Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
The average daily high temperature in Saskatoon, Saskatchewan, in December is 14 degrees F. It dips to a frigid 9 degrees F in January before climbing back to 16 degrees in February.
It's in that environment that Federated Co-operatives Ltd. operates a 300,178-square-foot grocery distribution center to serve retail outlets throughout the region. Federated provides distribution and other services to some 250 retail cooperatives across Western Canada.
During the winter, Federated's goal is to keep the temperature in the DC at about 20 degrees C (68 degrees F). That's proved high enough to keep everyone satisfied. "We had no comfort complaints," says Trevor Carlson, the cooperative's manager of environmental and technical services. Trouble was, maintaining that temperature required a lot of energy—as much as 250,000 cubic feet of natural gas each season.
For Federated's managers, that was cause for concern. The cooperative is committed to environmental sustainability,environmental sustainability, Carlson says. And the consumption of large amounts of fossil fuels seemed out of line with those goals. After they got a look at the fuel consumption figures, everyone agreed it was high time the cooperative started looking for ways to reduce the operation's reliance on carbon-based fuels.
A lot of hot air
Carlson suspected a lot of heat was being wasted because warmed air was rising to the ceiling. (While ceiling heights vary within the Saskatoon DC, they're about 28 feet high in most parts of the building.) That led him to explore the possibility of installing industrial fans to mix the air in the space—a process known as destratification.
Normally, the warm air coming out of a forced air heater (which is lighter than the surrounding air) goes right to the ceiling, with the result that the ceiling can be 10 to 30 degrees F warmer than the ground level. Fans can reduce heat buildup at the ceiling by forcing the warm air back to the ground. The aim is to mix the air thoroughly enough to achieve even temperatures throughout the facility.
Christian Taber, an applications engineer for Big Ass Fans, a supplier of industrial fans, says destratifying a facility's air can reduce the temperature variation between ceiling and ground level to a degree or two. But there's more to a successful destratification than just plugging in a few fans, he cautions. For one thing, you have to put the fans in the right places—positioning them over racks, for example, could impede air flowing to the floor. More importantly, you have to choose the right equipment—in this case, large fans that are capable of operating at low speeds.
Low speeds are necessary because they eliminate the drafts associated with air circulation, Taber explains. "Essentially, we're trying to spin the fans at low speed in a forward direction and push air efficiently down to the floor," he says. The fan blades are airfoils, he adds, similar in profile to airplane wings. "The curved aerodynamic profile allows us to move air at slow speeds."
As for how all this translates into energy savings, Taber says destratification raises the overall temperature in a facility, which means less fuel is needed to heat the space. Further savings can be achieved by using variable-speed fans, he adds. Taber explains that the relationship between fan speed is cubic, so that a fan running at one-third of full speed uses about 1/27th of the electrical power it would use at full speed.
Giving fans a whirl
Although he was intrigued by the idea, Carlson says he was initially skeptical of the gains promised by Big Ass Fans. Eventually, curiosity won out, however, and he decided to conduct a pilot test.
The pilot took place in the winter of 2008-2009 in the Saskatoon DC. Based on recommendations from Big Ass Fans, Federated installed five 24-foot fans, placing them near the loading docks and the facility's battery charging room. "We believed that would destratify the whole warehouse," Carlson says.
The results came close to expectations. "Our numbers were good—not as good as promised but pretty close," Carlson reports. "The amount of air the large-diameter fans move is surprising. The amount of heat they pull off the ceiling is phenomenal."
In fact, the DC became too warm. After receiving requests from workers to turn down the heat, Federated lowered the temperature settings on the building's thermostat, thereby generating further savings.
What kind of savings are we talking about? Quantifying the cost benefits of a project like this can be tricky, largely because of complications like temperature variations from one heating season to the next. However, Federated had good data on its natural gas consumption by degree day, and Carlson was able to use those numbers to calculate payback. (His calculations also included the cost of electricity for operating the fans, but Carlson says that was not a significant factor.) The result? Carlson says he expects the payback to be within five years, perhaps less.
As for the cooperative's goal of cutting energy use, Big Ass Fans says the project succeeded on that count as well. According to its figures, natural gas consumption at the facility dropped by about 10 percent, resulting in estimated savings the first winter of about $18,500.
The results of the test were good enough to convince Federated to take the next step. It plans to install fans in all of its other DCs except for an agricultural products facility that Carlson says is too small to benefit from the installation.
The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.
The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.
One of the top priorities for the new group is developing an early warning pilot focused on the telecommunications supply chain, which is essential for the three countries’ global, digitized economies, they said. By identifying and monitoring disruption risks to the telecommunications supply chain, this pilot will enhance all three countries’ knowledge of relevant vulnerabilities, criticality, and residual risks. It will also develop procedures for sharing this information and responding cooperatively to disruptions.
According to the U.S. Department of Homeland Security (DHS), the group chose that sector because telecommunications infrastructure is vital to the distribution of public safety information, emergency services, and the day to day lives of many citizens. For example, undersea fiberoptic cables carry over 95% of transoceanic data traffic without which smartphones, financial networks, and communications systems would cease to function reliably.
“The resilience of our critical supply chains is a homeland security and economic security imperative,” Secretary of Homeland Security Alejandro N. Mayorkas said in a release. “Collaboration with international partners allows us to anticipate and mitigate disruptions before they occur. Our new U.S.-U.K.-Australia Supply Chain Resilience Cooperation Group will help ensure that our communities continue to have the essential goods and services they need, when they need them.”
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.
Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.
To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.
“Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins,” Chris Leone, executive vice president, Applications Development, Oracle, said in a release. “The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes.”
According to Oracle, specific upgrades feature changes to its:
Production Supervisor Workbench, which helps organizations improve manufacturing performance by providing real-time insight into work orders and generative AI-powered shift reporting.
Maintenance Supervisor Workbench, which helps organizations increase productivity and reduce asset downtime by resolving maintenance issues faster.
Order Management Enhancements, which help organizations increase operational performance by enabling users to quickly create and find orders, take actions, and engage customers.
Product Lifecycle Management (PLM) Enhancements, which help organizations accelerate product development and go-to-market by enabling users to quickly find items and configure critical objects and navigation paths to meet business-critical priorities.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.