David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
With apologies to Kermit The Frog, being green is looking pretty easy these days—even for warehouse and distribution center operations. Environmentally friendly material handling systems are available for nearly every warehouse function, and most suppliers are eager to help their customers figure out how to use their equipment to maximum green effect. Best of all, many of these products do not require large investments, just a new way of thinking when it comes to selecting equipment.
What follows is a brief rundown of some areas of a DC operation that offer easy opportunities to go green. Although this is by no means a comprehensive list, it may give you some ideas on simple ways to make your own operation more sustainable.
Waste not, want not
Most distribution facilities create mountains of waste—corrugated cartons from incoming shipments, paper used to pick and process orders, and even the backing of labels used in pick operations. Throw in used stretch wrap, old pallets, and left-over packaging supplies, and the volume mounts quickly.
What to do with all that waste? First, reuse the corrugated materials where possible. By shipping products in their original cartons, you save the cost of new materials as well as the time spent repacking. (But check with your vendors first to make sure the cartons are sturdy enough for reuse.) All corrugated that you do not reuse should be recycled. Balers can make it easy to stack and prepare old corrugated for transport to a recycling facility.
Paper, too, can be recycled, but a greener alternative is to eliminate paper altogether wherever you can.More and more DCs are turning to paperless order processing systems these days. In a paperless environment, warehouse management software relays picking instructions to workers via voice, pick-to-light, or radio-frequency technology, eliminating the need for paper pick lists. As a side benefit, these systems boost accuracy and productivity, and generally have a fairly short payback period.
If paperless operations are not an option, there are still things you can do to reduce your environmental impact. For example, if you use paper for pick-to-label applications, look for labels made from recycled materials.
Run on demand
When the subject of green equipment comes up, conveyors probably aren't the first thing that comes to mind. But actually, today's conveyors are engineered to save electricity. A prime example is the motordriven roller (MDR) conveyor, which is designed to power down when not in use—a significant departure from traditional conveyors, which run continuously during operating hours. Although they're more expensive than conventional models, MDR units typically pay for themselves many times over in energy savings and reduced maintenance expenses (because the units don't run continuously, there's less wear and tear on components). The "run on demand" feature alone reportedly cuts power consumption by at least one-third.
Even if you have an old conveyor, you may still be able to save money by converting it to a more energy-efficient design. A number of conveyor companies offer retrofits for existing systems that involve replacing old drive motors with more efficient units.
Many of today's conveyor systems feature a modular design that allows them to be easily repositioned or even moved to another facility as distribution needs change. That versatility can help extend the conveyors' lives far beyond the time when units are ordinarily consigned to the scrap heap.
Manifest destiny
When it comes to opportunities for going green, it's hard to imagine an area of DC operations that offers more potential than packaging and shipping. For starters, there are the shipping containers. Rather than relying on corrugated boxes, consider the reusable plastic container for closedloop applications. Advocates say the plastic units are cheaper to use in the long run and provide better protection than corrugated. And the containers are designed to nest when empty, making them economical to store and transport.
If plastic containers aren't an option, there are still steps you can take to make your operation more sustainable. For example, you can select cartons made of recycled materials. You can also review your operations to make sure you're choosing the right size carton for each shipment. Cubing systems make it easy to determine the volume of each order as well as the optimal carton size. Smaller cartons use less material, save on transportation costs, and require less void fill to protect their contents.
As for void fill, again, look for products that can be recycled. Kraft paper made from recycled material is an eco-friendly choice. Air-filled cushioning is another good option—one that requires minimal storage space and is also readily recyclable. There are also peanut-type cushioning products on the market today that are made of cornstarch and other water-soluble materials, making them a biodegradable alternative to foam-based packing peanuts.
Although often overlooked, green opportunities can also be found in a facility's printing and labeling operations. For example, you might be able to switch to a smaller shipping label, or replace your current labeling system with one that prints the shipping information on one side of the label and the packing slip on the other (thus saving paper).You might also consider dispensing with shipping labels altogether in favor of an inkjet encoding system that prints shipping information directly onto a carton. (If you do, look for a system that uses environmentally friendly inks.)
Of all the equipment in a distribution center, the item most likely to be recycled is actually the wood pallet. Most facilities repair and reuse pallets until they're no longer serviceable, and nearly all pallets are eventually recycled. While some argue that wood pallets are the greenest choice because they're made from a renewable resource, others consider plastic and metal pallets to be more eco-friendly because they can be reused hundreds of times (see "how green are your pallets?" DC VELOCITY, November 2008). Still others advocate for pallets made from fiberboard, corrugated, and other materials that are easy to recycle.
In it for the long haul
Like conveyors, lift trucks, which are the workhorses of most DCs, have become greener in recent years. That's partly because manufacturers have shifted some of their emphasis from internal-combustion engine models to battery-operated trucks that produce virtually no greenhouse gas emissions. In the meantime, research continues on alternative fuels, like hydrogen fuel cells, that show great promise.
Even among electric models, many of today's trucks are greener than their predecessors. There's been a shift away from units that rely on direct current (DC) electricity in favor of alternating current-powered models that use less energy. And lately, manufacturers have introduced hybrid electric models that generate power from energy used in vehicle braking and mast lifting operations.
At the same time, advances in electric battery design and charging technologies have increased the power output of standard cells, making electric trucks more eco-friendly than in the past. Plus, the fast-charging systems for batteries that are now on the market typically reduce the number of batteries required per truck by at least half (and eliminate the need for a battery changing room).
The environment inside
As for the facility itself, there are plenty of ways to make a building more eco-friendly without investing in costly new heating, cooling, and ventilation systems. To begin with, you can install large, low-speed ceiling fans as an alternative or supplement to air conditioning. In the winter, these same fans can force the warm air that rises to the ceiling back down to floor level, where there can be a 20-degree temperature difference.
For very hot climates, also consider misting devices to help keep workers cool as an alternative to air conditioning.
If you haven't already, install dock seals, barriers, and side curtains around all openings at a facility's docks. The seals will not only help keep heated or cooled air from escaping, but will also prevent insects and other pests from entering. Many dock equipment companies also offer seals for their dock levelers and truck plates and the small area around the trailer hinges where air can escape. Consider vinyl strip doors, rollup doors, and air curtains to maintain temperatures in the various zones of refrigerated and freezer buildings— keeping the cold where it belongs.
If your facility uses mercury vapor, sodium vapor, halogen, metal halide, or tungsten lights, think about replacing your existing system with a more energy-efficient alternative, like high-output fluorescent and similar induction lighting systems. T8 fluorescent fixtures, for example, operate on just 64 watts and can reduce power consumption by two-thirds while still producing more illumination than older lights. You can also save energy by installing motion sensors in racks and other areas of the building to turn lights on only when workers are present.
One step at a time
While the list of opportunities to go green may seem overwhelming, remember that you don't have to do everything at once. Instead, start with those improvements that make the most sense for your operation and your budget—no matter how insignificant they may seem at the outset. When it comes to saving the planet, even small steps can have a big impact.
hip to be green?
When it began its search for a new distribution facility in December 2007, Gainesville, Fla.-based Exactech had two main goals, and neither had anything to do with the environment. First, the company wanted more space. Second, it was looking to upgrade to a faster, more efficient system for filling orders for its products, surgical instruments and orthopedic implants for hip, knee, and shoulder replacements.
But when it came time to choose the material handling systems for the new facility, Exactech's designer and integrator, TriFactor, suggested that its client consider setting a third goal for itself: to use eco-friendly equipment where possible. "The opportunity was presented to us to go green," recalls Kevin Godwin, Exactech's director of customer operations. The company agreed to give the matter some thought, and soon afterwards, added eco-friendliness to its list of priorities.
After looking at the various options, Exactech concluded that the biggest eco-benefits would come from selecting energy-efficient conveyors and lighting. For conveyors, it chose a motor-driven roller (MDR) model manufactured by Hilmot Corp. The conveyors, which run on 24-volt direct current electricity, operate only "on demand," that is, when a product is present. That makes them as much as 60 percent more efficient than traditional conveyors, which run continuously. They're significantly quieter as well. "We refer to it as our 'stealth' conveyor," says Godwin. And because the motors are not constantly running, there is less wear on belts, bearings, and other conveyor components.
As for lighting, the company came up with an energy-efficient lighting system that could be described as spartan yet functional. Taking advantage of a resource abundantly available in the Sunshine State, it installed skylights that flood the facility with natural light. A polished concrete floor and white insulation on the walls further reflect the light, keeping the space well illuminated.
With artificial lighting, Exactech took a "less is more" approach, installing as little as possible. The lights it did install are controlled by a user-friendly switch panel that allows lights to be turned on only in the areas needed. As a result, power consumption in the new building is lower than it was in the old building, which was about half its size, according to Godwin.
Godwin says Exactech is now looking at replacing the nickel metal lighting fixtures that were there when the company moved into the building with more efficient induction lighting. Induction lamps would require half the wattage of the current lamps to produce comparable light output. Swapping out the fixtures would further reduce the building's power consumption by half.
As for how it's all working out, it appears that Exactech has no reason to regret its decision to go green. "It was more expensive up front," says Godwin, "but we save in the long run with lower maintenance and energy savings." Plus, the green initiative was a good fit with the company's values, he adds. "As a corporation, we are very community-oriented, and so it made sense for us to go green."
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.