Read all about it! HK Systems has completed an expansion of the material handling systems used at the Denver Newspaper Agency. The solution includes an integrated two-aisle automated storage and retrieval system and material tracking and control (MTC) system. The MTC system manages the pallet movement of all newspaper inserts and integrates with the production planning systems to provide real-time system-directed labor task management. It also tracks material flow from receiving through distribution.
Fresh approach. Mastronardi Produce of Kingsville, Ontario, has selected RIMS Produce, a warehouse management system from Robocom Systems designed specifically for produce operations. Mastronardi, known for its gourmet vegetables, will implement the software solutions at its refrigerated warehouses in Kingsville and Romulus, Mich.
The revolution begins. Hydrogenics Corp. has signed its first distributor for the company's HyPX Fuel Cell Power Pack product for lift trucks. Under the agreement, LiftOne will market, sell and service the fuel cells to customers in Virginia, North Carolina and South Carolina.
Right on Target. Swisslog has announced two major deals. In the first, the company has formalized an agreement to design a new distribution center for Target Corp. The contract also calls for Swisslog to design and implement the material handling systems within the new facility. In the second agreement, Australian-based Coca-Cola Amatil has commissioned Swisslog to be the prime contractor for planning an automated bulk distribution center near its headquarters in Sydney. The new warehouse is scheduled to open in mid-2008.
Cool deal. Preferred Freezer Services, a chain of full-service public refrigerated warehouses, has ordered Condor automated storage and retrieval systems from FKI Logistex for six new facilities it plans to build this year. The Condor is a high-bay, very narrow aisle system that uses a hybrid crane to store and retrieve pallets. With the new contract, Preferred Freezer Services will have more than 100 Condor cranes in operation at its warehouses throughout the United States.
Making a Smart move. Jabil Circuit, a global electronics company, has selected SmartOps Multistage Inventory Planning & Optimization software to help manage its supply chain. The software provides a scalable automated system for setting optimal inventory levels and will tie into Jabil's existing enterprise systems.
Forward ho. Five European freight forwarders have created a Web pOréal for their customers, many of whom are in the chemical industry. The new pOréal, which is named EURTEAM, uses the INTTRA e-commerce platform to standardize its electronic booking, shipping instructions, bills of lading, and track and trace information. The five companies participating in the venture are Asta Logistik Grupo (Spain), Daher (France), Leschaco (Germany), The Warrant Group (U.K.) and U. Del Corona Scardigli (Italy).
Go fetch. Staples, the well-known office supply retailer, plans to use the Kiva Mobile Fulfillment System at a new facility it's building in Denver. Staples currently uses the Kiva System, which uses robots to move racks holding products, within its Pennsylvania DC. In Denver, Staples will deploy both the Kiva ItemFetch split-case picking system and the OrderFetch shipping sorter solution.
Pool time. Michelina, a food-processing company that makes ready-to-heat frozen entrees and snacks, is moving to the CHEP pallet pool program for its distribution. The company will use CHEP pallets to ship products from Michelina's Jackson, Ohio, production facility to retailers, wholesale clubs, supermarkets and drugstores.
Bringing some culture to the area. Fage USA Dairy Industry, a Greek dairy company, is building its first U.S. based yogurt manufacturing facility in Johnstown, N.Y. For the warehouse part of the facility, the company is purchasing an automated storage and retrieval system from Westfalia Technologies. The system will store more than 1,600 pallets in a 38 degree Fahrenheit environment.
Suitable arrangement. Ann Taylor has purchased RedPrairie's BlueCube Enterprise Workforce Management Suite to manage labor and workflow in its stores. The women's apparel retailer will use a number of the solution's components, including forecasting, optimized scheduling and business process workflows, as well as the system's dashboard, metric reporting and analysis tools.
Perish the thought. Provide Commerce, an online retailer specializing in such perishable goods as flowers, fruit, sweets and premium meats, has chosen the HighJump Supply Chain Advantage suite to help manage its operations. The company will use the warehouse management system and other solutions in the suite to help meet the demands of its rapidly growing business.
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."