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.
When it's time to charge up their forklifts at the end of a shift, most drivers either line up at a battery-changing room or head for a fastcharging station. But not the drivers at East Penn Manufacturing Co.'s Topton, Pa., distribution facility. There, lift-truck operators maneuver their vehicles into a small drive-in refueling room attached to the building. Once inside, the driver dismounts and closes the door. He removes a hose from a wallmounted dispenser, inserts it into the tank onboard the lift truck, and turns a dial on the dispenser. In less than one minute, the tank is filled and the truck is ready for another full shift, using power supplied by hydrogen fuel cells.
While the rest of the world awaits the day when hydrogen-powered cars speed silently along the nation's highways, a revolution is already quietly under way in North America's DCs. For several years now, fuel cell-powered lift trucks have been gliding around manufacturing and distribution facilities run by some of the world's best-known companies. Wal-Mart has conducted fuel cell forklift trials, as have Raymond Corp. and East Penn. At least one tester, GM Canada, is about to embark on its second pilot.
Industrial edge
Although they're still considered an experimental technology, hydrogen fuel cells are not really new. "It's a technology that's been around since 1839," says Bruce Townson, director of business development for Hydrogenics, a Canadian-based developer of fuel cells. "Not much was done with the technology, however, until the Apollo space missions. Then in the late 1980s and early 1990s, developers began looking at it for powering vehicles."
At first, developers set their sights on the markets with the biggest potential payoff: cars and trucks. But as difficulties emerged with establishing a fueling-station infrastructure, many shifted their attention to industrial markets. Compared to the automobile market, the industrial truck sector has at least one overwhelming advantage: It doesn't require a network of public fueling stations. Lift trucks typically operate within the confines of a DC, which enables easy and centralized refueling.
harnessing hydrogen's power
How do you use hydrogen to power a lift truck? One way is to place a fuel cell power pack where a battery would normally fit and connect it to the truck using the same terminals a battery would use. The power pack consists of a tank to store the hydrogen once it's dispensed into the vehicle, a stack of fuel cells to create electricity, and a power storage device, such as a battery. The fuel tank holds about 1.8 kilograms of hydrogen, which is enough to power the truck throughout a shift.
The fuel cell stack consists of layered combinations of bipolar plates and membrane electrode assemblies coated with a catalyst such as platinum. The stacks allow hydrogen to combine with oxygen from the air to create a chemical reaction, splitting the electrons and protons of the hydrogen. In simple terms, the result of the chemical reaction is an approximately 50/50 release of energy and heat. The energy is converted to electricity to power the vehicle. Additional energy is stored in a small battery that provides power when needed for peak loads and captures regenerative power from braking. The heat is dispersed using a cooling fan.
A single cell can only produce about 0.7 volts of electricity, which means it takes a significant number of cells stacked end to end (as with flashlight batteries) to power a conventional 36- or 48-volt lift truck. The size of the stack varies according to the truck's voltage requirements.
Developers have found a receptive audience among lift-truck users. Part of the appeal, of course, is fuel cells' reputation for cleanliness (the only byproducts are water and heat). But fuel cells also hold other attractions for lift-truck users—consistent power delivery, shorter fueling times, and reduced maintenance, among them.
East Penn was one of the companies eager to start testing the technology. It might seem odd that East Penn, which manufactures the well-known Deka brand battery along with a variety of battery accessories, would be among those in the forefront of fuel cell testing. But the company doesn't view hydrogen as a threat to its business. "We want customers to be able to pick the right solution out of our bag," says Jim Rubright, East Penn's vice president of motive power sales. "We don't see hydrogen replacing battery use in facilities as much as we see it complementing them."
East Penn began experimenting with hydrogen about a year ago. In conjunction with its partner, Nuvera, a Cambridge, Mass.-based fuel cell manufacturer, the company outfitted 10 lift trucks at the Topton facility with hydrogen fuel cells. The company also installed a storage tank and compressor outside the building, and built a small drive-in refueling room attached to a door of the DC to house the dispenser unit. The decision to locate the dispenser in a separate room that's merely attached to the main building allowed East Penn to get the system up and running quickly and meet fire code requirements.
Rubright says East Penn's experiments have yielded impressive results. To begin with, the fuel cells have led to significant reductions in refueling times. Replacing the hydrogen takes less than a minute, while the entire process of moving into and out of the dispensing area takes less than five minutes. The DC is saving on space as well. "The space needed for the actual dispensing unit is about 2 percent of that required for a changing room," he reports.
On top of that, there are the benefits of consistent power delivery, which drivers consider a big plus. "Our operators have also been pleased, as they do not experience the voltage lag that batteries have when they begin to wear down," says Rubright.
Take two!
Testers at GM Canada's plant in Oshawa, Ontario, have reported similar results. GM Canada began experimenting with hydrogen fuel cells in 2004, when it placed hydrogen units into two lift trucks at the Oshawa plant, where Chevrolets, Buicks, and Pontiacs are assembled. Workers at the facility immediately noticed that with fuel cells, there was no drop-off in power, reports Brad Cochrane, GM Canada's facilities area manager. "It really takes variation out of the system. We achieved consistent productivity throughout the workday."
The success of that test has led GM to conduct an even larger trial, which is set to begin during the third quarter of this year. In the upcoming test, which will also be conducted at the Oshawa plant, GM will use hydrogen fuel cells from Hydrogenics to power 19 Hyster counterbalanced lift trucks that are used to deliver incoming parts to assembly stations. While GM produced and stored the hydrogen needed for its first trial on site, company officials say GM has yet to work out the details for the testing's second phase.
GM hopes to use what it learns from the upcoming trial in its ongoing research into ways to use hydrogen to power the passenger cars produced at the plant. "In general, GM as a company wants to explore all of the green technologies available," says Cochrane. "This project is just one piece of the knowledge base that will be needed for hydrogen fuel cells to break through as a mainstream energy technology."
Labor-saving device?
Certainly, hydrogen's reputation as a "green" alternative will be one of its biggest selling points. Hydrogen burns much cleaner than internal combustion systems, making it an attractive option for companies seeking to cultivate an ecofriendly image.
But there's no denying that the other kind of green—the greenbacks companies invest in their vehicles—will play a role in their decisions as well. "There are environmental benefits to hydrogen fuel cells, but it clearly will come down to what makes economic sense," notes Steve Medwin, manager of advanced research for lift-truck manufacturer Raymond Corp.
When it comes to hydrogen, cost can be a showstopper. Although the cost of outfitting a vehicle with a fuel cell power pack is about half what it was two years ago, it still comes to about $40,000 per truck, or about 10 times the price of a conventional lead acid battery. On top of that, there's the expense of equipping a building with a hydrogen storage tank, compressor, and dispensing system, which together total another $100,000 or more.
Although the technology may never be affordable for one- and two-shift operations, fuel-cell proponents argue that high-volume facilities—like the Oshawa plant, which operates 24 hours a day, five days a week—can expect to save money. "The busier the warehouse, the more likely the economic profile for hydrogen fits," says Rubright of East Penn."Hydrogen equipment is not cheaper, but the benefits come in productivity and saving labor."
Medwin of Raymond agrees. "The way you justify hydrogen is on productivity," he says.Medwin explains that since a hydrogen cell can be refueled in less than five minutes, it saves a great deal of time compared to battery changing. "Twenty minutes per shift per vehicle to exchange a battery is a lot of lost productivity," he says. "They are not moving goods while they are changing batteries."
Do the math
But others say the economics just aren't there right now. "Any customer looking to improve operations and productivity needs to do the math," cautions Steven Gitlin, director of marketing strategy for AeroVironment, the maker of PosiCharge battery charging systems and other power technologies. "Given the nature of the costs and alternatives available, there are more beneficial solutions already out there."
Gitlin explains that aside from the costs of the fuel cell packages and infrastructure, there are basic limitations on how inexpensively hydrogen fuel can be created and a system operated. When you add up all the expenses, it currently costs four to five times more to operate a hydrogen system in a vehicle than it does to recharge lead acid batteries in the same vehicle, he says. Eventually, that may drop to about half, but the costs will still be considerable, he adds. "Your hydrogen bill will still be about 2.5 times more than your electric bill. Two-and-a-half times is just a fundamental limitation of fuel cells based on how practical you can make those conversions."
"It will be hard to switch from what works today," adds Cesar Jiminez of Toyota Lift Trucks. "It is definitely difficult to justify the investment costs. Just the infrastructure costs alone are astronomical."
Yet those costs haven't stopped Toyota—or Raymond, for that matter—from developing experimental trucks using hydrogen. In fact, both foresee a day when lift trucks will be built around a hydrogen power system, in contrast to the current hybrid system, which simply replaces a battery with a hydrogen fuel pack.
Many observers also believe that costs will drop as the technology advances and adoption becomes more widespread. Think of it this way, says East Penn's Rubright: "What did you pay for your last VCR as opposed to your first?"
hydrogen inside!
Hydrogen may be the most common element in the universe, but fuel cell users still need to find a way to "harvest" that hydrogen and store it.
Right now, companies have two choices for obtaining hydrogen: They can contract with a commercial supplier or they can manufacture their own on site. For most companies, the decision is dictated by economics—the local cost of the natural gas and/or electricity required to manufacture hydrogen vs. the cost of having it delivered from the nearest production plant. Hydrogen typically runs about $10 to $12 per kilogram, though some high-volume purchasers may be able to find hydrogen for as little as $5 per kilogram.
Commercial suppliers deliver hydrogen in one of two ways. They either bring it in via tanker truck and transfer it to an on-site storage tank, or they deliver a tube trailer consisting of several long tubes filled with hydrogen in gaseous form. In the latter case, the driver simply unhooks the tube trailer from the tractor and leaves it at the customer's site, where it can be connected directly to the facility's system. When the trailer is empty, the supplier delivers another full tube trailer and takes back the empty unit.
Companies that decide to make their own hydrogen will need conversion equipment that operates on either natural gas or electricity. The converter removes hydrogen from the air for processing in a gaseous form.
Whether it's made on site or delivered, the hydrogen must be compressed to 5,000 to 7,000 pounds per square inch before it can be used. The fuel passes through a compressor that assures that the gas can be dispensed into the tank properly while occupying as little cubic volume as possible once delivered to the vehicle.
Most facilities use a small storage tank to hold the compressed hydrogen. The dispensing station then draws the hydrogen directly from the tank. The dispensing station is normally located inside the facility and, similar to a gasoline pump, consists of a rectangular regulator box mounted to a wall. A hose protrudes from the box for dispensing the hydrogen gas into the vehicle. As a safety precaution, companies usually position hydrogen sensors in the dispensing area to monitor for leaks.
In many municipalities, fire and safety codes for hydrogen use and storage have yet to be written. Nonetheless, companies contemplating the use of hydrogen fuel are advised to check with their local authorities as early in the planning stages as possible.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."