Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
To hear the sounds of the global economy, all you have to do is walk through S&C Electric's Chicago facility, where 1,800 employees manufacture, handle, and ship electric-power transmission and distribution equipment. Workers, who hail from 66 different countries, are likely to be carrying out their work in English, Spanish, Russian, or Arabic, to name just a few of the languages spoken at the site. In fact, somewhere between two-thirds and threequarters of S&C Electric's workers are non-native speakers of English, says Gene Cottini, manager of training and development services.
The multilingual scene at S&C Electric's Chicago operation is hardly unique. According to the U.S. Department of Labor, 15.3 percent of the U.S. workforce in 2006 was foreign-born. What's more, distribution and logistics occupations seem to be particularly attractive to these workers: 16.7 percent of foreign-born workers that year were employed in production, transportation, and materialmoving occupations, compared to 11.9 percent of their U.S.-born counterparts.
In fact, the distribution facility without any non-native English speakers may be an anomaly these days. "I think you would be hard-pressed to find a distribution center anywhere that has just one language being spoken. I don't think it exists," says Larry Sweeney, vice president of business development for Vocollect, a vendor of voice-recognition systems for warehouses and distribution centers.
A multilingual workforce raises all kinds of issues for DC managers, who need to know how to create a culturally sensitive workplace, prevent harassment and discrimination, and ensure that all employees have proper legal documentation. Underlying those concerns is the most fundamental one of all: language. How can you be sure you're comunicating clearly and consistently with all of your employees, regardless of their facility with English? Here are 10 ways to improve communications with multilingual workers and help them perform their best.
1. Assess communication skills. An interview is a good way to evaluate an applicant's communication skills, says Wanda Franks, human resources director of Aspen Distribution, a Utah-based third-party logistics service provider. At Aspen, the level of proficiency required depends on the job. "Being proficient in English doesn't necessarily mean that they can quote dictionary-correct definitions of words," Franks says. "But they do need to know what warehousing is all about and be able to understand in a few minutes our warehousing safety guidelines."
Ensuring that employees have the necessary language skills can be particularly difficult when it comes to hiring temporary workers. Franks advocates educating your temp agency about the work environment. "Having the agency walk through your facility to fully understand what job duties and skill levels are needed is a good starting point when they are recruiting from their office," she says. "Making sure the agency understands the communication skill level that is needed for those job functions will simplify the recruiting process for them and decrease the number of nonqualified applicants."
2. Match employees with the right job. A good rule of thumb is to match employees with jobs or tasks that are appropriate for their level of English competency. That's the approach adopted by service-conscious Pacific-American Services LLC (PACAM) at the free-trade zone facility it operates in Oakland, Calif.
"Our order profiles are very complex, with a lot of line items, SKUs [stock-keeping units], and regulatory requirements. And all of our documents are printed in English," President Scott Hothem explains. "If an employee is not able to read cartons or work with our WMS [warehouse management system], that opens us up to chargebacks and noncompliance claims." For that reason, the company assigns employees with limited English proficiency to positions where written communication is less important, such as unloading containers.
3. Sensitize your supervisors. Communication is a two-way street, and it will break down quickly if supervisors and managers are unfamiliar with the dos and don'ts of working with nonnative speakers—no matter how well they know the operational side of the business. Supervisors and managers may benefit from cultural sensitivity training that focuses on effective communication, says Bob Fittin, director of training for Chicago's Greater West Town Community Development Project. Learning and applying some simple measures, such as speaking more slowly and choosing words more carefully, can improve a supervisor's chances of being understood.
4. Hire bilingual supervisors. If some of your employees speak little English, you may want to hire bilingual supervisors to facilitate accurate, two-way communication. At PACAM, for example, about 50 percent of front-line supervisors are bilingual in English and Spanish. These managers provide the company with more flexibility in supervision and training, and their involvement can increase employees' productivity and work quality, says Hothem.
5. Use employees as translators. Language gaps can hamper the sharing of knowledge, so having employees communicate in their own language can raise competence levels.
Workers in S&C Electric's shipping and receiving area often handle items that have specific crating and packing requirements. Those procedures are passed down orally from experienced employees to newer colleagues. The company also uses written methods—safety posters with universal symbols, for example—to convey its messages, but only as supplements to oral communication. "Those satisfy our needs to some degree, but when it comes to specifics, such as handling dangerous materials, I still don't know how to do a better job of transferring information than to have one non-native speaker tell it to another in their own language," Cottini says.
6. Translate job-related information. If your employees depend on manuals, memos, training materials, safety posters, and similar documents to do their jobs correctly, you need to translate them—and not just into the most commonly spoken language. "If you do it for one, you have to do it for others," says Franks. "Don't just choose one language, such as Spanish, that you are going to translate into. Otherwise you risk others feeling neglected."
It's fairly easy nowadays to find training materials such as videos and manuals in several languages. You can also contract with an outside translator who is familiar with your business and its specialized lingo.
7. Encourage employees to speak up. You can't translate everything into every language for every situation. That's why you need to encourage employees to speak up if they don't understand something, says Fittin of the Greater West Town Community Development Project. His organization offers a 12-week training program in shipping and receiving for disadvantaged and unemployed residents in the Chicago area. One-quarter of those students are non-native speakers of English.
"We tell all our students, and especially non-native English speakers, if you don't understand, ask," he says. "One of the greatest challenges that they have to overcome is their reluctance to speak up because they are afraid they are not going to say it right. They have to know that the employer doesn't care how they say it."
8. Support ESL classes. It's in your best interest to help employees improve their English-language skills. When employees are more proficient, you're likely to see increased productivity, fewer accidents, and lower turnover. Cottini, for one, believes that S&C Electric's low employee-attrition rate is partly due to its English as a Second Language (ESL) program. His company offers onsite classes in conversational English as well as a more advanced course that includes written and technical language.
If you offer on-site classes, you may be eligible for state or local funding; S&C Electric's classes are partly underwritten by a grant from the state of Illinois. Or you might opt to partially or fully reimburse employees who attend outside programs. PACAM, for example, provides full tuition reimbursement for work-related education, including language classes.
9. Partner with outside organizations. Many social service organizations can help you hire, manage, and train employees with limited English proficiency. Partnering with a local training program like Fittin's is one way to ensure that you're hiring people with the right level of technical and communication skills. For ESL classes, adult education programs and community colleges can help. S&C Electric is working with Chicago's Center for Adult Learning to develop and lead its ESL classes. The center has customized the curriculum by incorporating job-specific internal documents, safety data, and work orders.
10. Consider multilingual technology. If you use any kind of technology in your warehouse or DC, find out if the vendors offer multilingual products. Vocollect, for example, currently supports 23 languages with its systems. Employees can even choose one language for listening to commands and another for responding to the system. (Interestingly, says Vocollect's Sweeney, in the United States, the majority of workers prefer to listen in English and respond in their native tongue.)
Multilingual technology can go a long way toward improving employees' performance and job satisfaction, says Sweeney. "If you're having difficulty with the language, then your productivity and accuracy can decrease. But if you can go back to a language that you are comfortable in, you can be as productive as the guy next to you who's speaking English," he says. "This helps build employees' confidence in the system and in their ability to work in that environment."
Diversity brings benefits
The number of warehouses and distribution centers with a multilingual workforce is certain to grow, particularly in regions with large immigrant populations. While communication in that type of environment can be more challenging, employing a diverse workforce does bring rewards. Fittin says that in his experience, the companies that have been most successful in developing a diverse workforce are also the most successful in business overall.
"When you talk about out-of-the-box thinking, people from different countries and different backgrounds approach problems differently," he says, "and the more ways you have to approach a problem, the more likely you're going to find a way to solve it."
mind your legal p's and q's
Adopting fair and consistent hiring, management, and compensation practices is the right thing to do in any workplace. But staying on the right side of the labor laws is especially important for managers who oversee a multilingual workforce.
That's because the number of discrimination claims and lawsuits from the limited English proficiency (LEP) population is expected to increase, says Donna Roberts, an associate with the law firm Stites and Harbison in Nashville, Tenn. These lawsuits, which are typically settled out of court for amounts that may exceed $1 million, are often class-action suits instigated by attorneys who solicit participants. "Due to cultural differences, LEP employees may not realize they have [anti-discrimination] rights, and one way they get that education is from plaintiffs' lawyers," she says.
To reduce their exposure to lawsuits, Roberts recommends that companies exercise caution when writing job descriptions. She urges them to draft the descriptions in ways that focus on responsibilities and requirements rather than on specific levels of language competency. Examples include: "Your job will require you to communicate clearly with supervisors and coworkers" and "It is imperative that you be able to understand and follow safety regulations."
Roberts also cautions against publishing language restrictions unless a position is highly language-sensitive, such as handling hazardous materials or working with heavy machinery. Similarly, she strongly discourages companies from establishing "English only" policies in the workplace unless there is a legitimate business reason for doing so.
Other recommendations include: Consider carefully whether English is indeed required for management positions, promotions, and compensation; be consistent in how you apply standards to all employees; encourage continuing education, including English classes; and document employment decisions.
"You need to be very careful about minding your 'p's and q's,' particularly in regard to paperwork," Roberts warns. "Because of high turnover levels, some companies get really lazy about employment files. Or they are more focused on getting shipments out the door than on managing their employees. This is a mistake."
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."