The days when heavy trucks idle away the evening at truck stops and freight yards may be numbered. States and municipalities are cracking down on the practice, and DCs may be forced to follow suit.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
Old habits can be hard to break. But if it's a habit of idling a truck engine for hours on end, drivers might not have much choice in the matter. States and municipalities nationwide are cracking down on the practice, adopting new antiidling regulations (20 states now have restrictions) and stepping up enforcement of existing rules. These are no idle threats: Flout the regulations, and you risk a hefty fine.
But drivers risk more than fines if they don't kick the idling habit. They could also find themselves in hot water with their employers. Though they haven't always seemed terribly concerned about the practice, truckers today have become almost fervent in their zeal to minimize idling—and with good reason. Along with the potential legal exposure, they have powerful environmental (not to mention, public relations) incentives to reduce air pollution caused by idling trucks. And with diesel prices approaching a national average of $3 a gallon, their concerns about wasting fuel require no explanation.
For the nation's truckers, reducing idling could have a potentially enormous payoff. A typical long-haul tractor idles approximately 1,830 hours per year, according to the U.S. Department of Energy's Clean Cities program. Every year, U.S. trucks collectively burn more than 800 million gallons of diesel fuel while idling. The cost of that wasted fuel? Close to $3 billion a year.
A war on idling
Given those numbers, it's hardly surprising that truckers of all stripes—private fleets, truckload and less-than-truckload carriers, and small-package carriers—are vowing to cut back on idling. "Reducing idling makes great business sense," says Jim O'Neal, chairman of the Truckload Carriers Conference and president of O&S Trucking in Springfield, Mo. "It is a total waste of fuel and has a high maintenance cost to it. I'm not sure why we've done it all these years." Adds Dan Smith, corporate director of transportation for Smart & Final, a West Coast grocer that runs a private fleet of 55 tractors and 250 trailers, "Keeping idling to a minimum is good for the environment and good for the company."
As for how they're going about it, carriers have taken a variety of approaches. Some, like UPS Freight (the former LTL carrier Overnite Transportation), have chosen the technology route. UPS Freight has programmed its fleet vehicles' engines to turn off after five minutes of idling.
Others have taken what could be termed the behavior modification approach, rewarding drivers for cutting down on idling. Smart & Final, for example, offers additional compensation to drivers who avoid unnecessary idling. Smith reports that the strategy is working well. "Drivers are keyed into that. You rarely drive into one of our facilities and see a tractor idling."
Schneider National, the nation's largest truckload carrier, also rewards drivers for reducing idling time. Dennis Damman, Schneider's director of engineering, says the company asks drivers to idle their trucks only when the outside temperature drops below 10 degrees F. (Idling at low temperatures is necessary because it's difficult to start diesel engines when it is very cold.) Damman reports that the policy has been working. "Last January is a great example," he says. "We had 7,000 trucks that idled less than 5 percent of the time."
Carriers are also working with regulatory agencies to clean up their collective act. To date, well over 300 truckers (and a number of shippers) have joined the Environmental Protection Agency's SmartWay Transport Program. SmartWay, which includes an idling-reduction program, is a voluntary public-private partnership aimed at improving fuel efficiency and reducing greenhouse gas emissions in the freight transportation industry. Schneider National and O&S Trucking are both members of SmartWay, as is national LTL carrier FedEx Freight. "We view that as a commitment to our communities," says Doug Duncan, president of FedEx Freight.
No place for idling
The increase in state and local anti-idling ordinances might seem only peripheral to DC operations, but that's actually not the case. Though the regulations have the most direct effect on truckers, they're likely to have an impact on shipping and receiving operations as well.
Wal-Mart can attest to that. In 2005, the mega-retailer was fined by the Environmental Protection Agency (EPA) for clean air violations caused by idling trucks. In the fall of 2004, EPA inspectors had observed trucks owned by Wal-Mart and by other trucking companies idling for long periods at six different Wal-Mart properties in Connecticut and Massachusetts.
As part of the settlement, Wal-Mart agreed to pay a $50,000 penalty and establish idle-reduction programs at all of its facilities nationwide. The retailer also agreed to notify other delivery companies that idling is not permitted on Wal-Mart property and may violate state or local idling restrictions.
With the settlement behind it, Wal-Mart now prefers to frame its anti-idling initiatives as part of its broader environmental sustainability crusade. By establishing a "no idle" policy for its trucks and retrofitting them with high-efficiency generators, Wal-Mart claims it will save 10 million gallons of diesel fuel each year, reducing carbon dioxide emissions by 100,000 tons. It will also save nearly $26 million, according to company statements. (Wal-Mart officials declined to be interviewed for this story.)
Wal-Mart's initiatives have not gone unnoticed by other DC managers. O'Neal believes the retailer's anti-idling efforts have prompted others to follow suit, adding that he sees more shipping facilities establishing anti-idling rules.
One company that has cracked down on idling at its DCs is Smart & Final. Smith says the company has instructed inbound dry freight carriers not to idle in its yards, although he notes that the grocer makes an exception for temperature-controlled carriers that must run their engines to keep trailer-cooling systems operating.
What DCs can do
When it comes to discouraging idling, DCs have a huge role to play—one that goes well beyond simply handing down anti-idling rules, according to John Gentle. Gentle, the former global transportation leader at Owens Corning and now an independent consultant, believes DCs bear much—if not most—of the responsibility for the idling that takes place on their premises. And while creating anti-idling policies is a good start, Gentle maintains there's much more DCs can do.
To begin with, Gentle urges shippers and receivers to offer decent accommodations for drivers waiting for their trailers to be loaded or unloaded. When drivers are forced to sit in their rigs while awaiting their turn at the dock, they have no choice but to keep their engines running in order to maintain a comfortable cab temperature. That wouldn't be necessary if they had an acceptable place to wait, argues Gentle, who notes that he's seen some pretty small, uncomfortable waiting areas for drivers.
Offering comfortable quarters isn't just good business, Gentle says; it's basic decency. "Quite honestly, if shippers knew what some DCs looked like and how people are treated, they would be offended," he adds. "I'm not saying it's typical, but it is not an unfamiliar conversation."
The other thing DC managers can do, Gentle says, is take a candid look at their scheduling practices. Addressing any scheduling issues is imperative to reducing waiting—and therefore, idling—time. A history of long waiting times is an indication that DC operations are less efficient than they should be, he says. "If you cannot move a driver in and out, that's a problem."
Gentle adds that he doesn't buy the excuse that DCs have little control over what goes on outside their premises. "People say they measure from the time a truck pulls into the gate," he says. "That's a bunch of baloney. If a trucker is waiting two miles up the road to get in, you are kidding yourself."
Duncan of FedEx Freight agrees with Gentle that many DC traffic backups can be traced to scheduling problems. Noting that carriers are often willing to work with customers to improve turn times, he urges shippers experiencing tie-ups to take advantage of their truckers' expertise. Duncan adds that FedEx has found that setting up appointments at shipping and receiving locations can make a big difference in smoothing the flow of traffic.
Keeping their cool
In their zeal to put a stop to idling, state and municipal governments have inadvertently created a dilemma for long-haul truck drivers. What some (though not all) of the regulations fail to consider is that drivers need a way to heat or cool their sleeper cabs during their federally mandated rest periods. In the past, that has generally meant keeping their tractors running all night long. Now, bans in some areas are forcing drivers to choose between violating the law and risking heat exhaustion or hypothermia.
To address the heating and cooling issue, fleets are increasingly turning to technology solutions. They're installing auxiliary power units (APUs), which require only a fraction of the amount of fuel used during idling. Wal-Mart, for example, reports that it installed APUs in its entire fleet last year. According to the EPA, APUs typically consume between 0.05 and 0.2 gallons of fuel per hour, compared to about a gallon per hour for an idling truck.
However, the auxiliary units are costly, which may put them out of reach for many smaller carriers. "The expense is rather large," says O'Neal. "Certainly, the return on invested capital is there, but they are still too expensive."He adds that truck makers are currently developing low-power heating and cooling units that could be specified as original equipment on a vehicle. But he notes that the technology is still four to six years away.
At least one of the major players is searching for a system that doesn't require the use of diesel at all. Damman says that although Schneider has not decided on a technology for cooling tractor interiors without running the engine, it would like to find a battery-operated system. The company currently has 200 tractors in test programs for engine-off air conditioning equipment. "I think in the near future, we will find a cab-cooling solution," he says.
As for what lies ahead on the anti-idling front, carriers are generally optimistic about their prospects for reining in the practice. Duncan, for one, is confident that truckers and their equipment suppliers will succeed in getting better mileage from their equipment and reducing emissions, though he admits that both tasks seem daunting. "We have to do both and we can do both," he says. "If you look at it from a macro level, it looks impossible. You have to do it a piece at a time."
For both truckers and DC managers, the benefits of reducing idling go well beyond regulatory compliance or public relations, says Gentle. It's also good business, he says, citing the potential payoffs in better fuel mileage and more efficient DC operations. "We really need to do a better job of managing the challenge," he adds. "We will have less pollution and better asset utilization. It should really be about that, not the EPA."
"but officer, the sign said the county line was back there …"
The right thing to do shouldn't be the hard thing to do. But for truckers trying to stay in compliance with a vast array of state and local anti-idling ordinances, that's all too often the case.
In the absence of federal rules, the nation has ended up with a crazy quilt of state and municipal regulations, whose time limits, penalties, and exemptions vary widely from city to city and state to state. As things stand now, truckers driving across, say, northern Nevada had better figure out what county they're in before stopping to take a 20minute break. If they're in Humboldt County, they can safely leave the engine running. But if they're in neighboring Washoe County, they'd better turn it off—Washoe County bans idling for more than 15 minutes. (The American Transportation Research Institute maintains a list of state and municipal antiidling regulations as well as a downloadable cab card on its Web site. Visit www.atri-online.org and click on Idling Regulations Compendium.)
Fearing that the confusion would only worsen as more states and municipalities adopted anti-idling regulations, the Environmental Protection Agency (EPA) in 2004 announced that it would develop a model anti-idling law for states to use as a guideline. After soliciting suggestions during a series of public workshops held around the country, the agency unveiled a model law last May. The model, which has no regulatory weight, generally limits heavy-truck engines from idling for more than five minutes. Of particular interest to DC managers, it also prohibits shipping or receiving locations from causing trucks to idle for more than 30 minutes while waiting to load or unload. For a look at the model, visit www.epa.gov/smartway. Click on Idling Reduction, then on State Laws.
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]."