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.
The San Francisco tech startup Vooma has raised $16 million in venture funding for its artificial intelligence (AI) platform designed for freight brokers and carriers, the company said today.
The backing came from a $13 million boost in “series A” funding led by Craft Ventures, which followed an earlier seed round of $3.6 million led by Index Ventures with participation from angel investors including founders and executives from major logistics and technology companies such as Motive, Project44, Ryder, and Uber Freight.
Founded in 2023, the firm has built “Vooma Agents,” which it calls a multi-channel AI platform for logistics. The system uses various agents to operate across email, text and voice channels, allowing for automation in workflows that were previously unaddressable by existing systems. According to Vooma, its platform lets logistics companies scale up their operations by reducing time spent on tedious and manual work and creating space to solve real logistical challenges, while also investing in critical relationships.
The company’s solutions include: Vooma Quote, which identifies quotes and drafts email responses, Vooma Build, a data-entry assistant for load building, and Vooma Voice, which can make and receive calls for brokers and carriers. Additional options are: Vooma Insights and the future releases of Vooma Agent and Vooma Schedule.
“The United States moves approximately 11.5 billion tons of truckloads annually, and moving freight from point A to B requires hundreds of touchpoints between shippers, brokers and carriers,” Vooma co-founder, who is the former CEO of ASG LogisTech, said in a release. “By introducing AI that fits naturally into existing systems, workflows and communication channels used across the industry, we are meaningfully reducing the tasks people dislike and freeing up their time and headspace for more meaningful and complex challenges.”
The new funding brings Amazon's total investment in Anthropic to $8 billion, while maintaining the e-commerce giant’s position as a minority investor, according to Anthropic. The partnership was launched in 2023, when Amazon invested its first $4 billion round in the firm.
Anthropic’s “Claude” family of AI assistant models is available on AWS’s Amazon Bedrock, which is a cloud-based managed service that lets companies build specialized generative AI applications by choosing from an array of foundation models (FMs) developed by AI providers like AI21 Labs, Anthropic, Cohere, Meta, Mistral AI, Stability AI, and Amazon itself.
According to Amazon, tens of thousands of customers, from startups to enterprises and government institutions, are currently running their generative AI workloads using Anthropic’s models in the AWS cloud. Those GenAI tools are powering tasks such as customer service chatbots, coding assistants, translation applications, drug discovery, engineering design, and complex business processes.
"The response from AWS customers who are developing generative AI applications powered by Anthropic in Amazon Bedrock has been remarkable," Matt Garman, AWS CEO, said in a release. "By continuing to deploy Anthropic models in Amazon Bedrock and collaborating with Anthropic on the development of our custom Trainium chips, we’ll keep pushing the boundaries of what customers can achieve with generative AI technologies. We’ve been impressed by Anthropic’s pace of innovation and commitment to responsible development of generative AI, and look forward to deepening our collaboration."
The Dutch ship building company Concordia Damen has worked with four partner firms to build two specialized vessels that will serve the offshore wind industry by transporting large, and ever growing, wind turbine components, the company said today.
The first ship, Rotra Horizon, launched yesterday at Jiangsu Zhenjiang Shipyard, and its sister ship, Rotra Futura, is expected to be delivered to client Amasus in 2025. The project involved a five-way collaboration between Concordia Damen and Amasus, deugro Danmark, Siemens Gamesa, and DEKC Maritime.
The design of the 550-foot Rotra Futura and Rotra Horizon builds on the previous vessels Rotra Mare and Rotra Vente, which were also developed by Concordia Damen, and have been operating since 2016. However, the new vessels are equipped for the latest generation of wind turbine components, which are becoming larger and heavier. They can handle that increased load with a Roll-On/Roll-Off (RO/RO) design, specialized ramps, and three Liebherr cranes, allowing turbine blades to be stowed in three tiers, providing greater flexibility in loading methods and cargo configurations.
“For the Rotra Futura and Rotra Horizon, we, along with our partners, have focused extensively on energy savings and an environmentally friendly design,” Concordia Damen Managing Director Chris Kornet said in a release. “The aerodynamic and hydro-optimized hull design, combined with a special low-resistance coating, contributes to lower fuel consumption. Furthermore, the vessels are equipped with an advanced Wärtsilä main engine, which consumes 15 percent less fuel and has a smaller CO₂ emission footprint than current standards.”
Specifically, loaded import volume rose 11.2% in October 2024, compared to October 2023, as port operators processed 81,498 TEUs (twenty-foot containers), versus 73,281 TEUs in 2023, the port said today.
“Overall, the Port’s loaded import cargo is trending towards its pre-pandemic level,” Port of Oakland Maritime Director Bryan Brandes said in a release. “This steady increase in import volume in 2024 is an encouraging trend. We are also seeing a rise in US agricultural exports through Oakland. Thanks to refrigerated warehousing on Port property near the maritime terminals and convenient truck and rail access, we are well-positioned to continue to grow ag export cargo volume through the Oakland Seaport.”
Looking deeper into its October statistics, loaded exports declined 3.4%, registering 66,649 TEUs in October 2024, compared to 68,974 TEUs in October 2023. Despite that slight decline, the category has grown 6.7% between January and October 2024 compared to the same period last year.
In fact, Oakland’s exports have been declining over the past decade, a long-term trend that is largely due to the reduction in demand for recycled paper exports. However, agricultural exports have made up for some of the export losses from paper, the port said.
For the fourth quarter, empty exports bumped up 30.6%. Port operators processed 29,750 TEUs in October 2024, compared to 22,775 TEUs in October 2023. And empty imports increased 15.3%, with 15,682 TEUs transiting Port facilities in October 2024, in contrast to 13,597 TEUs in October 2023.
A growing number of organizations are identifying ways to use GenAI to streamline their operations and accelerate innovation, using that new automation and efficiency to cut costs, carry out tasks faster and more accurately, and foster the creation of new products and services for additional revenue streams. That was the conclusion from ISG’s “2024 ISG Provider Lens global Generative AI Services” report.
The most rapid development of enterprise GenAI projects today is happening on text-based applications, primarily due to relatively simple interfaces, rapid ROI, and broad usefulness. Companies have been especially aggressive in implementing chatbots powered by large language models (LLMs), which can provide personalized assistance, customer support, and automated communication on a massive scale, ISG said.
However, most organizations have yet to tap GenAI’s potential for applications based on images, audio, video and data, the report says. Multimodal GenAI is still evolving toward mainstream adoption, but use cases are rapidly emerging, and with ongoing advances in neural networks and deep learning, they are expected to become highly integrated and sophisticated soon.
Future GenAI projects will also be more customized, as the sector sees a major shift from fine-tuning of LLMs to smaller models that serve specific industries, such as healthcare, finance, and manufacturing, ISG says. Enterprises and service providers increasingly recognize that customized, domain-specific AI models offer significant advantages in terms of cost, scalability, and performance. Customized GenAI can also deliver on demands like the need for privacy and security, specialization of tasks, and integration of AI into existing operations.