, real-time alerts, and advanced analytics to deliver unprecedented warehouse visibility. The results speak for themselves:

  • 73% reduction in potential safety incidents, with some locations cutting incidents by up to 98%
  • 11% boost in Units Per Hour (UPH), enhancing efficiency and service quality
  • 60% decrease in product damage, improving shipment reliability and reducing costs

At the Romeoville facility, misplaced inventory can now be located in minutes—an improvement that once took hours.

AI and Video Analytics Reshaping Workforce Management

OneTrack’s AI doesn’t just track warehouse performance—it actively improves it. By integrating with the Warehouse Management System (WMS), the AI provides real-time alerts when operations fall behind benchmarks. These alerts pinpoint the three employees most in need of support, complete with video footage for targeted coaching.

Laura Adams, Senior VP of TES at CJ Logistics America, highlighted the impact: “OneTrack’s automated insights allow our leadership teams to remove bottlenecks and make smarter decisions, improving both employee experience and customer outcomes.”

The Future of Logistics Innovation

CJ Logistics America and OneTrack are setting a new industry benchmark, proving that AI and computer vision are no longer futuristic concepts but essential tools for modern logistics. With plans to expand into predictive analytics and quality control in 2025, this partnership continues to push the boundaries of operational excellence.

Blake Martin, Director of Engineering at CJ Logistics America, summed it up: “The ROI is immediate, the visibility is game-changing, and the results speak for themselves.”

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Revolutionizing the Vape Industry Through Warehouse Innovation

As the Director of Operations at one of the leading vape distribution company in the United States, I have witnessed firsthand how warehouse transformation can do more than improve efficiency—it can redefine the trajectory of an entire industry. The vape sector, known for its rapid growth and evolving consumer demands, now requires operational excellence as a critical driver of success.

Read also: What Kind of Security Team Is Best for Warehouses?

In my role, I have been at the forefront of optimizing warehouse operations and implementing innovative strategies to elevate our distribution capabilities. Moving from an 18,000-square-foot facility to an 85,000-square-foot warehouse wasn’t just about gaining additional space; it was about transforming that space into an advanced, efficient, and functional hub that could propel our company forward.

A well-optimized warehouse is the cornerstone of a successful distribution network. By redesigning our facility and introducing scalable storage systems, we dramatically increased storage capacity and improved operational flow. Dividing the warehouse into zones tailored to specific needs has been a transformative strategy that has significantly enhanced our operational efficiency and responsiveness. Zone A, located nearest to the shipping area, is designated for products with high turnover rates. These are items that move quickly due to consistent consumer demand. By integrating a flow rack system in Zone A, we’ve optimized accessibility and streamlined the picking process. This setup allows team members to easily retrieve high-demand items, reducing picking times and ensuring that orders for these products are processed and shipped at a faster pace.

On the other hand, Zone F, located farther from the shipping area, serves as storage for slower-moving products. These are items with less frequent turnover, which require careful organization to avoid cluttering high-traffic areas. To maximize storage efficiency, we implemented a bundled bin system in Zone F. This system consolidates these products into designated bins, utilizing vertical and horizontal space effectively while keeping the inventory orderly and easily retrievable when needed.

The addition of conveyor belts has further revolutionized internal movement within the warehouse. Previously, transporting items from one section to another relied heavily on manual labor, which was time-consuming and prone to bottlenecks during peak activity. With conveyor belts in place, the flow of goods between zones has become seamless and automated. For instance, products picked from Zone A can now be directly transported to packing stations without delay, while items from Zone F can be moved efficiently to the areas where they are required. This has drastically reduced processing times and minimized the physical strain on our team members, allowing them to focus on more value-added tasks.

The combined effect of zoning, flow rack systems, bundled bin systems, and conveyor belts has been monumental. These innovations have created a smoother, more logical workflow, where every square foot of the warehouse serves a strategic purpose. By cutting down on unnecessary movement, reducing search times, and ensuring that high-demand products are always within reach, we’ve been able to boost our order processing speed and improve accuracy. Additionally, this systematic approach has reduced the likelihood of inventory mix-ups and ensured that even during high-demand periods, the warehouse operates at peak efficiency.

This zoning strategy is not just about improving day-to-day operations; it is about future-proofing our warehouse. As consumer demands evolve and our inventory diversifies, the zoned layout provides the flexibility to adapt. High-turnover zones can be expanded or reconfigured, and storage solutions for slower-moving items can be adjusted without disrupting the overall workflow. This adaptability ensures that our warehouse will continue to meet the demands of the vape industry’s dynamic landscape, setting us apart as a leader in operational innovation.

One of the most groundbreaking changes has been the implementation of Cubi scan technology. This system captures precise dimensions and weights for all inventory, transforming how we and our vendors operate. By making accurate case-pack information a requirement, we set a new industry standard, enabling products to be identified and processed by weight. What started as an internal innovation is now widely used across the vaping industry, reshaping inventory management practices.

Technology has truly been the cornerstone of our warehouse transformation, redefining how we manage inventory and fulfill orders with unparalleled efficiency and precision. The integration of automation tools, real-time inventory tracking, and predictive analytics has not only optimized our processes but also revolutionized the way we operate as a whole.

One of the most significant changes has been in the picking and packing processes. Previously, these tasks were entirely manual, relying heavily on human effort and prone to errors. The lack of a streamlined system often led to inaccuracies in order fulfillment, delays in processing, and inefficiencies during peak periods. However, the adoption of handheld systems has been a game-changer. These devices guide our team through the picking process with precision, ensuring that every product selected matches the order specifications. As a result, our error rate has dropped dramatically to less than 0.5%, a benchmark that positions us as an industry leader in accuracy and reliability.

Receiving shipments has also undergone a radical transformation. In the past, our team would manually count every single item, a time-intensive process that often slowed down operations and introduced room for discrepancies. Now, thanks to our advanced inventory systems, we’ve moved to case count verification. By collaborating with vendors and ensuring that our systems store detailed product data—such as case dimensions, weights, and quantities—we can receive and process shipments in a fraction of the time. This innovation not only eliminates manual errors but also allows us to maintain real-time visibility of our inventory levels, which is crucial for meeting increasing demand.

Real-time inventory tracking has further elevated our operational efficiency. Every product that enters or leaves the warehouse is logged into our system instantaneously, providing us with an accurate snapshot of inventory levels at any given moment. This capability has drastically improved our ability to forecast demand and plan replenishments effectively. Predictive analytics plays a vital role here, using historical data and trends to anticipate customer needs and ensure that we’re always stocked with the right products. For example, during high-demand periods, our systems can predict which products will see a surge in sales and prioritize their positioning for faster picking and shipping.

The benefits of these technological advancements extend beyond efficiency and accuracy. They’ve also enabled us to scale our operations seamlessly. As our product catalog has grown and customer expectations have evolved, these tools have provided the flexibility to adapt quickly without compromising service quality. Orders are now fulfilled faster than ever, even during peak seasons, which has strengthened our reputation as a reliable distributor and enhanced customer satisfaction.

Additionally, the automation of routine tasks has freed up our team to focus on more strategic, value-added activities. Instead of spending hours on manual counts or error correction, they can now concentrate on optimizing workflows, improving customer relations, and identifying further areas for innovation.

In summary, the integration of cutting-edge technology has not just improved our internal operations; it has set a new standard for excellence in the vape industry. By minimizing errors, accelerating order fulfillment, and leveraging data-driven insights, we’ve created a warehouse ecosystem that is both highly efficient and future-ready. This transformation has been instrumental in meeting growing consumer demand, solidifying our market position, and demonstrating that technology is the driving force behind sustainable growth and industry leadership.

The ripple effects of our warehouse transformation extend far beyond mere operational efficiency; they have fundamentally redefined the dynamics of the entire vaping industry. By embracing faster, more accurate distribution processes, we’ve set a new standard for meeting consumer demand with consistency and reliability. Vape shops and retailers, which heavily rely on prompt and accurate deliveries to maintain their own customer satisfaction, have benefitted immensely from our streamlined operations. These enhancements have strengthened our relationships with partners and positioned us as a trusted, forward-thinking ally in their success.

One tangible impact has been our ability to ensure that retailers never face critical inventory shortages. Before these changes, delays in delivery or errors in order fulfillment often caused disruptions in the supply chain, directly affecting the end consumer. Now, with improved accuracy and speed, we’re not just delivering products, we’re delivering confidence and stability to our partners. Retailers can plan promotions, launch new products, and cater to sudden surges in demand knowing that our distribution network has their back.

Moreover, these changes have set a precedent within the vape distribution sector. Our agility and precision have forced competitors to reevaluate their processes, thereby elevating the overall standards of the industry. As leaders in this transformation, we’ve shown that modernization isn’t just beneficial, it’s essential for long-term success in a rapidly evolving market. For example, by leveraging our ability to forecast demand accurately and replenish stock swiftly, we’ve shortened the product-to-market cycle significantly. This responsiveness enables vape brands to capitalize on trends and gain a competitive edge, creating a ripple effect that enhances the entire ecosystem.

The transformation of our warehouse has also had a profound influence on customer perception. By delivering faster and with greater accuracy, we’ve built a reputation for reliability that resonates with both existing and potential partners. This credibility has become a cornerstone of our brand identity, attracting new clients who recognize the value of a dependable distribution partner. Additionally, it has fostered deeper trust with existing customers, solidifying long-term relationships that drive mutual growth.

At its core, warehouse transformation is about more than operational upgrades; it’s a strategic investment in the future. By embracing modernization and innovation, we’ve demonstrated that a company’s internal processes can shape the trajectory of an entire industry. These changes have equipped us not only to adapt to today’s challenges but also to anticipate and lead in the face of tomorrow’s opportunities.

I firmly believe that prioritizing warehouse transformation is a bold and necessary step for any company looking to redefine its place in the market. It’s a driver of growth, innovation, and leadership that extends far beyond the confines of a single organization. In our case, it has reshaped how we operate, strengthened our relationships, and redefined what’s possible for the vaping industry. This journey underscores that true transformation starts from within—and its impact can ripple outward to reshape an entire sector.

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How Autonomous Mobile Robots (AMRs) are Revolutionizing Warehouse Operations and Logistics

Autonomous Mobile Robots (AMRs) are self-navigating robots that use sensors, cameras, and onboard intelligence to move through environments without direct human control. Unlike traditional automated guided vehicles (AGVs), AMRs can adapt to their surroundings, making real-time navigation decisions to avoid obstacles and optimize routes. AMRs are highly flexible and can be quickly reprogrammed for different tasks, making them ideal for dynamic environments like warehouses and distribution centers.

Read also: How AMRs Are Fulfilling the Potential of Automation in Modern Supply Chains

Driven by increasing demand in ecommerce and manufacturing industries, along with advances in AMR technology, adoption of AMRs in warehouse and logistics operations is expected to increase exponentially over the next decade. Specifically, AMRs have proven to be cost-effective in four main use cases: 

  1. Picking and Sorting: efficiently retrieving and sorting items in warehouses
  2. Cross-Docking: transferring goods directly from receiving to shipping
  3. Inventory Management: tracking stock levels and locations
  4. Material Transport: moving materials between production lines or storage areas.

For warehouse and logistics managers, the objective is to leverage AMRs to handle repetitive tasks with precision and efficiency, according to the robot’s specific training. For example, once trained, an autonomous forklift can respond to prompts from the organization’s enterprise resource planning (ERP) system to perform designated actions. When a truck arrives at the warehouse yard, the ERP triggers the AMR to initiate unloading. The AMRs then move to the yard, using advanced sensors and cameras to determine the most effective method for unloading pallets and placing them in the Goods Receipt Area for further processing.

Now, consider a scenario where the same AMR needs to be retrained for cross-docking tasks. In this case, if there is an outstanding outbound delivery pending for those incoming items, the robot would move goods directly from the Goods Receiving Area to the Shipping Area. 

Understanding Large Language Models 

To better understand how AMRs are trained, it may be helpful to first explore the basics of a Large Language Model (LLM). LLMs are a type of generative artificial intelligence (Gen AI) that can create original text-based content. At its core, an LLM is powered by a complex network of nodes known as a neural network, in which connections between these nodes are represented by weights that can take on a range of values, not limited to between 0 and 1. These networks process vast amounts of data, breaking down text into smaller units called tokens, each of which is assigned a unique numeric representation. These tokens are then organized into multi-dimensional vectors, allowing the model to recognize and interpret relationships between words and concepts.

Without delving too deeply into technical details, it is essential to recognize that an LLM is primarily a tool for generating content based on a given prompt. Consistency in its responses is achieved by training on extensive and diverse datasets, while high-performance computing resources—typically graphic processing units (GPUs) or even more specialized processors like tensor processing units (TPUs)—provide the computational power required for both training and operation.

LLMs excel at interpreting natural language prompts, enabling them to respond to human-written instructions and complete tasks in ways that resemble human reasoning, albeit based purely on learned patterns. The text input that guides the LLM’s response is called a prompt, and the memory space available for processing this prompt is known as the context window. The size of the context window, which can vary between models, is measured in tokens (not words) and typically ranges from hundreds to several thousand, enabling the model to handle complex instructions and context.

LLMs  are a vast topic with layers of complexity, but for our purpose we will examine how solution architects are harnessing Large Language Models to enhance AMR operations in warehousing, by focusing on the example of training an AMR to perform different tasks within the warehouse. In this case, the model is trained to recognize open deliveries within the ERP system and to dynamically direct the AMR to pick up material pallets from the Goods Receipt Area, and transport them to the Shipping Area. This allows for efficient loading onto outbound trucks, ensuring timely delivery to customers.

In the following discussion, we will focus solely on adapting and aligning the model, including fine-tuning the model primarily with Parameter-Efficient Fine-Tuning (PEFT) using soft prompts, as this is one of the most widely applied methodologies, but excluding the evaluation aspect that assesses the model’s learning outcomes. We also assume that application integration is already in place, as exploring its details would add significant scope to our discussion.

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Figure 1: Typical Generative AI project lifecycle.

The Generative AI project lifecycle 

The Generative AI project lifecycle involves four key stages, as shown in Figure 1. In our example, we focus on retraining the model to adapt to a new feature, specifically within the Adapt, Align, and Evaluate stage. Here, the model is refined through prompt engineering and Parameter-Efficient Fine-Tuning (PEFT) with soft prompts, which update a limited number of parameters to efficiently adapt the model. This method is particularly valuable for models already trained and integrated with APIs; PEFT enables rapid fine-tuning to incorporate new features while preserving the model’s previous training. Through human feedback, the model is aligned for relevance, accuracy, and ethical considerations, and its performance is rigorously evaluated. 

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Figure 2: An overview of the time and effort involved in the five phases of LLM training. 

Timeline for LLM training 

As Figure 2 illustrates, the first of the five phases involved in training an LLM is the longest, typically taking from a matter of weeks to months. Once that is complete, the next four phases move relatively quickly. For our example, we will take a look at the first three phases below, talking more about the PEFT approach for Fine-tuning.

  • Pre-Training
    Pre-training a large language model is a substantial undertaking. This stage is the most complex in model development due to the intricate architecture design, the vast amounts of data required, and the specialized expertise involved. However, most development work today begins with pre-trained foundation models, allowing you to skip this initial stage. When working with a foundation model, you will typically start by assessing the model’s performance through prompt engineering—a process that requires less technical expertise and doesn’t involve retraining the model.
  • Prompt Engineering
    The input text provided to the model is called the prompt, the process of generating text is known as inference, and the model’s response is referred to as the completion. The model’s memory for processing this input is known as the context window. In this example, the model performs well in responding to an unloading task, but in practical scenarios, you might need it to adjust its behavior to perform tasks like cross-docking pallets when specific conditions are met.

To achieve the desired outcome on the first try, you may need to refine the language or structure of your prompt. This iterative process, known as prompt engineering, involves experimenting with different prompt formats until the model behaves as intended. While prompt engineering is a complex field, a powerful strategy to improve model responses is to embed examples of the target task directly within the prompt, helping guide the model toward the desired output.

  • Prompt Tuning and Multitask Fine-Tuning

Multitask fine-tuning extends beyond traditional single-task fine-tuning by training a model on a diverse dataset with examples for multiple tasks. This dataset includes input-output pairs for various tasks, such as summarization, sentiment analysis, code translation, and entity recognition. By training on this mixed dataset, the model learns to perform multiple tasks simultaneously, mitigating the issue of catastrophic forgetting—where a model loses previously learned information when trained on new tasks. Over many training epochs, the model’s weights are updated based on the calculated losses across examples, resulting in an instruction-tuned model capable of excelling in multiple tasks concurrently.

A prominent example of this approach is the FLAN (Fine-tuned Language Net) family of models. FLAN is a collection of multitask fine-tuning instructions applied to different models, with the fine-tuning process serving as the final stage of training. In the original FLAN paper, the authors liken fine-tuning to a “dessert” following the “main course” of pre-training—an apt metaphor highlighting fine-tuning as the final refinement step that enhances the model’s adaptability across tasks.

  • Parameter-Efficient Fine-Tuning (PEFT)

For large models with billions of parameters, the risk of catastrophic forgetting is significant, making Parameter-Efficient Fine-Tuning (PEFT) an optimal approach. PEFT techniques minimize the need to retrain all parameters, thereby preserving previously learned knowledge while fine-tuning for specific tasks.

In this  example, we will employ PEFT methods to fine-tune the model. There are also additive methods within PEFT that aim to improve model performance without changing the weights at all. This includes prompt tuning, which sounds similar to  prompt engineering, but they are quite different from each other. 

In prompt engineering, you work on the language of your prompt to get the completion you want. This could be as simple as trying different words or phrases, or more complex, such as including examples for one or Few-shot Inference. The goal is to help the model understand the nature of the task you are asking it to carry out, and to generate a better completion. However, there are some limitations to prompt engineering, as it can require a lot of manual effort to write and try different prompts. You are also limited by the length of the context window, and in the end,  you may still not achieve the performance you need for your task. 

With prompt tuning, you add additional trainable tokens to your prompt and leave it up to the supervised learning process to determine their optimal values. The set of trainable tokens is called a soft prompt, and it gets prepended to embedding vectors that represent your input text. 

Figure 3:  Prompt Efficient Fine -Tuning using soft prompts.

The soft prompt vectors have the same length as the embedding vectors of the language tokens; including between 20 to 100 virtual tokens can be sufficient for good performance. 

The tokens that represent natural language are hard in the sense that they each correspond to a fixed location in the embedding vector space. However, the soft prompts are not fixed, discrete words of natural language. Instead, you can think of them as virtual tokens that can take on any value within the continuous multidimensional embedding space. Through supervised learning, the model learns the values for these virtual tokens that maximize performance for a given task. 

In full fine-tuning, the training data set consists of input prompts and output completions or labels. The weights of the LLM are updated during supervised learning. 

In contrast with prompt tuning, the weights of the LLM are frozen, and the underlying model does not get updated. Instead, the embedding vectors of the soft prompt get updated over time to optimize the model’s completion of the prompt. 

Prompt tuning is a parameter-efficient strategy that involves training a small number of additional parameters, making it significantly less resource-intensive than full fine-tuning, which may involve modifying millions to billions of parameters. Like LoRA (Low-Rank Adaptation), prompt tuning falls under the umbrella of parameter-efficient fine-tuning (PEFT) methods. However, PEFT can offer more flexibility because it allows the addition of new parameters tailored for specific tasks, rather than re-parametrizing an existing fixed set, as in LoRA. In PEFT, you can create separate soft prompts for each task, enabling efficient switching between tasks at inference without modifying the underlying model.

You can also train one set of soft prompts for one task and a different set for another. To use them for inference, you prepend your input prompt with the learned tokens; to switch to another task, you simply change the soft prompt. Because soft prompts are very small, taking little disk space, this kind of fine tuning is extremely efficient and flexible. 

In the example above, notice that the same LLM is used for all tasks, since you only have to switch out the soft prompts at the time of inference.

Figure 4: Performance of the PEFT compared to other Fine-tuning Methods.

How well does prompt tuning perform? In the original paper describing prompt tuning, “Exploring the Method” by Brian Lester and his collaborators at Google, the authors compared prompt tuning to several other methods for a range of model sizes. In Figure 4, we see the Model size on the X axis and the SuperGLUE score on the Y axis. (General Language Understanding Evaluation [GLUE] refers to the evaluation of language model performance across an array of natural language understanding [NLU] tasks; SuperGLUE includes evaluations for more complex reasoning and generative tasks, as well as benchmarks for models competing with human performance.) The red line shows the scores for models that were created through full fine-tuning on a single task, while the orange line shows the score for models created using multitask fine-tuning. The green line shows the performance of prompt tuning, and the blue line shows scores for prompt engineering only. 

As we can see, prompt tuning does not perform as well as full fine-tuning for smaller LLMs. However, as the model size increases, so does the performance of prompt tuning—and  once models have around 10 billion parameters, prompt tuning can be as effective as full fine-tuning, and offer a significant boost in performance as compared to  prompt engineering alone.

Final steps for integrating a retrained model with an AMR forklift

With the model fine-tuned using Parameter-Efficient Fine-Tuning (PEFT), we are nearly ready to integrate it with AMRs, using application programming interface (API) connections to streamline the cross-docking process. This integration enables the model to instruct AMRs to efficiently move pallets from the Goods Receipt Area directly to the Shipping Area, meeting real-time logistics needs. By leveraging the fine-tuned model’s specialized understanding, the AMRs can perform cross-docking with improved accuracy and responsiveness, adapting dynamically to varied demands and optimizing workflow efficiency in the warehouse.

Integrating the fine-tuned model with AMRs brings significant operational advantages. First, the model’s precise instructions ensure that pallets are transferred swiftly and accurately, reducing manual handling and minimizing potential errors in the cross-docking process. This streamlined workflow accelerates order fulfillment and improves resource allocation by reducing idle time for both robots and human operators.

By dynamically adapting to fluctuating demands, the system enhances flexibility in the warehouse, enabling more responsive handling of peak times and urgent orders. Additionally, real-time integration between the model and AMRs facilitates better inventory management, ensuring that goods move efficiently through the warehouse without unnecessary storage or delay.

Ultimately, this advanced automation reduces labor costs, optimizes floor space usage, and boosts overall productivity, giving the business a competitive edge in fulfilling customer demands with speed and precision.

Author Bio

Ashutosh Nagar is Solution Architect Digital Transformation for Mygo Consulting, Inc., a global SAP partner company focused on digital Supply Chain and Business Transformation, and enabling the core around SAP S/4HANA. As a solution architect and global supply chain consultant with nearly 25 years of experience, Mr. Nagar has led digital transformations for some of the world’s “top 100” companies. His distinguished career has included working across innovative technologies including Artificial Intelligence and Blockchain for industry-specific business models in Avionics, Aerospace & Defense, Automobile, Engineering, Medical Devices, Pharmaceutical, Food Processing, Infrastructure & Construction, specializing in Warehousing & Distribution and Warehouse Automation, among other diverse sectors. He is SAP Certified in Extended Warehouse Management, Warehouse Management, Material Management, and Transport Management. Additionally, as an APICS Certified Supply Chain Professional, he has led  Supply Chain designs and complex end-to-end project implementations in the U.S., India, Australia, China, the Philippines, Singapore, the United Kingdom, Switzerland, and Germany. Mr. Nagar has special expertise in developing and launching ERP systems to optimize Supply Chain processes integrating Plan, Source, Make, and Deliver. He successfully leads cross-cultural teams with an analytical approach to meet his clients’ needs and key performance indicators. Mr. Nagar received his M.B.A. degree from Jiwaji University, Gwalior, India, and earned a Bachelor of Engineering degree in Electronics from Savitribai Phule University, Pune, India.

 

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Resilience Through Adversity: How Recent Turmoil Has Strengthened Supply Chains

It’s no secret that supply chains have had a challenging couple of years. The COVID-19 pandemic limited material supplies in virtually every manufacturing sector before conflict in Ukraine and the Middle East further drove up costs or worsened scarcity. None of that includes the extreme weather, labor strikes and maritime accidents organizations have had to deal with, either.

Read also: Global Shipping Faces Turbulence: Chokepoint Disruptions Threaten Trade and Supply Chains

Amid these repeated waves of disruption, global supply chains are showcasing surprising strength. Prices have come down from record highs, lead times are normalizing, manufacturing capacity is growing and the economy has seemingly avoided severe inflationary pressures. 

At first, such a positive outcome seems counterintuitive. However, a closer inspection reveals that supply chains have not strengthened despite recent challenges but because of them. More precisely, businesses’ reactions to adversity have yielded a stronger global supply chain.

A Rush of Tech Investments

Much of the added resilience organizations have fostered comes through technology adoption. Starting with the COVID pandemic, it became clear that companies needed to modernize their operations to survive in an increasingly challenging environment. Many jumped on the opportunity, driving impressive results.

One survey found that 67% of supply chain leaders had implemented digital solutions for end-to-end visibility in the wake of pandemic-era volatility. Those that did were twice as likely not to encounter any challenges from disruptions in 2022. The same applied to the 37% that embraced scenario planning, and the 53% that improved their data quality saw similar effects.

The most impactful solutions fall into a few common categories. The first is tech to provide information and visibility — things like the IoT, warehouse management systems (WMS) and cloud computing. Systems to interpret and act on this data — such as artificial intelligence (AI) — are another. Finally, businesses have seen advancement through efficiency-driving tech like robotics and software automation.

The potential of these technology categories has always been present. However, organizations often shied away from them, largely out of economic concerns. Even today, costs are the most-cited barrier to tech adoption, with 26% of global businesses saying it hinders them. However, when the pandemic rendered other options unavailable, it forced companies to bet on technology, and now that they have, it’s become a key driver of long-term resilience.

Growing Collaboration

The disruptions of the 2020s have also driven supply chains to evolve on a managerial level. One of the most notable trends to come out of this field is a growing emphasis on collaboration between once-siloed partners and third parties.

Many of the largest recent challenges have revealed a need for greater transparency. They’ve also highlighted how an issue at a single facility or business can affect the entire supply chain. As a result, it’s become clear that organizations need to work together and share information to ensure things work out for everyone involved.

The sector’s tech trends further encourage collaboration. Sharing data leads to more accurate forecasts for companies using predictive analytics and similar tools. Cloud management platforms are most helpful when they can connect to IoT data from a wider variety of sources. As more businesses have embraced these technologies, they’ve recognized the need to work closely with those they rely on.

Of the 69% of chief procurement officers who say developing a resilient supply chain is their top priority, 61% say increasing supplier collaboration is their best strategy to do so. One manufacturer who embraced this approach saw 10% reductions in transportation costs and 13% improvements in delivery performance. As additional success stories pop up, the impetus to collaborate will keep growing.

Abandoning Lean

It’s difficult to discuss changes in supply chain management philosophies without mentioning the move away from lean. COVID-era disruptions would’ve been severe no matter what, but it quickly became evident that they’d have been less so had the industry not relied on lean principles. The pursuit of efficiency above all else may have lowered costs in the short term, but it left companies vulnerable to massive shocks.

This shift is most evident in businesses’ stance on inventories and sourcing. As early as 2020, 19.6% of U.S. organizations said they would start to hold more inventory. A staggering 57.2% said they would diversify their suppliers, with many emphasizing reshoring or near-shoring.

Local sourcing and having multiple suppliers for a product look wasteful through a lean lens. However, it ensures the supply chain can keep operating when a single facility or region encounters difficulties. Similarly, while inventory is technically unused value, it lets companies prevent stock-outs and lengthy delays amid supplier-side disruptions.

The move away from lean principles still shows strong growth today. A 2022 survey indicated that 24% of supply chain leaders aim to diversify and segment their suppliers in the coming years. Philosophies like a commitment to continuous improvement and eliminating waste won’t likely fade entirely, but it’s clear that speed has taken a back seat to long-term resilience.

Supply Chains Will Emerge Stronger After Recent Disruption

Supply chains still have a long way to go before global economies can rest easy. However, things haven’t panned out as dire as they once seemed they would. By and large, organizations have responded as they should to disruption.

While it’s impossible to prevent disruption entirely, it seems businesses have learned from recent history and are embracing new tools and techniques to help them minimize the impact of future extremes.

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Softeon Increases Revenue by 20% for Cycle Logistics with WMS Implementation

Cycle Logistics, a leading third-party logistics (3PL) provider, witnessed a remarkable 20% increase in revenue following the implementation of Softeon’s Warehouse Management System (WMS). Specializing in B2B distribution, fulfillment, and bundling services, Cycle Logistics sought Softeon’s expertise to cater to a significant new client, propelling their operations to new heights.

With Softeon’s WMS, Cycle Logistics achieved seamless item-level tracking throughout their entire handling process, a critical necessity for servicing their massive global client in the realm of internet search and technology solutions. Prior to this partnership, Cycle Logistics grappled with manual processes, leading to inefficiencies and errors. However, Softeon’s robust system transformed their operations, replacing labor-intensive tasks with structured, dependable, and automated processes.

Danny Mudd, Owner and President of Cycle Logistics, expressed gratitude for Softeon’s understanding of their internal limitations and the partnership’s role in enhancing their processes. Mudd highlighted Softeon as a true partner, enabling Cycle Logistics to deliver top-notch service to their customers consistently. Softeon’s dedication has not only streamlined Cycle Logistics’ operations but also positioned them for future growth.

In the wake of the pandemic, while many companies struggled with inventory overstock, Cycle Logistics, equipped with Softeon’s WMS, offered a tailored solution to manage inventory efficiently for their global client. Mudd emphasized that such opportunities wouldn’t have been possible without Softeon’s support, underlining the pivotal role of the partnership in Cycle Logistics’ success.

Looking ahead, Cycle Logistics plans to expand the implementation of Softeon’s WMS across additional warehouses, confident in the system’s ability to meet evolving client demands and facilitate continued growth. Jim Hoefflin, CEO of Softeon, underscored the company’s commitment to customer-centric solutions, emphasizing their dedication to empowering businesses like Cycle Logistics in scaling and adapting to complex industry landscapes.

In conclusion, Softeon’s transformative WMS has revolutionized Cycle Logistics’ operations, driving significant revenue growth and positioning them as a formidable player in the competitive logistics industry.

warehouse

Innovating Warehouse Efficiency: Gather AI Introduces Drone-Powered Inventory Solutions

Gather AI, renowned for its computer vision-based AI solutions for warehouse inventory monitoring, unveils two groundbreaking capabilities: inferred case counting and location occupancy. These pioneering features empower warehouses with automated, digitized inventory counts and precise space utilization insights, promising improved shipment efficiency and reduced labor costs associated with manual counting.

Ensuring accurate inventory levels is paramount for warehouse operators to meet shipping deadlines and optimize storage space. However, manual counting methods are not only labor-intensive but also prone to inaccuracies, exacerbating logistical challenges. According to the Warehousing Education & Research Council (WERC) 2023 DC Measures Annual Survey & Report, the average warehouse achieves shipping deadlines only 96% of the time, with a cube utilization of 81%.

Gather AI’s solution revolutionizes this process, enabling warehouses to scan up to 900 pallets per hour using drones equipped with advanced computer vision technology. By capturing images of each location, the AI swiftly analyzes multiple barcodes and text, identifying empty spaces and providing inferred case counts for both full and partial pallets. This real-time data, accessible through the customer web dashboard, streamlines inventory management and facilitates space optimization, mitigating the need for manual cycle counting and minimizing the risk of missed shipments.

AJ Raaker, Director Of Warehouse Development at Taylor Logistics Inc., attests to the efficiency gains achieved with Gather AI’s solution, stating that inferred case counting is 87% more efficient than traditional physical cycle counting methods. This efficiency boost enables teams to focus on revenue-generating activities while ensuring inventory accuracy.

The newly introduced capabilities further enhance operational efficiency:

– Inferred Case Count: Warehouse operators can reduce manual counting time by 90% by leveraging computer vision and AI to estimate case counts on pallets. Pallets with low case counts are flagged for replenishment, preventing stockouts and missed shipments. Labor can be prioritized by focusing on pallets deviating from the WMS expectations.

– Location Occupancy: Warehouse operators gain insights into space utilization, identifying opportunities for pallet consolidation and maximizing fixed expense efficiency. Computer vision technology measures available space on pallets, pinpointing consolidation opportunities to optimize storage.

Sankalp Arora, Ph.D., CEO, and Co-Founder of Gather AI, underscores the company’s commitment to delivering real-time inventory insights to warehouse operators. By harnessing computer vision and AI capabilities, Gather AI aims to alleviate labor-intensive tasks and provide unparalleled inventory visibility, empowering warehouses to operate more efficiently and effectively.

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Unleashing the Power of WMS for 3PLs: A Gateway to Competitive Advantage

In the fiercely competitive world of third-party logistics (3PL), success hinges on the ability to swiftly onboard new customers, optimize operations, and drive revenue growth. With the market constantly evolving, 3PL providers are increasingly turning to advanced technological solutions to gain a competitive edge. Among these solutions, Warehouse Management Systems (WMS) emerge as a cornerstone in empowering 3PLs to excel in today’s fast-paced environment while strategically positioning themselves for future success. 

For 3PLs, the journey begins with their sales teams actively pursuing new customers to fuel revenue growth. However, the real challenge lies in efficiently onboarding these customers and seamlessly integrating them into the logistics ecosystem. A robust WMS serves as a linchpin in this process, enabling 3PLs to optimize their operational model and rapidly onboard new clients in as little as 30 days. By providing setup wizards and copy/paste capabilities, a 3PL-focused WMS simplifies and accelerates the onboarding process, enabling 3PLs to scale their operations more efficiently. In addition, by tactically managing the pick, pack, and ship processes, WMS streamlines product flow both into and out of warehouse facilities, laying the groundwork for further enhanced efficiency and customer satisfaction. By automating and optimizing these critical tasks, WMS helps 3PLs streamline their operations while reducing errors. This leads to increased revenue generation by enabling 3PLs to process orders more quickly and accurately while enhancing operations.

Moreover, the agility and flexibility inherent in modern WMS solutions play a pivotal role in accommodating the diverse needs and process requirements of individual customers with multiple levels of configuration and ability to support multiple individual rule sets and workflows in a single facility. With the ability to adapt to unique capabilities and preferences, WMS empowers 3PLs to deliver tailored solutions that meet the evolving demands of their clients. Whether it’s managing multiple business units within a single facility or catering to customers across various regions, WMS provides the scalability and versatility needed to meet business goals and drive success. 

The transition to a cloud-based WMS architecture brings unparalleled advantages for 3PLs, particularly in terms of scalability and technological agility. In an industry characterized by seasonal peaks and fluctuations in demand, cloud-based WMS solutions offer the flexibility to scale resources dynamically, ensuring optimal performance during peak periods. By offloading concerns about technology infrastructure and scalability, 3PLs can focus on maximizing labor efficiency and delivering exceptional service to their customers.

Advanced features such as flexible billing engines also help 3PLs adapt to evolving customer needs and services, eliminating revenue leakage and maximizing profitability. Experienced 3PLs know it’s important to partner with a WMS provider that has extensive billing knowledge and capabilities. Highly granular, configurable capabilities that capture all billable activities as well as supporting broad contract terms is crucial. 

Furthermore, WMS solutions provide invaluable insights and visibility into warehouse operations, allowing 3PL providers to make data-driven decisions and continuously improve performance. By offering real-time visibility into inventory levels, order statuses, and operational metrics, WMS enables 3PLs to identify inefficiencies, streamline processes, and enhance overall productivity. When combining a Distributed Order Management (DOM) approach to intelligent sourcing, this proactive approach not only drives cost savings but also ensures that 3PL providers can deliver superior service and value to their clients.

The strategic adoption of WMS empowers 3PLs to thrive in an increasingly competitive market landscape. WMS represents more than just a tool for operational optimization – it’s a gateway to competitive advantage for 3PLs. As the logistics landscape continues to evolve, the adoption of advanced WMS solutions will be instrumental in shaping the success and sustainability of 3PL operations, enabling them to stay ahead of the curve by achieving sustainable growth and profitability. 

Author Bio

Jack O’Malley is Vice President of Account Management for Softeon, a WMS provider focused exclusively on optimizing warehouse and fulfillment operations. For over two decades now, we have been helping our customers succeed. Investing in R&D enables us to develop software to solve the most complex warehouse challenges. Softeon is laser-focused on customer results, with a 100% track record of deployment success. We believe warehouse leaders shouldn’t have to settle for a one size fits all approach to technology. For more information, please visit www.Softeon.com.

storage

How Modern Warehouse Management Systems Transform Storage Efficiency

When managing a warehouse for a budding business, space is a valuable resource. However, if warehouse space isn’t optimized and managed well, the storage of products can turn into an expensive and inefficient ordeal.

This has made Warehouse Management Systems (WMS) the go-to choice for businesses that want to revolutionize the supply chain and streamline operations. 

What is a Warehouse Management System (WMS)?

A Warehouse Management System (WMS) is a software that can optimize 3PL warehousing operations and facilitate smart decision-making. WMS streamlines and automates processes, creating an efficient goods flow.

By opting for a Warehouse Management System, you can monitor and control warehouse operations in real-time as well. Using a WMS also offers a lower chance of human error and improves last-mile productivity with deliveries and pickups.

8 Ways WMS Can Improve Storage Efficiency

Using a Warehouse Management System can revolutionize warehouse operations and light the way to greater storage efficiency. Here are 8 benefits of using a WMS for your business.

  • Real-Time Inventory Tracking

One of the most popular benefits of Warehouse Management Systems is the function of real-time tracking of inventory. A lack of real time inventory visibility can seriously impede warehouse operations. It’s also an important factor that enables warehouse managers to allocate optimal storage space according to existing stocks. 

WMS makes it possible to receive data on inventory levels, location, and movement of products. This prevents potential overstocking that could lead to crowded warehouses, or the converse due to understocking. 

  • Accurate Demand Forecasting

With real-time inventory visibility, Warehouse Management Systems make it easier to accurately forecast demand for stocks. This can help optimize inventory levels since warehouse managers can ensure that the right amounts of stock are maintained at any given time. 

Being able to predict demand allows better planning of storage space, ensuring that each square inch of warehouses can be optimized and used well.

  • Consolidated Shipping

WMS is a great tool for consolidating orders by optimizing shipping routes. This is a great way to ensure that your warehouse sees a steady flow of fresh inventory since orders are picked up and shipped out at a more rapid pace. 

With quicker goods flow, your inventory won’t stagnate inside the warehouse space and take up valuable storage space for long.

  • Optimized Slotting and Warehouse Layout 

With a Warehouse Management System, you can set up an optimized layout for your warehouse based on automatically estimated product demand and storage requirements. Aligning with this layout can increase space optimization, leading to more streamlined warehouse operations and organized storage.

Most systems also use an algorithm to determine the most viable slotting sequence for your products. This is calculated based on factors such as size, demand, and much more. Through WMS-driven warehouse layouts and dynamic slotting, you can ensure that fast-moving items are easily accessible in storage.

  • Data-driven Insights

One of the key benefits of using a WMS is the ability to improve operations through the data that’s generated. By providing dynamic reporting and in-depth data across various parameters, Warehouse Management Systems make it possible for warehouse managers to identify regularly occurring problems and bottlenecks. 

By tracking trends, and recognizing areas of improvement, warehouse managers can use these data-driven insights to optimize storage.

  • Simplified Cross-Docking

Cross-docking is another great function made possible through Warehouse Management Systems. Automated warehouse cross-decking involves tracking shipments and directly transferring products to the outbound shipping chain without lengthy storage periods. 

This makes it possible for products to directly enter delivery routes and proceed towards order fulfillment without needing to be stored for long periods of time. Cross-docking can save businesses time and greatly reduce storage costs while freeing up valuable warehouse space for other products. 

  • Order Prioritization

Another function of Warehouse Management Systems is to prioritize various warehouse operations based on factors like deadlines and customer demand. This makes it possible for businesses to process high-priority orders quicker and more efficiently. 

By automatically having orders prioritized through a WMS, business owners can deliver a smoother customer experience with minimal effort.

  • Reduced Need for Safety Stock

Warehouse Management Systems are often used with Barcode and Radio Frequency Identification (RFID) technology. This makes it possible to accurately keep track of inventory and prevent shipping errors or misplacement of stocks. 

When inventory is less likely to be lost, this considerably reduces the need for maintaining safety stocks in your warehouse, where space is akin to gold. This is a great way to optimize storage and make the most of your warehouse space. 

WMS: The Future of Storage Optimization

Warehouse Management Systems are making it possible to optimize and streamline storage to the tee. Everyday operations are simplified through real-time inventory updates, in-depth data analytics, and automated functions. This leaves business owners and warehouse managers free to focus on more value-added tasks. It’s safe to say that WMS offers just a small glimpse into the future of storage optimization. 

 

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enVista and Softeon Unite Forces for Cutting-Edge Warehouse Management Solutions

In a strategic alliance, enVista, a prominent supply chain and enterprise solutions provider, has joined forces with Softeon, a leading tier-1 warehouse management system (WMS) provider specializing in optimizing warehouse and fulfillment operations. This collaboration signifies a significant advancement in the realm of warehouse management solutions, offering organizations an integrated approach to enhance their warehouse operations.

With a track record of successful WMS implementations, enVista is well-suited to harness Softeon’s innovative software for driving operational efficiency and excellence across diverse industries. The objective of this partnership is to deliver end-to-end warehouse management solutions that seamlessly integrate with existing systems, providing organizations with a comprehensive and scalable platform to elevate their supply chain performance.

John Stitz, enVista’s CEO, expressed enthusiasm about the collaboration, stating, “We are excited to partner with Softeon, a renowned WMS vendor recognized for its robust and forward-thinking solutions. This collaboration enables us to further solidify our commitment to delivering top-notch warehouse management implementations. By combining enVista’s implementation expertise with Softeon’s cutting-edge WMS technology, we are well-equipped to empower organizations in optimizing their supply chain processes and achieving business success.”

The accelerated implementation of the WMS not only reduces potential time and productivity losses but also enhances throughput by optimizing warehouse operations for peak efficiency through automation. This approach mitigates risks associated with investing in automation, ensuring clients witness results in a shorter timeframe.

Jim Hoefflin, CEO of Softeon, emphasized the joint commitment to customer satisfaction, stating, “Softeon and enVista care about our customers, so together we are committed to providing seamless WMS integration for warehouse leaders and operators. Softeon is dedicated to empowering our customers with solutions for managing the ever-evolving warehousing industry, and enVista is the perfect partner to provide IT resources for assisting customers in daily operations management during the WMS integration process.”

enVista’s extensive project portfolio ranges from small upgrades to enterprise-wide, multi-site complex Tier 1 solutions. The company’s team of experts guides WMS assessments and selections, offering end-to-end implementation services encompassing system and operational design, project and program management, configuration, testing, training, validation, post-implementation support, and more.

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What Small Business Owners Need to Know Before Choosing a Warehouse Management Software

Many small business owners think they can manage inventory, shipping, and order fulfillment just fine with spreadsheets – until suddenly, they’re faced with too much demand and not enough organization. 

This can happen when you get your first wholesale order, or if you suddenly experience an uptick in customer inquiries about order statuses and shipping updates. Where once a simple Excel sheet did the job, you find you’re overwhelmed and struggling to fulfill orders on time or keep up with customer questions.

Warehouse management software can help small companies grow as painlessly as possible by automating inventory tracking, streamlining order processing, and integrating with shipping carriers to provide real-time updates. The right warehouse management software (WMS) can make or break a small business, so choosing the right one is a big decision. Choose the wrong system, and you have incorrect inventory levels, incorrect shipments, or delays in packing orders. Selecting the right WMS can save you time, money, and a lot of headaches down the road.

Why does WMS matter?

You may think that picking the right WMS is critical for every business, and you’d be right. But it’s especially important for a small business owner. The reason is high customer expectations. Your customers will expect Amazon-level service and reliability from you, even though you don’t have Amazon’s resources. Regardless of the size of the business they’re dealing with, over 60 percent of consumers expect free shipping on their orders, and they expect orders to arrive within three days. That’s quite a lot to live up to. 

There’s also the matter of your reputation. Enormous companies like Amazon or Walmart can get away with the odd negative review or experiences due to the sheer volume of transactions. But for a small business, it only takes one or two negative reviews before it starts seriously affecting your revenue. 

Finally, the necessity of picking the right WMS also comes down to your margins. Small business owners need a WMS that is going to save time and money down the line. A well-suited WMS can streamline warehouse operations, automating key processes such as inventory management, order fulfillment, and shipping. By reducing manual tasks and optimizing workflows, business owners can significantly save time and improve operational efficiency. Time saved translates into increased productivity and the ability to handle higher order volumes – without the need for additional labor costs.

What to factor into your decision

This should go without saying, but don’t get swayed by the latest and greatest WMS system just because everyone is talking about it. You want something that has features that work for your business. For example, imagine your business specializes in ecommerce and dropshipping. You should look for a WMS that offers simple integration with popular ecommerce platforms like Shopify or WooCommerce. This will let you automate order imports, and inventory synchronization, and get real-time tracking updates.

Conversely, your hypothetical ecommerce business probably doesn’t need advanced automation features like robotic picking or conveyor systems. Those would be more suitable for large-scale operations with high order volumes and extensive inventory management needs. 

You may also want to look for advanced reporting and analytics with demand forecasting, integration with your existing accounting or ERP systems, and seamless integration with popular shipping carriers such as UPS, FedEx, or DHL.

Your WMS also needs to provide you with room to grow. You may be a small business now, but hopefully that won’t always be true. You want to invest in a WMS that works for your business today while having the capacity to scale up with you. 

For example, look into whether the WMS can handle increased order volumes, warehouse locations, and product lines without sacrificing performance or racking up significant additional costs. This will save you the hassle and expense of having to switch to a new system as your business grows. Alternatively, if you’re not planning on expanding your small business, you can find more cost-effective systems, like a basic WMS package with limited features.

You also need to look at ease of use. Small business owners typically don’t have time to learn new, complex systems. That’s why user-friendliness is a great factor to take into consideration. Do you want something as close to plug-and-play as possible? Do you want a WMS that comes with a ton of user support? When you investigate potential options, check out how easy the analytics dashboards are to interpret, or how intuitive you find the user interface. Ultimately, you want a WMS that will seamlessly slide into your business with a minimum of fuss. 

Lastly, it’s crucial to look at affordability. While cost should not be the only determining factor, you do need to look for a WMS that sits inside your budget and provides a solid return on investment.

WMS options are typically one of two pricing models: perpetual licensing and monthly subscription models. Your choice will significantly affect both your initial and annual budgets. Perpetual licensing models are more expensive upfront since you’re effectively buying the software outright. Entry-level WMS options for this pricing model typically cost around $2,500 per warehouse. 

Recurring service costs are typically significantly lower. You pay month-by-month and many providers include some support and upgrade options in the monthly price. The subscription model uses cloud infrastructure for data storage and processing, offering flexibility and scalability.

Aside from pricing models, you should also calculate any potential additional charges for installation, customization, or support. Balance the costs against the potential benefits and efficiency gains the WMS can bring to your operations. 

For example, imagine you choose a subscription-based WMS that costs $100 per month per user plus a $1,000 installation cost. If you have five users, that means one year of your WMS will cost at least $7,000. Your WMS should ideally result in over $7,000 of additional sales that year, or recouped employee time. 

When gauging the cost-effectiveness of your WMS options, don’t be shy about asking for multiple demos, getting at least three quotes, and asking what services are included in the cost. These vendors will be more than happy to make sure they’re the right fit for your business.

Choosing the right WMS

The process of selecting the best WMS for your business is an important one. The right WMS will help you keep up with customer expectations, manage your reputation, and even grow your business later on. The wrong WMS could be an expensive waste of time that results in frustration and loss of revenue.

By keeping business fit, scalability, user-friendliness, and cost in mind, you should be able to figure out which WMS is right for your business.

Author Bio

Carl has led Smart Warehousing since 2001 and spent his entire career in the logisticswarehousing, and fulfillment space, from working the warehouse floor to CEO and founder. He is a logistics management and operations veteran, actively leading the business to its next phase of growth