Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
High-end warehouse automation equipment supplier Swisslog announced today that it acquired the system integrator Forte Industries, a move that enables the Swiss firm to expand its presence in e-commerce fulfillment and the midrange material handling segment of the U.S. market.
Forte will continue to operate out of its Mason, Ohio, headquarters as a standalone unit and will maintain its own name. Terms of the deal were not disclosed.
The biggest immediate impact of the deal will be the departure of company founder Gene Forte, 65, who created the company 35 years ago and stepped down as CEO on Monday to assist with the transition in an advisory role, said Tom Rentschler, vice president of sales and marketing for Forte.
Forte has been replaced by A.K. Schultz, a 15-year industry veteran of engineering and automated material handling positions who had previously served as vice president of customer service in Swisslog's North American headquarters in Newport News, Va.
"I am enormously proud that a global systems integrator with the stellar reputation of Swisslog sees Forte as such a valuable addition to their team," Gene Forte said in a release.
Aside from the change in leadership, the merger is not expected to lead to staff cuts; in fact Forte expects to maintain its full staff and even continue its trend of recent hiring, Rentschler said.
Swisslog's decision was driven in part by the rapid expansion of the e-commerce market, which has boosted demand for piece-picking equipment in warehouses to fulfill the growing number of small orders sent to individual customers, said Bill Leber, Swisslog's director of business development and marketing.
Swisslog sells advanced automation systems such as AS/RS products in the global, top-tier market sector. By acquiring Forte, it gains a valuable presence in the semi-automated systems used by many midtier warehouses to ship smaller orders and meet the demands of omnichannel distribution, Leber said.
"E-commerce affects all the piece-picking operations and drives more business to the space of a distribution center," Leber said. "A lot of the physical purchasing that used to happen in stores now takes place in the DC."
By adding Forte's expertise in midtier material handling systems such as pick modules, conveyors, and sortation systems, the combined company will be able to meet increased demand for goods-to-person capabilities.
The move represents continued growth for Swisslog, which itself was acquired in 2014 by the German robotics firm KUKA for $356 million and has since kept expanding. The company's Warehouse & Distribution Solutions (WDS) division has increased the number of North American employees by 25 percent over the past two years, to nearly 190 people.
Swisslog has boosted its hiring to meet steep growth in its pharmaceutical, refrigerated, and frozen-food lines, as well as e-commerce, Leber said.
Changes in the healthcare industry have put similar pressures on warehouse operations. Hospitals are focused on driving down costs, shipping more unique SKUs, and demanding just-in-time delivery to minimize inventory bloat.
It all adds up to warehouses getting a greater number of orders with less material per line—a bad fit for Swisslog's powerful automated equipment. By working with Forte's midrange piece-picking ability, the two companies hope to build a stable of expertise in warehouse equipment to meet the new demands of the omnichannel economy.
That progression would mark the achievement of a long-term goal for company founder Forte.
"This was the culmination of Gene's career," said Forte's Rentschler. "He was interested in finding a strategic acquirer, not just a financial acquirer. He wanted to see what he built to be not only perpetuated, but to be positioned to continue to grow."
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
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.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.