Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
The mega-retailer Amazon.com has been cited by federal inspectors for failing to properly record some work-related injuries and illnesses at six separate warehouse facilities, the U.S. Department of Labor said today.
The charges are part of ongoing investigations in five states, including Colorado, Florida, Idaho, Illinois, and New York, according to the Labor Department’s Occupational Safety and Health Administration (OSHA).
Investigators launched a series of inspections in July, following referrals from the U.S. Attorney’s Office for the Southern District of New York. To date, they have discovered violations at sites in: Deltona, Florida; Waukegan, Illinois; New Windsor, New York; Aurora, Colorado; Nampa, Idaho; and Castleton, New York.
Specifically, OSHA issued Amazon citations for 14 record-keeping violations, including failing to record some injuries and illnesses, misclassifying some injuries and illnesses, not recording some injuries and illnesses within the required time, and not providing OSHA with some timely injury and illness records.
“Solving health and safety problems in the workplace requires injury and illness records to be accurate and transparent,” Assistant Secretary for Occupational Safety and Health Doug Parker said in a release. “Our concern is that nothing will be done to keep an injury from recurring if it isn’t even recorded in the logbook which – in a company the size of Amazon – could have significant consequences for a large number of workers.”
In reply, Amazon acknowledged that it might have made some administrative errors, but noted that OSHA itself had categorized each of the charges as “other than serious.”
“The safety of our employees is our top priority, and we invest hundreds of millions of dollars every year into ensuring we have a robust safety program to protect them. Accurate recordkeeping is a critical element of that program and while we acknowledge there might have been a small number of administrative errors over the years, we are confident in the numbers we’ve reported to the government,” Kelly Nantel, an Amazon spokesperson, said in an email. “We are reviewing OSHA’s allegations and are pleased that OSHA acknowledged that all of the alleged violations are ‘other than serious’ and involve minor infractions.”
However, the findings may give more leverage to labor groups, who have argued for years that Amazon employees suffer injuries at greater rates than the industry average, saying the company pushes its workers too hard to fulfill orders in its automated warehouses. Those same concerns helped motivate Amazon workers in April to create the first union of company workers, in a vote at a fulfilment center on Staten Island, New York. The Amazon Labor Union says its demands include “better pay, better benefits, and better working conditions.”
Editor's note: This story was revised on December 16 to include Amazon’s response.
Dexory’s robotic platform cruises warehouse aisles while scanning and counting the items stored inside, using a combination of autonomous mobile robots (AMRs), a tall mast equipped with sensors, and artificial intelligence (AI).
Along with the opening of the office, Dexory also announced that tech executive Kristen Shannon has joined the Company’s executive team to become Chief Operating Officer (COO), and will work out of Dexory’s main HQ in the United Kingdom.
“Businesses across the globe are looking at extracting more insights from their warehousing operations and this is where Dexory can rapidly help businesses unlock actionable data insights from the warehouse that help boost efficiencies across the board,” Andrei Danescu, CEO and Co-Founder of Dexory, said in a release. “After entering the US market, we’re excited to open new offices in Nashville and appoint Kristen to accelerate our scale, drive new levels of efficiency and reimagine supply chain operations.”
Atlanta-based MyCarrierPortal, a provider of carrier onboarding and risk monitoring solutions for the trucking industry, is formally known as Assure Assist Inc.
The firm says its solutions help freight brokers and shippers quickly set up carrier requirements through an onboarding platform that gathers information on carriers and screens them for suitability to deliver loads/shipments based on the broker’s risk and compliance criteria. For example, truck carriers are screened for legitimacy, insurance compliance, and an acceptable safety record. Carriers that are onboarded to the platform are monitored on an ongoing basis to help ensure continued compliance. And if a carrier falls out of compliance, the customer is notified to take appropriate action with that carrier.
“Carrier fraud and cargo theft is an ongoing problem in the transportation industry. This acquisition is another investment to help enable improved Know-Your-Carrier (KYC) capabilities that are critical to improve supply chain performance and fraud reduction,” Dan Cicerchi, General Manager of Transportation Management at Descartes, said in a release. “We actively connect with hundreds of thousands of carriers and thousands of brokers and shippers. Many of these participants have expressed their desire for us to further extend our investments in fraud prevention. The combination of MCP and our Descartes MacroPoint FraudGuard tool presents a differentiated solution for our customers to efficiently onboard carriers while enhancing visibility and compliance, and reducing fraud risk.”
The deal will create a combination of two labor management system providers, delivering visibility into network performance, labor productivity, and profitability management at every level of a company’s operations, from the warehouse floor to the executive suite, Bellevue, Washington-based Easy Metrics said.
Terms of the deal were not disclosed, but Easy Metrics is backed by Nexa Equity, a San Francisco-based private equity firm. The combined company will serve over 550 facilities and provide its users with advanced strategic insights, such as facility benchmarking, forecasting, and cost-to-serve analysis by customer and process.
And more features are on the way. According to the firms, customers of both Easy Metrics and TZA will soon benefit from accelerated investments in product innovation. New functionalities set to roll out in 2025 and beyond will include advanced tools for managing customer profitability and AI-driven features to enhance operational decision-making, they said.
As retailers seek to cut the climbing costs of handling product returns, many are discovering that U.S. consumers shrink their spending when confronted with tighter returns policies, according to a report from Blue Yonder.
That finding comes from Scottsdale, Arizona-based Blue Yonder’s “2024 Consumer Retail Returns Survey,” a third-party study which collected responses from 1,000+ U.S. consumers in July.
The results show that 91% of those surveyed acknowledge that a lenient returns policy influences their buying decisions. Among them, Gen Z and Millennial purchasing decisions were most impacted, with 3 in 4 consumers stating that tighter returns policies deterred them from making purchases.
Of consumers who are aware of stricter returns policies, 69% state that tighter returns policies are deterring them from making purchases, which is up significantly from 59% in 2023. When asked about the tighter returns policies, 51% of survey respondents felt restrictions on returns are either inconvenient or unfair, versus just 37% saying they were fair and understandable.
“We're seeing that tighter returns policies are starting to deter consumers from making purchases, particularly among the Gen Z and Millennial generations," Tim Robinson, corporate vice president, Returns, Blue Yonder, said in a release. "Retailers have long acknowledged that they needed to tackle returns to reduce costs – the challenge now is to strike a balance between protecting their margins and maintaining a customer-friendly returns experience."
Retails have been rolling out the tighter policies because the returns process is so costly. In fact, many stores are now telling consumers to keep unwanted items to avoid the expensive and labor-intensive processes associated with shipping, sorting, and handling the goods. Almost three out of four consumers surveyed (72%) have been given this direction by a retailer.
Still, consumers say they need the opportunity to return their purchases. Consistent with last year’s survey, 75% of respondents cite the most common reason for returns is incorrect sizing. Other reasons cited by respondents include item damage at 68%, followed by changing one's mind or disliking the item (49%), and receiving the wrong product (47%).
One way retailers can meet that persistent demand is by deploying third-party returns services—such as a drop-off location or mailing service—the Blue Yonder survey showed. When asked what factors would make them use a third-party returns service, 62% of consumers said lower or no shipping fees, 60% cited the convenience of drop-off locations, 47% said faster refund processing, 39% cited assurance of hassle-free returns, and 38% said reliable tracking and confirmation of returned items.
“Where the goal is to mitigate the cost of returns, retailers should be looking for ways to do more than tightening their policies to reduce returns rates,” said Robinson. “Gathering data and automating intelligent decision-making for every return will bring costs down through more efficient transportation and reduced waste without impacting the customer experience. That data is also incredibly valuable to reduce returns rates, helping retailers to see the patterns of which items are returned, by which customer segments, and why; and to act accordingly.”
Based on a survey of 200 TIA members representing the diversity of the industry, 98% of respondents identified truckload as their most vulnerable mode. And those thieves are in search of three most commonly stolen goods—electronics, solar panels, and household goods—due to their high value and ease of resale.
Criminals commit those crimes through a variety of methods. The survey highlighted eight fraud types, including spoofing, unlawful brokerage scams, fictitious pickups, phishing, identity theft, email/virus, inbound phone calls, and text messages.
Stopping those thefts demands extra work from companies in the sector, as nearly 1 in 5 respondents indicated that they spend an entire day each quarter on fraud prevention, while 16% reported spending more than 4 hours a day, and 34% said they dedicate more than 2 hours a day to these efforts. This considerable time investment in monitoring, verifying, and responding to fraudulent activities diverts attention from other essential business operations, affecting overall productivity and increasing operational costs, TIA said.
In response, Alexandria, Virginia-based TIA also examined the critical steps the industry must take to protect itself from fraud schemes. "We are an industry under siege right now and we are not getting the support from government and law enforcement authorities to help us combat this scourge on the supply chain," Anne Reinke, president & CEO of TIA, said in a release. "When people think of fraud in the supply chain, they only see what is happening to a business, they are not seeing the trickle-down effect to consumers and economy. Fraud is a multimillion-dollar problem that needs to be addressed today."