While the conventional wisdom holds that there will always be a niche for the local and regional warehouse companies, some aren't waiting around to make sure.
Every time a logistics service provider announces its imminent expansion—whether it's growing organically or through acquisition—the pundits wonder aloud whether there is a future for the small to mid-sized company. That question came up again in August, when Exel acquired Tibbett & Britten. With that acquisition, Exel's annual revenues will soar into the general area of $8 billion, making it bigger than J.B. Hunt, Swift and Yellow Roadway combined. And though it may be the biggest player in the industry, Exel isn't the only logistics service provider out there with revenues in the billions of dollars.
While the conventional wisdom holds that there will always be a niche for the local and regional warehouse companies, some aren't waiting around to make sure. This spring, a new company, Efill America, made its debut with the stated mission of becoming a leading supplier of value-added logistics services and distributed warehouse capacity in North America. Its strategy? Rather than trying to operate its own facilities, the company plans to coordinate and sell the consolidated resources of a strategic network of entrepreneurial-owned logistics companies all linked by a common technology platform.
In its first six months of existence, Efill America has recruited 33 warehouse companies operating more than 50 million square feet of space as part of the network and, more importantly, as investors in the company. The plan is to double this. If Efill succeeds, it'll vault into the same league as Exel, whose space inventory runs a bit over 73 million square feet.
Still, the question remains, does the "combine and conquer" strategy work? It's proved successful for companies such as SEKO Worldwide, FedEx Ground and a number of freight forwarders. But there have also been some notable flops among warehousing companies that tried joining forces. DCW+ and IRON (Integrated Regional Operating Network) were two of the more creative alliances of the 1990s, but ultimately, both failed. There have been others as well—companies that attempted to combine technology, buying power and marketing programs only to fold when,much like NFL team owners, individual business owners were unable to reach consensus on important issues. The Jerry Jones (Dallas Cowboys) position of "What's yours is ours and what's mine is mine" doesn't go very far toward building a cohesive, effective alliance.
Can Efill buck this trend? The evidence so far suggests that it can. When developing the company's business model, its leaders appear to have avoided some of the missteps of the past.
First of all, they have financing. The capital they've raised so far will give the company some staying power as it tries to establish itself in the marketplace. More important is the fact that much of the capital has been invested by the members themselves. With "skin in the game," they are less likely to walk away when some internal disagreement arises.
Second, the alliance includes many solid, wellestablished companies among its membership— not a bunch of small players struggling to hang on. Having companies like Saddle Creek, Metro Park, Patterson Logistics and Murphy Warehouse Co. on board gives it instant credibility.
Finally, Efill has strong operations leadership. Its COO is a seasoned, well-respected senior executive who has the energy and expertise to make it work. The company has also hired experienced marketing personnel.
In this economy and industry, there's no sure thing, but my money is on their success. The only advice I would give its principals if they asked (and they haven't) is to lose the name! It sounds more like a dot-com venture than a real company with offices, employees ... and more to the point, warehouse space.
HTL Freight, a freight broker and third-party logistics provider (3PL) based in Charlotte, North Carolina, has acquired CTS Logistics, a Windham, New Hampshire, full-service managed transportation company (4PL).
Terms of the deal were not disclosed, but the companies said it had closed in February.
"We are thrilled about the growth opportunities this acquisition brings to both our customers and our organization. The addition of CTS Logistics strengthens our ability to provide comprehensive, technology-driven solutions that enhance efficiency and deliver cost savings to our shipper partners," Onu Okebie, CEO of HTL Freight, said in a release.
Specifically, the deal allows HTL Freight to further expand its geographic footprint and service offerings, positioning the company as a player in both the 3PL and 4PL sectors. Customers will benefit from enhanced transportation solutions, including increased brokerage capabilities and more robust managed transportation services, all supported by HTL’s technology platform.
The common barcode label has long been the foundation of the IoT network, serving as an inexpensive repository of product information like price, weight, and date of manufacture. Now that system is about to get a major upgrade as the industry transitions from the familiar zebra-striped, one-dimensional (1D) barcodes to two-dimensional (2D) versions like quick-response (QR) codes. Compared to 1D barcodes, 2D versions can encode far more data, providing managers with a more detailed view of their operations.
RFID tags
Megaretailers like Walmart are increasingly requiring suppliers to affix item-level radio-frequency identification (RFID) tags to products shipped to their DCs, which allows those items to be tracked as they’re received, distributed, and ultimately sold in stores. Retailers can use the data they collect to improve inventory accuracy, the shopper experience, and their own omnichannel capabilities.
Handheld and wearable computers
Scanning guns used to be heavy and awkward, but the modern versions are lighter and more powerful. They can be worn on a finger like a ring, strapped to the user’s forearm, or attached to the back of a hand with a glove. Today’s wearables boast longer read ranges than their predecessors and can read a dozen barcodes at once. Some models even support texting, talking, and voice picking.
Conveyors
The workhorse of the modern warehouse is the basic conveyor, which sorts and ferries thousands of packages to the right destination each day. In many operations, those conveyors are outfitted with sensors that measure their speed, vibration, or temperature—data that can be used to proactively identify maintenance needs before a breakdown occurs or save energy by shutting down the belts when not in use.
Scan tunnels
Scan tunnels are essentially frames built around conveyors or doorways that are outfitted with an array of readers that scan every item passing through—typically at superfast speeds. The data collected can be sent instantly to the cloud (see entry at right) for processing.
Autonomous mobile robots (AMRs)
The AMRs that cruise down warehouse aisles these days are increasingly equipped with sensors that weigh, count, and identify everything they carry. On top of that, those AMRs may be outfitted with sensors, cameras, and LiDAR (light detection and ranging) technology to detect obstacles and enable them to navigate safely through the facility.
Drones
The lifeblood of a warehouse is the constant flow of up-to-the-minute inventory data, but manually updating inventory records is a slow, laborious, and error-prone task. To reduce their reliance on manual labor, many DCs are using self-guided aerial drones to automate the cycle-counting process. Once they’ve completed their rounds, the drones transmit the data they’ve collected to the site’s warehouse management software to update its records.
Real-time location systems (RTLS)
The GPS signals used for fleet and asset tracking in the outside world are often blocked in indoor spaces like warehouses. So many warehouses rely on RTLS networks to track the items inside. These systems use short-range tags, beacons, and receivers to monitor and locate everything from bins and pallets to vehicles, forklifts, and even employees.
5G wireless network antennas
Today’s fifth-generation (5G) wireless networks offer far more bandwidth, handle greater numbers of wireless devices, and use less energy than previous technology—a perfect recipe for supporting the IoT. Whether they run through a commercial data plan or a private network, 5G systems rely on antennas placed throughout the building.
The cloud
Back in the day, the software used to manage warehouse operations—typically warehouse management systems or enterprise resource planning (ERP) systems—ran on computer servers located on the premises. But today, you’re more likely to find that software running off site, in a virtual “cloud” of connected computers. Although the actual servers are no longer in the same town, or even the same state, as the DC, as long as the facility is connected to the internet, there should be no effect on its daily operations.
When it comes to your loading docks, safety should be job one.
Occupational Safety and Health Administration (OSHA) data show that a quarter of all industrial accidents happen at loading docks, making this vital, high-activity area a place for vigilance and attention to detail.
“We’re talking about industrial equipment. People don’t get paper cuts here; there can be serious injuries and potential fatalities,” explains Ryan Schaffner, director of sales for loading dock equipment manufacturer McGuire, a division of Systems LLC. Schaffner says there are 7,700 forklift accidents per year at loading docks across the United States: “That’s 21 [incidents] per day. It’s important to protect yourself.”
Protecting employees, vendors, transportation providers, and visitors—anyone who could come into contact with your loading docks—gets a little bit easier when you can identify risks and stay up to date on the latest advances in loading dock systems and equipment. Here are three ways to help ensure your loading docks are as safe as possible.
COMMUNICATE
The biggest accident risk at the loading dock? Early departure of a truck or trailer while a forklift is still inside. The best way to avoid that risk? Good communication and good processes.
“Loading docks are loud, complex environments,” Schaffner explains, noting that in many situations, there’s no clean line of sight or established process for dock workers to communicate with truck drivers coming in and out of the yard every day.
“It’s easy for miscommunication to happen,” he adds. “Ultimately, though, customers [need to] own what happens on their property and in their building. It may be a FedEx driver, but the customer site has to own the safety of the loading and unloading [operations].”
One way to solve the problem is to install a light-communication system that indicates when it’s safe for a truck to enter or leave the dock, and when the driver should stay put. Like traffic signals, dock alerts use red and green lights inside and outside the building—working in opposition—to let both the driver and the forklift operator know the status of the loading or unloading operation. A green light inside indicates it’s safe for the forklift operator to load or unload, and a green light outside lets the driver know it’s safe to pull in or away, for instance. Red lights indicate the opposite.
Truck restraints add another layer of protection and can work in conjunction with light systems. Usually mounted underneath the dock leveler—which is a platform that ensures the safe and smooth movement of goods from the truck to the building—truck restraints hook onto a trailer’s bumper or to a bar underneath the truck, holding it to the building so that the truck can’t pull away without substantial force. Restraints also help eliminate trailer “creep”—which happens when the trailer starts to inch away due to the repetitive motions of the forklifts entering and exiting the trailers. The restraints prevent this and hold the trailer fast to the dock. When the dock leveler is stored and there’s no forklift or worker inside the trailer, a green light tells the driver it’s OK to go.
“Try to increase communication to avoid the incident from occurring,” Schaffner advises, referring to the light system. “The insurance policy is the truck restraint—the physical means of holding you to the building.”
AUTOMATE
Moving from manual to automated loading dock systems is also a good way to improve safety. Dock levelers offer another useful example: Mechanical systems require workers to manually raise and lower the leveler, putting them in close contact with equipment—which can raise the risk of slip-and-fall accidents, among other dangers. Alternatively, air-powered and hydraulic dock levelers utilize pushbutton controls that allow workers to remain at a safe distance from the truck and leveler, reducing the risk of accidents.
Schaffner says more than half of the warehousing industry uses mechanical systems, so there’s plenty of room to convert to automated protocols where it makes sense. Experts at loading dock equipment maker Rite-Hite agree; in a report on industry trends from early this year, the company listed the automation of labor-intensive tasks as one of the top loading dock trends of 2024.
“… manually lifting a loading dock leveler or bending over to throw open a dock door can be taxing on anyone’s back and body. These repetitive motions can lead to chronic pain that stays with workers long after they’ve punched out for the day. In fact, back injuries account for one in five workplace injuries. And 80% of those injuries are caused by manual material handling that requires twisting, carrying, or extending out to reach something,” Rite-Hite said in its report. “This is more often seen inside the facility, but in the last 10 to 15 years has been addressed at the loading dock with the application of pushbutton controls for dock [leveler] operation.”
Such systems help keep workers at the control box, where they are both ergonomically protected and out of harm’s way.
SEQUENCE
Automated systems can also help ensure that loading dock operations are handled in the proper sequence each and every day—another key to safety.
“We encourage customers to look at that—how do we protect everyone to make sure it’s the safest operation [and also that] we’re using things in the proper order every single time,” Schaffner says. “We talk a lot about sequence of operation. And the more we encourage [customers] to buy more powered equipment than manual [equipment], the better.”
Leaders at Rite-Hite concur. Advanced loading dock controls can help “bake” safety into the equation by programming equipment to only work in an “interlocked safe sequence of operations,” according to the 2024 trends report. Rite-Hite uses its Dok-Lok system as an example: The sequence of operations begins when the truck backs in and the Dok-Lok becomes engaged with a rear-impact guard, or a wheel-based restraint is engaged with the rear wheels.
“Once the vehicle is secured, the dock barrier can be stored out of the way [and] the overhead door can be opened and the leveler positioned into the trailer bed,” according to the report. “After loading/unloading, the restraint is not allowed to disengage the trailer until the leveler is taken out of the trailer and stored safely, [the] dock door [is] closed, and [the] safety barrier [is] engaged across [the] dock opening.”
McGuire/Systems LLC offers similar solutions.
“Your restraint has to be engaged before you open the door, [so there is] always a protective layer there,” Schaffner says. “Likewise, you can’t engage the dock leveler until the door is in a fully open position.”
The ultimate goal? A safe and secure loading dock.
CMA CGM will purchase a 48% stake in the company from its current owner, Opportunity Funds. Santos Brasil manages a portfolio of 8 assets on the Brazilian coast, including 3 Container Terminals, 1 Vehicle Terminal, 1 Liquid Bulk Terminal, and 3 Logistic Facilities. These assets are located in the Ports of Santos, Imbituba, Vila do Conde, Itaqui and in Sao Paulo.
Once the acquisition closes, CMA CGM intends to further develop its line calls in the various Brazilian terminals and further improve its offering to Brazilian exporters and importers, thereby responding to increasing demand and better addressing consumer needs.
The move will also enable CMA CGM to offer “seamless connections” between Europe, Asia, North America, and the Caribbean, thus solidifying Brazil's position as a key hub in the group’s worldwide operations and reinforcing synergies with its MERCOSUL Line affiliate.
The deal marks CMA CGM’s latest move to expand its port holdings, reinforcing its position as a leading global multi-user terminal operator with investments in approximately 60 terminals worldwide, the company said.
“I am pleased that the CMA CGM Group has concluded this strategic agreement for the acquisition of Santos Brasil, which operates five terminals in Brazil, including the largest container terminal in the Port of Santos, handling 40% of Brazilian volumes, as well as a logistics company. This significant investment reflects our commitment to strengthening our partnership with Brazil and supporting its growth in the coming years,” Rodolphe Saadé, CEO of CMA CGM Group, said in a release.
A government watchdog group is calling for the Federal Aviation Administration (FAA) to take “long-overdue” action to modernize the nation’s aging, unreliable air traffic control systems, according to the Center for Transportation Policy (CTP).
The GAO report also said that over half of those unsustainable systems are especially concerning, but the FAA has been slow to modernize. Some system modernization projects won't be complete for another 10 to 13 years. But the FAA also doesn't have plans to modernize other systems in need—3 of which are at least 30 years old, the GAO report found.
“News out of the Government Accountability Office highlighting the vulnerabilities of our air traffic control systems is disturbing,” said Jackson Sheldelbower, executive director of the Center for Transportation Policy (CTP). “Pete Buttigieg and the Department of Transportation need to get their priorities straight. We’re urging federal officials to fast-track the repairs and modernization projects necessary to bring air travel into the twenty-first century.”