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.
A lot of companies are jumping on the "green" bandwagon these days. JohnsonDiversey isn't one of them. It's not that the company isn't environmentally conscious. It is. It's just that the Sturtevant, Wis.-based manufacturer of cleaning and maintenance supplies established its eco-credentials long ago. Since its founding in 1886, the company (formerly known as Johnson Wax Professional) has maintained an unusually strong record of environmental leadership.
In 1935, for example, then-president H.F. Johnson made a historic expedition to Brazil to study the sustainability of carnauba palm trees. Carnauba palms represent an important source of raw material for the company's floor waxes—the cut leaves are sun-dried and mechanically thrashed to remove the crude wax. But only 20 leaves can be cut from each tree per year. Though Johnson made the trek in his company's best interests, his efforts to establish a carnauba palm plantation have also helped preserve the species.
In the early 1970s, JohnsonDiversey voluntarily eliminated the use of all chlorofluorocarbons (CFCs) in its aerosol products—long before the ban became law. In the years since, it has introduced an environmentally friendly container and launched several water and agricultural sustainability projects, racking up an impressive array of environmental and conservation awards along the way.
Given the company's long history of environmentally responsible manufacturing, it should come as little surprise that JohnsonDiversey is also committed to sustain- able building and development. In 1997, it built an environmentally friendly corporate headquarters, which has earned a gold-level Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council. This past September, the company opened the greenest distribution center in North America. Like the headquarters building, the new $24 million DC, which is also located in Sturtevant, has received a gold-level certification from the U.S. Green Building Council. The group says the DC, which occupies 550,000 square feet of space (the equivalent of 11 football fields), is the largest DC to be awarded a gold certificate.
"We designed this to be a green facility from the very start," says Stu Carron, director of global facilities and real estate at JohnsonDiversey. "Some companies wondered if we were seeking both green and nongreen bids to compare the two, but we just weren't going to build a non-green building. You can do so much better when it comes to energy efficiency, water use, and productivity in the building when you build green in from the outset."
Developers were asked to compete on the basis of how many green features they could provide, Carron says. Initially, 17 companies bid on the project, but several dropped out when they realized they didn't have the necessary experience in green construction. In the end, the choice of developers turned out to be an easy one, according to Carron. "The low bidder was also the one that produced a bid with the most green features," he says. "It had the most experience building green buildings and had figured out a way to develop green buildings [that are] no more expensive than regular buildings."
Green from the ground up
JohnsonDiversey's new DC is green literally from the ground up. More than 12,000 tons of bottom ash—a granular byproduct of combustion in coal-fired power plants—were reclaimed from a local landfill to be used for the building's sub-base. By the project's completion, the design and construction team had recycled 941 of the 964 tons of waste generated during the building's construction. The result was a net reduction in the volume of landfill material—Carron reports that the company pulled 500 times more material out of the landfill than it put back into it.
The DC has no air conditioning system, relying instead on a state-of-the-art ventilation system and fans the size of helicopter rotors that circulate air in the building to keep it cool in the summer. A specially designed HVAC system ensures optimal indoor air quality and efficient energy use, and a white thermoplastic polyolefin (TPO) roof and extra insulation at R-27 help to reduce solar heat gain within the building.
Faucets in the DC's restrooms and break room reduce the flow of water to one-half gallon per minute, and together with waterless urinals resulted in a 51-percent savings in water usage over the minimum legal baseline. The building's energy-efficient lighting system incorporates fluorescent high-bay fixtures and motion-activated occupancy sensors. Combined with a high-gloss floor finish and a white-painted interior, these features help drive down energy costs. According to the company, the new DC uses 40 percent less energy and 50 percent less water than a typical DC of its size.
The company has also committed to buying green power. All electricity at the new DC is generated by alternative energy sources, including solar, wind, and biomass, which equates to a reduction of 3.2 million pounds of carbon dioxide. Carron says it is the only DC of its size in the United States to make this claim.
Not going for the gold
Though justifiably proud of the DC's LEED certification, the company insists that the project was not about going for the gold. "We never set out to obtain a gold-level certification," says Harold Miller, regional operations manager for JohnsonDiversey and the project leader for the DC's construction. "Our object was to be certified. We never felt we'd hit the gold level. We didn't want to pay our way to obtain a certain level of certification; we wanted each decision we made to be cost justified."
In fact, the JohnsonDiversey team considered but rejected a number of common green features during the planning and design process. For example, they passed on a rainwater collection system, which has turned out to be no great loss. More than 70 percent of the 38-acre site has been landscaped with native and adaptive plants that don't require irrigation.
Company executives also took a pass on skylights because the 10-year payback exceeded the three- to five-year time frame the company was looking for. Solar panels also didn't make the cut, although the company plans to look at the technology down the road as a possible building retrofit as the price of solar equipment drops.
Even without solar panels, the DC's energy savings promise to be impressive. The company expects to save more than $100,000 a year on energy costs over a typical DC of its size. It also expects that the facility will be much more productive than traditional DCs.
"It's highly competitive to build green and this project proves that," says Carron. "We have not only created a much better working environment, but one that undoubtedly will improve productivity as well."
one truck, one invoice … one DC
Along with securing the company's reputation as an eco-friendly business, JohnsonDiversey's newly opened DC has given supply chain performance a boost. That's partly a result of efficiencies gained through consolidation. The new 550,000-square-foot DC replaced four other buildings in the Racine (Wis.) area that had been used to store the company's cleaning and maintenance products. Geography has been a factor as well. The new DC is located just under a mile from Waxdale, the company's flagship manufacturing plant, which has cut travel times and enhanced the speed and efficiency of the distribution process.
"There were a lot of drivers and synergies from consolidating four locations into one," says Stu Carron, the company's director of global facilities and real estate. "The transportation costs from shuttling products between the manufacturing plant and the different DCs were significant, so that's been another cost savings."
It also helps that the new DC was designed for fast throughput. It features 55 loading docks and staging for 118 tractor-trailers—a significant capacity increase over the four previous warehouses, where backlogs in processing trucks were once common.
"Great customer service is the name of the game and this new center delivers," says JohnsonDiversey President and CEO Ed Lonergan. "We call it one truck, one invoice. Customers order one time. They receive one invoice with their order on one truck. That's a huge improvement in service to customers and our operational efficiency."
Warehouse automation orders declined by 3% in 2024, according to a February report from market research firm Interact Analysis. The company said the decline was due to economic, political, and market-specific challenges, including persistently high interest rates in many regions and the residual effects of an oversupply of warehouses built during the Covid-19 pandemic.
The research also found that increasing competition from Chinese vendors is expected to drive down prices and slow revenue growth over the report’s forecast period to 2030.
Global macro-economic factors such as high interest rates, political uncertainty around elections, and the Chinese real estate crisis have “significantly impacted sales cycles, slowing the pace of orders,” according to the report.
Despite the decline, analysts said growth is expected to pick up from 2025, which they said they anticipate will mark a year of slow recovery for the sector. Pre-pandemic growth levels are expected to return in 2026, with long-term expansion projected at a compound annual growth rate (CAGR) of 8% between 2024 and 2030.
The analysis also found two market segments that are bucking the trend: durable manufacturing and food & beverage industries continued to spend on automation during the downturn. Warehouse automation revenues in food & beverage, in particular, were bolstered by cold-chain automation, as well as by large-scale projects from consumer-packaged goods (CPG) manufacturers. The sectors registered the highest growth in warehouse automation revenues between 2022 and 2024, with increases of 11% (durable manufacturing) and 10% (food & beverage), according to the research.
The logistics tech provider Körber Supply Chain Software continues to position itself in a fast-changing business landscape, aligning itself today with the digital transformation consulting firm Zero100.
Körber Supply Chain Software—to be formally known as Infios beginning in March—has plenty of funding to make those strategic changes, since the company is a joint venture between its parent company, the German business technology powerhouse Körber AG and KKR, the California-based merger and acquisition specialist.
London-based Zero100 calls itself a membership-based intelligence company connecting, informing, and inspiring the world’s supply chain leaders to accelerate progress on digital supply chain transformation. In January the company gained new financial backing through a “growth investment” from the private equity firm Levine Leichtman Capital Partners. According to Zero100, that new financing will accelerate its tech, data, research, and talent capabilities, further strengthen its team, and enable further product and service innovation on behalf of the company’s customers.
Infios says it is joining that community to access Zero100’s data-driven research insights and advisory, and to integrate innovative sustainability practices and digital tools into its adaptable solutions. Infios’s catalog of technology includes order management, warehousing and fulfillment, and transportation management.
By harnessing advanced technologies such as AI and data analytics and providing businesses with the right level of flexibility and control to evolve and adapt solutions to their needs, Infios says it can help its customers optimize their entire supply chain ecosystem and create a more optimistic outlook.
The Swedish supply chain software company Kodiak Hub is expanding into the U.S. market, backed by a $6 million venture capital boost for its supplier relationship management (SRM) platform.
The Stockholm-based company says its move could help U.S. companies build resilient, sustainable supply chains amid growing pressure from regulatory changes, emerging tariffs, and increasing demands for supply chain transparency.
According to the company, its platform gives procurement teams a 360-degree view of supplier risk, resiliency, and performance, helping them to make smarter decisions faster. Kodiak Hub says its artificial intelligence (AI) based tech has helped users to reduce supplier onboarding times by 80%, improve supplier engagement by 90%, achieve 7-10% cost savings on total spend, and save approximately 10 hours per week by automating certain SRM tasks.
The Swedish venture capital firm Oxx had a similar message when it announced in November that it would back Kodiak Hub with new funding. Oxx says that Kodiak Hub is a better tool for chief procurement officers (CPOs) and strategic sourcing managers than existing software platforms like Excel sheets, enterprise resource planning (ERP) systems, or Procure-to-Pay suites.
“As demand for transparency and fair-trade practices grows, organizations must strengthen their supply chains to protect their reputation, profitability, and long-term trust,” Malin Schmidt, founder & CEO of Kodiak Hub, said in a release. “By embedding AI-driven insights directly into procurement workflows, our platform helps procurement teams anticipate these risks and unlock major opportunities for growth.”
Here's our monthly roundup of some of the charitable works and donations by companies in the material handling and logistics space.
For the sixth consecutive year, dedicated contract carriage and freight management services provider Transervice Logistics Inc. collected books, CDs, DVDs, and magazines for Book Fairies, a nonprofit book donation organization in the New York Tri-State area. Transervice employees broke their own in-house record last year by donating 13 boxes of print and video assets to children in under-resourced communities on Long Island and the five boroughs of New York City.
Logistics real estate investment and development firm Dermody Properties has recognized eight community organizations in markets where it operates with its 2024 Annual Thanksgiving Capstone awards. The organizations, which included food banks and disaster relief agencies, received a combined $85,000 in awards ranging from $5,000 to $25,000.
Prime Inc. truck driver Dee Sova has donated $5,000 to Harmony House, an organization that provides shelter and support services to domestic violence survivors in Springfield, Missouri. The donation follows Sova's selection as the 2024 recipient of the Trucking Cares Foundation's John Lex Premier Achievement Award, which was accompanied by a $5,000 check to be given in her name to a charity of her choice.
Employees of dedicated contract carrier Lily Transportation donated dog food and supplies to a local animal shelter at a holiday event held at the company's Fort Worth, Texas, location. The event, which benefited City of Saginaw (Texas) Animal Services, was coordinated by "Lily Paws," a dedicated committee within Lily Transportation that focuses on improving the lives of shelter dogs nationwide.
Freight transportation conglomerate Averitt has continued its support of military service members by participating in the "10,000 for the Troops" card collection program organized by radio station New Country 96.3 KSCS in Dallas/Fort Worth. In 2024, Averitt associates collected and shipped more than 18,000 holiday cards to troops overseas. Contributions included cards from 17 different Averitt facilities, primarily in Texas, along with 4,000 cards from the company's corporate office in Cookeville, Tennessee.
Electric vehicle (EV) sales have seen slow and steady growth, as the vehicles continue to gain converts among consumers and delivery fleet operators alike. But a consistent frustration for drivers has been pulling up to a charging station only to find that the charger has been intentionally broken or disabled.
To address that threat, the EV charging solution provider ChargePoint has launched two products to combat charger vandalism.
The first is a cut-resistant charging cable that's designed to deter theft. The cable, which incorporates what the manufacturer calls "novel cut-resistant materials," is substantially more difficult for would-be vandals to cut but is still flexible enough for drivers to maneuver comfortably, the California firm said. ChargePoint intends to make its cut-resistant cables available for all of its commercial and fleet charging stations, and, starting in the middle of the year, will license the cable design to other charging station manufacturers as part of an industrywide effort to combat cable theft and vandalism.
The second product, ChargePoint Protect, is an alarm system that detects charging cable tampering in real time and literally sounds the alarm using the charger's existing speakers, screens, and lighting system. It also sends SMS or email messages to ChargePoint customers notifying them that the system's alarm has been triggered.
ChargePoint says it expects these two new solutions, when combined, will benefit charging station owners by reducing station repair costs associated with vandalism and EV drivers by ensuring they can trust charging stations to work when and where they need them.