When NA 2008, the biennial material handling industry trade show and conference, opens its doors in Cleveland later this month, it will do so against a backdrop of economic uncertainty.
When NA 2008, the biennial material handling industry trade show and conference, opens its doors in Cleveland later this month, it will do so against a backdrop of economic uncertainty. The show's organizer, the Material Handling Industry of America (MHIA), expects a mild market contraction in the industry this year. The group's forecast calls for new orders in the material handling equipment sector to slow by some 5 to 7 percent in 2008, a decline from the 8-percent growth recorded last year.
For material handling equipment manufacturers, the bright spot in the picture right now is exports, which are forecast to grow 18 percent in 2008 before slowing modestly in 2009. The outlook is less rosy for domestic con- sumption. MHIA forecasts that consumption (ship- ments plus imports less exports) of this type of equip- ment in the United States will contract about 5 percent in 2008 and 2009.
Yet despite the economic instability, MHIA has high hopes for the show. It expects to draw some 500 materi- al handling and logistics exhibitors and thousands of buyers to the event, which will be held at Cleveland's I-X Center from April 21-24.
A chance to get educated
Promising to be one of the highlights of the four-day event is the keynote address by Andrew Winston, author of Green to Gold. In his address, titled "How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build High- Performance Supply Chains," Winston will discuss the business case for creating sustainable supply chains. (See our interview with Winston from the March issue.)
The conference also includes several other educational opportunities:
The NA 2008 Knowledge Center. One of four distinct centers at NA 2008, the Knowledge Center will feature free educational sessions on the show floor. The cen- ter will consist of specially designed theaters, where 45-minute seminars will offer information on trends, technologies, and innovations in material handling and logistics. Admission to the vendor-sponsored sessions is free to NA 2008 attendees. Visit NAShow.com for complete session details.
Weekend Educational Workshops. In addition to the on-floor seminars, NA 2008 will include a pair of educational workshops that begin on the weekend prior to the show's opening. Sponsored by MHIA, the workshops take place in classroom- style settings at the I-X Center. Separate registration and workshop fees apply. Workshop participants can earn continuing education credits.
The first of the two workshops, "The Basics of Material Handling A Foundation for Better Planning and Results," is a one and a half day program that begins on Saturday morning and wraps up mid-day on Sunday. The workshop provides an introduction to the field of material handling, including systems analysis, equipment selection, and the relationship of material handling to other activities and operations of the industrial plant or warehouse. The course serves as both an introduction to the field and as a refresher course for those who want an update on the latest trends. Participants will learn how to plan and analyze material handling systems, how to improve material handling operations, and when to apply material handling automation. Key features are case examples and a guided exercise to ensure mastery of the techniques presented.
The second workshop,"Lean Material Handling and Work Cells," runs from mid-day Sunday through Monday afternoon. The course examines how material handling enables lean manufacturing and what methods are typically favored when implementing lean practices and work cells. This workshop shows how to plan effective cells using a simple six-step procedure. It includes case examples and a guided exercise that ensures mastery of the techniques presented.
The instructor for both workshops is H. Lee Hales, president of Richard Muther & Associates, who will use material developed by the firm's professional engineers and consultants. Richard Muther & Associates is a consulting firm with expertise in material handling and cell planning.
Navigating the hall
In addition to these educational programs, NA 2008 will include a trade show featuring nearly 500 exhibitors. In order to help attendees find what they're looking for, show organizers have divided the 150,000-square-foot show floor into four distinct centers based on the products and services offered. In addition to the Knowledge Center (described above), they are:
The Center for Manufacturing & Assembly Solutions. Here's where you'll find a wide range of suppliers that specialize in component parts, attachments, and equipment and systems for the manufacturing and assembly environment. This center includes the latest advances in traditional material handling solutions that support manufacturing and assembly operations. Products, services, and solutions shown in this area include automated storage and retrieval solutions (AS/RS), automated guided vehicles (AGVs), overhead and lifting equipment, pallets and packaging, below/hook equipment, carousels, conveyors, storage equipment, casters, wheels and tires, ergonomic and safety equipment, automated assembly support, intelligent devices, work stations, light rail, and other assembly equipment and systems.
The Center for Fulfillment & Delivery Solutions. This center showcases both traditional and e-commerce fulfillment, order assembly, third-party logistics, warehousing, distribution, and transportation activities. The exhibitors you'll find here also provide systems and services that support consumer and business direct market strategies.
The Center for Information Technology (IT) Solutions. In this center, representatives will be on hand from companies that offer software solutions or consulting services that support manufacturing, warehousing, distribution, and logistics operations.
The latest equipment and solutions Exhibitors at the event will display a wide variety of solutions for moving, storing, controlling, and protecting materials and products. Among the technologies highlighted at this year's show will be equipment and systems in the following categories:
Material handling equipment and systems: AS/RS, automatic guided vehicle systems, robots, personnel/burden carriers, racks, forklifts, batteries, unit handling systems, manufacturing execution systems, warehouse management systems/logistics execution systems, ergonomic and safety equipment, carousels, modular drawer storage, shelving, and third-party logistics.
Packaging, containers, and shipping equipment: Box and carton makers, packaging machinery, wrapping, inspection of products by weight or scanning, pallets, wire baskets, plastic and metal containers, and palletizing equipment.
Inventory management and controlling technologies: Computers, controllers, software programs, systems integrators, warehouse management systems, wireless control systems, order management systems, and transportation management systems.
Dock and warehouse equipment and supplies: Dock levelers, dock pads, doors, forklift trucks, racks, flooring, handling systems, forklift attachments, conveyors, hoists, cranes, monorails, and below/hook lifting devices.
Consultants and distribution system planners: Simulators, modelers, system designers, distribution consultants, and third-party logistics providers.
Automatic identification equipment and systems: Bar-code printers and scanners, vision systems, voicerecognition systems, radio-frequency systems, and systems integrators.
How to register
The organizers of NA 2008 have made it easy to register and
prepare for the show. NAshow.com offers attendees access
to free badge registration, exhibitor search tools, floor
plans, matchmaker services, and a "My NAShow" Agenda
Planner to organize a personalized itinerary. It also offers
detailed information about the educational conference sessions as well as travel and hotel information.
On-site registration is $25, or $10 with VIP registration coupon available from exhibitors. Show hours are 10 a.m. to 5 p.m. on Monday, Tuesday, and Wednesday, and 10 a.m. to 3 p.m. on Thursday.
Oh, you work in logistics, too? Then you’ve probably met my friends Truedi, Lumi, and Roger.
No, you haven’t swapped business cards with those guys or eaten appetizers together at a trade-show social hour. But the chances are good that you’ve had conversations with them. That’s because they’re the online chatbots “employed” by three companies operating in the supply chain arena—TrueCommerce,Blue Yonder, and Truckstop. And there’s more where they came from. A number of other logistics-focused companies—like ChargePoint,Packsize,FedEx, and Inspectorio—have also jumped in the game.
While chatbots are actually highly technical applications, most of us know them as the small text boxes that pop up whenever you visit a company’s home page, eagerly asking questions like:
“I’m Truedi, the virtual assistant for TrueCommerce. Can I help you find what you need?”
“Hey! Want to connect with a rep from our team now?”
“Hi there. Can I ask you a quick question?”
Chatbots have proved particularly popular among retailers—an October survey by artificial intelligence (AI) specialist NLX found that a full 92% of U.S. merchants planned to have generative AI (GenAI) chatbots in place for the holiday shopping season. The companies said they planned to use those bots for both consumer-facing applications—like conversation-based product recommendations and customer service automation—and for employee-facing applications like automating business processes in buying and merchandising.
But how smart are these chatbots really? It varies. At the high end of the scale, there’s “Rufus,” Amazon’s GenAI-powered shopping assistant. Amazon says millions of consumers have used Rufus over the past year, asking it questions either by typing or speaking. The tool then searches Amazon’s product listings, customer reviews, and community Q&A forums to come up with answers. The bot can also compare different products, make product recommendations based on the weather where a consumer lives, and provide info on the latest fashion trends, according to the retailer.
Another top-shelf chatbot is “Manhattan Active Maven,” a GenAI-powered tool from supply chain software developer Manhattan Associates that was recently adopted by the Army and Air Force Exchange Service. The Exchange Service, which is the 54th-largest retailer in the U.S., is using Maven to answer inquiries from customers—largely U.S. soldiers, airmen, and their families—including requests for information related to order status, order changes, shipping, and returns.
However, not all chatbots are that sophisticated, and not all are equipped with AI, according to IBM. The earliest generation—known as “FAQ chatbots”—are only clever enough to recognize certain keywords in a list of known questions and then respond with preprogrammed answers. In contrast, modern chatbots increasingly use conversational AI techniques such as natural language processing to “understand” users’ questions, IBM said. It added that the next generation of chatbots with GenAI capabilities will be able to grasp and respond to increasingly complex queries and even adapt to a user’s style of conversation.
Given their wide range of capabilities, it’s not always easy to know just how “smart” the chatbot you’re talking to is. But come to think of it, maybe that’s also true of the live workers we come in contact with each day. Depending on who picks up the phone, you might find yourself speaking with an intern who’s still learning the ropes or a seasoned professional who can handle most any challenge. Either way, the best way to interact with our new chatbot colleagues is probably to take the same approach you would with their human counterparts: Start out simple, and be respectful; you never know what you’ll learn.
With the hourglass dwindling before steep tariffs threatened by the new Trump Administration will impose new taxes on U.S. companies importing goods from abroad, organizations need to deploy strategies to handle those spiraling costs.
American companies with far-flung supply chains have been hanging for weeks in a “wait-and-see” situation to learn if they will have to pay increased fees to U.S. Customs and Border Enforcement agents for every container they import from certain nations. After paying those levies, companies face the stark choice of either cutting their own profit margins or passing the increased cost on to U.S. consumers in the form of higher prices.
The impact could be particularly harsh for American manufacturers, according to Kerrie Jordan, Group Vice President, Product Management at supply chain software vendor Epicor. “If higher tariffs go into effect, imported goods will cost more,” Jordan said in a statement. “Companies must assess the impact of higher prices and create resilient strategies to absorb, offset, or reduce the impact of higher costs. For companies that import foreign goods, they will have to find alternatives or pay the tariffs and somehow offset the cost to the business. This can take the form of building up inventory before tariffs go into effect or finding an equivalent domestic alternative if they don’t want to pay the tariff.”
Tariffs could be particularly painful for U.S. manufacturers that import raw materials—such as steel, aluminum, or rare earth minerals—since the impact would have a domino effect throughout their operations, according to a statement from Matt Lekstutis, Director at consulting firm Efficio. “Based on the industry, there could be a large detrimental impact on a company's operations. If there is an increase in raw materials or a delay in those shipments, as being the first step in materials / supply chain process, there is the possibility of a ripple down effect into the rest of the supply chain operations,” Lekstutis said.
New tariffs could also hurt consumer packaged goods (CPG) retailers, which are already being hit by the mere threat of tariffs in the form of inventory fluctuations seen as companies have rushed many imports into the country before the new administration began, according to a report from Iowa-based third party logistics provider (3PL) JT Logistics. That jump in imported goods has quickly led to escalating demands for expanded warehousing, since CPG companies need a place to store all that material, Jamie Cord, president and CEO of JT Logistics, said in a release
Immediate strategies to cope with that disruption include adopting strategies that prioritize agility, including capacity planning and risk diversification by leveraging multiple fulfillment partners, and strategic inventory positioning across regional warehouses to bypass bottlenecks caused by trade restrictions, JT Logistics said. And long-term resilience recommendations include scenario-based planning, expanded supplier networks, inventory buffering, multimodal transportation solutions, and investment in automation and AI for insights and smarter operations, the firm said.
“Navigating the complexities of tariff-driven disruptions requires forward-thinking strategies,” Cord said. “By leveraging predictive modeling, diversifying warehouse networks, and strategically positioning inventory, JT Logistics is empowering CPG brands to remain adaptive, minimize risks, and remain competitive in the current dynamic market."
With so many variables at play, no company can predict the final impact of the potential Trump tariffs, so American companies should start planning for all potential outcomes at once, according to a statement from Nari Viswanathan, senior director of supply chain strategy at Coupa Software. Faced with layers of disruption—with the possible tariffs coming on top of pre-existing geopolitical conflicts and security risks—logistics hubs and businesses must prepare for any what-if scenario. In fact, the strongest companies will have scenarios planned as far out as the next three to five years, Viswanathan said.
Grocery shoppers at select IGA, Price Less, and Food Giant stores will soon be able to use an upgraded in-store digital commerce experience, since store chain operator Houchens Food Group said it would deploy technology from eGrowcery, provider of a retail food industry white-label digital commerce platform.
Kentucky-based Houchens Food Group, which owns and operates more than 400 grocery, convenience, hardware/DIY, and foodservice locations in 15 states, said the move would empower retailers to rethink how and when to engage their shoppers best.
“At HFG we are focused on technology vendors that allow for highly targeted and personalized customer experiences, data-driven decision making, and e-commerce capabilities that do not interrupt day to day customer service at store level. We are thrilled to partner with eGrowcery to assist us in targeting the right audience with the right message at the right time,” Craig Knies, Chief Marketing Officer of Houchens Food Group, said in a release.
Michigan-based eGrowcery, which operates both in the United States and abroad, says it gives retail groups like Houchens Food Group the ability to provide a white-label e-commerce platform to the retailers it supplies, and integrate the program into the company’s overall technology offering. “Houchens Food Group is a great example of an organization that is working hard to simultaneously enhance its technology offering, engage shoppers through more channels and alleviate some of the administrative burden for its staff,” Patrick Hughes, CEO of eGrowcery, said.
The 40-acre solar facility in Gentry, Arkansas, includes nearly 18,000 solar panels and 10,000-plus bi-facial solar modules to capture sunlight, which is then converted to electricity and transmitted to a nearby electric grid for Carroll County Electric. The facility will produce approximately 9.3M kWh annually and utilize net metering, which helps transfer surplus power onto the power grid.
Construction of the facility began in 2024. The project was managed by NextEra Energy and completed by Verogy. Both Trio (formerly Edison Energy) and Carroll Electric Cooperative Corporation provided ongoing consultation throughout planning and development.
“By commissioning this solar facility, J.B. Hunt is demonstrating our commitment to enhancing the communities we serve and to investing in economically viable practices aimed at creating a more sustainable supply chain,” Greer Woodruff, executive vice president of safety, sustainability and maintenance at J.B. Hunt, said in a release. “The annual amount of clean energy generated by the J.B. Hunt Solar Facility will be equivalent to that used by nearly 1,200 homes. And, by drawing power from the sun and not a carbon-based source, the carbon dioxide kept from entering the atmosphere will be equivalent to eliminating 1,400 passenger vehicles from the road each year.”
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.”