Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
If yours is a typical shipping operation, shipments probably aren't the only thing flowing out your dock doors each day. Chances are, money is too, in the form of air you've paid to heat or cool.
The causes of the problem aren't hard to understand. With doors opening and closing all day long, loading docks represent a prime escape route for heated and cooled air. And those doors aren't the only area of vulnerability. Think of all the gaps between the dock door and the door of the truck that's parked there for loading or unloading. Those cracks and gaps may seem insignificant, but they're actually a prime source of energy loss. If you added up all those gaps for 10 dock doors, you'd have the equivalent of a 6- by 6-foot hole in your distribution center's wall, says Steve Sprunger, vice president of sales and marketing for dock equipment maker 4Front Engineered Solutions.
In the past, it was easy enough to dismiss the problem as an unavoidable part of dock operations. But times are changing. Today, rising utility costs and societal and corporate pressure to be green are driving companies to take a look at how they can conserve energy at the loading dock.
So what can you do to tighten up your operations? Here are some tips.
Mind the gaps
When it comes to saving energy at the dock, most experts will tell you that shelters and seals are the first line of defense. Dock doors typically stand open for hours on end while trucks are loaded and unloaded, creating enormous potential for energy loss if the opening isn't sealed. Shelters, which cover and surround the top and sides of a trailer, and seals, which work by pressing up against the truck, are designed to prevent air from escaping. If your operation doesn't already have these devices in place, investing in them would be a good place to start.
But it's not enough to simply install these devices; you have to keep them in good working order. Seals and shelters can lose effectiveness over time—whether through normal wear and tear or damage. That's why it's a good idea to regularly inspect seals and shelters and replace old and damaged units.
It's worth noting that the cause of sealing failures isn't always obvious. Sometimes, the fault lies not with the seal, but with the door itself. As Sprunger explains, it's not unusual for a door to get hit and end up with a kink in it. Although the DC often is able to get the door working again, there may be residual damage—like panels that have been knocked out of alignment, creating a gap of a quarter inch or more and compromising the seal. To avoid this, Sprunger recommends installing dock doors that are specifically designed to withstand abuse, like those with impactable bottom panels.
Draft dodging
Although seals and shelters can go a long way toward stemming energy loss, they're not always enough. Even with these devices in place, dock doors can still be drafty. If that's true of your operation, there are a couple of other possibilities to investigate.
One is the so-called "hinge gap." Most over-the-road trailers have doors that hinge open as opposed to rolling up. When the truck backs into the dock, the dock shelter then seals to the inside face of the trailer door, as opposed to the trailer's outside wall. The result is a vertical gap between the outside wall of the door and the outside wall of the trailer, where air can rush in and out, says Walt Swietlik of dock equipment maker Rite-Hite.
Specialized seals designed to close off the trailer hinge gap during loading and unloading can help plug this type of leak. Rite-Hite also offers a dock shelter that has hooks that extend over the hinge, sealing it off from top to bottom.
Another place to check for leaks is the dock leveler, the device that bridges the gap between the truck or trailer door and the loading dock. Oftentimes, gapping occurs at the corners on either side of the dock leveler. As Swietlik puts it, as you look down on the leveler, there are two squares of white space on either side of it.
These gaps can be a significant source of energy loss, according to the experts. That's because unlike the gapping that occurs around dock doors and trailers, these gaps don't disappear once the dock door is closed. "Gaps around the leveler are a 24-hour-a-day concern since the front of the leveler is exposed to the exterior of the building," says Sprunger.
A number of dock equipment companies offer products that mount to the outside of the building and to the dock leveler to seal up those gaps.
Leakage can also occur underneath the dock leveler. Traditional dock levelers are recessed into a pit. If there's any kind of gapping between the leveler and the concrete pit, heated and cooled air can escape through the opening. Investing in an under-leveler seal can help plug this gap.
Open door policy?
When it comes to dock-related energy loss, the problem isn't always with the equipment. Sometimes, it's with the people. Seals won't do much good if dock attendants inadvertently leave doors open or fail to follow the proper procedure for opening dock doors (thus leaving doors open longer than necessary).
If you suspect operator error is a factor in your operation, "interlocking" or "sequencing" the dock operation can help. The use of interlocking equipment—devices that automatically engage when another piece of equipment is set in motion—removes the risk of operator oversight. Mike Earle of inflatable seal maker Pentalift says his company offers seals that can be interlocked with the mechanism that opens overhead doors so that once a door is opened, the seal starts inflating against the truck. This eliminates the chance that the operator or dock attendant will forget to engage the seal.
Sequencing a dock operation is another way to limit the amount of time doors are kept open. With sequencing, a control system or panel automatically sets the order of the dock door opening process. So, for example, a dock attendant must lock the trailer before raising the dock door and then engaging the dock leveler. The equipment will not turn on until the previous step has been completed.
In addition to interlocking and sequencing, there's always the software route. A number of companies offer dock management software that monitors loading dock equipment to make sure a dock door isn't left open. The software notifies the user when a door has been breached and then acknowledges any corrective action taken, says Sprunger of 4Front.
Watts going down?
Opportunities to save energy at the loading dock aren't limited to plugging air leaks, to be sure. Switching to more efficient—that is, lower wattage—dock lighting can also go a long way toward cutting utility bills.
Motor carrier Old Dominion Freight Line, for example, installed T5 lights at its freight handling facilities along with motion sensors that turn on the lights when motion is detected and ambient sensors that dim or raise lights depending on how much natural light is available. It also installed skylights to increase the amount of natural light in the loading dock area.
The result has been a noticeable drop in Old Dominion's utility bills. The carrier has seen a payback in anywhere from one to 12 months, depending on the number of lighting fixtures in the facility, says Howard Cornelison, the company's director of purchasing and real estate.
Another way to take a bite out of utility costs is to install high-volume, low-speed fans in the dock vestibule. In cold weather, these fans force hot air down from the ceiling; in hot weather, they promote air circulation and have a slight cooling effect.
Energy audit
If that seems like a lot of information to digest, help is available. Many dock equipment companies, including Rite-Hite and 4Front, offer free energy audits to identify areas of vulnerability and recommend solutions.
The return on investment for this type of equipment is typically pretty fast, according to the vendors. So once you've decided on a solution, it's usually fairly easy to get upper management to sign off on it, they say.
"In our analysis, we find the payback in Northern climates [is] in many cases a year or less," says Swietlik of Rite-Hite. "Considering that this equipment can run anywhere from $1,500 to $2,500," he adds, "that's a fair amount of energy saved."
Four Seasons keeps cool in face of rising energy costs
Utility rate increases may be a fact of business life, but the hikes Ephrata, Pa.-based Four Seasons Produce was looking at four years ago were in a category of their own. With Pennsylvania's electricity price cap set to expire on Jan. 1, 2010, the produce wholesaler had been running some numbers to see what kind of hit it would take. The findings came as something of a shock: Four Seasons learned its utility bills would rise anywhere from 20 to 40 percent. That was all it took for the company to launch a wholesale energy conservation effort aimed at generating savings roughly equivalent to the increase—somewhere between 20 and 30 percent.
One of the first areas to come under scrutiny was the company's bustling distribution center, a three-shift operation that operates six and a half days a week and handles more than a million cases a month. "We started by looking at areas of the facility where we knew we could reduce our energy use," says Randy Groff, Four Seasons' director of facilities and energy. "The building envelope, including the dock area, was one place that we knew we could generate some savings."
That assumption proved correct. A review of the operation revealed significant energy leakage at the dock's 35 doors—a serious concern for a refrigerated operation that requires its docks to be kept at a cool 40 degrees F. Part of the problem was that the original dock shelters were designed for tractor-trailer barn-style doors. When the company had to load or unload anything smaller, the result was a significant gap between the shelter and the vehicle.
To plug the leaks, the company invested in dock shelters and seals. In 2009, Four Seasons installed Rite-Hite's Eliminator-GapMaster dock shelters at all of its loading dock doors to seal the gap at the trailer door hinge. It also put in Rite-Hite's Pit Master under-leveler seals, which eliminate the gap between the leveler and the pit wall.
"It's now a lot easier to keep the ice on the broccoli," says Nelson Longenecker, Four Seasons' VP of business innovation.
How did the company do against its target? Quite well, it turns out. Its overall conservation initiative, which also included a lighting retrofit and the installation of a DC energy management system, produced savings of almost exactly 25 percent. "We hit our goal of having a smaller electrical bill this year than we did four years ago," says Longenecker.
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]."