David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
To understand the role sortation systems play in the DC, it might help to picture the tangle of railcars and tracks in a busy rail switchyard. Though the average switchyard may look like an exercise in chaos, it's anything but. As the trains roll in, track switches swiftly marshal the incoming railcars and route them to the proper spurs or sidetracks, clearing the way for new arrivals. Much like the switches that keep cars moving at busy rail intersections, sortation systems direct the traffic flow in today's conveyorized DCs. Whatever their type—pop-up, tilt tray, cross-belt, bomb bay—it's the sorters that keep the operation humming, rounding up the Star Wars action figures, flannel shirts, tubes of lipstick and whatever else comes hurtling down the conveyor belts and directing them to hundreds of possible destinations.
In their role as traffic cops for the DC, sortation systems direct products from one conveyor line to another. They can be as simple as a single divert that sends cartons to a processing station or as complex as a system of hundreds of destination chutes arrayed around a high-speed tilt tray or crossbelt track. (See the accompanying box for a description of the most common types of sortation systems and their applications.)
Of course, nowhere is it written that a DC can only use one type of sortation system; many facilities have successfully integrated multiple types of sorters into their operations. One such operation is the Blair Co., a retailer that markets apparel and home dÈcor items. Blair uses a variety of sorting systems in its 875,000-square-foot distribution center complex in Warren, Pa. (the DC actually consists of two adjacent buildings connected by a conveyor bridge). The company ships 50,000 units each day using two crossbelt sorters, a sliding shoe sorter and several pop-up diverters, all from Siemens Logistics and Assembly Systems.
Most items are picked in batches from storage locations and picking areas in the first building. The pop-up sorters located among the conveyor lines are used primarily to divert items to stations where tasks like product personalization and monogramming are carried out.
Once all of the value-added processes are completed, items are conveyed to the second building, where they pass through the sliding shoe sorter, which performs multiple tasks. Some items may pass through this sorter more than once during their journey through the building, being diverted to a different processing area each time. For example, the sorter may first send items picked for multi-line orders to one of the crossbelt sorters for order consolidation. The sliding shoe sorter also diverts single line orders to a bagging area. Once bagged, these are sent back through the sorter again, this time to be diverted to packing stations. Some cartons also pass through the same sorter an additional time to be diverted to sealing machines.
The crossbelt sorters serve as the heart of the distribution system at Blair's DC. The first crossbelt sorter breaks down bulk-picked items into individual orders for packing. This unit replaced a tilt-tray system that was previously installed at the facility. Since crossbelts use a moving belt to divert items, this sorter occupies less space than the old tilt-tray unit, yet still contains a whopping 500 destination chutes.
"This crossbelt sorter sorts on three-foot center lines," explains Tim Harlan, director of operations for fulfillment. "The tilt tray could not sort on that short interval. We were able to reduce the footprint and save money." Harlan adds that the sorter is capable of processing 182,000 items over two shifts each day.
Products for about 10 orders (each order averages just over two units) are sorted into each of the sorter's chutes. A worker situated at the bottom of the chute manually removes items from the chute and packs them into shipping cartons. Many of these cartons will pass through the sliding shoe sorter again for sealing.
The second crossbelt sorter serves shipping needs. Once packed and sealed, all cartons enter this crossbelt shipping sorter at five automatic induction points. This shipping unit sorts items to about 45 destinations, depending on weight and how they will ship. Most products are shipped via the U.S. Postal Service. About 21 of the sorter's destination chutes are assigned to bulk mail centers. These items are gathered and then placed on a truck for delivery to postal sorting facilities in distant cities. (By shipping directly to the bulk mail centers, Blair saves greatly on postal costs.) Other diverts are used for very small items (items weighing under one pound) that are gathered into Gaylord boxes for later processing by the Postal Service, and a few additional lanes are reserved for orders handled by UPS.
"It is unusual to use a crossbelt for shipping," Harlan admits. "We could have gone with a tilt-tray system there," he says, but because the company was already operating a crossbelt in the pack area, it opted to install another cross-belt so that it could consolidate its sorter parts inventory.
Others lean toward tilt trays
The Blair Co. may have chosen crossbelts, but it's equally common for companies that place a premium on high speeds to opt for the tilt tray model. One such company is eToys Direct. This direct-to-consumer toy retailer has two large Beumer tilt-tray systems at its distribution center in Blairs, Va. The facility also has a sliding shoe sorter from FKI Logistex that is used during high-volume periods to send products to staging lanes where they are held for later processing.
The first tilt-tray sorter at eToys Direct consists of 495 trays and is used for assigning batch-picked pieces to individual orders. As totes of batched items approach the sorter, items are removed at 12 induction stations and manually placed onto sorter trays. Scanners read the tray numbers and determine which of the 400 chutes arrayed on each side of the track should receive each item. As the tray approaches the proper chute, the tray tilts and the product falls into the chute. Up to seven orders are accumulated into each chute. A worker then manually divides the gathered items into individual order totes, which then are conveyed to a value-added station (like a gift wrapping center) if needed before being sent on to packing stations. Orders average 3.6 items.
Cartons of packed orders next head to the second tilt-tray unit, which handles shipping tasks. This sorter has 525 trays and feeds 18 shipping lanes. It has a rated capability of performing 8,760 tilts per hour and provides accuracies above 99.8 percent.
So far, at least, it appears that the tilt trays have not only met, but exceeded expectations. "On our best day last year, we shipped 48,000 cartons," reports Kenneth Scruggs, eToys Direct's facilities manager. "And [we] could have handled even more."
all sorts of options
Sorters come in a variety of styles, from simple low-cost systems that handle a few hundred diverts per hour to complex and blazing fast systems that sort up to 10,000 units per hour. Here's a rundown of some of the most popular sorters on the market:
POP-UP SORTERS, which are designed to divert moving cartons or totes to a different conveyor line, are the sorters most commonly found in today's DCs. Systems vary, but basically they consist of wheels embedded below the conveyor's roller surface at the point where two or more lines meet. When a carton needs to be redirected to another line, the embedded wheels pop up from the conveying surface to change the direction of the box to the desired conveyor. Some pop-up wheels are also designed to rotate slightly left or right as the carton encounters them. These steerable wheels allow for higher conveying speeds and can accommodate diverts to either side. Pop-up sorters handle only a few hundred diverts an hour and are designed for low-volume sorting applications. They can be placed anywhere in the DC where conveyor lines are found.
PUSH DIVERTERS consist of an arm or pusher panel placed next to a conveyor that swings or pushes out when a carton approaches. The carton is then redirected to a new conveyor or into a sorting bin. These simple units are low cost and easy to maintain. Like pop-ups, they are used in low-volume applications where only a few hundred sorts per hour are needed. However, they can handle higher amounts when many push diverters are placed side by side, such as in baggage handling operations. It's important to keep in mind that with push diverters, the swing arms come into physical contact with the product, so they should be employed only in those applications where solid packaging is used. Push diverters are not recommended for use with fragile goods.
VERTICAL SORTERS, which are not as commonly used as pop-up sorters or push diverters, are designed for applications where space is at a premium. These small-footprint sorters take advantage of vertical space and consist of layers of belts stacked one on top of another. When there is a need to divert an oncoming product, a conveyor belt tilts to meet the upper or lower belt stacked above or below it. These units offer speeds of up to 2,000 sorts per hour and are well suited for irregularly shaped items, such as golf clubs, garment boxes or multi-sided cartons. They are available in multiple widths for added flexibility.
SLIDING SHOE SORTERS are the most common type of high-speed sorter used in today's distribution facilities. They are capable of delivering up to 10,000 sorts per hour depending on length and speed, which can vary greatly. The basic design consists of a conveying platform that connects to a main in-feed conveyor line. As cartons reach their sort destination, small blocks, known as shoes, slide across the conveying surface to gently push the cartons down another conveyor spur or chute. Sliding shoe sorters are most commonly located in shipping areas for sorting to dock lanes. They can also be used to sort to packing stations, to picking areas and from receiving to processing areas. Many facilities use the same sorter for multiple duties, feeding different process areas each time the carton is sorted. To work effectively, the items sorted have to be suitable for conveying in cartons and totes.
BOMB BAY SORTERS represent an infrequently used, yet effective high-speed sorting option for operations handling non-fragile items. Primarily used in apparel and other soft-goods industries, they consist of a conveying surface that opens at the bottom, like the bomb bay door on an airplane, when products reach their sort destinations. The items drop into a carton, tote or accumulating chute below. They typically represent a lower-cost option than other high-capacity systems, with speeds of up to about 7,000 sorts per hour.
TILT-TRAY SORTERS are among the fastest on the planet, able to achieve rates of 8,000 sorts per hour and above. They consist of a circular conveying path with small trays affixed to the top of the path. Items are placed on the trays either automatically or manually at induction stations. The items move around the circular track until they reach their sort destinations, at which point each tray tilts and the item slides off into sorting chutes. These systems are ideal for catalog and e-commerce applications where batch picking is performed before sorting to a large number of customers. They are also used in packing and parcel applications. In order to work properly with these sorters, items must be small enough to fit on the tray and able to ride without falling off. In other words, apparel is a good fit, bowling balls are not. Though capable of achieving high speeds, tilt tray sorters are complex and expensive systems that require more maintenance than other sorting systems.
CROSSBELT SORTERS are siblings of tilt trays, using the same basic design of a circular track. The main difference is the conveying surface. Trays are not used. Instead, items sit atop small conveyor belts placed perpendicular to the path. When an item reaches its sorting chute, the belts power on to force the product to its destination. This "positive" discharge is a key advantage of crossbelt sorters, giving them the edge over tilt trays in operations that move items that don't easily slide off of a tilt tray. Crossbelt sorters offer sort rates similar to those offered by tilt trays—in the range of 8,000 sorts per hour and above. Purchase and maintenance costs are similar to those associated with tilt trays, which means the decision of which system to use often comes down to the specific application and personal preference.
Jeremy Van Puffelen grew up in a family-owned contract warehousing business and is now president of that firm, Prism Logistics. As a third-party logistics service provider (3PL), Prism operates a network of more than 2 million square feet of warehouse space in Northern California, serving clients in the consumer packaged goods (CPG), food and beverage, retail, and manufacturing sectors.
During his 21 years working at the family firm, Van Puffelen has taken on many of the jobs that are part of running a warehousing business, including custodial functions, operations, facilities management, business development, customer service, executive leadership, and team building. Since 2021, he has also served on the board of directors of the International Warehouse Logistics Association (IWLA), a trade organization for contract warehousing and logistics service providers.
Q: How would you describe the current state of the contract warehouse industry?
A: I think the current state of the industry is strong. For those that have been focused on building good client relationships over the years, I think it’s a really exciting time. Coming out of all the challenges of the past few years, I think there’s a lot of opportunity for growth and deeper partnerships. It’s fun to see the automation and AI (artificial intelligence) integration starting to evolve [in a way that’s] similar to what we saw with WMS (warehouse management systems) in the early 2000s.
Q: You are now president of your family firm. Is it an advantage having grown up in the business as opposed to working elsewhere?
A: I definitely believe it was an advantage growing up in the business. Whether it’s working with family or someone else in the industry, there’s always an advantage when you have mentors[to guide] you. I’ve been blessed to have several mentors, some in the industry, others just in life, and I’m thankful that they were willing to mentor me and that I was willing to listen to them.
Q: What are the biggest challenges currently facing 3PLs, and how are you addressing them?
A: Labor and legislation are both tough right now. The two seem to have a lot to do with each other, and it can make it tough to find and retain people. So I think we’ll see more and more automation of processes industrywide.
Q: Third-party service providers often must handle a wide variety of products for a lot of different clients. Does this variety make it difficult to invest in automation and other new technologies?
A: It can make things more difficult when looking at certain automation, but it’s in the “difficult” that a lot of opportunities lie. It would be tough to find a single solution that fits every client’s needs, but there are always opportunities to improve in certain areas. It just takes a bit of vision and commitment, and a willingness to invest in your own long-term success.
Q: As a 3PL, what do you look for when selecting the clients you work with?
A: Quality relationships that will last a long time. When both parties are happy and working together in the same direction, everyone wins.
Q: You’ve been a board member of the International Warehouse Logistics Association since 2021. Why is your involvement with this organization important to you?
A: I think it’s important to understand what’s happening in the industry. IWLA is a great resource for staying up to date and getting a solid education when it comes to the latest logistics trends. I also think it’s important to give back and pass along what we’ve learned to those just getting started in the business. As important as it is to have a mentor, it’s just as important to mentor and help others.
“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” NRF Chief Economist Jack Kleinhenz said in a release. “September sales come amid the recent trend of payroll gains and other positive economic signs. Clearly, consumers continue to carry the economy, and conditions for the retail sector remain favorable as we move into the holiday season.”
The Census Bureau said overall retail sales in September were up 0.4% seasonally adjusted month over month and up 1.7% unadjusted year over year. That compared with increases of 0.1% month over month and 2.2% year over year in August.
Likewise, September’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.7% seasonally adjusted month over month and up 2.4% unadjusted year over year. NRF is now forecasting that 2024 holiday sales will increase between 2.5% and 3.5% over the same time last year.
Despite those upward trends, consumer resilience isn’t a free pass for retailers to underinvest in their stores by overlooking labor, customer experience tech, or digital transformation, several analysts warned.
"The 2024 holiday season offers more ‘normalcy’ for retailers with inflation cooling. Still, there is no doubt that consumers continue to seek value. Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals,” Matt Pavich, senior director of strategy & innovation at pricing optimization solutions provider Revionics, said in an email.
Nikki Baird, VP of strategy & product at retail technology company Aptos, likewise said that retailers need to keep their focus on improving their value proposition and customer experience. “Retailers aren’t just competing with other retailers when it comes to consumers’ discretionary spending. If consumers feel like the shopping experience isn’t worth their time and effort, they are going to spend their money elsewhere. A trip to Italy, a dinner out, catching the latest Blake Lively and Ryan Reynolds films — there is no shortage of ways that consumers can spend their discretionary dollars,” she said.
Editor's note:This article was revised on October 18 to correct the attribution for a quote to Matt Pavich instead of Nikki Baird.
The market for environmentally friendly logistics services is expected to grow by nearly 8% between now and 2033, reaching a value of $2.8 billion, according to research from Custom Market Insights (CMI), released earlier this year.
The “green logistics services market” encompasses environmentally sustainable logistics practices aimed at reducing carbon emissions, minimizing waste, and improving energy efficiency throughout the supply chain, according to CMI. The market involves the use of eco-friendly transportation methods—such as electric and hybrid vehicles—as well as renewable energy-powered warehouses, and advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI) for optimizing logistics operations.
“Key components include transportation, warehousing, freight management, and supply chain solutions designed to meet regulatory standards and consumer demand for sustainability,” according to the report. “The market is driven by corporate social responsibility, technological advancements, and the increasing emphasis on achieving carbon neutrality in logistics operations.”
Major industry players include DHL Supply Chain, UPS, FedEx Corp., CEVA Logistics, XPO Logistics, Inc., and others focused on developing more sustainable logistics operations, according to the report.
The research measures the current market value of green logistics services at $1.4 billion, which is projected to rise at a compound annual growth rate (CAGR) of 7.8% through 2033.
The report highlights six underlying factors driving growth:
Regulatory Compliance: Governments worldwide are enforcing stricter environmental regulations, compelling companies to adopt green logistics practices to reduce carbon emissions and meet legal requirements.
Technological Advancements: Innovations in technology, such as IoT, AI, and blockchain, enhance the efficiency and sustainability of logistics operations. These technologies enable better tracking, optimization, and reduced energy consumption.
Consumer Demand for Sustainability: Increasing consumer awareness and preference for eco-friendly products drive companies to implement green logistics to align with market expectations and enhance their brand image.
Corporate Social Responsibility (CSR): Companies are prioritizing sustainability in their CSR strategies, leading to investments in green logistics solutions to reduce environmental impact and fulfill stakeholder expectations.
Expansion into Emerging Markets: There is significant potential for growth in emerging markets where the adoption of green logistics practices is still developing. Companies can capitalize on this by introducing sustainable solutions and technologies.
Development of Renewable Energy Solutions: Investing in renewable energy sources, such as solar-powered warehouses and electric vehicle fleets, presents an opportunity for companies to reduce operational costs and enhance sustainability, driving further market growth.
A real-time business is one that uses trusted, real-time data to enable people and systems to make real-time decisions, Peter Weill, the chairman of MIT’s Center for Information Systems Research (CISR), said at the “IFS Unleashed” show in Orlando.
By adopting that strategy, they gain three major capabilities, he said in a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI.” They are:
business model agility without needing a change management program to implement it
seamless digital customer journeys via self-service, automated, or assisted multi-product, multichannel experiences
thoughtful employee experiences enabled by technology empowered teams
And according to Weill, MIT’s studies show that adopting that real-time data stance is not restricted just to digital or tech-native businesses. Rather, it can produce successful results for companies in any sector that are able to apply the approach better than their immediate competitors.
However, that trend is counterbalanced by economic uncertainty driven by geopolitics, which is prompting many companies to diversity their supply chains, Dun & Bradstreet said in its “Q4 2024 Global Business Optimism Insights” report, which was based on research conducted during the third quarter.
“While overall global business optimism has increased and inflation has abated, it’s important to recognize that geopolitics contribute to economic uncertainty,” Neeraj Sahai, president of Dun & Bradstreet International, said in a release. “Industry-specific regulatory risks and more stringent data requirements have emerged as the top concerns among a third of respondents. To mitigate these risks, businesses are considering diversifying their supply chains and markets to manage regulatory risk.”
According to the report, nearly four in five businesses are expressing increased optimism in domestic and export orders, capital expenditures, and financial risk due to a combination of easing financial pressures, shifts in monetary policies, robust regulatory frameworks, and higher participation in sustainability initiatives.
U.S. businesses recorded a nearly 9% rise in optimism, aided by falling inflation and expectations of further rate cuts. Similarly, business optimism in the U.K. and Spain showed notable recoveries as their respective central banks initiated monetary easing, rising by 13% and 9%, respectively. Emerging economies, such as Argentina and India, saw jumps in optimism levels due to declining inflation and increased domestic demand respectively.
"Businesses are increasingly confident as borrowing costs decline, boosting optimism for higher sales, stronger exports, and reduced financial risks," Arun Singh, Global Chief Economist at Dun & Bradstreet, said. "This confidence is driving capital investments, with easing supply chain pressures supporting growth in the year's final quarter."