Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
It is difficult to conceive the distance we have traveled in the realm of employee/worker well being. In the United States, our manufacturing and distribution legacy came from Great Britain and the early days of the Industrial Revolution. Our heritage lies in the practices developed and refined in what William Blake ominously referred to as "dark Satanic Mills." Health, safety, and ergonomics were nonissues—at least for the employers. Men, women, and children were expected to put their backs into it, and to be quick about it, as well. Slacking and lollygagging were not tolerated, nor were illness and injury.
What a difference a century makes. Though there will always be holdouts, most employers today realize that it's in their own best interest to keep their employees healthy and safe. Healthy employees are absent less often and are more productive than their sickly counterparts are. They don't drive up health insurance costs, and they tend not to die before their working careers are over.
As part of their efforts to keep those workers healthy, employers nationwide have put measures in place to protect them from harmful materials in the workplace—particles, vapors, chemicals, byproducts, whatever. But they're not stopping there. Many companies, with encouragement from their health care insurers, are actually promoting better preventive and proactive care for their employees' general health, encouraging prevention rather than continuing to blindly pay the price of reactive medical care.
The next step has been to provide wellness programs, sometimes on company time. Such programs often involve movements to influence behaviors that have health implications, such as smoking and substance abuse. Some companies, like PepsiCo, give cash to employees (and spouses) who complete online health risk assessments, with further cash awards for seminar and counseling activities. The smoke-free, drug- and alcohol-free, weapon-free working environment is now a commonplace in American business.
All aspects of supply chain management benefit from contemporary approaches to improved individual health. So what if it's only enlightened self-interest? The movement represents a win/win/win proposition for employers, employees, governments, insurers, families, and eventually for consumers and product/service end-users.
Keep it safe
The rationale for safety programs is constructed in much the same way as it is for health programs. Beyond being simply the right thing to do, protecting your workers from unsafe conditions is just plain smart business. Not only is there a cost associated with having people out because of workplace injuries, but there are also the issues of long-term and short-term disability (and insurance rates), of workers' compensation (and escalating contributions), and, of course, of lawsuits.
Beyond that, there is incredible cost tied up in finding temporary substitutes, or in the ghastly expense of recruiting and training permanent replacements. Then, too, the returning worker may not be able to perform the same tasks, or at the same level, as before.
The field of safety management has generated a cottage industry of specialized consultants, who help organize corporate efforts to maintain safe and accident-free workplaces. Generally, such programs contain plans and streamlined, standardized processes for daily, weekly, monthly, and annual activities for defined areas of safety needs. They typically communicate:
Who is responsible for decisions, activities, communications
How things are to be done
Where things—tools, controls, materials, etc.— are located
How often things need to be done (training, drills, inspections, tests, etc.)
What equipment and processes are involved.
Another aspect of safety deserves mention. When the public is exposed to the effects of impaired workers, or of defective products that result from worker impairment, or of dangerous product content or environmental damage, the exposures are nearly beyond reckoning. It's not merely the PR damage in the marketplace; it's about real money, involving sums with lots of commas.
The nightmarish visions that keep managers up at night tend to center on the extreme scenarios, such as a truck driver who has gone 36 hours without sleep before plowing into a minivan full of kids. Or a substanceimpaired engineer whose locomotive takes out a school bus stalled at a grade-level crossing. But these examples are the outer limits, the kind that grab headlines.More often, the event in question is merely a fire and explosion generated by a mishap with a fuel truck. But whatever the circumstances, mishaps that result from safety gaps in operations can have profound consequences not only for workers and employers, but across the entire supply chain.
Ergonomics and the science of safe practices
Sometimes the lines between health, safety, and ergonomics blur, as when white collar supply chain professionals deal with carpal tunnel issues that result from poorly designed keyboards and workstations. Or when continuous work with a computer monitor affects vision and leads to headaches. Or when chairs fail to provide correct lumbar and other back support— when work surfaces and processes aren't consistent with the human body's long-term capabilities.
We usually first think of ergonomics in its contribution to improved performance and productivity, and that's a legitimate perspective. But ergonomics actually contributes mightily to issues in health and safety, as well. Examples abound throughout the supply chain. One example: a lot of work has gone into making power units in trucking more ergonomically friendly to both long-haul and short-haul transportation. The professional drivers in these rigs need all the relief they can get in their long and kidney-jarring days, as well as during their rest periods.
It is in the distribution center, though, that we can see the most—and most direct— applications of ergonomic designs, particularly for productivity advantage. But it's still enlightened self-interest; an ergonomically friendly workplace will not only yield higher productivity, but will also contribute to the longevity of a high-performance workforce. (We should note here that the late Gene Gagnon, our friend and collaborator—and the father of warehouse productivity management— provided many of the thoughts embedded in this discussion.)
Now, defining ergonomics can be difficult. Some say that ergonomics is the science of designing work methods and tools for maximum human comfort. Others say that good ergonomics is the business of helping people work smarter but not harder. Still others define ergonomics as the arrangement of work so that people will minimize the possibility of excess fatigue or personal injury. In fact, ergonomics involves all three, and more.
In considering the process, you should begin with facility construction but also look at hiring practices and every aspect of the layout. That means looking at buildings, equipment, training, and processes. To justify the necessary investment, weigh the cost of the ergonomics changes against the current cost of job-related injuries.
Authors' note: Next month, we will look more deeply into the benefits of investing in good ergonomic practices and applying those principles in the distribution center.
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.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.
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.