David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
October is National Disability Employment Awareness Month. It's a time each year when Americans recognize the important work being done by our fellow citizens with disabilities. At Lansing, Mich.-based Peckham Inc., however, that recognition takes place all year long. Peckham is a nonprofit vocational rehabilitation organization that advances employment opportunities for people with disabilities. Its operations include a third-party logistics services unit.
As Tom Minich, Peckham's vice president of logistics, explains, "The talents and skills of employees with disabilities are what fuels and maintains our company's success as an organization." He spoke recently with DCV's editorial director, David Maloney, about the third party's operations, the benefits of hiring the disabled, and how other companies can get started with their own hiring program.
Q: Can you tell us about Peckham and your commitment to providing employment opportunities for people with disabilities?
A: Peckham is a nonprofit vocational rehabilitation organization that specializes in training, employing, and preparing individuals with disabilities and other barriers to employment for workplace success. We believe that people with disabilities deserve the right to work and the right to choose where they work.
Peckham operates five social enterprises—supply chain solutions, business services, environmental services, apparel manufacturing, and Peckham Farms. We choose to work with customers that embrace diversity and community, and believe in the potential of all individuals.
Q: Why did you choose supply chain as one of your company's focused industries?
A: We conduct town hall meetings periodically to ask our work force what they would like to see in the future. Warehousing was one of the lines of business where we could effectively employ people with significant disabilities using technology.
Peckham has six warehouses totaling 1.4 million square feet of space, all in Lansing, Mich. From storage, to contact center, to "pick, pack, and ship," we are a one-stop logistics and fulfillment center.
Q: Who are your customers?
A: We are doing logistics support for the Defense Department, specifically the Defense Logistics Agency (DLA) and the Army.
One of the operations is a repair facility for the Army's Organizational Clothing and Individual Equipment division. Peckham receives, launders, repairs, and stores thousands of items. We also stock more than 8,000 items, primarily clothing, for Navy and Coast Guard service members worldwide. Peckham ships an average of 1,500 orders each day to over 40,000 customers.
Q: Can you talk a little about the diversity found in your work force?
A: Peckham is a very diverse organization. Nearly 80 percent of our 2,500 employees have one or more physical, mental, or emotional disabilities. We are very culturally diverse, with nearly 30 languages being spoken and individuals representing more than 50 different cultures. Our supply chain solutions social enterprise employs more than 250 employees at the six different locations, and more than 97 percent of those workers have one or more disabilities. For example, among the supply chain associates, we have people with psychiatric disorders and emotional impairments, physical disabilities, developmental and learning disabilities, autism spectrum disorders, visual and hearing disabilities, and traumatic brain injuries.
Q: Can you provide some examples of the work that people with disabilities perform in your distribution centers?
A: Currently, 97.5 percent of all direct labor is done by persons with disabilities. These functions include receiving, storing, picking, shipping, repackaging, inspection, washing, drying, repairing, and classifying/reclassifying product. There have also been individuals with disabilities who operate in supervisory roles.
We have experienced amazing results with this work force. There are studies that show that people with disabilities are more reliable, more loyal, and more engaged than other workers, yet this is one of the most untapped resources for talent by employers because of stigma, fear, myths, and misconceptions about cost and training, or plain ignorance.
Peckham has a very high retention rate with this work force, currently 96.5 percent. Our unplanned absence rate is also very low and generally runs between 0.8 and 1.8 percent.
Q: Did you need to adapt your processes to accommodate their disabilities?
A: No. We believe in fitting the job to the employee and individualizing the work experience for every employee whether that person has a disability or not.
There are a few jobs that were carved out, but the cost from the carved-out position was neutral when compared with the savings elsewhere. An example would be wrapping pallets. Peckham has automated stretch wrappers, but a person is still needed to attach the stretch film to the pallet and start the machine. Our forklift drivers were doing this and were having to get off and on their vehicles multiple times an hour, which reduced their productivity.
We hired a visually impaired worker who now operates several stretch wrap machines simultaneously, which added a cost. But once we added that worker, the productivity of the forklift operators almost doubled, making this a cost-neutral or cost-saving initiative overall. Most accommodations can be done in this way, where there is little to no cost but the return on investment is high for all parties.
Q: Do you think concerns about the cost of accommodations keep employers from hiring workers with disabilities?
A: I do, but our experience is just the opposite. There is a myth that all people with disabilities require job accommodations, yet studies show less than a quarter of employees with disabilities need accommodations.
There are many simple accommodations that we make for workers that cost us nothing, such as schedule adjustments. Investing in our workers, providing the resources and support they need, gives us employees who love their jobs and appreciate the opportunity they were given, in turn doing outstanding work and remaining loyal to our organization.
Q: Do you have any concerns for the safety of workers with disabilities?
A: Peckham does not have any unique safety concerns outside of what any other employer has. We monitor incidents just like everyone else. We invest in training our workers well and monitor any shifts in data.
For instance, we have many hearing-impaired forklift operators. We speak with many employers who will not hire hearing-impaired forklift operators, as they cannot hear the backup sirens. We have installed strobe lights on all of our equipment so that in addition to a siren, each truck has flashing lights to alert other employees that a truck is about to enter. I would bet our incident rate is lower than at most other warehouses. It's all in the training.
Q: What must employers do to create an inclusive culture?
A: As employers, we are at an advantage if we shift our thinking from looking at people with disabilities as a burden to thinking about them as a strength for the work force. Disability is just another part of diversity. Every employer should want a more diverse and inclusive environment. We believe that inclusion drives innovation.
Q: What advice would you offer employers looking to get started?
A: Partner with your local vocational rehabilitation organizations to recruit, hire, and retain individuals with disabilities. There are many organizations similar to Peckham that are looking to partner with employers who want to make concerted efforts to hire people with disabilities.
Start small and remember it's a journey. We don't have it all figured out and probably never will; but constantly listening, asking questions, and working toward the goal and mission of treating everyone with respect will yield incredible results.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.