Working from the inside, Ken Paff has brought about reforms that give Teamster members more say in the running of their union. Now, he's working to eject the old guard and bring in new leadership.
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.
Anyone affiliated with the International Brotherhood of Teamsters knows not to expect a neutral reaction when Ken Paff's name is mentioned.
To his supporters, Paff embodies an independent voice that holds the entrenched Teamster leadership accountable for actions that affect the 1.3 million-member union. To his critics, Paff is a nuisance whose importance is greatly exaggerated relative to the size of his group, the 10,000-member Teamsters for a Democratic Union (TDU).
Paff and the Detroit-based TDU are joined at the hip; he became the group's national organizer in 1978, a post he holds to this day. His tenure has been marked by such accomplishments as overturning the "two-thirds" rule, which had allowed contracts to be ratified with the approval of as little as one-third of the membership. Paff was also instrumental in helping Teamster members win the right to vote for its top leadership.
Throughout this year, Paff's voice will be heard. In the upcoming Teamster general election race, TDU has endorsed Sandy Pope, head of New York-based Local 805, who will challenge incumbent James P. Hoffa for the presidency. If Pope prevails, she will become the first woman to run the Teamsters. Lest anyone miss the significance of Paff's endorsement, consider that 20 years ago he backed another head of a New York local also considered a dark horse candidate. His name was Ron Carey.
In an interview with DC Velocity Senior Editor Mark B. Solomon, Paff, who turns 65 next month, spoke bluntly about Hoffa, the state of trucking labor, and why Pope is his choice. He also lashed out at leadership for allowing UPS Inc. to spend more than $6 billion to buy its way out of the Central States pension plan, a move he fears will, in the long run, cost the union dearly.
Q: One Teamster executive called you—with grudging admiration—a "pain in the ass." Do you think that's a reflection of Ken Paff's personality, or the nature of a dissident?
A: It's the TDU movement that the Hoffa administration finds threatening. It's not dissent per se, and it's certainly not about me. It's about an organized rank-and-file movement. These officials cannot stand it when members speak up and demand accountability. If there were no TDU, they would not have to worry about an alternative vision for the union, and members who want change would be isolated from one another. So the Hoffa administration spends a lot of resources attacking TDU.
They attack dissent, and they tend to support only those locals whose leaders march in lockstep. As a result, they weaken the union. In suppressing dissent, they are also undermining rank-and-file power and Teamster unity in action.
Q: TDU is supporting the campaign of Sandy Pope to be the next Teamster general president. What qualities do you see in her that convince you she is the most qualified to head the union? And how would her election affect both freight carriers and their employees? A: Sandy Pope is a Teamster. Hoffa is a celebrity. He is not involved in bargaining contracts, dealing with members' pension funds, aiding locals, or organizing—the lifeblood of the union. He spends his time at photo ops and golf outings, and with his inner circle.
Sandy Pope comes from the ranks and has experience in leadership at all levels of the union. Most of all, she has a vision for tapping rank-and-file power to build the union. To put the union's resources into building strength in core Teamster industries. And she's not going to be in bed with the corporations.
There is a great potential to draw Teamsters—who are by and large good unionists—into action behind union programs. We saw the beginnings of this in the 1990s, including during the UPS strike of 1997. That strike was not just won at the table. It was a full year of membership mobilization and involvement in [the] struggle. Sandy Pope was a part of that team. Hoffa and his people tried to undermine that struggle. They cozy up to UPS management and play "let's make a deal."
Q: How would you rate the job that Hoffa has done running the Teamsters? Where has he succeeded? And where has he fallen short? A: His specialty is working the media, which can be beneficial for the Teamsters and the labor movement. But as a strategy, it points in the wrong direction. When he ran for Teamster president, his slogan was "The Hoffa name means power," and for a while, he seemed to actually believe that by puffing himself up, it could somehow make the union strong. But the air is out of that balloon. He's fallen short in defending Teamster pensions, maintaining and strengthening national contracts, and helping local unions. He ran on "local autonomy" but runs the union top down.
Q: Trucking labor has been in what appears to be a long-term secular decline in membership and in influence. What, in your view, can re-energize the freight division, if indeed anything can be done? A: I start with this basic point: Transport and distribution are growth industries, and cannot be exported. It's not like manufacturing. So the Teamsters union should be in a growth mode in trucking, warehousing, distribution, rail, construction, waste, and public employment. In today's political and economic climate, that won't be easy, but it can be done with a long-term plan in place and a leadership capable of implementing it. It cannot be done trading Teamster power for short-term gains, like Hoffa's deal that let UPS bust out of the Central States pension plan. That was a crime.
UPS Freight is a critical piece of the plan. So is rebuilding the master freight contract. And organizing the non-union LTLs is another piece of the strategy. The present leadership has a short-term outlook—since it's a big challenge, they throw up their hands and head for the golf course, where they can meet up with trucking management. Can the union be rebuilt in freight and trucking? Absolutely. But it won't happen overnight, and it certainly won't happen with the present leadership.
Q: You have been skeptical of YRC Worldwide's efforts to survive through its series of restructured labor agreements. How do you assess its prospects? And have the rank and file sacrificed too much to keep the company alive? A: When the ship hits the reef, you can't blame the galley slaves. It's been poorly managed.
We're all hoping YRC will survive. It may depend on the pace of economic recovery. The working Teamsters have done far more than their share to make it possible. Right now, they are about $11 per hour under [National Master Freight Agreement levels] on pensions and wages, and they've lost additional contract protections that took decades of Teamster power to win. I'd be hard-pressed to name any other group of American workers who have taken such a big hit in their standard of living.
Q: ABF Freight System, YRC's chief union rival, sued YRC and the Teamsters on grounds the two negotiated their own agreements outside of the National Master Freight Agreement. But the suit was dismissed as having no legal standing. Do you believe ABF has a case? A: We said from the start that ABF didn't have a case, and the suit was promptly dismissed. But ABF management isn't stupid. They got a lot of press and reached a lot of Teamsters with their viewpoint. They also exposed that Hoffa approached them to offer them concessions, if they would acquire and merge with YRC. What genius was Hoffa listening to on that one?
Q: Legislation was introduced last year to reform multi-employer pension plans by requiring the Pension Benefit Guaranty Corp. (PBGC) to take over the pension obligations of retirees of bankrupt companies. However, bills in both houses went nowhere in the last Congress. Should this be a front-burner issue, and is there political will to change the system? A: This should be a front-burner issue. We are in danger of losing pensions in this country. Not just Teamsters, but millions of workers, from teachers to industrial workers.
The Teamsters should take the lead and make this a rallying cry. Sandy Pope has talked about organizing a march on Washington to defend pensions, to involve all of labor, coalitions representing seniors, and pension rights advocates.
The bill to strengthen the PBGC should be a priority. The Hoffa administration supports the bill, which is a start. It's time for the Teamsters union to put muscle behind it. It's time to build a movement, starting with Teamster members. The Tea Party has tapped people's anger and frustrations, but they point it all in the wrong direction. We need a movement to aim at real solutions. Defending Teamster pensions—and all pensions—is a good place to start.
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]."