Think there's nothing new in lift truck batteries and associated equipment? Not so. Here are four trends that could have a big impact on how you manage those assets.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Let's face it: Lift truck batteries and associated equipment—such as battery changing, monitoring, and charging systems—aren't the sexiest things in the warehouse. They're not as glamorous as robots or as attention-grabbing as high-speed conveyor systems. As a result, they're often taken for granted.
But these workhorses of the warehouse and DC are especially worthy of attention right now. Several factors—including technology, the economy, the environment, and regulatory controls—are having a notable impact on what buyers of batteries and associated equipment are purchasing and how they manage those assets.
What can you expect down the road? Here are four trends to watch.
1. Companies will adopt more efficient charging systems. Although high-frequency chargers have been available in Europe for years, they're now becoming a hot topic in North America. Most chargers for industrial batteries used here are ferroresonant or silicon-controlled rectifier (SCR) types, but these typically have only a 60- to 80-percent efficiency rate for converting AC current into the DC current needed to charge a battery, explains Steve Spaar, marketing director-Americas for the battery maker EnerSys. They also require large transformers that include costly commodities like steel and copper.
High-frequency charging technology, which uses a different type of switching componentry, doesn't require large transformers. These chargers have an efficiency rating of at least 90 to 92 percent and many are even higher, Spaar says. Fleets that use this technology typically see slightly lower electric bills. Electric utilities like these high "power factor" chargers, and many are willing to give a rebate to the end user for purchasing them, Spaar says. Buyers also can get LEED credit for installing these efficient charging systems.
There's no question that high-frequency chargers are becoming more prevalent, says Dan Dwyer, vice president and general manager of Sackett Systems, a manufacturer of battery handling equipment. "About 80 percent of the systems we've installed this year have some sort of high-frequency chargers involved," he says. For those installations, his company has had to modify the racking configuration in its multilevel battery changing systems because most high-frequency chargers have a smaller footprint and are mounted differently than traditional equipment, he says.
Concerns about electricity costs are encouraging lift truck fleet managers to reconsider not just how but when they charge their batteries, says Arun Patel, president of Access Control Group, a provider of asset management solutions for lift truck fleets. Charging during peak hours when electricity rates are highest, especially during the summer, can raise costs, he points out. By collecting and analyzing battery usage data, managers may find that they don't need to charge every battery at the same time or that some batteries are getting little enough use that they could be charged at night instead, he notes.
2. Regulatory restrictions will increase. Battery charging systems have come under scrutiny in California, where the California Energy Commission has proposed a regulation that would ban the sale of certain types of chargers in the state. The rule would apply to both consumer and industrial chargers.
The commission believes that charging devices that more efficiently convert AC electricity from the power grid to DC electricity stored in the battery will greatly reduce the billions of kilowatt hours of wasted energy generated by battery chargers in California each year. According to the commission's draft proposal, the regulation would require all chargers to shut off the flow of electricity after the battery has been fully charged. It would also set standards for the charge return factor (the amount of energy applied to a battery compared to the amount extracted from it) as well as for the efficiency in converting high-voltage AC to lower-voltage DC, power losses occurring in circuitry during charging, how well a charger synchronizes with the electric utility's 60 Hz cycle, and the amount of power the device draws to keep a battery at full charge. Finally, it would require that the charger draw no power when no battery is attached and the charger is in standby mode.
The proposed standards could make it illegal to sell SCR and ferroresonant chargers, according to Spaar. The commission is expected to issue its proposal this summer; if adopted, the standards could take effect as early as July 2013 for industrial chargers. It's believed that California is the only state planning to regulate chargers, but if the measure should prove successful, then other states might adopt similar rules.
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Looking for a supplier of batteries, charging systems, handling equipment, or monitoring systems? Here are just some of the many companies that offer these products.
3. Battery rooms will get "lean." Lean systems are becoming ubiquitous in manufacturing, and lean processes have been making headway in logistics and warehousing. So why not in the battery room? Lean is all about the systematic elimination of waste. Of the eight wastes that lean processes address, six (transportation, inventory, motion, people, waiting, and defects) exist in battery rooms, says Hal Vanasse, vice president of sales and marketing for Philadelphia Scientific, a provider of battery management systems. "People are happy to throw money at battery rooms, but they do not look systemically at what's going on and how to reduce waste," he says.
Almost any process related to changing and charging batteries can be wasteful and inefficient, Vanasse points out. For example, if you're checking the water levels of batteries that don't need water, then you've wasted time, money, motion, and people. If operators are queuing for battery changes because of poor charging practices or slow watering, then you're wasting time and people. And having more batteries than are needed for the required work produces costly excess inventory. All this waste can add up to tens of thousands of dollars annually, even for a small fleet, he says.
Not surprisingly, Vanasse touts electronic battery management systems as a tool for ensuring that only necessary tasks are done, and in the most efficient way. But he's hoping that the concept of lean itself will catch on with every company that uses industrial batteries, whether they adopt battery management systems or not. "The interesting thing about the lean framework is that it has a feedback mechanism that requires you to measure what you are doing against a plan, then make decisions that will lead to improvement," he explains. "It's systematizing not what we do, but what we should do."
4. Fleet managers will look to get more productivity out of existing assets. There is tremendous pressure on fleet and battery room managers to improve their return on assets, says John Kim, general manager of Aerovironment's Power Systems Business Unit, which supplies battery charging systems and accessories. "Management wants more out of that same piece of machinery and the people who use it," he observes.
Vendors are responding to that pressure by developing new technologies specifically aimed at achieving more with less. Kim's company, for instance, currently has a product under development that will allow users of fast chargers to charge two trucks from a single port. Port Splitter, as the device is called, does "sequence charging," constantly checking the state of charge for two batteries and automatically charging one or the other as needed.
Other vendors have focused on devising ways to give customers better management information. One of Access Control Group's products, for instance, lets forklift fleet managers integrate data from disparate sources like asset management and battery management systems for analytical purposes. "That way, they can combine them in a single view of how the whole mobile asset is working," Patel says. "You need a good picture in one screen that includes information that comes from different sources."
The pressure to improve asset utilization is also behind the rapidly growing interest in electronic battery management systems, says Dwyer of Sackett Systems. "We're seeing an increase in requests for battery management systems software because it helps customers with both operational decisions and capital decisions—for instance, which batteries they need to replace and how much they need to allocate from a budgetary perspective."
Indeed, says Kim, battery management systems that used to be a luxury are now seen as a necessity. Those systems' ability to prolong battery life, which is what drives a battery's total life-cycle cost, makes them worthwhile investments, he says.
Technology is important, of course, but battery owners also are seeking personal advice on how to get more benefit from existing assets, according to Spaar. "Customers now are looking to us not just to sell batteries and charging systems to them; they want us to be more involved in that part of their business," he says. "They want us to be the experts in what we are selling to them and advise them on how to best utilize them."
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]."