Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
The trough of a recession might seem an unpropitious time to take the helm of an influential trade association, but you won't hear Michael Mikitka complain. Though he acknowledges that "economics have made membership a more challenging product to sell," Mikitka, who was recently named executive director of the Warehousing Education and Research Council (WERC), is quick to point out that a downturn doesn't diminish the need for professional education and training. As long as there are warehouses, managers will want information on how they can refine and improve their processes—and that is precisely what his group intends to provide.
Education is a subject close to Mikitka's heart. He began his career as a technical writer preparing educational materials for the Property Loss Research Bureau, an insurance trade association. He later moved to a job developing programming for the group's annual conference, a job he parlayed into a similar role at WERC, which he joined in 2000.
Mikitka, who graduated from Illinois State University with a B.A. in industrial/organizational psychology, holds the prestigious Certified Association Executive (CAE) and Certified Meeting Professional (CMP) designations. He met recently with DC VELOCITY Group Editorial Director Mitch Mac Donald to talk about the programs WERC is developing, the group's online initiatives, and why the days of the 500-page book are over.
Q: How would you describe WERC's mission?
A: WERC's mission is to provide resources to the warehousing and distribution industries, whether it's learning opportunities, products, or services. The association has also played a role in raising the profile of warehousing and distribution.
WERC also provides networking opportunities through our events, our committees, and our regional chapters, which extend WERC's reach to the local level.
Q: Could you talk a little about the regional chapters and their activities?
A: Our chapters serve as volunteer-driven extensions of the national organization. The local chapters help us to serve a member who might be working with more limited resources and can't attend the national conference every year. They also allow members to bring their front-line people into association activities, again without the expense of attending the national conference. Our chapters give us the ability to provide learning and enrichment opportunities to larger segments of our members' operational teams through local facility tours, networking events, and speaker presentations.
Q: In the current economic climate, everyone's looking for ideas for cutting costs, streamlining operations, and so forth. Would you say that the role of educationfocused associations like WERC is more important now than it might be in better times?
A: I don't know that I would say more so now. I think that [education support] is what we always provide. That said, our members are certainly like everyone else in business right now in that they're being challenged by the economic environment. So they clearly are looking for more information and ideas to help them not just survive, but perhaps thrive in this downturn. For instance, as business is a bit slower, this is an excellent time to focus on training, and WERC can help with that.
Q: What sorts of programs is WERC currently developing for its members?
A: From an ongoing perspective, there is our annual distribution center metrics and benchmarking study, which we do jointly with DC VELOCITY, Georgia Southern University, and Supply Chain Visions. Having done that for six years, we are now in a position to offer trending information as far as DC metrics go, which I think is valuable and which is something our members have always been looking for.
We're also looking at moving more of our products and resources online, whether through online learning or other programs. We are experimenting with the social networks that are out there—the LinkedIns and the Twitters. We are also always looking to expand our menu of online tools. A good example is our online benchmarking tool. It allows a member company to go in and enter its own DC performance numbers to see how they compare with data from the DC metrics study. So that is giving our members tools and information they need to refine and improve their processes.
Q: It seems most every association is currently facing challenges in maintaining its membership base. How are things trending with WERC?
A: Economics have made membership a more challenging product to sell if you can consider it a stand-alone product. But we are seeing upswings in other areas, like online courses and sales of our publications. Although conference attendance was off a little bit this year, our attendee surveys still show that we deliver a very good product, a very good experience. That's something we remain committed to.
Q: You've now been involved with WERC in some capacity for nine years. What has kept you there for so long?
A: We have a really great membership. I mean, this is a good field. It is a business that has to be responsive, and it expects that same type of responsiveness from an association in terms of the products and services we provide. It is a very realistic group to work with. That is one of the nice things about WERC and our membership and the profession we serve.
Q: How do you stay on top of industry trends and your members' changing information needs? Do you have a formal process for that?
A: We have several ways of gathering that information. We do it through member surveys. We do it through talking with members. We do it through direction from our board of directors regarding trends they are seeing. We also use research that may be presented to us by the educators in our field.
We're also making some changes in the way we present information to members. When we do research, our publications are more targeted than in the past. The days of the 500-page book are over. We're now focusing more on the practical, quick-read type of approach.
The question we ask ourselves when developing products and resources as well as our conference sessions is, What is the takeaway from this particular item? You'll find something to take away from each of our offerings, whether it's a conference session, a facility tour, or an online course. For example, with a conference session, it might be the top five things to look for when choosing a system, or the top three things to avoid when implementing a system.
Q: If you were asked to identify the one industry trend or development that has the greatest potential to benefit the profession going forward, what would it be?
A: Distribution and transportation are closely tied in the supply chain. The transportation infrastructure in the United States is a major opportunity for warehousing, distribution, and logistics in general. As there seems to be a focus in Washington on roads, bridges, and rail, there is the opportunity for cost savings and quicker transit, adding more flexibility to the supply chain.
Q: What advice would you offer to young people looking to pursue a career in the logistics profession?
A: Learn as much about the profession as they can. The best way to do that, I think, is to identify a network of people who can help them learn. That network could be through WERC—either at the local chapter level or the national level. Or it could be through other industry associations. There are certainly other great industry associations out there.
What you don't know in life, good people will teach you. It's a matter of finding the right teachers.
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
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.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
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.