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.
The Teamsters union's long and colorful history has included its share of moments that transcend labor-management relations and find their way into cultural lore. The race to elect the union's next general president could become one of those moments.
Consider the candidates, whose intersecting story lines seem straight out of central casting:
The incumbent, a 70-year-old Detroit native whose last name is virtually synonymous with organized labor. Drawing on the power and resources of the office, he is vying for his third full term at the union his late father built into an entity as powerful as it was controversial.
A 54-year-old single mother of two with a black belt in Tae Kwon Do. A child of privilege who quit college at 21 for what became a 33-year Teamster career, she is running as a virtual one-woman band to become the first female president in the union's 108-year history.
A salty-tongued 59-year-old ex-Marine, a Wisconsin native with 39 years at the Teamsters. Currently an international vice president and a former ally of the incumbent before splitting off in 2010, he now mostly swears at him instead of by him.
About 1,800 delegates are meeting at the Teamsters annual convention in Las Vegas, where today they will nominate candidates to run in the general election. Barring an unexpected turn of events, James P. Hoffa; Alexandra (Sandy) Pope, and Fred Gegare will garner enough votes to qualify for the nomination. The ballots go out in October and will be counted in November. By then, the three nominees will likely be covered with welts from what is destined to be a bare-knuckled affair.
The Pope and Gegare teams have framed the election as a referendum on Hoffa's leadership, charging Hoffa runs the union from the top down and routinely ignores local concerns, and has jettisoned long-time associates in favor of high-priced consultants with little knowledge of labor.
"He doesn't want to listen to anyone who has experience," says Gegare, who in 1999 ran as a vice president on Hoffa's slate during his first successful presidential push. "You don't turn in your old friends for new ones."
Gegare, who among other positions is chairman of the board of trustees at the union's influential Central States pension fund, claims he brings experience and support that Pope lacks, as well as a change from the status quo represented by Hoffa. "When I look at my résumé, I don't see how anyone can beat me," he says.
Pope, who in 2006 was named number two on an opposition slate that was eventually defeated by Hoffa, hopes to gain traction this time by contrasting her years as a field representative and president for the past six years of Local 805 in New York with Hoffa's lack of in-the-trenches experience.
"I've been in the thick of it for quite a while, and I feel Hoffa has been above it all, always," she says. "He was never a shop steward or a local officer, and he has totally removed himself."
The Hoffa camp, which is blanketing the Internet with campaign ads (a website for hiking trails in Georgia shows a campaign ad with Hoffa's name adorning the side of a 53-foot trailer), argues its candidate brings unmatched qualifications from his background as a labor lawyer, the knowledge base gained from growing up in a prominent union family, and his 12 years' experience as Teamster president. They dismiss Pope's candidacy as a pipe dream fueled by little more than human interest. They claim that she has virtually no funds to conduct a serious campaign and that she is unqualified to run the Teamsters after mismanaging her local's finances to the point of near-insolvency.
Hoffa's supporters acknowledge Gegare's level of experience but say his vitriolic comments about Hoffa ring hollow given that he supported the general president on almost every issue before breaking away from him.
"Gegare never spoke out against anything," says Richard Leebove, a senior adviser to the Hoffa campaign. The campaign did not make Hoffa available for an interview.
The Hoffa campaign points to such successes as his role in keeping less-than-truckload (LTL) carrier YRC Worldwide Inc. afloat—and preserving 25,000 to 30,000 Teamster jobs—as the company teetered on the abyss through 2009. The campaign also touts the organizing of 10,000 to 12,000 members of UPS Freight, which was known as Overnite Transportation prior to UPS's 2005 acquisition of Overnite.
Gegare and Pope argue that UPS Freight was not organized as part of the National Master Freight Agreement (NMFA), which covers unionized LTL carriers, and that its union members' wages started as much as $11 an hour below NMFA carriers like YRC and ABF Freight System Inc. Leebove declined comment on the specifics of any wage gap, but says he doesn't believe the UPS Freight wages were "significantly different" from its rivals'. Leebove adds that UPS Freight workers will receive wage increases in 2011, 2012, and 2013.
Fading relevance
The campaign will play out against the fading relevance of Teamster labor in the transportation industry. While overall Teamster membership has dropped from 2 million to 1.4 million, the freight division's rolls have plummeted from about 500,000 in the late 1970s to about 50,000 to 60,000 today. The division, once considered the union's core, has been weakened by hundreds of bankruptcies among unionized carriers and the growing reliance on non-union labor. About half of the division's members work at YRC, a company that remains financially fragile.
The candidates have all vowed to re-energize the freight division. However, they have so far pledged to do little more than step up organizing efforts at non-union carriers like FedEx Corp.'s ground parcel and LTL divisions, a strategy that has gone nowhere in the past. There is talk about organizing the thousands of owner-operator independent drivers operating around the country, especially at the nation's ports, where they have strong drayage operations. However, with no large employer to focus on, such organizing efforts would be fragmented and perhaps futile.
Pope says she would examine the expanding relationship between UPS and the U.S. Postal Service, under which UPS turns over shipments to the post office for deliveries to mostly remote destinations. The agreement, made possible by the requirement that USPS serve every U.S. address, allows UPS to reach more customers without the expense of dispatching its own drivers. However, Pope says the compact violates the Teamster contract and threatens traditional Teamster jobs in regions of the country already hard-hit by the recession.
Ace in the 'Hall'
Unlike Hoffa and Gegare, who are running with a slate of candidates, Pope is going it alone. She has no slate of officers, and relies on a staff that, as recently as May, consisted of two part-timers and staff time donated by Teamsters for a Democratic Union (TDU), a dissident group that supports her candidacy. Pope says she has a large grass-roots volunteer network and holds conference calls at nights and on weekends with Teamster members nationwide. She says that she will rely on social networking tools to build critical mass.
In 1991, TDU backed the candidacy of the late Ron Carey, who was elected president in a stunning upset. While Pope and TDU hope lightning can strike twice, Leebove of the Hoffa camp says the comparisons between the two eras don't stand up to scrutiny.
For one, Carey ran against a splintered field after the incumbent at the time, William McCarthy, declined to seek another term. By contrast, Pope is facing a two-time incumbent in Hoffa, Leebove says.
In addition, Carey, as a long-time UPS employee, built on a groundswell of support among the company's rank and file, Leebove says. Pope doesn't have that embedded base, Leebove claims. Carey also had about 12,000 members in his local—Local 804 in New York—while Pope has slightly more than 1,000 members in hers, he adds.
"Ron Carey was by far a more significant player than Sandy Pope," Leebove says.
In a nod to the importance of nearly 250,000 unionized UPS workers, Hoffa has named as his running mate Ken Hall, who for years was director of the Teamsters' small parcel division and was one of the architects of a 1997 job action that shut down UPS for 15 days.
Leebove says Hall is "regarded as a hero" by workers at UPS and throughout the union for standing up to the Atlanta-based giant and still wields considerable influence. The choice of Hall is "a major game changer," he says.
Ken Paff, TDU's national organizer, agrees that Hall's connection with UPS Teamsters was a key factor in his selection as Hoffa's number two. However, Paff says the Hoffa campaign may be misreading the rank and file's likely reception of Hall, contending the most recent UPS contact, negotiated in 2007, was "not that popular" with members.
A full agenda
The winner of the November election takes the chair in January 2012 and almost immediately will need to gear up for events in 2013 that could chart the union's course for years to come: negotiating new contracts for workers at UPS's small-package operations, at UPS's LTL division, and at YRC. The three contracts combined will affect about 275,000 members, equal to nearly 20 percent of Teamster membership.
"UPS and the NMFA are the heart of the union, and it's what everybody will be watching," Pope says.
One person who will certainly be watching is Scott Davis, UPS's chairman and CEO, who will oversee the upcoming 2013 contract negotiations. In light of UPS's tradition of limiting its chairmen to negotiating only one Teamster contract during their tenure, this will be Davis's one shot.
Davis, for his part, seems happy with the way things are. "The relationship with the Teamsters is better than it's ever been before," he told an analyst group in June.
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
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%."