Logistics Matters podcast: May 2020 issue preview: Salary survey, National Forklift Safety Day, and more; consumers OK with longer delivery times; ramping up after lockdown | S1 E4 | 2020-05-01 | DC Velocity
The Logistics Matters podcast: May 2020 issue preview: Salary survey, National Forklift Safety Day, and more; consumers OK with longer delivery times; ramping up after lockdown | Season 1 Episode 4
Contributing Editor Toby Gooley joins us to discuss her recent article on how companies can create a culture of safety around the use of forklifts; new truck and trailer sales are way down; monitoring the food supply chain.
For links and show notes, mouse over the player and click the .
Transcript
David Maloney, Editorial Director, DC Velocity: 0:03 Supply chains continue to shine in the midst of challenging times. New innovations introduced for warehouse picking. And a supply chain that makes the impossible possible. Pull up a chair and join us as the editors of DC Velocity discuss these stories, as well as news and supply chain trends, on this week's Logistics Matters podcast. Hi, I'm Dave Maloney. I'm the editorial director at DC Velocity. Welcome. Logistics Matters is sponsored by Fortna. Fortna partners with the world's leading brands to transform their digital operations to keep pace with digital disruption and growth objectives. Known worldwide as the distribution experts, Fortna designs and delivers intelligent solutions powered by their proprietary software to optimize fast, accurate, and cost-effective order fulfillment. For more information, visit Fortna.com. As usual, Senior News Editor Ben Ames and Senior Editor Victoria Kickham join us to provide their insight into the top stories of this week. Hi, Ben and Victoria. Welcome. Since we're now at the beginning of May, I think it would be good to highlight some of the stories we have coming up in our May issue. Our cover story actually features an interview that I did with Sheetal Shah of Impossible Foods. Now Sheetal is the senior vice president of product and operations, and he directs several mission-critical business units, including the product itself, operations, manufacturing, supply chain, and logistics. So, Impossible Foods, if you're not familiar with, and they make that plant-based food that tastes like and competes with meat. So as a company, they state that their goal is to compete against beef that's made from cows and other animals in the areas of taste, nutrition, sustainability, convenience, and affordability. So the product I think most people are familiar with would be the Impossible Whopper that's found at Burger King restaurants. But they also are found in many other restaurants around the country, supermarkets, and they're rolling out even a greater expansion of that in supermarkets. So what we talked about in the interview was really the supply chain that makes this all happen. They rolled out Impossible beef a couple of years ago. They ended up with some supply chain problems, just not enough capacity for the demand, basically, So they fixed at this time in rolling out a new product called Impossible Pork, which you may see it a supermarket or a restaurant near you. So, the story gets into that, the supply chain behind it, and the partnerships that they're doing with 3PLs and restaurants and and food distributors to make sure their product can get to people. So, encourage you to read that. That's our cover story for May. Ben, you also had some work on the salary survey. Our 17th Annual Salary Survey of people in the supply chain. What did you find out with that?
Ben Ames, Senior News Editor, DC Velocity: 2:52 Right, Dave. We actually take a quick detour, I've actually eaten one of those Impossible Whoppers. I visited a Burger King with a friend a few weeks ago, and we had an Impossible Whopper and standard Whopper side by side, and we split them, and the Impossible one was tasty, I'm here to say.
David Maloney, Editorial Director, DC Velocity: 3:07 Yeah, they are pretty good.
Ben Ames, Senior News Editor, DC Velocity: 3:08 Yeah, absolutely. Looking at salaries, though, it turned out that more than two-thirds of the respondents in our 17th annual survey, as you said, have seen their salaries increase in the last 12 months. And the average salary that we added up in our survey was a little bit over $127,000, which was up from the 2019 level $117,000. So things are going well, in a salary sense. Of course, those are 2019 numbers. And as we're all painfully aware, 2020 has been a year for the record books in terms of disruption with coronavirus. So, time will only tell what the impact is on paychecks. However, many logistics providers have been deemed essential businesses, so a lot of them have kept on working through these very tough conditions. It'll be really interesting to see how that plays out.
David Maloney, Editorial Director, DC Velocity: 4:01 Yeah, it will be. Hopefully things are steady throughout the year, and we bounce back here fairly quickly. Victoria, you had a feature in our May issue on new picking technologies that you observed at Modex. Can you tell us about that?
Victoria Kickham, Senior Editor, DC Velocity: 4:14 Yes, absolutely. So the Modex show, there was, as you know, an abundance of new technologies. Impossible to write about everything in a single story. So what we just had to do was just take a look and highlight a few from companies that may be outside the mainstream radar and just a look at what's out there. So a couple of things we look at is in advance in goods-to-person picking that involves, or integrates, autonomous mobile robots and sort of a modular racking system that was really interesting. A robotic piece-picking solution that incorporates new vision technology and gripping technology, and a pick-by-vision system that's been around for a bit, but is incorporating some new dashboard tools that allow users access to data and analytics to both improve the way they use the system and their overall operations. So everyone's interested in data, data, data these days, so that seems really interesting to us. So that's just a few things that we took a look at
David Maloney, Editorial Director, DC Velocity: 5:09 And as we continue to see how automation is changing the robotics and all the software, of course, behind it, that really drives everything together. Great. Thank you, Victoria. We have a couple of other things we'll just highlight very quickly. We have a private fleet story that's coming up. And again, especially now with the with the coronavirus, people are wanting to secure that transportation, so they're taking even a harder look at private fleets and are copying, sort of taking a page out of Walmart and Amazon's playbook, looking into private fleets and contracting for dedicated operations. If they don't own the fleet, they're at least looking for dedicated service of from a fleet vendor. So take a look at that one in our May transportation report. We also are helping to celebrate the National Forklift Safety Day, which will be coming up in June. So we're highlighting that in our May issue. The event will be June 9th. It will be a virtual event that we'll actually be participating in this year. And so, within that special section, where actually, it's a supplement to DC Velocity in the May issue, we'll have a feature on how to create a safety culture within your facilities. It's among the forklift users who drive the forklifts as well as a pedestrians in your warehouse. So, some very practical steps that you could take to help develop that safety culture. We also have a couple of other articles within that supplement that I think would be worthy of you to take a look at to, that helped promote safety and the message from the Industrial Truck Association that safety is important not just on National Forklift Safety Day, but every day as well. We also have an article on women supply chain professionals who are increasingly making their way up to the highest levels of corporate management. This is a story that ran in our sister publication, Supply Chain Quarterly, and we think it's an important story, so we're also sharing it with our DC Velocity readers as well. So we're looking at how more doors are opening for women in supply chain, a field that has traditionally been a field that's been filled mostly by men. So, great to see that doors are opening for women executives as well. So that story is in, again, our May issue of DC Velocity. Turning to some of the other news and things that are going on, Victoria, you have also looked recently at a survey about consumers are no longer worried about delivery times so much as they were before. Could you tell us a little bit about that survey?
Victoria Kickham, Senior Editor, DC Velocity: 7:33 Yeah, sure, it is interesting. It's from logistics technology firm Convey. They do a lot of research on e-commerce trends. And just last month, or sort of mid- to late April, they surveyed 1,000 consumers and found that most are OK, the majority are OK with the longer delivery times they're experiencing during the Covid-9 pandemic. But the thing they really want is transparency. Seventy percent said they expect transparency and clear communication from retailers--if there's going to be a delay, or how much longer it's going to take to get their products. So that was the, the main point there. So I found that interesting. They also kind of looked at a bunch of other trends that are that are occurring during the current time with Covid-19. And what I found interesting was they did some research on stockpiling, and about, more than 40%--42%--of consumers admitted to stockpiling goods during this time. Mostly food items, paper products, pantry items, those kinds of things. But they also broke it up by age, and I found it interesting that those most likely to hoard are younger people, 18 to 29, admitted to hoarding those items during the, during this crisis. So if you've been to a grocery store and not seen paper towels for a while, you know who's got 'em.
David Maloney, Editorial Director, DC Velocity: 8:47 That is very interesting. I would not have thought that, so good. Interesting statistic there. Thank you. We also want to remind you that every day on DCVelocity.com, we have updates on what's going on with Covid-19 in our coverage, and then we have a lot of good resources there for them. And yesterday, you wrote a story about the how fleets and warehouses are starting to open up, and what it's going to take for those to operate safely. Can you share a little bit about that?
Ben Ames, Senior News Editor, DC Velocity: 9:17 Yeah, sure thing. It was really fascinating to watch this unfold, because everybody is really figuring it out in real time. It's looking increasingly like, without an effective coronavirus vaccine to make us all immune, businesses are going to have to get back into work again at under some sort of conditions, to keep the economy going and to keep our supply chains flowing. And so, there various analysts and technology firms have been offering possible terms for that, what they're calling "the next normal." And it depends, really, on what your place is in the supply chain, but some of the possibilities on the transportation side, vehicles and trucks, could be rising importance of telematics, vehicle routing software, Internet of things sensors, to be able to check where inventory is flowing without being there in person to touch it as we try to do more and more things virtually. And likewise, for warehouse workers, there are a couple options now for making sure that we maintain social distancing, the rules that we've all heard so much about. For instance, there's one company called Triax that has a little device that you can wear on a lanyard on your on your body, or clip it to your hard hat, and then it sounds an alarm if you draw too close to another worker, if it detects that proximity there. So, it's looking like we'll have some options that'll perhaps keep us working safely, moving forward in these coming weeks. Months.
David Maloney, Editorial Director, DC Velocity: 10:52 Yeah, and that's especially important, I think, in warehouses we've got a lot of people interacting with one another, to be able to maintain that social distance, but also get the product out. So you may see, I think maybe more shifts, in a sense, or work being divided among the facilities a little differently so that people are moving around and not being bunched together. So it will be interesting to see. And how warehouse management systems are able to place people, direct work. I think you're going to see a whole cottage industry and a sense of people making updates to be able to assure for some of that, the way products are picked. Very interesting idea, and thank you for bringing us that story. And then we have all kinds of other resources on there. I'm going to talk a moment about our resources page.
Ben Ames, Senior News Editor, DC Velocity: 11:38 We sure do. We've collected all of our coverage on a single Covid-19 landing page. So visitors on our website, DCVelocity.com, with one click, they can find all the coverage. And then, if they want to dig a little bit deeper, we also have a resource hub that now has 76 different links on it, to different industry groups within logistics, different analysts and research firms, vendors, charities, sort of the full array. But our goal with that was to let readers really drill down into the impact of coronavirus on logistics operations specifically, as supposed to sort of the broader public health end of it.
David Maloney, Editorial Director, DC Velocity: 12:20 Great. And there is a tab at the very top of DCCVelocity.com that says Covid-19. You could go and look at that Covid-19 coverage, as well as, if you want to direct link to the resources that Ben just mentioned, it's DCVelocity.com/covid19resources. So go take a look at those, all 76--and we're adding to those every day. Thanks, Ben and Victoria, for sharing the highlights of the news this week and, again, previewing the May issue of DC Velocity, soon to hit your desk. And of course, we'll be posting things online over the next week as well, with those stories. If you'd like more information on any of the stories that we did discuss today on Logistics Matters, be sure to check out DCVelocity.com for more details. And please provide any comments or feedback that you'd like to give us on our new podcast by emailing us at podcast@dcvelocity.com. And a reminder that Logistics Matters is sponsored by Fortna. Fortna partners with the world's largest brands to transform distribution operations into competitive advantage. Expertise includes distribution strategy, DC operations, micro-fulfillment, automation, and intelligence software. Distribution solutions designed today for tomorrow's challenges. Learn more about the distribution experts at Fortna.com. We'll be back again next week with another edition of Logistics Matters. Until then, please stay safe, and we'll see you next week.
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.
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.
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.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!