In our continuing series of discussions with top supply-chain company executives, Gregg Schiltz discusses new bar-code technologies and how well-designed labeling programs can drive efficiencies.
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.
Gregg Schiltz is chief operations officer at ID Label, a manufacturer of custom, variable-information bar-code labels, asset tags, and facility signage. He is responsible for day-to-day operations of the company, including manufacturing, sales, marketing, IT, and finance. Schiltz joined ID Label in 2008 as the company’s director of installation services, a division he formed and managed for seven years. He was promoted to general manager in 2015 and COO in 2017.
GREGG SCHILTZ
Q: Where do you see the material handling market heading in 2022?
A: We expect to see the current trends continue: a shortage of available warehouse space, bottlenecks in the supply chain, and increased demand from consumers. These market trends were there pre-Covid, but they’ve been amplified. Consumers are buying more items online, and no one expects that to pull back anytime soon.
For our industry, that means continued demand for space, material handling equipment, software, and bar coding. It demonstrates how integral our industry is to our economy. E-commerce doesn’t work without local storage and last-mile distribution.
Q: Earlier in your career, you worked in operations. How has that experience benefited you now that you work for a supplier?
A: I think it’s been a vital foundation for me. With my prior experience, I know the challenges our customers face and how we can help address them as a custom manufacturer. We have several employees who’ve had experience in warehouse and DC operations. We try to look for that when we recruit and hire. It’s part of how ID Label approaches the market. We train our team to have an empathetic attitude. It helps them listen to customers to understand their needs; then we can design a solution that works for their specific environments.
Q: In what ways can proper labeling create efficiencies within facilities?
A:Bar coding is a key part of a smart warehouse operation. The labels and signs pair with mobile scanning technology, warehouse management software, and a well-planned layout and numbering scheme. Each part is reliant on the others to maximize operational efficiency. At the end of the day, the role of bar coding is to allow data capture within inventory management software. That software needs our labeling products and vice versa. The net result is better inventory management, traceability of parts and finished goods, faster picking and fulfillment, speed, velocity, improved worker movement, and higher productivity—all the above.
It’s a little like the postal system. Every day, they deliver millions of pieces of mail because there is a distribution system in place with individual locations (addresses) so mail can be delivered from point A to B in the most efficient manner.
Q: How are new IT technologies impacting your labeling products and the tracking of inventory in general?
A: New technologies go hand in hand with advances in labeling products. Today’s mobile imagers, for instance, are more sophisticated, which means they can scan from longer ranges at increased scan read rates. That allows manufacturers like ID Label to develop products that take advantage of these capabilities.
Our overhead signs feature retroreflective graphics. These materials enable optimal scan accuracy from long distances—typically 50 feet or more. This is due to the intensity of the light reflecting off the bar code as it’s returned to the mobile scanning device. We also use this material in newer facilities that feature high-bay racking intended to accommodate more units and SKUs. Retro rack-bay labeling on the higher levels accommodates accurate scanning from the ground.
Newer imaging technology can also read two-dimensional bar codes. Unlike typical linear bar codes, 2D bar codes can store thousands of characters of information. That’s because they encode data both vertically and horizontally. They can contain information like product name, serial number, lot number, date of arrival, date to be shipped, and more. A single scan captures all the pertinent information, which is then easily accessible in the facility’s inventory management software.
On the label manufacturing side, newer technology advancements allow us to install in-line verification systems on our presses, so we’re able to monitor bar-code scan quality and read rates in real time as labels are produced. This helps us produce the highest-quality product, which means happy customers.
Q: What is the most popular facility sign that you produce, and how is it being used?
A: The most common sign is a 16- by 11-inch bent PVC sign. These are typically installed above bulk storage areas that contain large, bulky items or pallets of fast-moving products. The signs commonly feature a retroreflective graphic—a bar code and human-readable letters and numbers. Workers in lift trucks can easily drop or pick their load and scan the overhead sign to log it into the WMS without leaving the forklift. That’s just another way bar coding drives efficiency and speed.
Q: What is the one piece of advice you would give to facility managers about their labeling programs?
A: Based on my experience, labeling is typically one of the last items that warehouse managers think of. This can leave them scrambling to find product if there hasn’t been enough time built into their planning. The last thing you want to see is a multimillion-dollar facility miss its go-live date due to lack of location labels.
My advice is to consult with your labeling partner at the start of any project. With today’s supply chain challenges, that’s more important than ever. Hand in hand with that is mapping your facility for efficiency. Signs and labels tell the story of how to navigate a warehouse, and they communicate information to your staff. Most warehouse location IDs consist of four to six fields that reflect the layout and organization of a facility. This nomenclature is a shorthand language to help workers quickly know where products are to be stored or picked. And that logic is also built into the warehouse’s inventory management software.
Beyond that, be sure to use quality products that perform in your environment, whether that’s ambient or cooler/freezer settings. If the location labels are easily damaged, smudged, or peel and fall, the result is lost efficiency and potential errors from manual data entry.
Q: What is the most significant change in labeling you have seen during your time in the industry?
A: We’ve seen materials and adhesives progress dramatically over the past 10 years or so. The industry has moved from using general all-purpose adhesives and paper face sheets for everything. The focus now is on designing custom solutions for specific applications and environments featuring more durable poly materials and advanced adhesives. Bar-code labeling today needs to perform in extreme cold and heat, in outdoor settings with extended exposure to ultraviolet rays, in challenging manufacturing environments—you name it.
For instance, with the growing demand for cold storage facilities, labeling has had to adapt. We developed Arctic Xtreme cold storage labels to meet this demand. They perform extremely well in cold, wet, and subzero conditions—down to -65F. And they can be installed in temperatures as low as -20F.
Repositionable labels are another advancement. Our Clean Release labels adhere tightly to warehouse racking and shelving but are easily removable and reusable without any adhesive residue left behind. This supports our customers’ need for greater flexibility in slotting and reconfiguring their locations to meet seasonal demands or needs arising from facility expansion.
As our customers’ needs change, we’ll be there with innovative bar-coding solutions. That’s the advantage of being a custom manufacturer. There’s no “one size fits all” in our world.
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.