Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
As one of the largest convenience-store distributors in the United States, Wisconsin-based Chambers & Owen stocks about 8,000 items that are individually picked, packed, and shipped to fill weekly orders from its customers throughout the Midwest. The three-shift-per-day operation can't afford a moment's downtime, so when the conveyor system in its fulfillment center was reaching the end of its life a few years ago, company leaders set out to find partners that could deliver a needed upgrade without shutting the system down for a second. Chambers & Owen partnered with systems integrator Modo 8 and conveyor solutions provider TREW Hilmot to get the job done, performing incremental installations of the system daily to keep the 252,000-square-foot Janesville, Wisconsin, facility up and running.
"We started [installing] in January and ended in May [2019], and we never missed a day," reports Mike Sullivan, vice president of operations for Chambers & Owen. "The [fulfillment] process was fully running during this conversion."
The end result: a high-efficiency, low-maintenance system that has improved throughput and reduced fulfillment times, ensuring that local stores are kept fully stocked with candy, coffee, grocery items, snacks, beverages, tobacco products, and more.
CHALLENGING TIMES
Chambers & Owen's primary challenge was that its once state-of-the-art sortation and conveyor system wasn't able to keep pace with the times. Items needed to be picked and packed faster than ever before, but the system was often slowed down by various factors. Packaging is one example. The plastic packaging around a case of water, for instance, would often stick to the sides of the conveying system, especially in humid conditions, causing slowdowns or a backup. Item size is another example. Chambers & Owen wanted a conveyor system that could automatically adjust to items of different sizes and weights, keeping them centered so they wouldn't be pushed to the side and risk getting stuck.
"We have multiple sized boxes and multiple weights," Sullivan says, noting that inventory items can weigh anywhere from one pound to more than 70 pounds. "Conveyor systems have a hard time adjusting to differences in size and weight. [We wanted to know that] no matter what the size or weight of an item, it could be conveyed easily."
As for maintenance, the system's age made replacement parts hard to find. The distributor needed a system that worked faster and smarter, and that would allow on-site employees to diagnose and fix problems quickly. Reliability was key too.
"We wanted a reliable product," Sullivan adds. "Our last system worked well for us [for many years], so we wanted to continue that."
PROBLEMS SOLVED
To solve all of these challenges, Modo 8 designed a system that uses high-efficiency motor-driven roller (MDR) TREW Hilmot conveyor. Features include polyurethane-coated rollers that help keep products from getting stuck. The system also addresses size and weight concerns.
"[The system is] constantly centering products so you can minimize any issue of products getting stuck," Sullivan explains.
The net result is a sortation and conveyor system that has increased throughput, reduced the amount of time it takes to pick and pack orders, and virtually eliminated errors. Products are picked and sent to the loading docks faster than ever, Sullivan says, and operational time has been cut by about an hour per night. In addition, the simplicity of the system, combined with remote diagnostic tools, has made it easier for staff to address any maintenance issues that might arise.
And perhaps best of all, employees have renewed confidence in the system's reliability and efficiency.
"Pickers are able to pick without worrying about the conveyor line backing up," Sullivan adds. "We're seeing nightly shifts done earlier, between 10% and 15%, since we've put the system in."
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 U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
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.