KUECKER LOGISTICS GROUP, PULSE INTEGRATION, AND QC SOFTWARE HAVE COMBINED

KUECKER LOGISTICS GROUP, PULSE INTEGRATION, AND QC SOFTWARE HAVE COMBINED

 

Kansas City, July [16], 2021 – Leading integration firms Kuecker Logistics Group, Inc. (“Kuecker”), Pulse Integration (“PULSE”), and QC Software, LLC (“QC”) announced today that they have combined to form a new company, Kuecker Pulse Integration, L.P. (“KPI” or the “Company”).  In conjunction with this combination, funds managed by the Private Equity Group of Ares Management Corporation (NYSE: ARES) (“Ares”) have acquired a majority interest in the Company with the existing owners of all three businesses retaining significant equity stakes.

Larry Strayhorn, CEO of Pulse, will lead the Company, and he will be joined on the leadership team by executives from each of Pulse, Kuecker, and QC.

“Pulse, Kuecker, and QC all hold the same core values of honesty, integrity, and transparency. We are thrilled about the opportunities ahead to combine our companies and extend our track record of value creation, innovation, and success as a larger operator,” said Strayhorn.

Jim Kuecker, President of Kuecker, noted “This is an exciting time for our companies. This combination will enhance our capabilities and scale, and we look forward to working together to deliver even greater value to our customers and suppliers in the future.”

“We have worked closely with Larry and Jim and their respective companies over the years, and we are excited to be combining with them in this next chapter of our evolution” said Kevin Tedford, CEO of QC.

Kuecker is a leading innovative material handling solutions provider for more than 40 years. Using a customized approach, they work to design, engineer, and implement logistics management solutions to increase distribution efficiency. Kuecker provides cutting edge solutions in logistics management, supply chain management, value chain management, industrial automation, inventory management and more.

PULSE is a systems integrator that has over 50 years of experience serving customers throughout North America.  Pulse is focused on helping companies leverage the right mix of technology in their facilities, and works to understand, collaborate, and analyze business needs in real-time, and provide custom-engineered solutions in a tiered delivery process.  Using a data-driven, technology-agnostic approach, Pulse ensures projects are scoped to fit the needs of the customer while remaining adaptable for a changing market.

QC is recognized as an industry leader in providing innovative software solutions for order fulfillment and distribution centers. Headquartered in Cincinnati, Ohio, they have been providing software solutions to customers in North America and Europe to streamline their warehouse operations using the most innovative supply chain automation software solutions.

“As a pure-play technology and solutions integrator, KPI is well positioned to serve the requirements of the fast-growing warehouse automation space,” said Brian Klos, Partner in Ares’ Private Equity Group. “This combination will provide KPI with significant scale and expanded capabilities to better serve its customers and drive the next phase of the Company’s growth, both organically and through strategic acquisitions. We are excited to have the opportunity to partner with Larry, Jim, Kevin, as well as the other members of the management team.  We believe this combination brings together a group of uniquely talented and motivated leaders.”

Mr. Strayhorn continued, “Our vision is to build a full-service integrator platform with an industry leading software offering”.  “We believe Ares is the right partner to help us expand our Company and deliver on these important objectives.”

About Kuecker Logistics Group, Inc.

Kuecker is a leading innovative material handling solutions provider working to design, engineer, and implement logistics management solutions to increase distribution efficiency. Kuecker provides cutting edge solutions in logistics management, supply chain management, value chain management, industrial automation, inventory management and more. Not only does Kuecker design and build systems to make business supply chain more efficient, Kuecker acts as a partner and consultant to ensure the success of our implemented services. The strong relationships with clients are testaments to value, commitment, and fulfillment of customer expectations in providing operational analysis, system engineering, system installation, project management, training, start-up assistance and ongoing support.

About PULSE Integration

PULSE is a full system integrator working diligently to provide a customized solution for every client. Combining design expertise, seamless integration with intentional transparency Pulse provides clients with scalable engineered solutions. Cultivating over 50 years of material handling experience to specifically help companies leverage the right mix of technology (digital and physical) in their facilities. The Pulse team ingrains Industry 4.0 Thinking into the design philosophy at every level to deliver truly agnostic solutions that adapt to continuous evolving customer requirements.

About QC Software, LLC

QC is recognized as a leading provider of supply chain automation software solutions. Our Warehouse Execution / Warehouse Control Systems streamline warehouse/distribution operations with the lowest total cost of ownership in the industry. QC solutions maximize your system’s productivity and dependability, making us the ideal solution for your warehousing needs.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2021, including the acquisition of Landmark Partners, which closed June 2, 2021, and the acquisition of Black Creek Group, which closed July 1, 2021, Ares Management’s global platform had approximately $239 billion of assets under management with approximately 2,000 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com. Follow Ares on Twitter @Ares_Management.

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Contacts:

Ares Management Corporation

Bill Mendel

212-397-1030

bill@mendelcommunications.com

Or

Carl Drake

888-818-5298

cdrake@aresmgmt.com

Or

Brittany Cash

212-301-0347

bcash@aresmgmt.com

KPI

Jim Kuecker

jim.kuecker@kpisolutions.com

Or

Stephanie Fisher

315-778-0138

stephanie.fisher@kpisolutions.com

 

The Benefits When Considering Automation

The Benefits When Considering Automation

AutoStoreIn today’s ever-changing market, automation is the leading edge most companies are using to gain a competitive advantage. Companies delaying automation will fall behind, primarily due to the brisk speed at which innovation is already being adopted in the market. The pandemic showed the world that the current supply chain model was modeled after a world that does not exist anymore. Customers demand easy access to products, speed of delivery, and high-touch customer service. However, many executives are unsure of where to begin with automation, what products are right for them, or even what company they should be using, causing them to delay the process altogether. By automating your business, you can execute operational activities more efficiently. Robotics take care of monotonous tasks while employees can focus on main business processes and more complex tasks. The below highlights some key benefits to automation:

Autonomous Mobile Robots Reduce Human Movement & Injury

OTTO AMRPULSE Integration partnered with OTTO Motors to complete the largest at scale deployments of AMR technology in North America. During the study, PULSE compared AMR performance to existing technologies and human load factors. The result, AMRs represented 10% of the equivalent manual handling labor costs and 20% of the cost of a forklift.  It is important to note the situational aspects associated with this study. At higher speeds and with advanced safety features, AMRs outperformed manual carrying, and driver operated pallet loaders over long distances. However, humans have more agility moving goods for short distances or around stations.  It was determined that a blend of both would create the optimum result with output and efficiency. AMRs would conduct the heavy lifting and repetitive labor while humans would operate at stations carrying out tasks of picking, sorting, or quality control. Reducing the number of people moving around a facility compounded with the risks of human driver error, and injury related to repetitive “heavy lifting” tasks helped alleviate some of the many key hazards companies continue to face leading to costly accidents in their facilities. Due to materials handling automation, the repetitive task of pushing product is assumed by the vehicle, while more value-added tasks are left for the workers. Injuries decrease and overall company injury related costs decrease as well.

Integration Into Existing Equipment

WMSWhile researching supply chain automation, it is important to consider solutions that complement the equipment you already have or plan to buy. Some autonomous vehicles, including those from OTTO Motors, integrate with a warehouse management system (WMS) to reduce unnecessary steps. Compatibility between equipment makes the installation of new products more efficient.

Scalability

Scaling a business can be a complicated process. There are many variables that add to a business’s operational costs when it’s being scaled. The more manual process your business has, the harder it is to scale that business. When you automate your processes though, scalability becomes easier. All a company needs to do is make sure that systems can accommodate that growth. If not, minor upgrades are all that is needed.  System’s like AutoStore are easily scalable solutions for retail and e-commerce applications.

Increased Collaboration

An added benefit to automation solutions is that it allows increased collaboration among teams. Many believe automation results in job loss and less teamwork. However, it’s the exact opposite. When repeated tasks are automated, staff will have more time to focus on more integral aspects of the business. Instead of doing mindless repetitive tasks, they’ll work together to make the business better. When business processes are done manually, teams will have to dedicate all of their efforts just to keep things moving. This results in wasted human potential and allocating the valuable brainpower and creativity where it is not utilized effectively.

Accountability

AccountabilityWhen a business is automated and streamlined properly, it’s easier to assess responsibility. This comes as a result of having clear, well-defined tasks, with all the minor tasks automated. If your business has many small tasks that are not automated, they tend to become “nobody’s responsibility”, as none of the staff is directly responsible for them. When these tasks are automated, you end up with the few important tasks where staff members are directly responsible. Having this clear responsibility distribution increases the staff’s accountability for work done and makes quality control easier.

Trackability

Automated and digitalized processes are much easier to track. Your system knows exactly the time, effort and resources required to carry out a specific task. Using the right tools, you can get valuable business insights that’ll help you make it better.

Top Material Handling System Solution Provider

Top Material Handling System Solution Provider

Leading Material Handling System Solution Provider

PULSE Integration has been featured as a top material handling system solution provider for 2021 by Logistics Tech Outlook Magazine.

Logistic Tech Outlook provides an annual listing of 10 companies that are at the forefront of providing material handling system solutions and transforming businesses.  The magazine is read by over 68,000 subscribers who are key decision-makers in the logistics sector.

The magazine also features contributory articles from senior management executives from distribution, warehousing, manufacturing, supply chain experts, logistics professionals, and other technology decision makers on how material handling solutions improved operational performance in their organizations.

Read The Article Here

PULSE Welcomes You To ProMat DX

PULSE Welcomes You To ProMat DX

ProMatDX
ProMatDX, held April 12-16, 2021, is the new digital event experience designed to power up manufacturing and supply chain professionals from the U.S. and over 140 countries with critical access to the latest solutions they need now to improve the resiliency and agility of their operations.
ProMatDX combines the power of the connections, solution-sourcing and education that only ProMat can deliver with the latest digital event technology in a five-day event that will be the most important week of 2021 for the manufacturing and supply chain industry.
Attending ProMatDX is your unrivaled opportunity in 2021 to find solutions, connect with your peers and leading solution-providers and learn the latest trends and technologies that will take your supply chain to the next level of success. PULSE will be featuring state of the art order fulfillment technology at the upcoming virtual show. Make it a point to visit us

Click Here To Visit Our Showcase

Brittain Ladd, Andrew Benzinger of AutoStoreDon’t Miss Out On These PROMAT DX Educational Sessions!

Micro-fulfillment is one of the most talked about but least understood solutions on the market. Attend this session to learn the Who, What, When, Where and Why of Micro-Fulfillment.
PULSE’s own Chief Marketing Officer, Brittain Ladd, will be co-presenting with AutoStore’s Andrew Benzinger on the topic Why Micro-Fulfillment Is a Must Have.
Learn how combining additional technologies will supercharge your fulfillment strategy and create a competitive advantage
Mark your calendar for this revolutionary educational seminar held April 12, 2021 from 1:30 PM – 2:00 PM CT
Matt Chang and Matt RendallPULSE Integration’s Chief of Strategy & Innovation, Matthew Chang, and OTTO Motors CEO and Co-Founder, Matthew Rendall, share information about The Business case for AMRs in Manufacturing vs. forklifts, conveyors, and other modes of material handling at both greenfield and brownfield facilities.

This session is focused on providing a detailed discussion on the value of AMRs within a corporate supply chain.

Speaker Matt Chang, one of the most experienced experts on the topics of AMRs, will introduce content specific to the importance of companies adopting AMRs and the business case for doing so. Real world examples of how AMRs have been introduced will be provided. Check out more about PULSE’s AMR deployments here. Read our Business Case for AMR’s in Manufacturing here.
Mark your calendar for this revolutionary educational seminar held April 14, 2021 from 9:30 AM – 10:00 AM CT

Don’t Forget to View PULSE’s Product Demos at the Show….

PULSE.exe
PULSE.exe
Software Solutions
April 14, 2021
10:00 AM CT
AMR Solutions
PULSE
AMR Solutions
April 13, 2021
10:00 AM CT
PULSE Solutions
PULSE
Solutions
April 12, 2021
10:00 AM CT
Micro-Fulfillment as a Service

Micro-Fulfillment as a Service

A challenge faced by vendors that wish to introduce new technology into the grocery industry is that many grocery retailers are risk averse. Instead of jumping at the chance to embrace new technology, most retailers take a ‘wait and see’ approach. Specifically, grocery retailers wait to see what Amazon and Walmart will do. This has been especially true regarding the topic of micro-fulfillment. Although the use of micro-fulfillment centers within a retailers grocery ecosystem makes operational and financial sense, most grocery retailers have sat on the sidelines.

That has changed as a result of the announcement by Walmart that it is going to install micro-fulfillment centers in an undisclosed number of stores. Walmart will install solutions from Alert Innovation, Fabric and Dematic.

Walmart indicated that they are still in the testing and evaluation phase and that they have not identified the optimal solution. (You can read more about the different micro-fulfillment systems on the market here).

I have proposed the use of micro-fulfillment centers inside retail stores, in buildings next to retail stores, or in offsite ‘Dark Stores’. Micro-fulfillment is a must-have for retailers. However, let me be clear, micro-fulfillment isn’t just technology a retailer can purchase and install. Micro-fulfillment is a strategy retailers can leverage to reduce costs and complexity related to fulfilling online and curbside grocery orders, create a competitive advantage, and enable growth.

Most retailers that choose to leverage micro-fulfillment as part of their strategy have entered into direct arrangements with specific micro-fulfillment vendors. For example, H.E.B entered into an agreement with AutoStore. I rank AutoStore at the top of the list for micro-fulfillment. (Dematic will probably introduce the AutoStore system at Walmart; something I strongly recommend).

Is a direct relationship with a vendor the optimal choice? Is there another option retailers can choose? Yes, there is.

Micro-fulfillment as a Service (MaaS)

I prefer retailers to purchase and install micro-fulfillment centers across their ecosystems. I believe owning and operating MFCs is a wise move strategically for retailers.

However, retailers that don’t want to own and operate MFCs have the option to utilize Micro-fulfillment as a Service (MaaS). MaaS is a service that a few MFC companies are offering to retailers. Fabric has done a great job of marketing MaaS to potential customers.

At a high level, MaaS is a service whereby an MFC company will purchase or lease a building to install micro-fulfillment centers. An MFC company can also install one or more micro-fulfillment centers onsite in a company owned facility.

Once installed, the MFC company will provide the required labor (or use a 3rd party) to run the facility. Customers that sign up for MaaS ship their inventory to a MaaS location where the inventory is either stored or immediately placed inside an MFC. Retailers will have little to no upfront costs to leverage MaaS. The MFC company will fulfill orders for their customers. On average, the MFC company running the MaaS location will charge between $.58 to $.60 per line picked.

Sounds like a great deal!! It’s not. MaaS is nearly impossible to justify due to high operational costs. On average, grocery retailers can lose up to $25 on every online order they fulfill. MaaS reduces the cost of fulfilling online orders but not as much if a retailer operates their own micro-fulfillment centers.

Based on analysis completed by several strategy consulting firms, and based on my own analysis, the MFC companies offering MaaS have greatly underpriced their services. In addition, the projected order volumes that can be filled using a MaaS model will be difficult, if not impossible, to fulfill because of limitations within the MFC systems being used by the companies I evaluated.

Regardless of the limitations, I expect MaaS to grow in popularity for these reasons: Executives at some retailers will be very risk averse. To minimize risk, they will choose to essentially outsource micro-fulfillment. I know of several grocery retailers that are in the process of evaluating micro-fulfillment systems. A few of the retailers are leaning towards using MaaS as a way to reduce capital spend and mitigate risk.

Recommendations

Using real world examples, this is what I recommend all grocery retailers that are interested in MaaS to do.

Albertsons is one of the leading grocery retailers in the United States. The company is led by CEO Vivek Sankaran, former President and COO of Frito-Lay North America. I believe Vivek should be considered one of the best CEOs working today. I have written multiple articles about Albertsons and I have publicly stated that Albertsons should merge with Ahold-Delhaize. If the merger occurs, it would create the largest grocery retail conglomerate in the United States, and one of the largest in the world.

Based on announcements from Albertsons, the company is evaluating options for micro-fulfillment. Albertsons has a relationship with the MFC company, Takeoff Technologies. (I am a former advisor to Takeoff and Fabric).

Full disclosure: I have had multiple discussions with executives from Albertsons regarding the topic of micro-fulfillment. I also advised executives from H.E.B, Ahold-Delhaize, Publix, Amazon and Walmart on the topic of micro-fulfillment. However, I do not work for a micro-fulfillment company. I work for a system integrator, PULSE Integration, that has relationships with several MFC companies. I also write articles on the topic of micro-fulfillment.

I applaud Albertsons focus on micro-fulfillment. However, what should Albertsons do?

In my professional opinion, I recommend that Albertsons purchase and install MFC systems from AutoStore. If there is resistance within Albertsons for such a model, Albertsons should evaluate MaaS as an option. However, instead of only testing MaaS as a solution with one MFC company, I encourage Vivek Sankaran to speak with AutoStore, and negotiate an agreement whereby AutoStore will operate one to three MaaS locations for Albertsons.

AutoStore hasn’t embraced MaaS due to analysis they have performed that indicates MaaS is a higher cost and lower value option for grocery retailers than grocery retailers owning and operating their own micro-fulfillment centers. However, I believe AutoStore has no choice but to offer a MaaS solution due to growing interest in the topic. I strongly encourage AutoStore to partner with Albertsons.

Sankaran should also have one to three AutoStore MFCs installed within their grocery ecosystem, including installing an AutoStore inside a grocery store, to test which MFC performs the best. Sankaran can compare the results of MaaS and a company owned and operated MFC model at the end of one year. May the best MFC solution win.

In addition to micro-fulfillment, I strongly encourage Albertsons (and all retailers) to test the use of last mile delivery carts from the company Tortoise, and testing mobile retail using vans from Robomart. Both companies are generating a lot of interest from retailers. (I am an advisor to both companies).

Finally, I recommend that Albertson (and all grocery retailers) to improve the customer experience for online grocery delivery by providing their customers with a DynoSafe or a similar product. This article outlines the importance grocery retailers “winning the porch.”

Publix, Kroger, Ulta Beauty, Sephora, Macy’s, owners of malls, convenience store chains, and large retail development companies should also test MaaS and operating MFCs within their retail ecosystems.

What’s Next for Micro-fulfillment? 

I am convinced that Instacart will invest heavily in micro-fulfillment centers starting in 2021; probably with Fabric. Instacart will go public in 2021. By 2022, 80 to 100 micro-fulfillment centers will be dedicated to Instacart’s needs. By 2025, Instacart will become an online grocery retailer fulfilling orders direct to their customers. Instacart will end their relationship with their current customers. I anticipate that Instacart will open Instacart-branded stores in select locations. If I’m correct, Instacart should acquire Fabric in 2021. (Instacart is in an interesting position. I recommend Shopify, Google or Facebook to acquire Instacart).

Amazon is investing heavily in micro-fulfillment. I anticipate that Amazon will soon unveil a 20,000 square feet MFC built inside one of their AmazonFresh branded stores. I’m convinced that Amazon has no choice but to explore the use of Nano-fulfillment centers inside Whole Foods stores. I designed one of the first micro-fulfillment centers specific to the needs of Amazon. You can read about it here.

Amazon is creating a business model whereby they will sell more groceries through their Amazon branded stores than through Whole Foods. Why? Because Amazon is going to sell branded CPG and organic products inside its supermarkets. When Amazon acquired Whole Foods, I stressed to Amazon that they should introduce branded CPG products at Whole Foods to increase customers. The stores could be re-branded to ‘Whole Foods Plus.’ Amazon didn’t introduce branded CPG products at Whole Foods and sales have stagnated.

An argument can be made that Amazon should divest Whole Foods and focus on its own AmazonFresh brand. Target is the company that should acquire Whole Foods. Target can open Whole Foods Markets inside its stores. I have recommended to Amazon on several occasions to acquire Target and also open Whole Foods Markets inside Target’s stores. Since the acquisition hasn’t occurred, I’m skeptical that it ever will. If Amazon is not going to acquire Target, divesting Whole Foods should be explored.

Amazon and Kohl’s are piloting an AmazonFresh store inside a Kohl’s store; this is something that I recommended to Kohl’s and Amazon over two years ago so I’m glad that pilot has begun. If the pilot is successful, I recommend that Amazon should acquire Kohl’s.

DoorDash, Postmates and other restaurant delivery companies must expand into delivering groceries. I strongly recommend that these companies should invest in opening their own micro-fulfillment centers powered by AutoStore or some other MFC system. Grocery retailers are actively looking for a replacement for Instacart. Postmates, for example, could open MFCs; receive inventory from grocery retailers; store the inventory inside each MFC system; fulfill online and curbside orders; and use their own delivery drivers to deliver orders.

I also believe that restaurant delivery companies that partner with grocery retailers should teach their grocery retail customers how to open dark kitchens and offer their own branded meals.

Micro-fulfillment is going to grow in popularity. Every retailer needs to ask and answer this question: What is our micro-fulfillment strategy?

For more information on micro-fulfillment, you can read articles located here and here.

Read more articles like this from PULSE’s Chief Marketing Officer Brittain Ladd