To ease a warehousing space crunch, distributor Werner Electric tapped Steel King to design an extra-tall storage system for its oversized products. High-rise cantilever racking was a perfect fit.
Diane Rand is Associate Editor and has several years of magazine editing and production experience. She previously worked as a production editor for Logistics Management and Supply Chain Management Review. She joined the editorial staff in 2015. She is responsible for managing digital, editorial, and production projects for DC Velocity and its sister magazine, Supply Chain Quarterly.
As you might imagine, storing oversized and oddly shaped products can cause a bit of a warehousing space crunch for any retailer. It was even more of a challenge for Werner Electric Supply, an Appleton, Wisconsin-based distributor of electrical, lighting, datacomm, and automation supplies. That’s because the company stores large quantities of electrical conduit and strut channels (structural supports for wiring, plumbing, or mechanical components), which tend to be unusually long and unwieldy. So when the company doubled its DC footprint to 200,000 square feet in 2016, finding a racking solution for these oversized products was critical.
For help with the project, Werner Electric turned to its long-time partner Steel King Industries. The Stevens Point, Wisconsin-based company, which specializes in storage rack systems, agreed to develop a custom solution for its client. “To [enable us to] store the amount of conduit required to support our customers’ needs, Steel King was willing to customize and build a [racking system] that was tall and allowed us to efficiently use the space in our building without having to increase the footprint,” said Lloyd Fabry, Werner Electric Supply’s regional distribution center manager, in a release.
HEIGHT PLUS MIGHT
After a consultation, the two companies agreed that a cantilever racking system would best meet Werner Electric’s needs. A cantilever rack is made up of a series of single columns with outstretched arms and durable bases that create a shelving structure that’s suitable for storing unwieldy materials that cannot be handled on pallets. Further, with this type of racking, there are no vertical posts on the front to obstruct access to the stored items, making it easier to load and unload the products with a forklift.
Since Werner Electric’s warehouse is 45 feet tall, the project required the construction and installation of an extra-large custom cantilever rack. Steel King’s engineers got to work and developed a racking system that was 35 feet tall with 25 arm levels for storing the conduit and strut. Constructed of structural steel, the heavy-duty I-beam cantilever rack features a heavy arm connector plate and bolted column-to-base connections to provide strength and reliability.
The I-beam rack offered other advantages as well. For instance, it’s configured to allow access from both sides of the structure, which saves horizontal space that is normally lost to rack structure, reduces fork truck damage, and allows for swifter loading and unloading, according to the manufacturer. In this case, Steel King designed the structure with freestanding heights of over 30 feet, eight-foot arm lengths, and arms that can adjust vertically in four-inch increments to provide Werner Electric with ample storage options.
In the interest of safety, Steel King added removable pipe stops to the rack arms. Scannable bar codes were also placed on the rack near each stored item, allowing for an immediate inventory update whenever high-reach lift drivers add or remove conduit or strut from the rack.
A PERFECT FIT
Once the components were manufactured, the 9,000-square-foot storage system was shipped to the facility in several pieces, which were then welded together on-site by a specialized installation crew. In total, it took about two weeks to build and install the 30 storage bays of 35-foot high cantilever rack. Werner Electric says it was able to keep its distribution operation running smoothly throughout the process.
As for the results, Werner Electric says it’s more than satisfied with the solution Steel King delivered. “I’ve been working with Steel King for over 25 years. The quality of their product, the dedication of their team, and their ingenuity help develop solutions that make racking more than just a place to store product,” Fabry said in the statement.
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Freight transportation sector analysts with US Bank say they expect change on the horizon in that market for 2025, due to possible tariffs imposed by a new White House administration, the return of East and Gulf coast port strikes, and expanding freight fraud.
“All three of these merit scrutiny, and that is our promise as we roll into the new year,” the company said in a statement today.
First, US Bank said a new administration will occupy the White House and will control the House and Senate for the first time since 2016. With an announced mandate on tariffs, taxes and trade from his electoral victory, President-Elect Trump’s anticipated actions are almost certain to impact the supply chain, the bank said.
Second, a strike by longshoreman at East Coast and Gulf ports was suspended in October, but the can was only kicked until mid-January. Shipper alarm bells are already ringing, and with peak season in full swing, the West coast ports are roaring, having absorbed containers bound for the East. However, that status may not be sustainable in the event of a prolonged strike in January, US Bank said.
And third, analyst are tracking the proliferation of freight fraud, and its reverberations across the supply chain. No longer the realm of petty criminals, freight fraudsters have become increasingly sophisticated, and the financial toll of their activities in the loss of goods, and data, is expected to be in the billions, the bank estimates.
The move delivers on its August announcement of a fleet renewal plan that will allow the company to proceed on its path to decarbonization, according to a statement from Anda Cristescu, Head of Chartering & Newbuilding at Maersk.
The first vessels will be delivered in 2028, and the last delivery will take place in 2030, enabling a total capacity to haul 300,000 twenty foot equivalent units (TEU) using lower emissions fuel. The new vessels will be built in sizes from 9,000 to 17,000 TEU each, allowing them to fill various roles and functions within the company’s future network.
In the meantime, the company will also proceed with its plan to charter a range of methanol and liquified gas dual-fuel vessels totaling 500,000 TEU capacity, replacing existing capacity. Maersk has now finalized these charter contracts across several tonnage providers, the company said.
The shipyards now contracted to build the vessels are: Yangzijiang Shipbuilding and New Times Shipbuilding—both in China—and Hanwha Ocean in South Korea.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”