Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
Following the path of least resistance may be a natural tendency, but it's not always the best policy. Your average teenager, for example, will grab the carton of milk from the front of the fridge, leaving the open carton in the back to go sour. The average distribution center worker in search of a replacement lift-truck battery will cruise through the battery room, pulling out the first one he finds that's fully charged (and appropriate for the truck), leaving fully charged batteries at the far end of the stacks sitting unused, sometimes for months.
And those are the drivers who at least take responsibility for replacing the battery. Mike Fusca, operations manager for Standard Distributing, a Delaware distributor of beer, wine and spirits, says he's seen drivers whose trucks' batteries were running low simply jump on another truck, leaving a near-dead truck in the aisles.
Fusca solved his problem by buying a new fast-charging system from Edison Minit-Charger and demanding that drivers use it—drivers are responsible for keeping their own trucks charged by connecting to a fast charger at every break. But that's not the only solution available to DC managers seeking help with battery management. Today they have plenty of choices: Everybody from battery and charger manufacturers like EnerSys, to battery handling companies like Battery Handling Systems (BHS) and Materials Transportation Co. (MTC), to the emerging fast-charge providers like Edison Minit-Charge and PosiCharge has come up with a solution designed to help busy managers take charge of their batteries.
An end to plug and pray
If buying a battery management system sounds like overkill, perhaps you haven't priced lift-truck batteries lately. These are expensive assets: industrial truck batteries cost upwards of $3,000 apiece. "In the battery room, a big investment is based in the battery itself," says Tony Amato, vice president of sales and marketing for the St. Louis-based BHS. "Whatever people can do to maximize the life of the battery is beneficial." But that doesn't mean they're necessarily willing to pay thousands of dollars for battery management software. "They're not looking for something really expensive," Amato says. "They're asking, 'How can I rotate my batteries and be alerted if I have problems?'"
Amato says his company, which provides battery handling equipment and technology, has received an overwhelming number of requests for a system that provides basic information for helping manage batteries.What BHS offers is a system called Next Available Battery, which features a computerized touch screen that directs operators to the most appropriate replacement battery. A DC can maintain its entire battery inventory in the system. When lift truck drivers come to the battery room to make a change, they scan the battery currently in their truck. The system gives the driver the replacement battery's location. The driver scans that, and the system confirms that it's the correct battery. The system can also alert drivers if a battery is scheduled for watering and if it needs to be equalized (plugged in for an extended charging session to assure all cells in the battery are brought up to the same level).
The system also provides alerts if a battery is discharging too quickly, which could indicate potential problems with the battery, the charger or the lift truck. "You can look at cycle data on a particular battery," Amato says. For managers, that information on a particular battery's health can prove helpful in forecasting replacement requirements. That's also crucial to the health of lift trucks, as over-discharging can damage vehicles.
"We didn't want to make this overly sophisticated," says Amato. "Our main thing is to be able to maintain the battery and keep the cost of the system down and affordable for most users."
Users can set the system up to assure that it directs drivers to the proper type of battery for each type of vehicle.While it generally sends drivers over to the batteries that have been in the battery rack the longest, it's programmed to prevent selection of batteries that are being equalized—a process that normally takes an extra three hours over normal charging.
By directing drivers to a particular battery, the system also assures balanced use of batteries in a DC—overcoming the tendency of drivers to pick the newest battery they can find. "The system won't let you take an incorrect battery," Amato says. "If they try to take another, the system will catch up with them. It knows exactly when it went out. It can easily identify who took a battery."
Checking the monitor
Then there's Materials Transportation Co., based in Temple, Texas, and a competitor to BHS, which offers what it calls E-Batt, its electronic battery management system. The system constantly samples charger voltages and reclassifies batteries as their status changes. Using the collected data, the system directs a battery handler to the best available battery for a specific vehicle. The technology includes data acquisition at the chargers to feed data on each charger's status as necessary to charger monitoring software.
Jim Lane, vice president of sales for the battery changing systems division of MTC, says customers like food distributor Dot Foods are saving a lot of money with the system. "They can identify batteries that are performing poorly and make decisions on repairing or replacing them," he says. "It has helped them manage by group size." That is, the reports help managers know exactly how many batteries they need for each type of lift truck in a facility.
The data collected help users manage both batteries and trucks. Lane explains that the system tracks hours of use by specific forklifts and records the hour meter usage each day—that is, how many hours the truck has been active. That provides information useful in a couple of ways. Comparing meter hours to clock hours provides a gauge of truck utilization. Lane says some customers are using that data as a benchmark to compare fleet utilization among facilities to help determine optimal fleet size.
In addition, the hour meter data collected can be used for scheduling preventive maintenance. "It generates accurate hour meter reports for preventive maintenance and saves the customer from running around a warehouse collecting hour meter readings," Lane says. "This information can be downloaded to a preventive maintenance software application."
For the batteries themselves, the system can provide alerts when average run times fall below a predetermined level, which may indicate a battery needs replacing.
The E-Batt Manager software allows data entry and can generate reports on individual batteries or trucks. The system, accessible from a ruggedized computer at the battery handling workstation, can show the location of a battery, the charger status and identification information on each truck, battery or charger.
During battery changing, information on the truck, the batteries (both the battery removed from the truck and the battery loaded onto the truck), and the rack locations is captured through bar-code scanning. MTC says the asset tracking and managed battery rotation system allows users to reduce their battery inventory.
Promising results
Before long, managers looking for help with battery management will also be able to turn to EnerSys, a battery manufacturer that offers battery charging and management tools as well. Drew Stump, the company's product manager for its Motive Power marketing division, says EnerSys is rolling out a number of products to help customers manage their batteries. Several of those are in the testing stage. The systems offer data on battery usage and charger usage and assure that batteries selected match the truck. Stump says the system creates an audible alarm if a battery handler attempts to select a battery that is not fully charged or is otherwise not ready for use.
A screen display informs battery handlers what battery is available and where it's located. Battery data are also accumulated to a PC, which generates reports that allow managers to check usage of both batteries and chargers.
The results of the tests so far are promising, he says, with fewer battery changes and longer truck operations between battery changes. In addition, truck maintenance costs have fallen.
"We have some other products we're working on with vendors," Stump says. One is an automated system that makes use of RFID technology to communicate with the system and has batteries changed robotically. The first such system was scheduled to be delivered to a warehouse customer last month. The unmanned system will collect data on charging and amp hours, and will provide fault messages on charging or battery problems.
When seconds count
Such is the demand for battery data management that even the manufacturers of fast-charging systems are getting into the act. Fast chargers can return battery energy while the battery is still inside the truck, eliminating the need for battery changes. Lift truck operators connect their batteries to the fast-charging system during break times or at the end of a shift.
For example, PosiCharge, a division of AeroVironment Inc., a California-based energy technology company noted for its research into solar- and electric-powered vehicles, now offers a fast-charging technology that also collects and manages data from a battery during the charge. The system was developed, the company says, to ensure safe battery charging by constantly collecting measurements of temperature, voltage, charge rate, ampere hours and state of charge during the charging process.
The data collected, PosiCharge says, tells managers what they need to know about both their battery inventory and driver productivity. The system collects data on charge times and duration of charge, information that managers can use to assure drivers are complying with charging rules and times. The system also monitors temperature and voltage, which can help identify batteries that are performing poorly, and state of charge and amp-hour data, which can help identify batteries with reduced capacity.
On a broader scale, PosiCharge says, the actual amp-hour usage per truck provides data that managers can use to evaluate fleet battery requirements. For instance, the information collected by the charging system provides indications of vehicle use—since each battery stays in the same truck—and can help managers identify vehicles that are underused and may be expendable.
PosiCharge says it is beta testing an integrated data collection and analysis software package designed to provide information to managers more efficiently, using a simple interface. Details on the system were not available at press time.
Another fast-charge player, Edison Minit-Charger, also offers products with built-in feedback systems. An operating company of California energy giant Edison International, Minit-Charger developed the industrial business out of its research into development of electricpowered cars and buses.
Peter Michalski, director of Edison Minit-Charger, says one advantage of fast-charging operations, in which batteries stay with the trucks, is that the chargers' feedback systems can track data on each truck as well as each battery, including a water-level sensor. The systems collect about 20 data points on each battery, according to Michalski. "A feature every Minit-Charger has is that it allows reports on a per-truck basis that can be overlaid or aggregated to a subfleet or fleet," he says. "It can analyze throughput, battery health and utilization."
Michalski says the chargers provide information in plain language on any problems detected by the system.Drivers can report issues to their managers or to maintenance technicians, who can initiate additional diagnostics if needed, he says."The idea is to get a quick response back without the added layer and expense of a complete communications system."
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.
The clean energy transition continuing to sweep the globe will give companies in every sector the choice to either be disrupted or to capitalize on new opportunities, a sustainability expert from Deloitte said in a session today at a conference in Orlando held by the enterprise resource planning (ERP) firm IFS.
While corporate chief sustainability officers (CSOs) are likely already tracking those impacts, the truth is that they will actually affect every aspect of operations regardless of people’s role in a business, said John O’Brien, managing director of Deloitte’s sustainability and climate practice.
For example, regulatory requirements on carbon emissions are expanding in every region, which means that even if a specific company doesn’t have to change its own practices, it will almost definitely need to flex to accommodate its partners and suppliers as they track scope 3 emissions or supply chain practices.
Likewise, companies are starting to challenge the classic concept of “force majeure” events than can cancel service providers’ contractual duties due to unforeseeable weather events. As the new argument goes, extreme weather patterns increasingly occur in accordance with climate scientists’ forecasts, so those hurricanes and wildfires are in fact foreseeable after all.
But one strategy for coping with the cost of those changes is to mine the power of the data that most companies will soon need to collect as part of their evolution. Instead of simply tracking its trucks to trim their routes and emissions, a transportation company could use the same data to manage their maintenance and fuel consumption.
“The climate management transition is going to be a massive disruption, but with that comes massive opportunity,” O’Brien said from the keynote stage at the “IFS Unleashed” show. “Don’t waste compliance efforts just on compliance, use it to create new value. You’re collecting all that new data, so use it!”
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.