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How Geek+ and UPS Supply

Chain Solutions® Helped


Allbirds Reduce Costs While
Increasing Throughput

Custom content for Geek+ by studioID


Finding Their Footing
Record employment levels, increased it difficult to achieve maximum throughput
competition for warehouse workers and an during that year’s peak holiday season.
increase in labor costs instigated in part
by the global pandemic continue to plague Facing warehouse staffing shortages
the logistics industry. In fact, a recent report and concerned about the impact of long
notes that supply chain leaders believe both hours on employee safety and morale, the
the talent shortage and hiring and retaining Atlanta-based 3PL made finding a solution
qualified workers are their top supply a top priority. In line with the UPS brand’s
chain challenges. reputation as an innovator, UPS Supply
Chain Solutions began exploring cutting-
UPS Supply Chain Solutions, a global edge robotics for its distribution centers.
third-party logistics provider (3PL), wasn’t With 100,000 units shipped that year,
immune to the widespread staffing shortage autonomous mobile robots (AMRs) and
in 2021. At the time, the entire logistics automated guided vehicles (AGVs) were
sector struggled with challenges such as just starting to gain ground as a solution
supply chain disruptions and new warehouse to the warehouse worker shortage
processes that incorporated social because they could be deployed quickly
distancing. These and other factors made and affordably.

Supply chain leaders


believe both the
talent shortage and
hiring and retaining
qualified workers are
their top supply
chain challenges.

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“Our operations have always been very
labor-dependent, with people picking,
packing and driving forklift equipment
throughout our warehouses. We saw an
opportunity in robotics to expand upon
our existing automation capabilities and
drive better productivity, safety and worker
satisfaction,” said David Steffey, director of
IE for NA logistics and distribution at UPS
Supply Chain Solutions. As he and his team
began researching robotics providers and
their capabilities, one organization stood
out: Geek+.

“While many vendors specialize in a


particular type of robotic application, Geek+
has a suite of robotics serving different
purposes. It’s a more holistic solution that
was very attractive to us,” Steffey added.

Data security was a key concern, regardless


of the supplier, because the entire UPS
organization places a high priority on IT
security. So, when integrating new systems,
ensuring that data from the 3PL and its
customers remains protected can prove
time-consuming. Being able to do that once
with Geek+ for multiple bot applications
was preferable to repeating the process “While many vendors
several times with multiple vendors. specialize in a particular
type of robotic application,
Val Cosic, UPS Supply Chain Solutions’ Geek+ has a suite of
division operations manager, appreciated robotics serving different
the Geek+ solution’s ability to easily scale purposes. It’s a more
up or down, too. “It’s the simplicity and holistic solution that was
flexibility. We can quickly add more volume very attractive to us.”
without bringing in more people, so from
an operations standpoint, that’s critical,” David Steffey
Director of IE for NA Logistics
she said. and Distribution at UPS Supply
Chain Solutions

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“Allbirds was created with Trying It on for Size
a desire to do business
differently. Our mantra to The two organizations agreed to test the
make better things in a potential with a proof of concept. Allbirds, a
better way applies to all UPS Supply Chain Solutions client for almost
aspects of our business, two years, seemed like the perfect fit.
so we are always looking
to improve processes, Steffey and Cosic knew that innovation in all
aspects of business was on-brand for Allbirds,
Allbirds Representative a rapidly growing, groundbreaking, direct-
to-consumer footwear brand. In addition,
executing the proof of concept with footwear
specifically would allow the team to discover
how Geek+ robots would perform within a
product category that’s historically more
challenging than other consumer apparel and
accessories. Shoeboxes are harder to handle
than garments and require more storage
space, a situation often exacerbated by a high
number of SKUs as brands add styles to meet
consumer demands.
VIEW THE CASE STUDY VIDEO

Allbirds was all in.

“Allbirds was created with a desire to do


business differently. Our mantra to make
better things in a better way applies to all
aspects of our business, so we are always
looking to improve processes,” said a
representative from the San
Francisco-based company.

In March 2022, the logistics partners set up


a proof of concept in the 3PL’s Bloomington,
California warehouse in a space adjacent
to Allbirds’ existing West Coast fulfillment
operation, which continued without disruption
throughout the 90-day pilot project.

4 4
70
The initial Allbirds
implementation was
more robots so successful that the
teams soon expanded the
footprint, adding 70 more

200
more racks
robots and 200 racks —
again without disrupting
the legacy operation.
Geek+ and UPS team members pose for a
photo at the deployment site for Allbirds east.

Their teams deployed 27 Geek+ shelf-to- Customizing a process unique to UPS Supply
person autonomous mobile robots (AMRs) Chain Solutions’ operations, technology and
that moved inventory racks to picking equipment involved more than integrating new
stations, eliminating the need for pickers technology for both organizations. The teams
to walk through the warehouse. In addition also had to address how to handle a rack size
to improving worker safety, reducing labor that wasn’t standard for the Geek+ system.
intensity and improving picking accuracy, “Understanding how to set it up, how many
automated picking typically improves pairs of shoes we can fit on it and how we
efficiency by two to three times. transport it without them falling off was a big
learning curve for all of us,” said Kyle Curry,
UPS Supply Chain Solutions set up the sales and solutions engineer at Geek+.
pilot program with a bigger goal in mind,
too. As the two logistics organizations Training employees on the new system — a
worked through the initial onboarding — system that made it possible for them to remain
determining the data integration, security, stationary while the product came to them on
networking, system communication and robots — was relatively easy, though. “It’s much
other details for the first installation — they easier than training a new driver on equipment
also focused on developing a protocol that that pulls and delivers the product,” said Cosic.
could be implemented throughout the 3PL’s
facility network with other clients. “Although there was a learning curve associated
with adopting the technology and setting up
“It was important to us to be able to the systems, there was little to no learning curve
standardize how we use Geek+ and how we associated with our warehouse staff to execute,”
could partner with them moving forward. added the Allbirds representative.
When setting up a location, we wanted to be
able to essentially copy and paste from one The initial Allbirds implementation was so
deployment to the next. That would allow us successful that the teams soon expanded the
to be more accurate, successful and efficient footprint, adding 70 more robots and 200 racks
with our deployments,” said Steffey. — again without disrupting the legacy operation.

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Tackling Peak Season
With the proof of concept yielding benefits
that included increased efficiency and
improved worker safety and satisfaction,
the Geek+, UPS Supply Chain Solutions and
Allbirds teams were ready to fully convert
legacy operations in California and Kentucky
to Geek+ operations. Thanks to the proof-
of-concept head start in the West Coast
warehouse in the spring, they completed
that conversion by September 2022.

To secure full East Coast distribution center


integration in time for the crucial winter
holiday peak season, the teams established
an aggressive timeline, starting in October
— just six weeks before peak volume would
hit. Full deployment in time for peak period
volume was non-negotiable.

With a total of 184 robots deployed in both


locations, the focus shifted to training full-
time employees and incoming temporary
peak season staff. With the new Geek+
system in place, warehouse associate
training was significantly easier and quicker.
What used to take a week instead required
only two hours. The system’s multilingual
interface also allowed for greater employee
diversity and inclusion. What’s more,
employee excitement about the benefits
of working with automation helped attract
seasonal workers who might not have this With the new Geek+
opportunity at nearby fulfillment centers. system in place, warehouse
associate training was
The partners were soon ready for significantly easier and
record order volume for the eco-conscious quicker. What used to take
brand’s popular Black Friday and Cyber a week instead required
Monday promotions. only two hours.

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It arrived. Allbirds appreciated being able to meet
customer expectations by delivering orders
And UPS Supply Chain Solutions ran with it. quickly, efficiently and cost-effectively.
“As a direct-to-consumer retailer, we see
Thanks to its collaboration with Geek+, large variations in volume during peak
the forward-looking 3PL processed an season, especially when we run targeted
order volume increase of 160% over the promotions over specific time periods.
previous year, moving onto Cyber Monday Geek+ allowed UPS Supply Chain Solutions
from Black Friday with no measurable to handle variations in order volume in a
order backlog. much more labor-efficient manner. Order
volume that used to potentially require
“For employees, this was huge. They overtime costs can now be handled
had more job satisfaction, got peak-holiday within normal business hours and without
pay and were able to leave on time to be the need for excess staff,” Allbirds’
with their families. They were very happy,” representative told us.
said Steffey.

Allbirds’ Results

184 160%
increase
400% increase
robots
Increased capability and Handled 160% increase in Executed 400% increase
capacity with 184 robots in peak unit throughput vs. in picked units per hour vs.
two warehouses previous year previous year

18%decrease
Record days
Decreased labor hours Experienced back-to-back
18% vs. previous year record days during peak

7
Sizing Up:
Geek+ System
Expands to Multiple
UPS Supply Chain
Installations Solutions Results

The Allbirds proof of concept allowed UPS Reduced labor costs


Supply Chain Solutions to visualize how Geek+ while lessening impact
systems would help address labor shortages of labor shortage
and improve efficiency for other clients in its
portfolio as well. More than 1,000 Geek+ robots Proprietary data
are now operational in three more UPS Supply remained protected
Chain Solutions locations. In addition, the 3PL and secure
has expanded use beyond order picking to
receiving inventory. Improved employee
safety and satisfaction
The logistics provider also recently started
using the new Geek+ PopPick solution. Mobile Flexible and
robots carry shelves of totes that are filled with adaptable system
inventory from storage to workstations, where
robotic arms retrieve the totes and present them Easily
to the operator for order picking. PopPick’s replicated
mechanical picking efficiency of up to 650
totes per hour can double throughput capacity,
and it’s mobile shelves can improve warehouse
storage density by 50%.

650
totes per hour
PopPick’s mechanical picking
efficiency of up to 650 totes per hour
can double throughput capacity.

UPS’s new PopPick solution.


Both organizations continue to benefit from
what they describe as an innovation partnership.
“UPS Supply Chain Solutions is willing to work
with us as we manage any speed bumps that
are inevitable when integrating cutting-edge
technology. They have a ton of experience, a
great deal of bandwidth and excellent ideas. The
fact that we work so collaboratively helps take all
of us to the next level,” said Curry.

“With Allbirds, we went from a tough operational


situation to working with a team that’s excited
and takes pride in what they do on a system that
makes it fun and enjoyable. Working with Geek+,
we’ve changed the whole dynamic — and all by
reducing operational costs in an industry where
we’re seeing increasing prices, not decreases.
We can replicate this throughout our network,”
added Steffey.

The footwear brand also appreciates how


taking a chance with innovation has improved
its operations. “We were pleased with the way
the implementation came together and how
the rise in throughput was achieved quickly.
The daily capacity outpaced the prior manual
process within the first week and met its post-
implementation target goals in the first month
as planned. By the next peak season, the
system was in full swing, and we had no
problem shipping our daily volume,” the
Allbirds representative said.

UPS Supply Chain Solutions’ warehouse For more information about


employees applauded the new approach, how Geek+ can transform
too. “After we went through that first peak your operations, visit
season, people realized what a difference https://www.geekplus.com.
it made for them, telling us it was
absolutely worth it,” added Cosic.

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UPS Supply Chain Solutions ®

UPS Supply Chain Dreamed up in New Zealand, Geek+ is a global leader


Solutions offers a Allbirds launched in San in robotic solutions for
comprehensive portfolio Francisco in 2016 with logistics. It develops
of services to enhance the ethos of using natural autonomous mobile
customers’ business materials to create the robot (AMR) solutions for
performance, including world’s most comfortable flexible, reliable and highly
logistics, distribution and shoes. With carbon efficient automation for
transportation. It’s one reduction as its North Star, warehouses and supply
of the world’s largest Allbirds is paving the way chain management.
providers of transportation for a more sustainable Founded in 2015, the
and logistics services approach to business company employs more
for customers ranging through product innovation, than 1,500 employees in
from small and midsize industry collaboration and several countries around
companies to being the first footwear the world.
global enterprises. brand to carbon label all
of its products.

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