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Optimizing Warehouse Efficiency: A Warehouse Manager’s Expert Guide to Waste Elimination

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Optimizing Warehouse Efficiency: A Warehouse Manager’s Expert Guide To Waste Elimination

In the dynamic landscape of modern supply chains, one of the key challenges is the efficient management of resources to eliminate waste and enhance overall productivity. In this article, we will delve into strategic ways for warehouse managers to eliminate waste, with a focus on not only optimizing the use of cartons and packing, but labor resources and warehouse space as well.

Carton and Packing Optimization

Carton optimization is a critical aspect of warehouse management, as it directly impacts shipping costs, storage space, and overall efficiency. Packing efficiently is essential for maximizing storage capacity and minimizing waste in the warehouse. One effective method to optimize packing is the standardization of carton sizes. By collaborating closely with suppliers and carriers, managers can establish uniform carton dimensions that minimize the need for excessive packaging materials. Standardized carton sizes also facilitate more efficient stacking and storage within the warehouse, reducing space utilization and improving overall operational flow. Keep in mind though, that standardizing cartons is a good point for efficiency of stacking and packing, but it can be counter to being efficient on carton space. You may be giving up some carton space efficiency for the benefits of stacking, storing, and shipping efficiencies.

Another key strategy is right-sizing cartons to match the specific dimensions of the products being shipped. Tailoring carton sizes in this way eliminates unnecessary void space within packages, which not only optimizes space but also minimizes the risk of product damage during transit. This attention to detail in packaging design ensures that products are securely packed, leading to safer deliveries and reducing potential costs associated with damaged goods. Solutions to these types of problems are incredibly complex and must lean on a variety of modern technologies and know-how for help. Lucas Systems has partnered with Carnegie Mellon University on research focused on developing new and innovative ways to reduce distribution center and transportation waste by optimizing the way packing and packaging of multiple items in a single order is executed.

Always looking to innovate, Amazon has created a durable, weather-resistant paper that molds to the shape of a package, aiming to reduce waste. A sensor identifies items, many of which were traditionally shipped in boxes and redirects them to the new packaging system. The machine then trims a paper bag to match the exact dimensions of the item, minimizing the empty space around it.

This focus on packaging material efficiency is crucial for both environmental and economic sustainability. With 90% of items shipped in the U.S. being packaged in cardboard, adopting eco-friendly and cost-effective materials, such as recycled cardboard or reusable packaging, warehouses can significantly reduce waste. These materials not only contribute to a greener supply chain but also offer long-term cost savings, making the entire packing process more efficient and sustainable.

Warehouse Space Optimization

Real-time monitoring and analytics play a critical role in maintaining warehouse efficiency. By leveraging advanced technologies, warehouse managers can gain insights into space utilization and identify potential bottlenecks before they become problematic. This proactive approach allows for timely adjustments, ensuring that space is optimized, and operations run smoothly. The ability to make data-driven decisions in real-time is invaluable for maintaining a high level of operational efficiency.

This leads us to the idea of Dynamic Slotting, an essential strategy for space optimization. Product slotting is a complex problem. It involves many input factors and many goals (which are sometimes at odds with each other). Traditional slotting solutions require customized models, extensive engineering, measurement, and data collection. Dynamic Slotting involves the use of software and algorithms to perform velocity and affinity analysis, in a real-time, ever adapting fashion, through the use of artificial intelligence and machine learning. By conducting a velocity analysis, the software can categorize products based on their demand and importance. This review can also include affinity analysis, or the odds of items being picked together, parallel to velocity analysis. High-demand items, or “fast movers,” or even frequent partners, can be strategically placed in easily accessible locations within the warehouse. In parallel to the high velocity items, items with higher affinity can be placed near those to minimize travel when they are associated.

These placements not only reduce the time spent searching for these items but also minimizes congestion in high-traffic areas, leading to smoother and quicker order fulfillment processes. By organizing products based on their popularity or seasonality, warehouse managers can ensure that frequently picked items are placed in the most accessible locations. This reduces the time and effort required for order fulfillment, as workers spend less time traveling through the warehouse to pick items. Dynamic Slotting also empowers flexibility and adaptability, allowing for more real-time moves and enabling the warehouse layout to adjust to changes throughout the year.

Another key strategy is the implementation of cross-docking. Cross-docking streamlines the flow of goods by transferring them directly from the receiving dock to outbound shipping, effectively bypassing the need for storage. This approach reduces the need for extensive storage space and shortens the order fulfillment cycle, ensuring that products move swiftly through the supply chain. As a result, inventory is kept lean, and warehouse space is utilized more efficiently.

Finally, the efficient use of vertical space is often an underutilized opportunity in warehouse management. Investing in adjustable shelving and racks can maximize the use of available vertical space, allowing warehouses to store more inventory without expanding their footprint.

Labor Optimization

Analyzing order picking patterns and creating optimized pick paths can significantly reduce the travel time for warehouse staff. This not only enhances efficiency but also minimizes the wear and tear on equipment.

For example, using software, after batches are created, multiple algorithms can be applied to determine an optimized path for the user to take through the warehouse to complete their work. The algorithms consider aisle directions (one-way aisles, for example), base item designations, and other factors to determine the most efficient pick path.

Also, instead of having workers pick one order at a time, multi-stage picking can deliver labor and process optimization benefits. Instead of a single picker handling an entire order from start to finish, different stages are handled by specialized teams or automated systems. This method enhances efficiency by allowing simultaneous processing of multiple orders, reduces travel time within the warehouse, and optimizes labor by assigning tasks based on skill levels or equipment capabilities. The result is faster order fulfillment, reduced errors, and improved scalability in high-volume operations.

Task interleaving in a warehouse also optimizes labor resources by integrating multiple types of tasks into a worker’s daily routine, rather than having them focus on a single task at a time. For instance, instead of assigning a worker solely to picking orders or restocking shelves, task interleaving allows them to perform these tasks interchangeably based on real-time demand and proximity. This dynamic allocation of tasks minimizes idle time and maximizes productivity by ensuring that workers are always engaged in meaningful work.

By interleaving tasks, such as combining order picking with replenishment, workers can handle multiple tasks on a single trip through the warehouse. This reduces unnecessary travel, one of the most significant sources of waste in warehouse operations, and ensures that workers are consistently productive, even during slower periods. Task interleaving also helps balance workloads across the workforce, preventing bottlenecks in one area while workers in another area remain underutilized.

Effectively implementing task interleaving generally necessitates the use of specialized software or a Warehouse Management System (WMS), because of their capability to dynamically assign and prioritize tasks using real-time data, ensuring that the most efficient paths and sequences are followed throughout the warehouse.

In closing, by focusing on carton optimization, packing efficiently, and maximizing warehouse space, and labor resources, managers can significantly reduce costs, enhance sustainability, and ensure a seamless flow of goods through the warehouse. Embracing technology, collaborating with suppliers, and implementing dynamic strategies are key steps toward achieving waste elimination and creating a lean, agile, and efficient warehouse ecosystem.

Ben Smeland is a Senior Software Developer with Lucas Systems, leveraging over 19 years of software development experience to challenge and innovate against software architectures to promote clarity, performance, and sustainability.

With experience as a full-stack developer, software architect, and project manager, Ben has served in almost every capacity in the software industry, engaging with internal teams and customers to bring inventive, sustainable solutions to complicated business problems.

The post Optimizing Warehouse Efficiency: A Warehouse Manager’s Expert Guide to Waste Elimination appeared first on Logistics Viewpoints.

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Walmart AI Pricing Patents Signal Shift Toward Real-Time Retail Execution

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Walmart Ai Pricing Patents Signal Shift Toward Real Time Retail Execution

Walmart’s new patents and digital shelf rollout point to a more tightly integrated model linking demand forecasting, pricing, and store-level execution.

Walmart has secured two patents related to automated pricing and demand forecasting, drawing attention to how large retailers are evolving their pricing and execution capabilities.

One patent, System and Method for Dynamically Updating Prices on an E-Commerce Platform, covers a system that can dynamically update online prices based on changing market conditions. A second, Walmart Pricing and Demand Forecasting Patent Classification, relates to demand forecasting technology designed to estimate what customers will buy and recommend pricing accordingly. At the same time, Walmart is expanding digital shelf labels across its U.S. stores, replacing paper labels with centrally managed electronic displays.

Individually, none of these elements are new. Retailers have long used forecasting models, pricing tools, and store execution processes. What is notable is the combination.

Walmart now has three capabilities aligned:

Demand forecasting tied to predictive models

Price recommendation based on that demand

Store-level infrastructure capable of rapid execution

That combination reduces the operational friction historically associated with pricing in physical retail.

Pricing Moves Closer to Execution

Traditional store pricing changes required coordination across multiple steps: analysis, approval, printing, distribution, and manual shelf updates. That process introduced delay and inconsistency.

Digital shelf labels materially change that constraint. Prices can be updated centrally and executed across stores with significantly less manual intervention.

This does not change the underlying logic of pricing decisions. Retailers have always adjusted prices based on demand, competition, and margin targets. What changes is the speed and consistency of execution.

As a result, pricing moves closer to real-time operational control.

Implications for Supply Chain Operations

Pricing is not an isolated commercial function. It directly influences demand patterns, inventory flow, replenishment timing, and markdown activity.

When pricing becomes faster and more responsive, those linkages tighten.

Three implications are clear:

1. Increased Execution Speed
Retailers can align pricing decisions more quickly with current demand conditions, reducing lag between signal and action.

2. Stronger Dependence on Forecast Accuracy
When pricing recommendations are driven by predictive models, the quality of demand sensing becomes more consequential. Forecast errors can propagate more quickly into sales and inventory outcomes.

3. Closer Coupling of Merchandising and Supply Chain
Pricing decisions influence demand. Demand impacts inventory, replenishment, and store execution. Faster pricing cycles compress the distance between these functions.

Centralization and Control

Walmart has positioned its digital shelf label rollout as an efficiency and accuracy initiative. Centralized price management improves consistency between systems and store execution while reducing labor tied to manual updates.

That positioning aligns with the operational realities of large-scale retail. At Walmart’s footprint, even small improvements in execution efficiency translate into material cost and accuracy gains.

At the same time, the shift toward algorithm-supported pricing introduces standard enterprise control requirements. Organizations need clear governance around how pricing recommendations are generated, reviewed, and executed, particularly as systems become more automated.

A Broader Technology Pattern

Walmart’s patents are best understood as part of a broader shift in supply chain and retail technology.

AI and advanced analytics are moving closer to operational decision points. Forecasting models are no longer confined to planning environments; they are increasingly connected to systems that can act.

In this case, that connection spans:

Demand sensing

Price recommendation

Store-level execution

The result is a more tightly integrated operating model in which commercial decisions and supply chain execution are linked through software.

What This Signals

The significance of Walmart’s move is not tied to public debate over surge pricing scenarios. The underlying development is structural.

Retailers now have the ability to connect demand forecasting, pricing logic, and execution infrastructure into a faster decision loop.

For supply chain leaders, that represents a clear direction:

Execution is becoming more digital, more centralized, and more tightly coupled to predictive models.

The companies that benefit will be those that can align forecasting, pricing, and operational execution within a controlled, coordinated system.

The post Walmart AI Pricing Patents Signal Shift Toward Real-Time Retail Execution appeared first on Logistics Viewpoints.

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Supply Chain and Logistics News March 16th-19th 2026

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Supply Chain And Logistics News March 16th 19th 2026

This week’s installment of Supply Chain and Logistics news includes stories about record increases in oil prices, Rivian’s autonomous taxis, and much more. Firstly, the Trump administration has issued a 60-day waiver of the Jones Act, a century-old regulation that requires goods moved between US ports to be transported by US-built vessels, etc. Additionally, this week Uber & Rivian announced a partnership for Rivian to build 50,000 autonomous robotaxis by 2031 with over a billion dollars in investment from Uber. Schneider Electric and EcoVadis announced a partnership to target emissions in the health care sector. Lastly, DHL announces 10 warehousing sites to be used for data center manufacturing capacity, and Mind Robotics raises 100 million in series A funding.

Your Biggest Stories in Supply Chain and Logistics here:

Trump Administration Issues Pause on Century-old Maritime Law to Ease Oil Prices

The Trump administration has issued a 60-day waiver of the Jones Act. This century-old regulation typically requires goods moved between US ports to be carried on vessels that are US-built, US-owned, and US-crewed. However, with oil prices surging toward $100 a barrel due to escalating conflict in the Middle East, the suspension aims to ease logistics for vital commodities like oil, natural gas, and fertilizer. While the move is intended to lower costs at the pump and support farmers during the spring planting season, it has sparked a debate between those seeking immediate economic relief and domestic maritime unions concerned about the long-term impact on American shipping and labor.

Uber and Rivian Partner to Deploy up to 50,000 Fully Autonomous Robotaxis

Uber and Rivian have announced a massive strategic partnership that signals a major shift in the future of autonomous logistics and urban mobility. Under the terms of the deal, Uber is set to invest up to $1.25 billion in Rivian through 2031, a move specifically tied to the achievement of key autonomous performance milestones. The primary focus of this collaboration is the deployment of a specialized fleet of fully autonomous R2 robotaxis, with an initial order of 10,000 vehicles and an option to scale up to 50,000 units. From a supply chain perspective, this represents a significant commitment to vertical integration; Rivian is managing the end-to-end production of the vehicle, the compute stack, and the sensor suite, including its in-house RAP1 AI chips, while Uber provides the scaled platform for deployment. Commercial operations are slated to begin in San Francisco and Miami in 2028, eventually expanding to 25 cities globally by 2031.

Schneider Electric and EcoVadis Announce Partnership to Decarbonize Global Healthcare Supply Chains

Schneider Electric, a major player in the digital transformation of energy management and automation, and EcoVadis, a provider of business sustainability ratings, have announced a strategic partnership aimed at accelerating decarbonization within the healthcare industry. “Energize” is a collective initiative to engage pharmaceutical industry suppliers in climate action. The collaboration focuses on addressing Scope 3 emissions, those generated within a company’s value chain, which often represent the largest portion of a healthcare organization’s carbon footprint. By combining Schneider Electric’s expertise in energy procurement and sustainability consulting with EcoVadis’s supplier monitoring and rating platform, the partnership provides a structured pathway for pharmaceutical and medical device companies to transition their global suppliers toward renewable energy.

Mind Robotics, a Rivian spin-off, raises $500 million in Series A Funding

RJ Scaringe, CEO of Rivian, is positioning his new $2 billion spin-off, Mind Robotics, as a technological solution to the chronic shortage of manufacturing labor in the Western world. By developing a “foundation model” that acts as an industrial brain alongside specialized mechatronic bodies, the company aims to move beyond the rigid, fixed-motion plans of traditional robotics toward systems capable of human-like reasoning and adaptation. Scaringe emphasizes that while these machines must perform with human-level dexterity, they don’t necessarily need to be humanoid in form; instead, the focus is on creating a data-driven “flywheel” within Rivian’s own facilities to lower production costs and help domestic manufacturing remain globally competitive.

DHL Expands North American Logistics Infrastructure Amid Growing Global Demand for Data Center Logistics Services

DHL is significantly scaling its data center logistics (DCL) footprint in North America, announcing the addition of 10 dedicated sites totaling over seven million square feet of warehousing capacity. This expansion is a direct response to the explosive demand for AI-driven infrastructure and the specific needs of hyperscale and colocation data center operators. By offering specialized services like rack pre-configuration, white-glove handling of sensitive IT hardware, and warehouse-to-site transportation, DHL is positioning itself as an end-to-end partner in a sector where 85% of operators express a preference for a single logistics provider. This move not only addresses the logistical complexities of moving high-value components like GPUs and cooling systems across global borders but also underscores the critical role of integrated supply chains in maintaining the build speed of the digital backbone.

Song of the Week:

The post Supply Chain and Logistics News March 16th-19th 2026 appeared first on Logistics Viewpoints.

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How to Capitalize Quickly to Address Hyperconnected Industrial Demand

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How To Capitalize Quickly To Address Hyperconnected Industrial Demand

This first in a blog series offers a review of discussion that occurred during ARC Advisory Group’s 2026 Industry Leadership Forum. Specifically, it details a keynote conversation held with senior executives from Rolls-Royce, BTX Precision, and MxD.

The New Fabric of Demand: Modernizing Collaboration and Transparency for Real-Time Production

Industrial leaders have been talking about tearing down workflow and data silos for decades. Yet here we are again. For most, the reality is that most operations and supply chains today typically don’t indicate much progress. A few leaders have figured out how to use digital tools to scale and build pathways forward, a whopping 12.9% according to our latest data (yes, that’s sarcasm). However, even as they struggle to coordinate, orchestrate, and innovate across their operations and enterprise, much less tightly collaborate outside their four walls. In a digital world, this continued capability gap, the inability to closely link market signals to responsive production and external supply chains, is very quickly becoming a liability.

Recently, at the 30th Annual ARC Industry Leadership Forum in Orlando, I had the privilege of leading a keynote discussion entitled The New Fabric of Demand: Modernizing Collaboration and Transparency for Real-Time Production. As part of that, I moderated an excellent conversation that included Global Commodity Executive Greg Davidson of Rolls-Royce, CEO Berardino Baratta of MxD, and CRO Jamie Goettler of BTX Precision.

In this four-part series, we will explore that conversation fully, digging into how the “fabric of market demand” has fundamentally changed, and why structural modernization, both human and technological, is no longer just an option. It is an industrial imperative that will increasingly determine who wins in disrupted markets.

Why Legacy Workflow Will Actually Get Modernized

If we examine the present through the lens of the past, the fundamental laws of supply and demand haven’t really changed. What has changed is the hyperconnectivity of the world and our compressed time to both reward and volatility.

The hard truth is that legacy linear workflows simply do not work in hyperconnected, digitally-driven environments, which are non-linear by nature. As our industrial environments become more digital, they naturally open up countless new ways for how things can get done and how risk can enter the organization. As a result, disruption has shifted from a rare event to a fairly continuous and pervasive reality. In this new reality, responsiveness differentiates you from the competition, and lag time kills.

To survive and thrive in non-linear environments, tighter, integrated ecosystems are required, where silos are actively torn down or redesigned so that barriers to value can be continuously identified and quickly eliminated. At the core, this concept is unfolding around data access, contextualization, and sharing. It provides the urgency behind the need for building industrial data fabrics.

This rewiring certainly extends beyond operations and enterprise processes, enabling the entirety of the supply chain to be judged on its collective responsiveness to the market, all the way down to the individual company level. In this scenario, data can quickly point out laggards who limit value. As the orchestrators of these supply chains identify these limitations on value, they quickly break off and discard the connection and move on without these weak links.

Pillars of the New Fabric of Demand

To achieve necessary level of operational and supply chain responsiveness, the roles of every entity within an ecosystem must be rethought. In the subsequent three blogs of this series, we will take a deep dive into the three distinct pillars that make up this modern architecture, but I’ll begin by laying them out here:

The Market Signal is the catalyst of the entire ecosystem. It dictates the “what” and the “when,” defining what value, success and risk look like in real-time. In blog 2, I’ll explore how to move from reactive assumptions to proactively capturing the market signals that actually matter.
The Demand Architect is moving beyond traditional order-taking. The Demand Architect designs and orchestrates the ecosystem, aligning external partners as true extensions of the enterprise. In blog 3, I’ll discuss the structural agility required to lead this response, rather than just manage a process.
The Agile Partner is the engine of execution. The Agile Partner links supply chain dynamics directly to the shop floor, differentiating themselves through their responsiveness to the market signal. In the final blog in the series, I’ll tackle how data transparency and trust become technical requirements, not just buzzwords, without exposing mission-critical IP.

Building the Modern Industrial Enterprise

Legacy workflows cannot survive in a non-linear world. Industrial organizations must re-architect operations and ecosystems for real-time responsiveness and secure, transparent collaboration. To do so, they will need to:

Improve the measurement of responsiveness: Efficiency and margin-squeezing are important, but they aren’t game-changers. Your competitive edge now relies on how quickly you can adapt to market signals.
Embrace transparency over secrecy: Modern collaboration requires providing a contextualized “lens” into production status without compromising proprietary IP or cybersecurity. Industrial data fabrics are key.
As always, view technology as a tool, not an outcome: Industrial data fabrics are needed to break silos and AI to manage complexity and improve accuracy and speed of decisions. However, the age-old adage remains true. Just because you can apply AI to something doesn’t mean you should. It must be grounded in measurable Value on Investment (VOI), not just return.

The New Fabric of Demand Blog Series

This is the first in a series of four on The New Fabric of Demand: Modernizing Collaboration and Transparency for Real-Time Production. Over the coming days, I’ll publish a perspective from each of the three pillars of the new fabric of demand:

Pillar 1: The Market Signal
Pillar 2: The Demand Architect
Pillar 3: The Agile Partner

By Mike Guilfoyle, Vice President.

For more than two decades, Michael has assisted organizations, including numerous Fortune 500 companies, in identifying and capitalizing on growth opportunities and market disruption presented by the effects of digital economies, energy transition, and industrial sustainability on the energy, manufacturing, and technology industries.

The post How to Capitalize Quickly to Address Hyperconnected Industrial Demand appeared first on Logistics Viewpoints.

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