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How to Optimize Fulfillment with Unified Data

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How To Optimize Fulfillment With Unified Data

Order fulfillment is the complete process from when an order is placed until the shipment is delivered. Accurately fulfilling thousands of orders for millions of items is extremely challenging. Many large organizations have multiple systems for order, warehouse, or transportation management that are barely integrated – frequently not at all. However, large organizations are often equipped to handle fulfillment in-house, leveraging their extensive resources and capabilities. An organization with tens of thousands of different products may have to move them across many modes of transportation, IT systems, and third-party logistics partners, all adding to complexity, as well as loss of visibility and control.

Sudden and significant changes in demand, especially in consumer markets, stack up more challenges, requiring order revision and reallocation. If your systems are disjointed and you lack the ability to analyze masses of data in real time, you will struggle to deliver on-time, in-full and your reputation and revenue will be negatively impacted.

Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer. These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management. Standard sizes and categorizations play a crucial role in determining the costs associated with shipping products that meet standard criteria in fulfillment centers. The fulfillment process is further complicated by ongoing shifts in customer expectations and demands and geo-political and weather disruptions.

Introduction to OTIF Fulfillment

The key measurement of fulfillment is on-time in-full (OTIF) fulfillment, which is calculated as a percentage of orders that are delivered on the requested delivery date and in the quantity requested by the customer. The formula for OTIF is:

Measuring a supply chain against OTIF metrics is a key strategy that helps decision makers attach a tangible value to the success of their fulfillment and allows them to determine key strategies. Factors like planning tools, inventory management, demand patterns, and innovations in technology contribute to the success or failure of fulfillment optimization. Establishing standard benchmarks for services and innovations in fulfillment centers is crucial in this context. Fulfillment costs can significantly impact profit margins, making it crucial for businesses to understand these financial implications and how they influence consumer spend.

The question then becomes “what is a good OTIF score to shoot for?” Fulfillment success, and the associated OTIF score, will vary by industry, region, and other assorted factors, but generally speaking, an OTIF score is considered good if it falls between 80% and 90%. Many companies aim for 95% or higher, which can be a daunting task. For suppliers, the penalties associated with missing OTIF goals can be significant. For example, Walmart’s OTIF program mandates that suppliers should meet the 90% on-time and 95% in-full goals to avoid penalties. Walmart fines suppliers 3% of the cost of goods sold (COGS) for orders that fail to meet on-time and in-full delivery requirements.

A good fulfillment strategy can help businesses boost customer satisfaction (CSAT), reduce inefficiencies, and increase sales. By setting clear expectations and standards for fulfillment operations, including OTIF rates, shipping times, and inventory levels, businesses can ensure that they meet customer demands and maintain high levels of satisfaction. Regularly monitoring and analyzing fulfillment operations can help identify areas for improvement and implement strategies to optimize these processes.

Effective fulfillment requires a well-designed system, efficient logistics, and a reliable supplier network to ensure timely and accurate delivery of products. Companies have two options to consider for fulfillment operations: in-house fulfillment or outsourcing fulfillment to a third-party logistics (3PL) provider. While outsourcing to a 3PL is a common strategy, new technologies and approaches now exist to achieve higher OTIF rates in house.

Warehouse Fulfillment Complexities and Inefficiencies

InterSystems surveyed 450 senior supply chain practitioners to examine key supply chain technology challenges, trends, and decision-making strategies across five key use cases: fulfillment optimization; demand sensing and forecasting; supply chain orchestration; production planning optimization; and environmental, social, and governance (ESG). These respondents came from 13 countries and 12 industries, representing decision-makers across project management, fleet management, sales & marketing, HR, and finance.

This blog is Part 1 in our Optimizing Supply Chain Performance with Unified Data series, with a focus on optimizing fulfillment. Effective inventory management strategies are crucial for businesses looking to expand their operations and improve delivery efficiency, particularly when scaling to multiple warehouse locations. Looking to the future, businesses should prepare for trends such as the growth of micro fulfillment centers and the need for adaptive strategies to stay competitive in the evolving landscape.

Ability to Meet Fulfillment Goals

According to the survey, only a mere 1% of respondents achieve 80% or higher for their OTIF metrics, with the average percentage of OTIF being a mediocre 62.21%. The ability to meet fulfillment goals is impeded by several issues. When asked to name their top three challenges for fulfillment optimization, respondents cited the high volumes and complexities of SKUs (59%), inadequacies of existing planning tools (51%), and volatile demand (42%). Considering that the majority of respondents are using manual processes, legacy systems, or multiple solutions from different vendors to integrate and prepare disparate data, this makes sense.

SKU complexity generally refers to the challenges and inefficiencies associated with keeping a large number of SKUs within a store, warehouse, or factory. This includes picking the correct items from inventory, packing them appropriately, and ensuring their timely delivery to customers. Managing too many SKUs leads to higher inventory carrying costs and general inefficiencies. On top of that, the lifecycle of a SKU is getting shorter, especially as more businesses turn to e-commerce for direct-to-consumer selling. A SKU is designed, received, and pushed to the market, but often it is not available six months later, making replenishment nearly non-existent. Without re-stocks, optimizing fulfillment from the right location is more important than ever. Strategies for managing excess inventory and preventing overstocking are crucial to maintaining efficient operations.

Inadequacy of Planning Tools

The second challenge identified by respondents was the inadequacy of planning tools. This can lead to fulfillment failure from the standpoint of missed deadlines, increased costs, or poor customer satisfaction. Timely information is critical, as data older than a few days can lead to costly supply chain disruptions. Perhaps not surprisingly, the industries that reported they would see the biggest improvement in fulfillment rates if able to ingest real-time data and provide actionable insights to business users were automotive and aeronautics (55%), FMCG (44%), and manufacturing/CPG (43%).

Demand Volatility

The final challenge associated with optimized fulfillment is demand volatility. Demand volatility is the sudden and unpredictable variation in customer demand for products or services over a specific time. The root causes are not always easy to identify, but they can be attributed to changing customer expectations and demands, changing promotions, or a shift in market dynamics such as external weather events, geo-political instability, and shipping disruptions like the Francis Scott Key Bridge collapse or the blockage of the Suez Canal. These changes make it harder for companies to forecast demand in both the near and long term and can lead to further supply chain disruptions. Effective returns management is also crucial in handling the unpredictable nature of demand, ensuring that returned products are inspected, restocked, or disposed of efficiently. Tracking how much inventory is held and assessing inventory age are essential to making informed decisions about restocking and mitigating risks such as stockouts and overstocking.

Fulfillment Strategies

Respondents were asked to identify the data technology innovations they would most want to implement to achieve fulfillment optimization. The top response was the use of artificial intelligence (AI) and machine learning (ML) (46%), which outpaced predictive and prescriptive analytics (37%), the use of a decision intelligence platform within supply chain (37%), real-time harmonized and normalized data from multiple sources internal and external (37%), and streamlined integration of different solutions (37%).

These technologies can be directly integrated with existing systems, allowing businesses to automate workflows and reduce errors in managing inventory and order fulfillment.

AI and ML impact every stage of the order fulfillment process, with a specific emphasis on forecasting, inventory management, order processing and picking, and last mile deliveries. For improved OTIF, AI and ML help companies make smarter decisions faster, improve turnaround times, and simplify manual processes in the warehouse. The real desire for survey respondents is to improve upon current systems and processes to make better sense of their data, enabling optimized fulfillment processes. Inventory management systems can ensure businesses are notified when stock levels are low, allowing timely replenishment and minimizing the risk of stockouts.

Actionable insights drive significant efficiencies in every area, increasing automation and significantly boosting productivity. Supply Chain Orchestrator provides the infrastructure needed to optimize raw materials handling from point-of-supply to end consumption. Organizations can integrate transportation, warehouse management systems, and advanced robotics. Packaging plays a crucial role in the fulfillment process, ensuring items are carefully packaged for safe transport.

By increasing automation through Supply Chain Orchestrator, organizations accelerate decision-making, offer self-service access to analytics, and remove human errors. Organizations are ready to implement AI and ML-driven prediction and productivity gains. They achieve rapid adaptation to any changes in demand, logistics disruptions, or business priorities, leading to increased CSAT and higher revenue. An efficient fulfillment system is essential in managing order delivery and inventory, contributing to better operational efficiency.

Order Accuracy and Efficiency

Order accuracy and efficiency are critical aspects of fulfillment operations, as they directly impact a business’s ability to fulfill orders on time and in full. Effective order picking and shipping processes are essential for improving order accuracy and efficiency, reducing fulfillment costs, and enhancing the overall customer experience.

By implementing efficient logistics and shipping strategies to ship orders, businesses can reduce shipping times, improve their OTIF rates, and increase CSAT. Regular monitoring and analysis of picking and shipping processes are vital for identifying areas for improvement and implementing strategies to optimize fulfillment operations.

Technology plays a significant role in improving order accuracy and efficiency. Automated packaging and shipping systems can help businesses streamline their operations, reduce errors, and lower fulfillment costs. By leveraging these technologies, businesses can ensure that their customers receive their orders accurately and on time, leading to higher levels of satisfaction and loyalty. But technology plays an even bigger role in data unification and management, especially when it comes to integrating new technology with existing applications.

Final Thought on Fulfillment and Repeat Purchases

These survey findings confirm that most organizations lack the necessary capabilities to optimize highly complex supply chains with interwoven dependencies. To be truly agile and competitive, organizations must be capable of extracting critical insights in near real-time. But as things stand, this remains a significant challenge when so many businesses lack end-to-end visibility, or rely on manual data analysis and ad hoc assemblages of different solutions.

In the face of constant change, disruption, and opportunity, organizations need a streamlined source of standardized, clean, meaningful, and reliable data that is available to business users. Maintaining proper stock levels is crucial to ensure product availability and prevent issues like stockouts or overstocking. An intelligent data platform eliminates the significant data challenges that organizations encounter on their path to optimized fulfillment and repeat purchases.

Read the full report here.

Chris Cunnane is the Supply Chain Product Marketing Manager at InterSystems. In this role, he is responsible for developing and executing marketing strategy and content for the InterSystems supply chain technology suite. Chris has 20+ years of supply chain expertise, leading the supply chain practice at ARC Advisory Group, as well as holding various sales, marketing, and operations roles in the wholesale, retail, and automotive parts markets. He holds a BA in Communications from Stonehill College and an MA in Global Marketing Communications from Emerson College.

The post How to Optimize Fulfillment with Unified Data appeared first on Logistics Viewpoints.

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Can Real-Time Voice Translation Improve Warehouse Productivity and Employee Engagement?

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Can Real Time Voice Translation Improve Warehouse Productivity And Employee Engagement?

Labor shortages remain one of the most persistent challenges facing warehouse operators. Yet an often-overlooked issue sits beneath the labor discussion: communication. Modern distribution centers frequently employ associates who speak a variety of languages. While workforce diversity is a strength, language barriers can create delays, safety risks, training challenges, and unnecessary dependence on a small number of bilingual employees.

This challenge is becoming increasingly relevant across North America. Distribution centers routinely employ associates representing multiple linguistic backgrounds. As labor shortages persist, operators are focusing less on hiring workers who speak a common language and more on ensuring communication systems can accommodate workforce diversity. Technology that bridges language gaps can therefore expand the labor pool while improving workforce effectiveness.

Historically, many operations have relied on supervisors or bilingual associates to bridge communication gaps. The problem is that those employees are frequently pulled away from their primary responsibilities to interpret instructions, explain process changes, or translate safety information. In a high-velocity warehouse environment, those interruptions create hidden productivity losses.

Recent advances in real-time voice translation technology are changing this dynamic. Solutions such as Relay’s TeamTranslate allow workers to communicate in their preferred language while messages are translated and delivered to others in near real time.

Consider a common warehouse scenario. A distribution center employs workers who primarily speak English, Spanish, and Vietnamese. During a shift startup meeting, supervisors must communicate labor priorities, inventory issues, quality concerns, and safety reminders. Without automated translation tools, information often flows through a bilingual intermediary. Even when translation is accurate, the process consumes time and introduces opportunities for misunderstanding.

With real-time translation, every worker can hear instructions in a familiar language. Communication becomes direct rather than dependent on an interpreter. Managers spend less time repeating instructions, and bilingual associates remain focused on their assigned tasks instead of serving as unofficial translators.

Relay highlights examples from warehouse operations where managers reported stronger understanding between English- and Spanish-speaking associates after implementing translation capabilities. Improved understanding contributed to better alignment and higher production levels.

The ROI opportunity can be meaningful. Consider a 200-person distribution center operating two shifts. If five supervisors each spend fifteen minutes per day locating a bilingual employee to translate instructions, answer questions, or communicate process changes, the facility loses more than 625 supervisory hours annually. At a fully burdened labor cost of $40 per hour, that represents approximately $25,000 in indirect labor costs before accounting for throughput improvements, reduced errors, and fewer delays.

The impact extends beyond productivity. Safety is another significant consideration. Warehouses depend on clear communication for forklift traffic management, hazardous material handling, evacuation procedures, and incident reporting. When critical messages are misunderstood because of language barriers, the consequences can be serious.

Training and onboarding may benefit as well. New employees often face a steep learning curve. Translation-enabled communication allows new hires to learn in their preferred language, potentially reducing training time while increasing confidence.

An emerging category of frontline communication technology is focused on solving these challenges. Vendors such as Relay, Zebra Workforce Connect, Microsoft Teams Walkie Talkie, Theatro, Honeywell Voice, and WorkJam are expanding communication capabilities for deskless workers. Historically, many solutions focused on push-to-talk communication or task management. AI-powered language translation introduces a new capability by directly addressing communication friction between workers.

Perhaps the most interesting impact is cultural rather than operational. Many warehouses consist of diverse teams that work side by side every day but communicate primarily within their own language groups. Technology that allows people to communicate naturally can help create a more inclusive workplace. Employees become more comfortable asking questions, sharing ideas, and participating in team discussions.

This matters because engagement and retention are increasingly strategic priorities. Employees who feel heard and understood are more likely to contribute, collaborate, and remain with an organization.

Takeaway and Market Outlook

For years, warehouse automation investments have focused primarily on moving products more efficiently. Robots, ASRS systems, autonomous mobile robots, and warehouse software have targeted improvements in material flow. Yet communication remains one of the least automated processes within many facilities.

Real-time voice translation represents an interesting shift because it focuses on people rather than equipment. By reducing dependence on bilingual intermediaries, organizations can improve productivity, accelerate onboarding, strengthen safety compliance, and create a more inclusive work environment.

Looking ahead, AI-enabled communication tools are likely to become increasingly common across warehouse and manufacturing environments. Facilities have spent decades optimizing the movement of inventory. The next frontier may be optimizing the flow of information between workers. If technologies such as real-time voice translation continue to demonstrate measurable workforce and operational benefits, they could become a standard component of the digital warehouse technology stack.

The post Can Real-Time Voice Translation Improve Warehouse Productivity and Employee Engagement? appeared first on Logistics Viewpoints.

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Blue Yonder Is Redesigning Supply Chain Software Around Decisions, Not Screens

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Blue Yonder is rethinking how users interact with supply chain applications as artificial intelligence takes on a larger role in planning and execution.

During a recent analyst briefing, Blue Yonder Chief Design Officer Nunzio Esposito outlined the company’s effort to move away from traditional application navigation and toward a more decision-centric model. The company is bringing together AI agents, recommendations, workflows, mobile capabilities, and collaboration tools through what it calls Blue Yonder Orchestrator.

The objective is to reduce the amount of manual navigation and repetitive interaction required from users. Instead of moving through multiple screens to find information and determine what requires attention, Blue Yonder wants its applications to surface the relevant information, recommendations, and decisions more directly.

The broader idea is that users should spend less time operating the mechanics of enterprise software and more time making higher-value decisions.

From Navigation to Orchestration

At the center of the strategy is Blue Yonder Orchestrator, which the company describes as a harness for creating a more coherent experience across its cognitive applications.

Orchestrator can use context including the business process, the user’s role and policies, and the situation in which the application is being accessed. Blue Yonder says this allows the system to determine what information should be presented, who may need to be involved, and what decision may need to be made.

This also affects the role of the traditional dashboard. Esposito described Blue Yonder’s briefing capability as a more intelligent version of a dashboard, with the objective of bringing users into the process when a higher-value judgment is required while allowing lower-level tasks to be handled by agents.

Blue Yonder is also consolidating functions including search, lookup, favorites, navigation, and interaction with agents into a more centralized access point. The company says this can reduce duplication in the interface while giving users a more consistent way to access different capabilities.

The system can also use information such as frequency of use, previous activity, and user-journey patterns to determine what is presented to the operator. According to Blue Yonder, those interactions feed back into its context graph and help Orchestrator respond more dynamically.

Extending the Experience Beyond a Single Application

Blue Yonder’s vision also extends beyond the desktop application.

Esposito said the company wants its capabilities and intelligence to be accessible wherever the user is working, including desktop systems, phones, voice-enabled environments, industrial warehouse devices, and potentially wearables. The company’s goal is to maintain continuity as users move among those environments.

That approach is already visible in Microsoft Teams. Blue Yonder has made some of its domain-agent capabilities available through Teams, allowing users to perform lookups and engage with Blue Yonder intelligence without necessarily returning to the application itself.

In logistics, Esposito pointed specifically to the logistics operations agent being available in Microsoft Teams. He described a scenario in which a procurement manager could ask about current activity and outstanding issues while remaining in Teams rather than moving back into the underlying logistics application.

This supports one of the central themes of the briefing: Blue Yonder does not believe its intelligence should be limited to a single application surface.

Warehouse Applications Put the Strategy Into Practice

The warehouse is one area where Blue Yonder has already applied this design approach.

The company has developed two role-specific mobile applications, one for warehouse operators and another for warehouse supervisors. The applications were developed using Blue Yonder’s mobile studio and were designed with industrial devices in mind.

Esposito said the warehouse effort focused on reducing clicks, maintaining application performance, and helping workers complete tasks more efficiently. Blue Yonder has also been examining measures including decision time and speed to completion as it evaluates these experiences.

The company is also introducing what it calls a decision-based workflow, or workbook. The concept is intended to give users a view of the jobs and tasks that need to be completed, while also providing context around who may be involved and where the work stands. Blue Yonder says the approach is intended to reduce cognitive load and improve collaboration.

For warehouse technology users, the relevance is fairly direct. Small reductions in clicks, navigation, or decision time can become meaningful when those interactions are repeated throughout a shift.

That is an LV interpretation rather than a specific Blue Yonder claim, but it helps explain why application design can have an operational impact in a warehouse environment.

Generative Interfaces and Cognitive Coaching

Blue Yonder is also developing concepts that go beyond simplifying existing interfaces.

One of those is the generative user interface. Esposito described a future in which interfaces could be curated more dynamically based on the information and situation at hand rather than remaining completely fixed.

The company is also developing what it calls Cognitive Coach. Blue Yonder is using information about what a user needs to do, how that user makes decisions, and who the user collaborates with to explore more personalized in-context assistance.

Esposito connected this effort to the broader issue of AI adoption and role transformation. He argued that companies need to think not only about the technology itself, but also about how jobs change as more activities are handled by agents.

Blue Yonder’s objective is to make that transition less disruptive by reducing the amount of change management required as users move from current ways of working toward more AI-assisted processes.

Managing AI Models and Consumption

The briefing also addressed how Blue Yonder manages different AI models.

Esposito said the company selects different models for different activities and can orchestrate multiple models based on the task being performed. He also noted that cost is one of the factors considered in that orchestration.

Blue Yonder is introducing a capability called Mission Hub that provides visibility into areas including the roles in the system, policies and entitlements, GenAI consumption, and which models and agents are being activated. The company said the capability will also help users understand the infrastructure cost associated with that activity.

Through GenAI Studio, customers can also choose models and establish limits or boundaries around their use. Esposito said customers are not limited to Blue Yonder automatically orchestrating those decisions for them.

This introduces a practical layer to the agentic AI discussion. As AI usage expands inside enterprise applications, customers will need visibility into which models and agents are being used and what that consumption costs.

That conclusion is analytical, but it follows directly from the capabilities Blue Yonder described.

The Larger Shift

The most important theme in the briefing was not a single application or interface feature. It was the way Blue Yonder believes the relationship between the user and the application is changing.

The company is trying to reduce manual navigation, surface decisions more directly, and allow agents to handle more of the lower-level activity surrounding those decisions. At the same time, Blue Yonder is extending those interactions across devices and collaboration environments rather than assuming that all work will take place inside one application.

Some of these capabilities are already available, while others remain in development. The company’s December releases, continued work on Cognitive Coach, and generative-interface efforts will provide additional evidence of how far this model can move from concept into day-to-day supply chain operations.

The direction, however, is clear. Blue Yonder is designing its applications around a future in which the user spends less time navigating software and more time deciding what needs attention, what can be delegated, and what action should come next.

The post Blue Yonder Is Redesigning Supply Chain Software Around Decisions, Not Screens appeared first on Logistics Viewpoints.

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Supply Chain Risk Management Is Moving From Alert Generation to Operational Response

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Executive thesis. Supply-chain risk management is moving from signal accumulation to consequence management. More alerts are not an advantage if the enterprise cannot map them to actual products, suppliers, sites, lanes, inventory, customers, or revenue.

Risk teams do not need more undifferentiated alerts

Supply chain risk platforms have become capable of collecting external signals about weather, geopolitics, suppliers, cyber events, infrastructure, finance, and other disruption sources. The challenge is that awareness does not equal response. A long queue of alerts can overwhelm the organization unless the system can determine which events intersect with real operational exposure.

Exposure mapping creates relevance

A disruption becomes actionable when it can be mapped to suppliers, sites, products, materials, lanes, customers, inventory, revenue, or service commitments. That requires multi-tier relationship data and a clear understanding of dependencies. Without that context, the enterprise may know that an event occurred but still lack a defensible answer to the question: what does this mean for us?

Prioritization should be consequence-based

Risk scoring is most effective when it helps allocate scarce attention. As a result, considering probability, exposure, time horizon, substitution options, inventory, capacity, and customer impact rather than relying on event severity alone. The same storm, port closure, or supplier issue can be immaterial to one business flow and critical to another.

Mitigation needs workflow and ownership

Once material risk is identified, the platform should support the response: investigate, validate, assign an owner, evaluate alternatives, obtain approval, execute mitigation, and track closure. Otherwise the risk platform becomes a notification system whose output has to be managed in separate tools. The value lies in shortening the path from detection to controlled action.

Scenario capability turns awareness into preparedness

Risk management improves when the organization can model alternatives before a disruption occurs. Alternate suppliers, substitute materials, inventory buffers, routes, capacity, and manual fallback can be evaluated and exercised in advance. That turns risk technology from a monitoring layer into part of the operating model for resilience.

The Logistics Viewpoints Supply Chain Risk Management Software: Buyer’s Guide evaluates external intelligence, multi-tier mapping, dependency and exposure analysis, mitigation workflow, scenarios, integrations, and alert quality as parts of one response system.

Executive implication

Risk technology should be evaluated by its ability to establish exposure, prioritize consequence, assign ownership, and accelerate executable mitigation.

Go deeper: provides the durable buyer, architecture, and implementation reference for this topic. Risk, Resilience & Security connects this analysis to the broader Logistics Viewpoints research architecture.

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Best Practices in Supplier Risk Management

Go Deeper

Read the full Supply Chain Risk Management Software: Buyer’s Guide.

Explore the broader Risk, Resilience & Security domain for related Logistics Viewpoints research and analysis.

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