They both represent the interests of truck owners and managers. But when it comes to policy issues, two prominent trucking groups find common ground elusive.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
Just because two organizations work in the same field doesn't mean they have to get along. Few seem to embrace that concept with more gusto than the American Trucking Associations and the Owner-Operator Independent Drivers Association.
Both groups, better known by their respective acronyms of ATA and OOIDA, are in the trucking business. Both represent the interests of owners and managers, though ATA's membership rolls include the largest companies, while OOIDA's members tend to be one-man operators who predominantly work under contract for larger trucking companies. But the two have repeatedly clashed over key public policy issues, and their disdain for each other's positions is hardly a private matter.
The latest set-to occurred in late January after G. Tommy Hodges, ATA's first vice chairman, asked Congress to enact a national speed limit of 65 miles per hour and to require that truck limiters be set at that speed for vehicles manufactured after 1992—both elements of what he termed the trucking industry's "environmental initiative." Hodges also called on lawmakers to raise to 97,000 pounds from 80,000 pounds the maximum gross vehicle weight limit for single-trailer units, and to authorize states to permit the operation of 33-foot twin trailers, which today are only in limited use in the Upper Great Plains region. (Virtually every state caps the length of twin trailers at 28 feet per trailer, limits that have been in place since 1991.)
Hodges had barely finished his testimony when OOIDA issued a statement accusing the ATA of "greenwashing" by cloaking proposals that would increase costs, eliminate competition, jeopardize safety, and line the pockets of big corporations in the mantle of environmentalism.
"Upping truck weights and mandating speed limiters in the name of sustainability is irresponsible and ridiculous," said Todd Spencer, OOIDA's blunt-spoken executive vice president, in the statement. Spencer said the industry would be better served by reducing the number of empty miles truckers have to drive, as well as the time and fuel spent waiting to load and unload their cargo. Combined, both cost truckers and consumers about $5.7 billion a year, he said.
In an interview, Spencer called the federal experience with speed limiters "disastrous," and said states should be responsible for establishing speed limits that are uniform for all vehicles and based on factors like weather patterns, infrastructure conditions, and driver behavior. He warned that ATA's call for widespread use of longer, heavier equipment would result in higher taxes and insurance costs, inflict further damage on an already highway system, and create safety problems as drivers struggle with rigs and trailers that are more challenging to operate.
ATA spokesman Clayton Boyce reiterated the group's position that longer and heavier truck-trailer combinations would make trucking operations more efficient and productive, thus reducing fuel usage and benefiting the environment. By removing thousands of trucks from the road, the industry would save more than 20 billion gallons of diesel fuel over 10 years and cut carbon emissions by more than 227 million tons over that time, ATA says.
Boyce said the equipment's use would be consistent with accepted highway and bridge design and meet the most stringent safety standards. He rejected as "specious" OOIDA's opposition to a nationwide speed limit and speed limiter setting, saying "speed limiting saves fuel no matter who is driving. It doesn't matter who the company is or who is behind the wheel."
You say yes, I say no
The fight over speed limits and bigger equipment represents just one area of disagreement between the two groups. There are plenty of others as well. For example, ATA backs a DOT proposal that requires truckers to equip their vehicles with electronic recorders if they are found to have a 10 percent or higher violation rate of the hours-of-service rule during each of two government compliance reviews conducted over two years. By contrast, OOIDA opposes the use of electronic recorders of any type to replace paper logs. The National Transportation Safety Board, for its part, believes on-board recorders should be mandated for the entire industry. (The DOT is expected to publish a rule on the issue by mid-year.)
In California, the ATA is aggressively fighting a plan by the Port of Los Angeles to phase out, over the next five years, owner-operators who provide drayage service at the port's terminals, shuttling goods between ports, intermodal rail ramps, and shipping docks. The port's so-called Clean Truck program requires a phased-in implementation of new or retrofitted low-emission tractors by Jan. 1, 2012, and mandates that by that time, all drivers be employees of port-approved carriers that own the tractors. The plan's critics argue it will force owner-operators and smaller truckers away from the port and create an acute shortage of draymen because most can ill afford to buy new tractors or retrofit existing ones.
ATA won a major victory March 20 when the U.S. Court of Appeals for the Ninth Circuit struck down the port's requirement that harbor truckers replace by year's end 20 percent of their owner-operators with employee drivers. The appellate court ruled the port's policy represented state or local regulation of interstate trucking and violated federal law. It remanded the case to the U.S. District Court in Los Angeles "for an appropriate preliminary injunction." ATA said in a statement that it was "extremely pleased" with the ruling.
OOIDA, which has remained silent on the issue even though owner-operators would be most affected by the port policy, was unavailable for comment when DC VELOCITY went to press. But in comments made several weeks prior to the March 20 ruling, Spencer said the ATA's arguments were trumped by the imperative of having a workable drayage model that is in compliance with clean air laws. "What ATA is doing is seeking to maintain the status quo, and that dog don't hunt," he said. OOIDA does not represent truckers who perform drayage at the nation's ports, although its membership includes truckers who operate to and from ports throughout the country, including Los Angeles.
ATA and OOIDA have also been at odds over an initiative to allow Mexico-based truckers to operate in U.S. commerce beyond designated border commercial zones. OOIDA bitterly opposed the initiative, saying such a move would potentially allow thousands of unsafe vehicles and unqualified drivers on U.S. roads. ATA supported the plan, saying it would reduce the time and expense of multiple handoffs of trailers and containers and, in the process, cut carbon emissions. ATA also pointed to government studies showing that the program would have no negative impact on U.S. highway safety. (Debate over the issue was effectively mooted after President Barack Obama signed into law the $410 billion omnibus spending bill, which ended congressional funding of an 18-month pilot program designed to give Mexican truckers full access to U.S. commerce. The Obama administration has said it will explore alternative measures for establishing a new cross-border trucking program with Mexico.)
The two groups are not at loggerheads over everything. Both favor an increase in fuel taxes to pay for infrastructure improvements so long as there are guarantees that the funds will not be diverted for non-highway use. Neither strongly opposed the federal government's new driver hours-of-service regulations prohibiting drivers from spending more than 11 consecutive hours behind the wheel and requiring at least 10 hours' rest between shifts. However, OOIDA was uncomfortable with language mandating that drivers work no more than 14 hours in a day, saying that doesn't give drivers sufficient time to rest between operating their routes and loading and unloading their cargo. ATA did not oppose that measure.
Frequent clashes
The culture gap between the groups can be traced to their roots. ATA is deeply tied to the federal policy apparatus; it has called the Washington, D.C., area home since its founding in 1933 and today sits in new headquarters in Arlington, Va., a Washington suburb. Its president and CEO, Bill Graves, grew up in a trucking family but has spent more than two decades in highprofile public sector posts. Graves joined ATA in 2003 after serving as two-term governor of his home state of Kansas. ATA has 37,000 members, mostly mid-sized to large truckers as well as big shippers like Wal-Mart Stores that operate private fleets.
OOIDA's roots are more hardscrabble. Its president, Jim Johnston, was a driver and an owner-operator until he was named president of the fledgling group in 1973. He is the only person to ever hold the post. OOIDA started life in an office trailer chained to a light pole at a truck stop in Grain Valley, Mo., near Kansas City. Today, OOIDA has 160,000 members, and it still calls Grain Valley home.
The key difference between the groups, according to Boyce, is the makeup of their respective constituencies. "ATA represents trucking companies," he says. "OOIDA represents individual drivers, all of whom choose not to be trucking company employees."
Has the failure to present a united front undermined the two groups' lobbying efforts? Not in Boyce's opinion.He says the many opposing views have little if any bearing on the trucking industry's relationship with Congress. Jim Berard, director of communications for the House Transportation and Infrastructure Committee, agrees, saying the frequent clashes actually benefit the industry's relationship with Congress rather than cause friction. "We get depth and insight into industry positions when different viewpoints are brought to the table," Berard says.
Spencer of OOIDA says ATA reflects the positions of large trucking interests, while OOIDA's stances represent those of small mom-andpop concerns that can't move regulatory and political mountains yet, in aggregate, move a large proportion of the nation's freight. "There is something to be said for having a presence in Washington. We've had an office there for several years," says Spencer. "But I don't know of any trucking companies that are headquartered in Washington, D.C."
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]."