When disaster strikes, the world mobilizes. And so it was that hours after a deadly tsunami hit the shores of Sri Lanka, Indonesia and other countries along the Indian Ocean in late December, governments, aid agencies and private donors swung into action, assembling emergency supplies for the victims. Within days, airplanes began swooping into the affected region. Some were packed with food, water, blankets and medical supplies; others carried search and rescue teams, relief workers, medical personnel—and logisticians.
Logisticians? Yes, logisticians. Within 36 hours of the disaster, volunteers from the Airport Emergency Team (AET) were on the ground in Colombo, Sri Lanka, where they got to work directing the unloading of aircraft and organizing the temporary storage of supplies until relief agencies could collect them for distribution. The logisticians, all volunteers on loan to the Disaster Relief Network (DRN) from corporations like DHL Worldwide, TNT Logistics, Aramex and DNATA, worked to ensure a quick turnaround for the aircraft and to keep parts of the airfield clear for routine operations. Under the team's direction, 150 local volunteers have moved over four million pounds of supplies through the airport.
The idea behind sending the volunteers was to prevent the kind of airport logjam that has blocked disaster relief efforts in the past. Sri Lanka has only one international airport, which normally handles about 17 flights a day, fewer than half carrying cargo. As activity ramped up to as many as 10 or 15 cargo flights a day, the airport was in danger of becoming a chokepoint in the operations.
In fact, that's exactly what happened in Iran in December 2003. After a serious earthquake shook the country, nearly 2,000 flights descended on a small regional airport in Bamm that was accustomed to handling only five to six flights per day. Soon supplies had piled up on the runways, hampering efforts to unload the aircraft. "It was almost impossible to get supplies through the airport because they didn't have the people trained to manage the cargo," says Bob Bellhouse, executive director of the DRN. "We resolved to find a structural remedy for that problem."
That remedy was creation of Airport Emergency Teams, which the Disaster Relief Network formed just last year. Original plans called for each team to prepare to handle an emergency within a 50-mile radius. No one dreamed that the groups' first mission would turn out to be one of this scale. But shortly after the tsunami hit on Dec. 26, the first Airport Emergency Team got a call from the United Nations Joint Logistics Center to coordinate relief efforts at the airport in Sri Lanka.
Despite all its advance planning efforts, the team still encountered obstacles, reports Chris Weeks, the team's leader. "Our biggest problem wasn't getting here, but overcoming the initial reservations of the Sri Lankan airforce about ceding control of airport operations to an outside group," he says. "The U.N. helped us address their security concerns and now we're moving flights of relief supplies through the Colombo airport on a daily basis."
A second team wasn't so lucky. Two days after the first AET team was dispatched, the U.N. requested that a second AET team take over operations at the Bandar Aceh airport in Indonesia. That group arrived at Bandar Aceh on Dec. 30 but left soon thereafter when the Indonesian government wouldn't cooperate with the relief effort.
What lies ahead
Now that supplies are getting to where they're needed, relief agencies are starting to focus on the longer term, something the DRN will also address, especially when it comes to the damage done to the region's economy. "We will convene international business leaders to look beyond emergency life-saving activities to strategies for rebuilding livelihoods," says Bellhouse. "The business sector has a key role to play in the region's economic recovery process and in developing collaborations with governments and non-government organizations to minimize the human and economic costs of future disasters."
Also looking for ways to provide long-term help is the Fritz Institute, which is working to identify private-public partnerships to facilitate the delivery of relief services in India, Indonesia, Thailand and Sri Lanka. The International Federation of Red Cross Societies is using Fritz Institute's humanitarian logistics software to coordinate relief efforts in six countries.
Management from the Fritz Institute hopes to use what it's learned this time around to prepare for the next disaster. "We are documenting the lessons learned and the knowledge around what went right and what went wrong in this effort because that is very vital information for future relief efforts," says Anisya Thomas, managing director for the Fritz Institute.When the Fritz Institute holds its annual convention in Geneva in May, the organizations deployed in the relief process will meet to discuss how future relief processes can be improved.
Other companies stepping in to lend a hand include Raymond Corp. and Symbol Technologies. Last month, Raymond Corp. said it would donate up to $200 for every truck sold in January and February. Based on sales projections, the humanitarian gesture, in cooperation with its dealers and distributors, could result in a donation to the Presidents Relief Fund of up to $300,000.
Symbol has pledged $150,000 in aid to the American Red Cross, Mercy Corps and the United Nations Children's Fund to help with the humanitarian relief effort. Symbol's 6,000 global employees responded with their own contributions to the Symbol Disaster Relief Fund. Employees in India, for example, pledged to donate one day's pay to assist in this aid effort.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!
Toyota Material Handling and its nationwide network of dealers showcased their commitment to improving their local communities during the company’s annual “Lift the Community Day.” Since 2021, Toyota associates have participated in an annual day-long philanthropic event held near Toyota’s Columbus, Indiana, headquarters. This year, the initiative expanded to include participation from Toyota’s dealers, increasing the impact on communities throughout the U.S. A total of 324 Toyota associates completed 2,300 hours of community service during this year’s event.
The PMMI Foundation, the charitable arm of PMMI, The Association for Packaging and Processing Technologies, awarded nearly $200,000 in scholarships to students pursuing careers in the packaging and processing industry. Each year, the PMMI Foundation provides academic scholarships to students studying packaging, food processing, and engineering to underscore its commitment to the future of the packaging and processing industry.
Truck leasing and fleet management services provider Fleet Advantage hosted its “Kids Around the Corner Foundation” back-to-school backpack drive in July. During the event, company associates assembled 200 backpacks filled with essential school supplies for high school-age students. The backpacks were then delivered to Henderson Behavioral Health’s Youth & Family Services location in Tamarac, Florida.
For the past seven years, third-party logistics service specialist ODW Logistics has provided logistics support for the Pelotonia Ride Weekend, a campaign to raise funds for cancer research at The Ohio State University’s Comprehensive Cancer Center–Arthur G. James Cancer Hospital and Richard J. Solove Research Institute. As in the past, ODW provided inventory management services and transportation for the riders’ bicycles at this year’s event. In all, some 7,000 riders and 3,000 volunteers participated in the ride weekend.