John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
In his legendary soul ballad "Sittin' on the Dock of the Bay," the late Otis Redding sang of whiling away the hours watching the tides roll in and out of the San Francisco Bay. If only life on the loading dock were so tranquil. But if days spent on the dock ever did unfold at a leisurely pace, that's all behind us. These days, it's strictly business. Get the truck in, load or unload it, move it out. No time for breaks. No room for delays.
If activity on the nation's loading docks has appeared particularly frenzied lately, you can credit the new federal truck driver hours of service (HOS) rule that kicked in Jan. 4. Aimed at preventing accidents caused by driver fatigue, the new rule cut back drivers'work shifts from 15 hours to 14. But more to the point, it overhauled the system drivers use for reporting their hours. In the past, drivers could go off the clock during idle periods. They were not required to count time spent waiting at loading docks or refueling as part of their work shifts. Now, there are no timeouts. Whether they're driving or idling, every minute counts.
Time has always been money in this business, but the new driver service restrictions have upped the ante. Carriers who once viewed delays at the dock as annoying now find them intolerable. To make the point, some are reportedly charging detention or demurrage fees of up to $100 an hour.
The threat of financial penalties has gotten their customers' attention. DC managers across the country are revamping their procedures and even upgrading their equipment in hopes of revving up operations … or at least cutting downtime. At Saddle Creek Corp., a Florida-based third-party provider of logistics services, for example, executives have been brainstorming ways of documenting truckers' arrival and departure times across the entire DC network. "This is an issue for all of us," says Bruce Abels, Saddle Creek's president and COO. "We're taking steps at all of our facilities to do a much better job of documenting that information because we anticipate carriers will make an effort to charge for detention or demurrage."
Another third-party warehousing company, Murphy Warehouse Co., has taken it a step further: The company has notified carriers arriving at its dock that they must now schedule appointments for outgoing loads. By limiting access to its docks during peak periods, the warehouse hopes to reduce congestion. It also hopes to avoid fines. Richard Murphy, the company's president and CEO, reports that one of his major customers has already modified its contract to include a provision holding the warehouse responsible for any fees levied by truckers for delays at the loading dock.
Other distribution center managers have rejiggered their schedules in order to stay open longer and smooth out peaks and valleys in dock traffic flow. Paul Delp, president of Lansdale Warehouse Co. in Lansdale, Pa., has instituted staggered hours for dock workers so he can keep the docks open longer. Though he hasn't yet added a second shift, he says he'll do so if that's what it takes to keep the loading dock congestion-free.
Delp and other DC execs predict that more carriers will adopt drop and hook programs in the months ahead. That's not a decision carriers make lightly. Drop and hook, which lets a trucker pick up one trailer while leaving another behind for the customer to load or unload at its convenience, would require them to keep extra equipment on hand. But truckers may be willing to accept the tradeoff if it cuts waiting time and, ultimately, their average cost per mile.
Level best
Then there are the companies that have DC building projects under way. In more than a few cases, dock equipment manufacturers report, anxiety about productivity has actually led companies to tear up their old plans and revise their dock layouts in order to move trucks in and out faster once construction is complete. Some have gone so far as to add docks to make sure they can load and unload cargo quickly and accommodate their carriers' drop and hook programs.
This new willingness to invest in docks is more common than you might think. Whether spurred by the HOS rule or by safety and security concerns, companies that once balked at replacing leaky seals are suddenly putting big money into their docks. "People are definitely spending more money on the dock area," says Mike Pilgrim, executive vice president at Systems Inc., a dock manufacturer in Germantown, Wis. "Years ago somebody might have invested $2,500 or so for a mechanical lift. Today, it's not unheard of to spend up to $25,000 to be fully outfitted with a master control panel, door seals and dock door."
Some distribution centers, for example, are replacing manual dock levelers with hydraulic push-button operated dock levelers, Pilgrim reports. Oftentimes they're motivated by safety concerns: Hydraulic levelers can reduce accidents by preventing free-fall of the leveler if a truck departs from the dock too early. That's a real danger, according to Pilgrim, who reports that almost two-thirds of all dock levelers are sold without vehicle restraints. Other times, companies are looking to boost productivity: Hydraulic systems are much easier to service than their manual counterparts, Pilgrim says. That reduces downtime and keeps dock operations humming.
Another popular feature is the master control panel, which consolidates the controls of multiple dock components into one easy-to-use centralized panel. Combining these controls in a single master system promotes safety by integrating the operations of the dock leveler, truck restraint, overhead door and other dock equipment. Installing a single power source also reduces electrical installation costs.
However, Pilgrim cautions, companies interested in installing master control panels should be aware that it's far cheaper to incorporate these panels into the original design plans than to commission them as an add-on once the DC is built. "We're spending a lot of time getting involved with upfront building design in order to save the customer money," he says. But it's clear that the message hasn't gotten out yet where the majority of docks are concerned. "Most control panels are sold after the fact, once the building is already designed," he says. "When that happens, the only winner is the electrician."
bright lights, big hazard
After the second fire broke out at printing company American Color's loading dock, Mike Mason knew he wouldn't sleep well until he rooted out the cause. A volunteer firefighter and one of the company's logistics PICs (Persons in Charge), Mason has a healthy respect for fire. And a low tolerance for fire hazards. When an internal investigation traced the problem to head pad seals at the Marengo, Iowa, company's dock, Mason led the charge to rip them out and replace them with special heat-dissipating models.
Unfortunately, American Color isn't alone. A rash of loading dock fires have been reported in recent years—more than 80 since July 2001, according to Frommelt Safety Products' Web site. And though the statistics are hard to come by, the horror stories aren't. "It would be one thing if there were one or two fires periodically," says Walt Swietlik, customer relations manager for loading dock equipment manufacturer Rite-Hite Corp. "But we're hearing of at least one or two fires a week."
What's causing all these fires? Hot-burning rear trailer marker lights. Under federal safety standards, trucks must be outfitted with rear marker lights, which increase the vehicles' visibility at night and in foul weather. Technological advances in the last five years have produced lights that are increasingly smaller and brighter. And the brighter they are, the hotter: Today's incandescent bulbs can generate enough heat to push temperatures to 900 degrees F in as little as 20 to 30 minutes. That presents a hazard when a truck is backed into a dock seal made of foam and fabric. If the truck is left idling with its lights on, as often happens, the foam dock seal acts as an insulator, retaining the heat generated by the lights. Once the truck pulls away from the seal, permitting oxygen to rush into the area, the smoldering fabric and foam can burst into flames.
Usually, dock workers douse the flames quickly, before major damage occurs. But in some cases, entire trailer loads of products have gone up in flames. And trailers are not the only asset at risk; dock fires frequently cause smoke and water damage inside the DC. Expenses can run into the thousands of dollars, and it's likely the industry's tally will continue to mount. Officials at Frommelt, one of Rite-Hite's subsidiaries, estimate that more than 200,000 loading docks in the United States use the compression-style foam dock seals, which means they're at risk for fires.
What's the solution? Some truckers are outfitting their tractors with LED lights that run at much cooler temperatures. Others are prohibiting drivers from leaving trucks idling while backed up to a dock, which is admittedly tough to enforce.
Not wanting to take any chances, DC managers like those at American Color are replacing their dock seals. American Color swapped its old dock seal head pads for Frommelt head pads that use the company's Firefighter technology. The seals contain a solution that dissipates heat created by the marker lights, limiting heat buildup and reducing the fire hazard. As an extra precaution, American Color is planning to equip its docks with side pads that feature Firefighter technology as well.
Replacing seals costs money, to be sure, but the printing company didn't balk at the expense. "There are simply too many fire risks in this industry," says Mason. "If we can identify a fire safety risk such as this and resolve it as easily as we can with this new technology, the decision's an easy one to make."
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.