Although electric trucks may be years away, a number of truck makers are coming out with hybrid mid-sized trucks that run on both diesel and electric power. And big rigs may be just around the corner.
James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
This past summer, the Port of Los Angeles saw an unusual sight—an electric truck ferrying containers from terminals to warehouses and rail yards. The truck, a prototype vehicle, was a short-haul drayage truck capable of pulling a 60,000-pound cargo container at a top speed of 40 miles an hour.
The experimental truck, which produces zero emissions, has been greeted with enthusiasm in California, which has adopted a number of regulations to improve air quality. "We could eliminate a lot of truck pollution in and around the port with a fleet of these workhorses," said Los Angeles Harbor Commission President S. David Freeman in a press release.
Testing of the prototype, which was manufactured by Balqon Corp. of Santa Ana, Calif., was still under way at press time. The port planned to put the truck into regular service to see how it would hold up under the daily stress of draying loads. However, early results have been sufficiently encouraging that the port has already decided to purchase five more of the vehicles, which go for about $208,000 apiece.
Given the high cost of diesel these days, the idea of using electric trucks has undeniable appeal. But no matter how well the prototype performs, battery-powered trucks will likely be limited to short-haul drayage applications, at least in the near term. Their range makes them impractical for extended highway use. When loaded, the prototype vehicle being tested in Los Angeles can go only 30 miles before needing a battery charge (Balqon says unloaded trucks can travel up to 60 miles without a recharge).
Although it's unlikely we'll see all-electric trucks tooling down America's highways anytime soon, a variation on the electric truck—the hybrid diesel electric—shows a great deal of promise. In the past year, a number of truck makers have begun production on mid-sized trucks with hybrid electric systems similar to what's used in automobiles. Although some question whether the technology will ever be a good fit for the biggest of the big rigs—Class 8 trucks—mid-sized trucks using hybrid technology are already starting to appear in dealer showrooms and even on the nation's highways.
All charged up
The hybrid trucks currently on the market use what's known as "parallel electric" technology—the same technology that powers passenger cars like the Toyota Prius. "You have an electric motor that works alongside an internal combustion engine," says David Alexander, an analyst at ABI Research of Oyster Bay, N.Y., who wrote a report on hybrid technology last year. "The electric motor provides a boost to the ... engine to take some of the load off and reduces consumption of fuel." These vehicles also save energy in stop-and-go driving through "regenerative braking," a technology that allows the vehicle to capture energy when the driver brakes and store that energy in a battery for reuse in restarting and low-speed operation.
Parallel electric technology is particularly well suited to trucks used in local delivery service. The vehicles' frequent stops and starts create plenty of opportunities to capture energy for the battery through braking. "Hybrid trucks work well in stop-and-go traffic," says Daniel Sperling, director of the Institute for Transportation Studies at the University of California at Davis. "You can get back the extra cost for a hybrid electric truck in a short time span."
Small vans using parallel electric technology—technically considered Class 4 and 5 trucks—have been around for five years. But recently, truck manufacturers have begun applying parallel electric technology to the larger Class 6 and 7 trucks as well. In Sweden, for instance, Volvo Trucks is currently running a pilot to test the technology on trucks designed for collecting trash.
Here in North America, Navistar International of Warrenville, Ill., started manufacturing hybrid Class 6 and 7 trucks a year ago. "At low speeds, the truck is powered by an electric engine," says Mark Johnson, the company's marketing manager. "At 25 miles an hour, the diesel engine kicks in."
At press time, Johnson said his company had sold 200 of these hybrid commercial trucks, which command a premium price compared to traditional vehicles. How much of a premium? Johnson says a traditional Class 6 or 7 truck goes for $45,000 to $60,000, depending on the specifications, while a hybrid unit costs somewhere between $80,000 and $90,000. He notes, however, that fuel savings help offset some of that price differential. "You'll see fuel savings between 30 and 40 percent," says Johnson. "At $4.50 for a gallon of diesel, the truck could pay for itself in three to four years."
Early this year, Freightliner of Portland, Ore., announced that it, too, was beginning production on a hybrid medium-duty truck—the M2 106, a Class 6 truck designed for hauling beverages. Although the company, which is part of Daimler Trucks North America LLC, declined to release sales or production numbers for the truck, David Bryant, Freightliner's vocational sales manager for hybrid vehicles, says he's seeing a lot of people "pulling the trigger on orders now."
Peterbilt Motors Co. of Denton, Texas, has also announced plans to begin making medium-duty dieselhybrid vehicles. A plant in Ste. Therese, Quebec, began production on both a Class 6 and a Class 7 hybrid truck this summer. The two models use a parallel hybrid system with an electric motor alongside a diesel engine. Peterbilt spokesman David Giroux says that a wine distributor in California has already placed an order for the hybrid diesel trucks, which it plans to begin using this fall.
Are Class 8s feasible?
Not content with building only mid-sized hybrid trucks, Peterbilt has plans to scale up hybrids to Class 8s, the largest trucks. The Texas truck maker is currently working with Wal-Mart Stores to develop a Class 8 prototype. After the tests with Wal-Mart are finished, Giroux says, his company will decide whether to take the Class 8 hybrid truck into production.
A number of industry experts are skeptical that over-the-road tractors pulling 80,000-pound loads can run successfully on parallel electric technology. "The concept of scaling up a Prius technology for a Class 8 truck is a nonstarter," says Alexander of ABI Research. "It's difficult for hybrids to work on Class 8 trucks because most of their operation involves cruising at 60 miles an hour or better."
In fact, Alexander says, it's more likely that with Class 8 trucks, truck manufacturers will end up using the hybrid technology to run ancillary systems like airconditioning units, cooling fans, or power steering, which now sap power from the engine. "It will not double fuel economy," he says. "But 5 percent here and 2 percent there add up."
Peterbilt spokesman Giroux acknowledges that adapting Class 8 trucks to use Prius-type technology presents some challenges. One of those is fuel efficiency. While mediumduty hybrids can expect fuelefficiency gains in the range of 30 to 60 percent, he says, gains for heavyduty hybrids would likely be only 7 to 15 percent. "In the medium-duty trucks, there's a payback because of the stop-and-go cycle," he says. "It's more difficult if you're traveling long distances because you're not stopping to regenerate the batteries."
At least one trucking expert believes we may yet see Class 8 hybrid trucks on the highways, though they'll most likely be used for regional transportation, moving loads from warehouses to retail stores, for example. As prices for big rig hybrids drop, companies may be able to justify the purchase of Class 8s used in local distribution, says Bill Van Amburg, a senior vice president at CalStart, a Pasadena, Calif.-based nonprofit organization that works with both the public and private sectors to develop advanced transportation technologies. "Hybrids will not take over Class 8 trucks," he says, "but it would be short-sighted to say it won't be a fit in the future."
More avenues to explore
Even if parallel electric technology proves impractical for heavy-duty trucks, Alexander says, truck manufacturers could try other approaches, such as "ultracapacitor" technology. Unlike batteries, which store energy in a chemical form, ultracapacitors store electric charges on plates. "It allows a lot of energy to be stored quickly and released quickly," says Alexander.
Another option would be to deploy what's known as a series electric system, which General Motors is using in the development of its Chevrolet Volt automobile. In that type of system, an electric motor runs the vehicle all the time, and a gasoline engine simply recharges the battery. But that's not an option for big trucks right now. "They need bigger batteries than are available today for this to work," says Alexander.
With the era of cheap oil apparently over, truck manufacturers will surely continue to experiment with technology and develop variations on hybrid trucks of all shapes and sizes. In the meantime, though, American truck manufacturers are gearing up for a surge in sales of medium-sized hybrid electric trucks. "We expect our sales to grow exponentially next year," says Johnson of Navistar International. "Customers are realizing that higher diesel prices are a long-term change, and they have to invest in their equipment to mitigate the increases in fuel prices."
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."