Labor department launches program aimed at reducing and preventing workplace hazards in warehouses, distribution centers, and similar facilities in response to industry growth over the past 10 years.
The federal government has launched a safety effort aimed at reducing and preventing workplace hazards in warehouses and distribution centers (DCs), largely in response to the proliferation of those facilities nationwide in the past 10 years.
The “national emphasis program” will be run by the Department of Labor’s Occupational Safety and Health Administration (OSHA) and will also target mail and parcel processing facilities, as well as local delivery and so-called “high-risk” retail establishments.
In making the announcement Thursday, the labor department said there are more than 1.9 million people employed in warehousing and distribution, and cited Bureau of Labor Statistics data that show higher than average rates of injury and illness in the industry. In some segments of the industry, those rates are more than twice the rate of incidents in private industry overall, according to BLS data.
Under the three-year program, OSHA will conduct safety inspections focused on hazards related to powered industrial vehicle operations, material handling and storage, walking and working surfaces, means of egress, and fire protection. The program will also include inspections of retail establishments with high injury rates, with a focus on storage and loading areas. DOL said OSHA may expand an inspection’s scope when evidence shows that violations may exist in other areas of the establishment.
The department added that OSHA will assess heat and ergonomic hazards as well, and that health inspections may be conducted if OSHA determines those hazards are present.
Inspected establishments will be chosen from two lists: One includes establishments with industry codes covered under the emphasis program; the second consists of a limited number of retail establishments with the highest rates of injuries and illnesses resulting in days away, restricted duty, or job transfer.
State plans are required to adopt the emphasis program or establish a different program at least as effective as the federal model, DOL said.
New York-based Reflex says its robot is an out-of-the-box solution that reaches operational capability within 60 minutes of deployment and ramps to become fully autonomous by learning from human demonstrations over time. The multi-purpose humanoid can transition seamlessly between repetitive tasks, from product picking to tote transfers between other kinds of automation.
Greenwich, Connecticut-based GXO will control the tests through its “operational incubator” program, which partners closely with developers to validate practical use cases using the warehouse as a real-world laboratory.
Specific to this case, GXO says it is currently co-developing an array of use cases across process paths through the pilot in an omni-channel fulfillment operation for a Fortune 100 retailer.
And the long-term objective of the agreement with Reflex is to deploy the Reflex Robot widely across GXO’s operations, easing capacity constraints and enabling GXO’s team members to take on more fulfilling roles.
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."