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."
As a contract provider of warehousing, logistics, and supply chain solutions, Geodis often has to provide customized services for clients.
That was the case recently when one of its customers asked Geodis to up its inventory monitoring game—specifically, to begin conducting quarterly cycle counts of the goods it stored at a Geodis site. Trouble was, performing more frequent counts would be something of a burden for the facility, which still conducted inventory counts manually—a process that was tedious and, depending on what else the team needed to accomplish, sometimes required overtime.
So Levallois, France-based Geodis launched a search for a technology solution that would both meet the customer’s demand and make its inventory monitoring more efficient overall, hoping to save time, labor, and money in the process.
SCAN AND DELIVER
Geodis found a solution with Gather AI, a Pittsburgh-based firm that automates inventory monitoring by deploying small drones to fly through a warehouse autonomously scanning pallets and cases. The system’s machine learning (ML) algorithm analyzes the resulting inventory pictures to identify barcodes, lot codes, text, and expiration dates; count boxes; and estimate occupancy, gathering information that warehouse operators need and comparing it with what’s in the warehouse management system (WMS).
Among other benefits, this means employees no longer have to spend long hours doing manual inventory counts with order-picker forklifts. On top of that, the warehouse manager is able to view inventory data in real time from a web dashboard and identify and address inventory exceptions.
But perhaps the biggest benefit of all is the speed at which it all happens. Gather AI’s drones perform those scans up to 15 times faster than traditional methods, the company says. To that point, it notes that before the drones were deployed at the Geodis site, four manual counters could complete approximately 800 counts in a day. By contrast, the drones are able to scan 1,200 locations per day.
FLEXIBLE FLYERS
Although Geodis had a number of options when it came to tech vendors, there were a couple of factors that tipped the odds in Gather AI’s favor, the partners said. One was its close cultural fit with Geodis. “Probably most important during that vetting process was understanding the cultural fit between Geodis and that vendor. We truly wanted to form a relationship with the company we selected,” Geodis Senior Director of Innovation Andy Johnston said in a release.
Speaking to this cultural fit, Johnston added, “Gather AI understood our business, our challenges, and the course of business throughout our day. They trained our personnel to get them comfortable with the technology and provided them with a tool that would truly make their job easier. This is pretty advanced technology, but the Gather AI user interface allowed our staff to see inventory variances intuitively, and they picked it up quickly. This shows me that Gather AI understood what we needed.”
Another factor in Gather AI’s favor was the prospect of a quick and easy deployment: Because the drones can conduct their missions without GPS or Wi-Fi, the supplier would be able to get its solution up and running quickly. In the words of Geodis Industrial Engineer Trent McDermott, “The Gather AI implementation process was efficient. There were no IT infrastructure or layout changes needed, and Gather AI was flexible with the installation to not disrupt peak hours for the operations team.”
QUICK RESULTS
Once the drones were in the air, Geodis saw immediate improvements in cycle counting speed, according to Gather AI. But that wasn’t the only benefit: Geodis was also able to more easily find misplaced pallets.
“Previously, we would research the inventory’s systemic license plate number (LPN),” McDermott explained. “We could narrow it down to a portion or a section of the warehouse where we thought that LPN was, but there was still a lot of ambiguity. So we would send an operator out on a mission to go hunt and find that LPN,” a process that could take a day or two to complete. But the days of scouring the facility for lost pallets are over. With Gather AI, the team can simply search in the dashboard to find the last location where the pallet was scanned.
And about that customer who wanted more frequent inventory counts? Geodis reports that it completed its first quarterly count for the client in half the time it had previously taken, with no overtime needed. “It’s a huge win for us to trim that time down,” McDermott said. “Just two weeks into the new quarter, we were able to have 40% of the warehouse completed.”
The less-than-truckload (LTL) industry moved closer to a revamped freight classification system this week, as the National Motor Freight Traffic Association (NMFTA) continued to spread the word about upcoming changes to the way it helps shippers and carriers determine delivery rates. The NMFTA will publish proposed changes to its National Motor Freight Classification (NMFC) system Thursday, a transition announced last year, and that the organization has termed its “classification reimagination” process.
Businesses throughout the LTL industry will be affected by the changes, as the NMFC is a tool for setting prices that is used daily by transportation providers, trucking fleets, third party logistics service providers (3PLs), and freight brokers.
Representatives from NMFTA were on hand to discuss the changes at the LTL-focused supply chain conference Jump Start 25 in Atlanta this week. The project’s goal is to make what is currently a complex freight classification system easier to understand and “to make the logistics process as frictionless as possible,” NMFTA’s Director of Operations Keith Peterson told attendees during a presentation about the project.
The changes seek to simplify classification by grouping similar items together and assigning most classes based solely on density. Exceptions will be handled separately, adding other characteristics when density alone is not enough to determine an accurate class.
When the updates take effect later this year, shippers may see shifts in the LTL prices they pay to move freight—because the way their freight is classified, and subsequently billed, could change as a result.
NMFTA will publish the proposed changes this Thursday, January 30, in a document called Docket 2025-1. The docket will include more than 90 proposed changes and is open to industry feedback through February 25. NMFTA will follow with a public meeting to review and discuss feedback on March 3. The changes will take effect July 19.
NMFTA has a dedicated website detailing the changes, where industry stakeholders can register to receive bi-weekly updates: https://info.nmfta.org/2025-nmfc-changes.
Trade and transportation groups are congratulating Sean Duffy today for winning confirmation in a U.S. Senate vote to become the country’s next Secretary of Transportation.
Once he’s sworn in, Duffy will become the nation’s 20th person to hold that post, succeeding the recently departed Pete Buttigieg.
Transportation groups quickly called on Duffy to work on continuing the burst of long-overdue infrastructure spending that was a hallmark of the Biden Administration’s passing of the bipartisan infrastructure law, known formally as the Infrastructure Investment and Jobs Act (IIJA).
But according to industry associations such as the Coalition for America’s Gateways and Trade Corridors (CAGTC), federal spending is critical for funding large freight projects that sustain U.S. supply chains. “[Duffy] will direct the Department at an important time, implementing the remaining two years of the Infrastructure Investment and Jobs Act, and charting a course for the next surface transportation reauthorization,” CAGTC Executive Director Elaine Nessle said in a release. “During his confirmation hearing, Secretary Duffy shared the new Administration’s goal to invest in large, durable projects that connect the nation and commerce. CAGTC shares this goal and is eager to work with Secretary Duffy to ensure that nationally and regionally significant freight projects are advanced swiftly and funded robustly.”
A similar message came from the International Foodservice Distributors Association (IFDA). “A safe, efficient, and reliable transportation network is essential to our industry, enabling 33 million cases of food and related products to reach professional kitchens every day. We look forward to working with Secretary Duffy to strengthen America’s transportation infrastructure and workforce to support the safe and seamless movement of ingredients that make meals away from home possible,” IFDA President and CEO Mark S. Allen said in a release.
And the truck drivers’ group the Owner-Operator Independent Drivers Association (OOIDA) likewise called for continued investment in projects like creating new parking spaces for Class 8 trucks. “OOIDA and the 150,000 small business truckers we represent congratulate Secretary Sean Duffy on his confirmation to lead the U.S. Department of Transportation,” OOIDA President Todd Spencer said in a release. “We look forward to continue working with him in advancing the priorities of small business truckers across America, including expanding truck parking, fighting freight fraud, and rolling back burdensome, unnecessary regulations.”
With the new Trump Administration continuing to threaten steep tariffs on Mexico, Canada, and China as early as February 1, supply chain organizations preparing for that economic shock must be prepared to make strategic responses that go beyond either absorbing new costs or passing them on to customers, according to Gartner Inc.
But even as they face what would be the most significant tariff changes proposed in the past 50 years, some enterprises could use the potential market volatility to drive a competitive advantage against their rivals, the analyst group said.
Gartner experts said the risks of acting too early to proposed tariffs—and anticipated countermeasures by trading partners—are as acute as acting too late. Chief supply chain officers (CSCOs) should be projecting ahead to potential countermeasures, escalations and de-escalations as part of their current scenario planning activities.
“CSCOs who anticipate that current tariff volatility will persist for years, rather than months, should also recognize that their business operations will not emerge successful by remaining static or purely on the defensive,” Brian Whitlock, Senior Research Director in Gartner’s supply chain practice, said in a release.
“The long-term winners will reinvent or reinvigorate their business strategies, developing new capabilities that drive competitive advantage. In almost all cases, this will require material business investment and should be a focal point of current scenario planning,” Whitlock said.
Gartner listed five possible pathways for CSCOs and other leaders to consider when faced with new tariff policy changes:
Retire certain products: Tariff volatility will stress some specific products, or even organizations, to a breaking point, so some enterprises may have to accept that worsening geopolitical conditions should force the retirement of that product.
Renovate products to adjust: New tariffs could prompt renovations (adjustments) to products that were overdue, as businesses will need to take a hard look at the viability of raising or absorbing costs in a still price-sensitive environment.
Rebalance: Additional volatility should be factored into future demand planning, as early winners and losers from initial tariff policies must both be prepared for potential countermeasures, policy escalations and de-escalations, and competitor responses.
Reinvent: As tariff volatility persists, some companies should consider investing in new projects in markets that are not impacted or that align with new geopolitical incentives. Others may pivot and repurpose existing facilities to serve local markets.
Reinvigorate: Early winners of announced tariffs should seek opportunities to extend competitive advantages. For example, they could look to expand existing US-based or domestic manufacturing capacity or reposition themselves within the market by lowering their prices to take market share and drive business growth.
By the numbers, global logistics real estate rents declined by 5% last year as market conditions “normalized” after historic growth during the pandemic. After more than a decade overall of consistent growth, the change was driven by rising real estate vacancy rates up in most markets, Prologis said. The three causes for that condition included an influx of new building supply, coupled with positive but subdued demand, and uncertainty about conditions in the economic, financial market, and supply chain sectors.
Together, those factors triggered negative annual rent growth in the U.S. and Europe for the first time since the global financial crisis of 2007-2009, the “Prologis Rent Index Report” said. Still, that dip was smaller than pandemic-driven outperformance, so year-end 2024 market rents were 59% higher in the U.S. and 33% higher in Europe than year-end 2019.
Looking into coming months, Prologis expects moderate recovery in market rents in 2025 and stronger gains in 2026. That eventual recovery in market rents will require constrained supply, high replacement cost rents, and demand for Class A properties, Prologis said. In addition, a stronger demand resurgence—whether prompted by the need to navigate supply chain disruptions or meet the needs of end consumers—should put upward pressure on a broad range of locations and building types.