John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
In his legendary soul ballad "Sittin' on the Dock of the Bay," the late Otis Redding sang of whiling away the hours watching the tides roll in and out of the San Francisco Bay. If only life on the loading dock were so tranquil. But if days spent on the dock ever did unfold at a leisurely pace, that's all behind us. These days, it's strictly business. Get the truck in, load or unload it, move it out. No time for breaks. No room for delays.
If activity on the nation's loading docks has appeared particularly frenzied lately, you can credit the new federal truck driver hours of service (HOS) rule that kicked in Jan. 4. Aimed at preventing accidents caused by driver fatigue, the new rule cut back drivers'work shifts from 15 hours to 14. But more to the point, it overhauled the system drivers use for reporting their hours. In the past, drivers could go off the clock during idle periods. They were not required to count time spent waiting at loading docks or refueling as part of their work shifts. Now, there are no timeouts. Whether they're driving or idling, every minute counts.
Time has always been money in this business, but the new driver service restrictions have upped the ante. Carriers who once viewed delays at the dock as annoying now find them intolerable. To make the point, some are reportedly charging detention or demurrage fees of up to $100 an hour.
The threat of financial penalties has gotten their customers' attention. DC managers across the country are revamping their procedures and even upgrading their equipment in hopes of revving up operations … or at least cutting downtime. At Saddle Creek Corp., a Florida-based third-party provider of logistics services, for example, executives have been brainstorming ways of documenting truckers' arrival and departure times across the entire DC network. "This is an issue for all of us," says Bruce Abels, Saddle Creek's president and COO. "We're taking steps at all of our facilities to do a much better job of documenting that information because we anticipate carriers will make an effort to charge for detention or demurrage."
Another third-party warehousing company, Murphy Warehouse Co., has taken it a step further: The company has notified carriers arriving at its dock that they must now schedule appointments for outgoing loads. By limiting access to its docks during peak periods, the warehouse hopes to reduce congestion. It also hopes to avoid fines. Richard Murphy, the company's president and CEO, reports that one of his major customers has already modified its contract to include a provision holding the warehouse responsible for any fees levied by truckers for delays at the loading dock.
Other distribution center managers have rejiggered their schedules in order to stay open longer and smooth out peaks and valleys in dock traffic flow. Paul Delp, president of Lansdale Warehouse Co. in Lansdale, Pa., has instituted staggered hours for dock workers so he can keep the docks open longer. Though he hasn't yet added a second shift, he says he'll do so if that's what it takes to keep the loading dock congestion-free.
Delp and other DC execs predict that more carriers will adopt drop and hook programs in the months ahead. That's not a decision carriers make lightly. Drop and hook, which lets a trucker pick up one trailer while leaving another behind for the customer to load or unload at its convenience, would require them to keep extra equipment on hand. But truckers may be willing to accept the tradeoff if it cuts waiting time and, ultimately, their average cost per mile.
Level best
Then there are the companies that have DC building projects under way. In more than a few cases, dock equipment manufacturers report, anxiety about productivity has actually led companies to tear up their old plans and revise their dock layouts in order to move trucks in and out faster once construction is complete. Some have gone so far as to add docks to make sure they can load and unload cargo quickly and accommodate their carriers' drop and hook programs.
This new willingness to invest in docks is more common than you might think. Whether spurred by the HOS rule or by safety and security concerns, companies that once balked at replacing leaky seals are suddenly putting big money into their docks. "People are definitely spending more money on the dock area," says Mike Pilgrim, executive vice president at Systems Inc., a dock manufacturer in Germantown, Wis. "Years ago somebody might have invested $2,500 or so for a mechanical lift. Today, it's not unheard of to spend up to $25,000 to be fully outfitted with a master control panel, door seals and dock door."
Some distribution centers, for example, are replacing manual dock levelers with hydraulic push-button operated dock levelers, Pilgrim reports. Oftentimes they're motivated by safety concerns: Hydraulic levelers can reduce accidents by preventing free-fall of the leveler if a truck departs from the dock too early. That's a real danger, according to Pilgrim, who reports that almost two-thirds of all dock levelers are sold without vehicle restraints. Other times, companies are looking to boost productivity: Hydraulic systems are much easier to service than their manual counterparts, Pilgrim says. That reduces downtime and keeps dock operations humming.
Another popular feature is the master control panel, which consolidates the controls of multiple dock components into one easy-to-use centralized panel. Combining these controls in a single master system promotes safety by integrating the operations of the dock leveler, truck restraint, overhead door and other dock equipment. Installing a single power source also reduces electrical installation costs.
However, Pilgrim cautions, companies interested in installing master control panels should be aware that it's far cheaper to incorporate these panels into the original design plans than to commission them as an add-on once the DC is built. "We're spending a lot of time getting involved with upfront building design in order to save the customer money," he says. But it's clear that the message hasn't gotten out yet where the majority of docks are concerned. "Most control panels are sold after the fact, once the building is already designed," he says. "When that happens, the only winner is the electrician."
bright lights, big hazard
After the second fire broke out at printing company American Color's loading dock, Mike Mason knew he wouldn't sleep well until he rooted out the cause. A volunteer firefighter and one of the company's logistics PICs (Persons in Charge), Mason has a healthy respect for fire. And a low tolerance for fire hazards. When an internal investigation traced the problem to head pad seals at the Marengo, Iowa, company's dock, Mason led the charge to rip them out and replace them with special heat-dissipating models.
Unfortunately, American Color isn't alone. A rash of loading dock fires have been reported in recent years—more than 80 since July 2001, according to Frommelt Safety Products' Web site. And though the statistics are hard to come by, the horror stories aren't. "It would be one thing if there were one or two fires periodically," says Walt Swietlik, customer relations manager for loading dock equipment manufacturer Rite-Hite Corp. "But we're hearing of at least one or two fires a week."
What's causing all these fires? Hot-burning rear trailer marker lights. Under federal safety standards, trucks must be outfitted with rear marker lights, which increase the vehicles' visibility at night and in foul weather. Technological advances in the last five years have produced lights that are increasingly smaller and brighter. And the brighter they are, the hotter: Today's incandescent bulbs can generate enough heat to push temperatures to 900 degrees F in as little as 20 to 30 minutes. That presents a hazard when a truck is backed into a dock seal made of foam and fabric. If the truck is left idling with its lights on, as often happens, the foam dock seal acts as an insulator, retaining the heat generated by the lights. Once the truck pulls away from the seal, permitting oxygen to rush into the area, the smoldering fabric and foam can burst into flames.
Usually, dock workers douse the flames quickly, before major damage occurs. But in some cases, entire trailer loads of products have gone up in flames. And trailers are not the only asset at risk; dock fires frequently cause smoke and water damage inside the DC. Expenses can run into the thousands of dollars, and it's likely the industry's tally will continue to mount. Officials at Frommelt, one of Rite-Hite's subsidiaries, estimate that more than 200,000 loading docks in the United States use the compression-style foam dock seals, which means they're at risk for fires.
What's the solution? Some truckers are outfitting their tractors with LED lights that run at much cooler temperatures. Others are prohibiting drivers from leaving trucks idling while backed up to a dock, which is admittedly tough to enforce.
Not wanting to take any chances, DC managers like those at American Color are replacing their dock seals. American Color swapped its old dock seal head pads for Frommelt head pads that use the company's Firefighter technology. The seals contain a solution that dissipates heat created by the marker lights, limiting heat buildup and reducing the fire hazard. As an extra precaution, American Color is planning to equip its docks with side pads that feature Firefighter technology as well.
Replacing seals costs money, to be sure, but the printing company didn't balk at the expense. "There are simply too many fire risks in this industry," says Mason. "If we can identify a fire safety risk such as this and resolve it as easily as we can with this new technology, the decision's an easy one to make."
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!
Toyota Material Handling and its nationwide network of dealers showcased their commitment to improving their local communities during the company’s annual “Lift the Community Day.” Since 2021, Toyota associates have participated in an annual day-long philanthropic event held near Toyota’s Columbus, Indiana, headquarters. This year, the initiative expanded to include participation from Toyota’s dealers, increasing the impact on communities throughout the U.S. A total of 324 Toyota associates completed 2,300 hours of community service during this year’s event.
The PMMI Foundation, the charitable arm of PMMI, The Association for Packaging and Processing Technologies, awarded nearly $200,000 in scholarships to students pursuing careers in the packaging and processing industry. Each year, the PMMI Foundation provides academic scholarships to students studying packaging, food processing, and engineering to underscore its commitment to the future of the packaging and processing industry.
Truck leasing and fleet management services provider Fleet Advantage hosted its “Kids Around the Corner Foundation” back-to-school backpack drive in July. During the event, company associates assembled 200 backpacks filled with essential school supplies for high school-age students. The backpacks were then delivered to Henderson Behavioral Health’s Youth & Family Services location in Tamarac, Florida.
For the past seven years, third-party logistics service specialist ODW Logistics has provided logistics support for the Pelotonia Ride Weekend, a campaign to raise funds for cancer research at The Ohio State University’s Comprehensive Cancer Center–Arthur G. James Cancer Hospital and Richard J. Solove Research Institute. As in the past, ODW provided inventory management services and transportation for the riders’ bicycles at this year’s event. In all, some 7,000 riders and 3,000 volunteers participated in the ride weekend.
After years in the military, service members and their spouses can find the transition to civilian life difficult. For many, a valuable support on that journey is the U.S. Department of Defense (DOD) SkillBridge program. During their final 180 days of service, participants in the program are connected with companies that provide them with civilian work experience and training. There is no cost to those companies while the service member continues receiving military compensation and benefits.
Both sides benefit from the program. “We’re proud to work with SkillBridge to give back to our military veterans for the bravery and sacrifices they’ve made for all of us,” Troy Pederson, director of training and development at LiftOne, a Hyster-Yale dealer and established SkillBridge employer, said in a release. “In the last year, we’ve helped 10 SkillBridge interns transition from military to civilian life, and the value and positive impact of the program can’t be overstated. At LiftOne, we’ve gained so much from the experience and diverse mix of technical and leadership skills of our SkillBridge candidates.”