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.
Life can be tough for lift truck drivers. Vehicles tip over and tumble off docks. Loads topple. Operators risk electrical shock from contact with overhead electric cables as well as exposure to hazardous chemicals, fumes and acid spills (when changing batteries). Many suffer hearing damage because of workplace noise.
The industry's safety record reflects these hazards: According to Toyota Material Handling, more than 68,000 lift truck accidents occur in North America each year. Some of those are fatal. In 1996 and 1997 alone, for example, 225 workers were killed in forklift incidents.
Then there are the ergonomic hazards - all too often, drivers suffer injuries that develop over time due to cumulative exposure to working conditions that tax the human body's capabilities: Trauma disorders to hands and arms from overexerti on when steering; low-back pain caused by prolonged seating in an awkward posture and an ergonomically inadequate seat. Neck pain from awkward positions assumed during reverse driving and from transporting loads that partially obstruct the operator's field of vision. Combine that with spine-jarring bumps every time an operator drives over a dock plate, awkward mounting and dismounting practices, and the potential for slips, and it becomes clear that lift-truck driving is risky business.
But a distribution center doesn't have to be a dangerous place. Beating out 7,300 eligible companies last year, Murphy Warehouse Co., a Minneapolis-based third-party provider, earned a Preferred Partner award from its workers' compensation insurance carrier. What's notable here is that Murphy Warehouse wasn't competing against other warehouses for that distinction. Most of its competitors came from the far less risk-prone office setting.
As for Murphy Warehouse's success, it doesn't hurt that the company takes a strong position on rules enforcement and training. "We enforce all the rules as far as seatbelt use, being tethered on the machine and driving in a safe and efficient manner," says company president Richard T. Murphy. "We take a very stiff stance on it, but it pays off. Though we're up to 20 lift truck machines and three buildings, we've had no serious fork-truck accidents." The company also hires a physical therapist to show operators how best to mount and dismount from the machines.
But a big part of the success story is the equipment the company uses. Murphy has invested in the latest in shock absorbers and ergonomic seats for its fleet of Yale and Hyster trucks. "Drivers used to experience a constant jarring on their backs when they drove over dock plates or rail plates," says Murphy, "but these new absorbers take out 50 to 75 percent of the shock they used to get. That helped tremendously, especially with heavier loads like paper rolls."
Though Murphy acknowledges that productivity will always be a consideration when selecting lift trucks, he's also concerned about his drivers' well-being." Primarily we want to make sure [drivers stay] healthy for the long term ," he says ."We generally keep people for their career after they get through the first couple years because once they are trained, we don't want to lose them . So our program is not focused so much on productivity as it is on safety and health."
Fork in the road
That represents something of a sea change for the industry. "Ten years ago, DC managers looked for the most costeffective product," says Brett Wood,national product development, strategic planning and marketing services manager for Toyota Material Handling, U.S.A., Inc., "but now we hear them saying things like, 'I need a [vehicle] that will be comfortable and safe to operate.'"What's more,they're willing to pay for comfort and safety, he says, citing focus groups and surveys that Toyota conducts frequently."We've seen plant managers show more concern about the operator than ever before, which is wonderful."
It pays off, too. "A comfortable operator is a productive operator,"Wood adds."If they are comfortable eight hours a day on that forklift, they'll be more productive, and that's the name of the game."
Bruce Mantz agrees that there's a direct correlation between driver comfort and productivity. "We have very precise cutoffs for orders and very precise expectations from our customers, so it's very important we give people the right equipment so they can get the job done," says Mantz, director of operations for third-party provider Automated Distribution Systems, which deploys a fleet of lift trucks from Atlet and Raymond Corp.
"I don't want to see 95-percent efficiency during the first four hours, then see that drop down to 75 percent over their last four hours," Mantz says . "We run a very high-volume, high-accuracy operation, and in order for us to get there, we need to give our drivers quality equipment. If we didn't pay attention to ergonomics, we wouldn't be getting the productivity levels we're getting now."
Preferred seating
What ergonomic features do today's trucks offer? Though lift trucks may not be equipped with side air bags yet , the ergonomic features touted by manufacturers will be familiar to anyone who drives a car (or reads the ads): enhanced shocks,seating improvements,steering wheels with memory tilt steering, plush floor mats to reduce noise and vibration, non-slip skid mats and even strategically placed cup holders.
For example, Swedish manufacturer Atlet recently introduced a stand-on stacker truck named "Ergo" for its numerous ergonomic features. Ergo's armrest and control panel are vertically adjustable, as is the steering wheel, which can also be adjusted laterally. Servo steering is standard, enhancing control and maneuverability in tight spaces. The mast lift and lower function is also servo-assisted to give fingertip control. The truck's "floating" floor has resilient rubber suspension and a step height of only 230 millimeters for easy access. The cab even boasts a writing surface and storage space.
With sit-down trucks, by contrast, ergonomic improvements often focus on the driver's seat. Toyota Material Handling, for example, offers full suspension seats that adjust as drivers cruise over obstacles like dock plates. "The suspension seats really cushion the ride for the operator," says Wood. "Once they get in that seat they don't want to go back."
Each of those points could have a stark impact on business operations, the firm said. First, supply chain restrictions will continue to drive up costs, following examples like European tariffs on Chinese autos and the U.S. plan to prevent Chinese software and hardware from entering cars in America.
Second, reputational risk will peak due to increased corporate transparency and due diligence laws, such as Germany’s Supply Chain Due Diligence Act that addresses hotpoint issues like modern slavery, forced labor, human trafficking, and environmental damage. In an age when polarized public opinion is combined with ever-present social media, doing business with a supplier whom a lot of your customers view negatively will be hard to navigate.
And third, advances in data, technology, and supplier risk assessments will enable executives to measure the impact of disruptions more effectively. Those calculations can help organizations determine whether their risk mitigation strategies represent value for money when compared to the potential revenues losses in the event of a supply chain disruption.
“Looking past the holidays, retailers will need to prepare for the typical challenges posed by seasonal slowdown in consumer demand. This year, however, there will be much less of a lull, as U.S. companies are accelerating some purchases that could potentially be impacted by a new wave of tariffs on U.S. imports,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management Solutions at Moody’s, said in a release. “Tariffs, sanctions and other supply chain restrictions will likely be top of the 2025 agenda for procurement executives.”
As holiday shoppers blitz through the final weeks of the winter peak shopping season, a survey from the postal and shipping solutions provider Stamps.com shows that 40% of U.S. consumers are unaware of holiday shipping deadlines, leaving them at risk of running into last-minute scrambles, higher shipping costs, and packages arriving late.
The survey also found a generational difference in holiday shipping deadline awareness, with 53% of Baby Boomers unaware of these cut-off dates, compared to just 32% of Millennials. Millennials are also more likely to prioritize guaranteed delivery, with 68% citing it as a key factor when choosing a shipping option this holiday season.
Of those surveyed, 66% have experienced holiday shipping delays, with Gen Z reporting the highest rate of delays at 73%, compared to 49% of Baby Boomers. That statistical spread highlights a conclusion that younger generations are less tolerant of delays and prioritize fast and efficient shipping, researchers said. The data came from a study of 1,000 U.S. consumers conducted in October 2024 to understand their shopping habits and preferences.
As they cope with that tight shipping window, a huge 83% of surveyed consumers are willing to pay extra for faster shipping to avoid the prospect of a late-arriving gift. This trend is especially strong among Gen Z, with 56% willing to pay up, compared to just 27% of Baby Boomers.
“As the holiday season approaches, it’s crucial for consumers to be prepared and aware of shipping deadlines to ensure their gifts arrive on time,” Nick Spitzman, General Manager of Stamps.com, said in a release. ”Our survey highlights the significant portion of consumers who are unaware of these deadlines, particularly older generations. It’s essential for retailers and shipping carriers to provide clear and timely information about shipping deadlines to help consumers avoid last-minute stress and disappointment.”
For best results, Stamps.com advises consumers to begin holiday shopping early and familiarize themselves with shipping deadlines across carriers. That is especially true with Thanksgiving falling later this year, meaning the holiday season is shorter and planning ahead is even more essential.
According to Stamps.com, key shipping deadlines include:
December 13, 2024: Last day for FedEx Ground Economy
December 18, 2024: Last day for USPS Ground Advantage and First-Class Mail
December 19, 2024: Last day for UPS 3 Day Select and USPS Priority Mail
December 20, 2024: Last day for UPS 2nd Day Air
December 21, 2024: Last day for USPS Priority Mail Express
Measured over the entire year of 2024, retailers estimate that 16.9% of their annual sales will be returned. But that total figure includes a spike of returns during the holidays; a separate NRF study found that for the 2024 winter holidays, retailers expect their return rate to be 17% higher, on average, than their annual return rate.
Despite the cost of handling that massive reverse logistics task, retailers grin and bear it because product returns are so tightly integrated with brand loyalty, offering companies an additional touchpoint to provide a positive interaction with their customers, NRF Vice President of Industry and Consumer Insights Katherine Cullen said in a release. According to NRF’s research, 76% of consumers consider free returns a key factor in deciding where to shop, and 67% say a negative return experience would discourage them from shopping with a retailer again. And 84% of consumers report being more likely to shop with a retailer that offers no box/no label returns and immediate refunds.
So in response to consumer demand, retailers continue to enhance the return experience for customers. More than two-thirds of retailers surveyed (68%) say they are prioritizing upgrading their returns capabilities within the next six months. In addition, improving the returns experience and reducing the return rate are viewed as two of the most important elements for businesses in achieving their 2025 goals.
However, retailers also must balance meeting consumer demand for seamless returns against rising costs. Fraudulent and abusive returns practices create both logistical and financial challenges for retailers. A majority (93%) of retailers said retail fraud and other exploitive behavior is a significant issue for their business. In terms of abuse, bracketing – purchasing multiple items with the intent to return some – has seen growth among younger consumers, with 51% of Gen Z consumers indicating they engage in this practice.
“Return policies are no longer just a post-purchase consideration – they’re shaping how younger generations shop from the start,” David Sobie, co-founder and CEO of Happy Returns, said in a release. “With behaviors like bracketing and rising return rates putting strain on traditional systems, retailers need to rethink reverse logistics. Solutions like no box/no label returns with item verification enable immediate refunds, meeting customer expectations for convenience while increasing accuracy, reducing fraud and helping to protect profitability in a competitive market.”
The research came from two complementary surveys conducted this fall, allowing NRF and Happy Returns to compare perspectives from both sides. They included one that gathered responses from 2,007 consumers who had returned at least one online purchase within the past year, and another from 249 e-commerce and finance professionals from large U.S. retailers.
The “series A” round was led by Andreessen Horowitz (a16z), with participation from Y Combinator and strategic industry investors, including RyderVentures. It follows an earlier, previously undisclosed, pre-seed round raised 1.5 years ago, that was backed by Array Ventures and other angel investors.
“Our mission is to redefine the economics of the freight industry by harnessing the power of agentic AI,ˮ Pablo Palafox, HappyRobotʼs co-founder and CEO, said in a release. “This funding will enable us to accelerate product development, expand and support our customer base, and ultimately transform how logistics businesses operate.ˮ
According to the firm, its conversational AI platform uses agentic AI—a term for systems that can autonomously make decisions and take actions to achieve specific goals—to simplify logistics operations. HappyRobot says its tech can automate tasks like inbound and outbound calls, carrier negotiations, and data capture, thus enabling brokers to enhance efficiency and capacity, improve margins, and free up human agents to focus on higher-value activities.
“Today, the logistics industry underpinning our global economy is stretched,” Anish Acharya, general partner at a16z, said. “As a key part of the ecosystem, even small to midsize freight brokers can make and receive hundreds, if not thousands, of calls per day – and hiring for this job is increasingly difficult. By providing customers with autonomous decision making, HappyRobotʼs agentic AI platform helps these brokers operate more reliably and efficiently.ˮ
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.