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.
When Walgreens began its search for a DC site in the Southeast, all signs initially pointed to Atlanta. But when the dust settled, the drugstore giant had chosen a 110-acre parcel in Anderson, S.C., a community less than one-tenth Atlanta's size and more than 100 miles away.
When its original plans to build in Atlanta didn't pan out (Walgreens was unable to find a suitable plot of land), the company was compelled to expand its search to communities within a 125-mile radius of the city. From a geographic perspective, Anderson, which is tucked away in the northwest corner of South Carolina, might not have seemed the most obvious choice. But Anderson promised something competing locations couldn't: a steady supply of workers with disabilities.
Before embarking on its site search, Walgreens had made a commitment to hire as many disabled workers as possible at the new facility. As it went through the usual site-selection steps, such as soliciting grants and tax incentives, it also considered which communities offered a large enough labor pool of disabled workers and the support services that would be needed to help them succeed. Talks with community groups convinced it that Anderson could meet its labor demands and would come through with the necessary resources and support. "We met with local agencies, and we said we were going to hire 600 people and that 200 will likely have severe disabilities," says Randy Lewis, the company's senior vice president of distribution and logistics. "Though nobody had ever done anything on this scale, [the Anderson community] responded very well and they really believed us. They circled the wagons and said they would work with us, and they've been very true to their word."
Once Walgreens' management had signed off on the plan, the Anderson County Disabilities and Special Needs Board and the South Carolina Vocational Rehabilitation Department began working with Walgreens to develop training programs for people with special needs. The agencies built a training center, which Walgreens outfitted with equipment that would be used in the DC.
Anderson also contributed trainers and even arranged for transportation to get disabled workers to and from the DC. "We wanted a sustainable model, and part of our model was not running a transportation system, so the community stepped up on that," says Lewis. "We told them we'd build the distribution facility and provide jobs and some training, but that their community needed to step up. They have done that. In retrospect, [choosing to build in Anderson] is one of the great decisions we've made."
The $175 million, 700,000-squarefoot facility, which opened in June, currently employs 335 workers, 47 percent of whom have a physical or cognitive disability like autism or mental retardation. For many of them, these jobs represent the first opportunity to bring home a paycheck. The company plans to expand the workforce to nearly 600 within the next few years. At full capacity, the facility will ship approximately 80,000 cases daily to more than 700 Walgreens stores in the Southeast.
Although Walgreens' program for hiring disabled workers has been featured in The New York Times, The Wall Street Journal, and on network television, Randy Lewis, Walgreens' senior vice president of distribution and logistics, makes it clear that the company isn't in it for the publicity.
"This is not cheering, guys," he says. "We'd be glad to share what we've learned about this from the human resources side with anybody. A lot of people have taught us a lot of things, and we'll be glad to share what we learned."
Lewis, who is leading Walgreens' drive to hire 1,000 disabled workers at its DCs over the next three years, has a personal story to tell. Austin Lewis, his 19-year-old son, is autistic. Lewis notes that 95 percent of autistic people never find work, and that the unemployment rate for those with other severe disabilities approaches 75 percent.
"Employment opportunities are very limited," he says. "I'm very interested in talking to my peers out there who want to do something like this. It's not as hard as they think, and it makes a big difference. When you read the letters I get from parents, you realize that a crumb from our table is a feast for these parents. The thing is, it was so easy that it makes you ask 'Why did I wait so long?'"
A personal stake
Walgreens' innovative hiring program grew out of a plan devised by Lewis, who oversees all of the company's distribution centers across the country. For him, the quest to create more employment opportunities for people with disabilities is personal. He has a 19-year-old son who is autistic and is keenly aware of the employment challenges facing disabled people.
The plan began to take shape in 2004, when Lewis was investigating technology for the DCs the company would be building in the next five years. "Our typical approach to technology and automation is to make [each generation] of DCs more efficient [than the last]," says Lewis. When he realized the extent to which advanced technology could reduce demands on the workforce, he began brainstorming with colleagues about possible opportunities for people with physical or mental challenges. "We decided to look into what we would need to tweak so we could employ a group of people who might otherwise not be able to work," he says.
When he approached the Walgreens board of directors with the idea, the directors were quick to offer support for the plan. "I said that we're building a new [center] that will be 20 percent more efficient, and by the way, one-third of the employees will be people with disabilities, and they said 'great,'" says Lewis. "The only thing they've said since then is 'thank you.'"
The company now has even more aggressive plans to hire disabled workers. Walgreens intends to adopt a similar workforce strategy at a DC it's building in Windsor, Conn., that will open in 2009. By 2010, the company hopes to employ 1,000 disabled workers at its 15 distribution facilities nationwide.
Though he acknowledges that 1,000 workers is an ambitious goal, Lewis believes it's attainable. "We needed a number that was achievable but tough enough to ring a bell," he says."We looked around at all of our other distribution centers, and decided on 1,000. It's a big number, but three years is far enough out there, but also close enough that it keeps some heat on us." He adds that Walgreens hopes to have 3,000 disabled people on the payroll by 2015.
Equal opportunities
The Anderson DC's workforce includes people with a wide range of disabilities, including autism, cerebral palsy, and Down syndrome. "It's the most interesting crowd you've ever seen. We've got every kind of walk you can imagine," Lewis says, with total empathy. "It is our most interesting place, and it's just an overwhelming experience to visit the facility."
Many of the disabled workers at the Anderson DC started out by attending pre-hire training, spending as much as a year and a half at the training center—without pay— learning the skills they'd need to qualify for a job. Though training does not guarantee a job, trainees who do well are eligible for a paid tryout at the DC. During the transitional phase, employees are accompanied by a job coach who assists with on-the-job training. At the end of the 45-day trial period, Walgreens reviews performance—including productivity and accuracy rates—and decides whether or not to offer the worker a job.
Walgreens has taken a number of steps to accommodate its disabled workers. For example, it has installed wheelchair ramps and redesigned work stations to be more ergonomically friendly for people with physical challenges. As part of that process, it replaced traditional computer keyboards with touch-screen monitors with large icons. It also uses pictures where possible to accommodate those with visual and other impairments. Instead of relying on traditional signage to remind workers to have their bags inspected, Walgreens uses a video of someone opening a bag. In addition, the company convinced vendors to include more information in bar codes on merchandise to cut down on the amount of data employees would have to enter.
Lewis reports that adapting the equipment to employees' needs turned out to be a relatively simple matter. "When it really came down to it, the selection of the technology didn't make that much of a difference," he says. "The biggest thing from a technology point of view was that it got us thinking about how people interact with our IT systems."
The jobs at Anderson aren't limited to production jobs on the DC floor. Today, disabled workers can be found throughout the distribution center, working in receiving, de-trash (where cartons are unpacked), full-case picking, split-case picking, and shipping. They also drive forklifts and the scrubbers used to clean floors. It's not unusual for disabled workers to be assigned to train typically-abled employees, as the disability community refers to workers without a handicap.
Disabled employees can be found in the management ranks as well, from managers with missing limbs to people like Angie Campbell, the facility's outreach manager, who has cerebral palsy (see box below). Campbell graduated from her master's degree program with a 4.0 grade average, sent out 300 resumes, and had 40 interviews. Even so, she didn't receive a single job offer until Walgreens finally gave her an opportunity.
Real work for real pay
When he talks about the center's hiring program, Lewis stresses that Walgreens is running a business, not a charity. The company holds employees with disabilities to the same performance standards as all team members, he says, and it offers them the same pay and benefits as other employees for the same work. "We said we want them to perform at the same level, at the same standard, side by side with other workers at the same pay.We said we want the DC to be an integrated work environment," he says, "and that's what this turned out to be."
In fact, Lewis reports that the Anderson DC is about 20 percent more productive than any of the corporation's other facilities. Although some of that can be attributed to the automated equipment that was installed to allow disabled people to perform the jobs, Lewis emphasizes that motivation plays a big part as well. The disabled workers are very concerned about performing at the highest levels possible, he says, noting that they constantly check their performance against the DC's productivity goals.
Like productivity, morale appears to be unusually high at the Anderson DC. "We've had managers intentionally transfer there or join us because of its mission," Lewis reports. "When I walk through the building, the typically-abled come up to me and say 'This is the best place I've ever worked.' Everybody focuses on two words what you can do, not what you cannot do. It's the building with the best attitude, the best spirit, and the most cooperation. I wish every building was like that."
The day when all buildings are like that may never come. But if Walgreens keeps its word, there might be a lot more of them in the not-so-distant future.
faces in the crowd at Walgreens' Anderson, S.C., DC
Angie Campbell, Career Outreach Coordinator
Disability: Cerebral palsy
Angie Campbell has a master's degree from Clemson University. Her job encompasses a little bit of everything, including coordinating the job referrals Walgreens receives from local disability agencies and supervising the agencies to make sure they're conforming to Walgreens' culture.
Best thing about working at Walgreens' DC:
"It's almost like I have an opportunity to create jobs for others with disabilities. When somebody comes to work here, I'm able to stay with them and ensure that they are successful."
How working here has changed my life:
"Professionally, it's made me have a broader skill level. Walgreens has let me try new things, and most of the things we've done have been successful. It's really a thrill. I can help the disabled community more than I could in my previous job. I know through my own struggles what somebody needs to be successful."
Harrison Mullinax, Receiving
Disability: Autism
Harrison Mullinax is working his first full-time job at Walgreens. The 18-year-old uses a hand scanner to check in items as they arrive at the DC. He says he probably wouldn't have a job if it were not for Walgreens. He spent 18 months volunteering in a training program to prepare for his position.
Best thing about working at Walgreens' DC:
"Being able to see different people and meeting new people that I've never seen before."
How working here has changed my life:
"It's changed my life a lot. There are good benefits here with the company and you get paid pretty good here."
Desiree Neff, Receiving
Disability: Myotonia congenita (a neuromuscular disorder)
Desiree Neff works in the receiving department scanning pallets as they come in the receiving doors. A former human resources manager for a retailer, she has worked at the DC for four months. She has already been involved in training and aspires to do more of that in the future.
Best thing about working at Walgreens' DC:
"It's a very safe and warm atmosphere where you can come to work and be yourself without having to try to hide your disability."
How working here has changed my life:
"I used to dread my old job. I was constantly threatened that if I didn't meet expectations, I would lose my job. But I look forward to coming to work here in this environment every day."
Julia Turner, Receiving (case check-in)
Disability: Down Syndrome
Julia Turner spent 12 months at the voluntary training program before being hired for her first full-time job ever at age 52. She has been involved in training some new managers at the DC as well as new workers in receiving. She'd like to be more involved in training in the future.
Best thing about working at Walgreens' DC:
"This is the best place to work. It's one of the greatest places I've ever been."
How working here has changed my life:
"This is the kind of job I've always wanted. By working, it keeps my mind occupied, instead of sitting around at home with nothing to do. I'd like to help other team members who aren't able to do something for themselves. This is what I've always wanted."
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
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.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.
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.