Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
Meir Gur-Lavi, an Israeli-born American with a laconic sense of humor, affixes a hairnet to his head and leads his guests into a suburban Atlanta warehouse brimming with the fragrant aromas of fermented dough and caramelized sugar.
Gur-Lavi runs the 50,000-square-foot DC of The Engelman's Bakery, a wholesale baker of breads and rolls founded in Atlanta in 1983 by Sammy Engelman and his sister Miriam, who is also Gur-Lavi's wife. In 1997, the company relocated to the gritty suburb of Norcross, Ga., where the Engelmans and Gur-Lavi built the DC that today sits adjacent to its corporate offices.
Gur-Lavi oversees a beehive of floor activity that functions virtually 24-7. But his newest pride and joy—and what he considers one of the company's better investments—sits some 30 feet above, embedded in the ceiling.
In the early fall of 2011, Engelman's replaced the approximately 200 metal halide lighting fixtures in its warehouse with an advanced form of "induction" lighting called "Optieo." The lights were developed by Intelligent Energy Optimizers LLC (IEO), a Norcross firm founded in 2006 by Nadav Sivan, an Israeli-born mechanical engineer and inventor. Sivan is IEO's president, CEO, and majority investor.
The lights, which are also found in Engelman's temperature-controlled areas, cost the company about $100,000 for the project design and material installation. Yet it expects to recoup its entire investment by the end of the first quarter of 2013, according to Gur-Lavi.
Gur-Lavi extends his arm in the direction of a forklift driver who steers his vehicle away from a spot on the floor, at which time an energy-saving motion sensor built into the fixture automatically prompts the light above the driver to shut off.
The lighting upgrade "is one of the best things we've done," he said.
Cool factor
Such comments are music to the ears of Sivan, who has been inventing things for more than 30 years. In the case of Optieo, he has developed technology to advance the use of an established commodity, namely the induction light, already considered the most economical and environmentally friendly lighting available in the marketplace.
The result, he says, is an innovative lighting design that provides longer, more efficient, and maintenance-free illumination while emitting less heat and wattage.
IEO said the lights can run 100,000 hours without being changed, providing a facility that operates nearly round-the-clock with 12 years of useful life per bulb. By contrast, today's typical industrial light has a 20,000-hour bulb life, according to IEO.
IEO said on its website that a 24/7 DC operator using 100 400-watt metal halide lights in its facility can save $21,300 a year in lighting, material, and labor costs by switching to the Optieo system. This translates into an 80 percent savings over traditional metal halide lighting for a typical facility operating around-the-clock, according to the company.
Beyond the electricity cost-savings, the longer bulb life means less time and expense involved in stopping operations so a worker can mount a ladder to change, re-ballast, and re-lump a fixture, Sivan said.
The bulb runs at 85 degrees Fahrenheit—much cooler than the 138- to 380-degree temperatures of most industrial lighting, according to the IEO website.
"Spark-free" ignition
In developing the Optieo lighting, Sivan used the basic principle of "magnetic induction," which is the process of using magnetic fields, rather than a spark, to ignite the bulb. He enhanced the quality of the bulbs by using amalgam—a solid-state mercury compound once commonplace in tooth cavity fillings—which, when the bulb is off, accumulates in a small vial attached to the tube, allowing for full regeneration.
Sivan then improved the bulb's internal components in order to create a more efficient illumination, reduce power consumption, and ensure a totally "green" disposal process. He also enhanced the ballasts and simplified the electronics to assure the bulb's longer life span and modified the light's reflectors so the illumination shines directly on the floor and isn't wasted as "glare" inside the bulb. This extends the bulb's life by producing less wattage and creates a more aesthetically pleasing work environment, he said.
"We took the standard induction light and improved it," Sivan said in an interview in his Norcross office.
IEO assembles its products in Norcross and Tampa, Fla., and sells into five continents. In the United States, it gets more bang for its marketing buck in states like New York and California that have high electricity costs compared with other regions. These states also have more attractive tax benefits to encourage companies to invest in energy-efficient equipment and technology.
Currently, Sivan focuses more of his time on manufacturing facilities that operate around the clock or close to it. That's because manufacturers, unlike warehouse operators, are engaged in production and can ill afford to have downtime while workers scurry around to swap out light bulbs.
Sivan also acts as a consultant, performing a detailed analysis of a customer's site and suggesting ways to improve efficiency and sustainability before any physical work is done.
Though IEO is in its sixth year, Optieo didn't hit the market until 2009. Since then, IEO's growth has been rapid. The company's 2011 sales jumped to $2.5 million from $500,000 the year before. As for 2012, sales are on track to hit $5 million by year's end, Sivan projected.
With efficiency and sustainability essentially ruling today's supply chain buying habits and with government incentives providing an ample tailwind, Sivan can't suppress a small smile when he talks about the future for his type of industrial lighting.
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
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.
Two European companies are among the most recent firms to put autonomous last-mile delivery to the test with a project in Bern, Switzerland, that debuted this month.
Swiss transportation and logistics company Planzer has teamed up with fellow Swiss firm Loxo, which develops autonomous driving software solutions, for a two-year pilot project in which a Loxo-equipped, Planzer parcel delivery van will handle last-mile logistics in Bern’s city center.
The project coincides with Swiss regulations on autonomous driving that are expected to take effect next spring.
Referred to as “Planzer–Dynamic Micro-Hub w LOXO,” the project aims to address both sustainability issues and traffic congestion in urban areas.
The delivery vehicle, a Volkswagen ID. Buzz battery-electric minivan, will feature Loxo’s Level 4 Digital Driver navigation software, a highly automated solution that allows driverless operation. The van was retrofitted to include space for two swap boxes for parcel storage.
During the two-year pilot phase, Loxo’s Digital Driver will navigate a commercial vehicle several times a day from Planzer’s railway center to various logistics points in Bern's city center. There, the parcels will be reloaded onto small electric vehicles and delivered to end customers by Planzer’s parcel delivery staff.
Following the completion of the pilot phase, Planzer and Loxo will build on the program for rollout in other Swiss cities, the companies said.
The partners said the project addresses the increasing requirements of urban supply chains and aims to ensure the “scalability of their disruptive solution.” With largely emission-free delivery, it contributes to greater levels of sustainability for the city as a living space, they also said.
“The uniqueness of this project lies in the fact that it will have a direct impact on society,” Planzer’s CEO and Chairman Nils Planzer said in a statement announcing the project. “We didn't just want to integrate automated technology into existing systems, we wanted to develop a completely new concept and a new business model.”
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.