By installing new dock door seals and ceiling fans in the shipping area, MillerCoors made its docks more comfortable for employees—and slashed its energy bills in the process.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
Like many other American companies, MillerCoors has made a long-term commitment to environmental sustainability. Its broad goals include conserving water, reducing waste, and saving energy. But meeting those goals can create enormous challenges for a company like MillerCoors whose industrial facilities were built back when energy was cheap.
The company, which started producing its Miller brand in Milwaukee in 1855, uses a lot of water, packaging, and energy. Its Milwaukee brewery alone produces 9 to 10 billion barrels of beer each year, at a complex that includes 78 buildings scattered across 84 acres. "We're an old facility, with lots of entrances and exits and old docks," says Bob Kutney, the supply chain manager for the Milwaukee brewery.
Even so, he says, the company has made substantial progress in its sustainability initiatives. "We start every day in the brewery with a pre-ship meeting, where we cover safety first, people, quality, service, cost, and [environmental] responsibility. Responsibility is all about sustainability and what we're doing to reduce our reliance on natural gas, electricity, and especially water." While much of the effort revolves around manufacturing operations, the company has taken specific steps to reduce energy use in the plant's shipping center—and to improve employee comfort and safety at the same time.
The doors are always open
One example of the brewery's efforts to cut energy consumption can be seen at its shipping center, which occupies about 100,000 square feet of space and serves some 130 distributors throughout the Midwest. The brewery has 101 shipping and receiving docks, but the 28 docks devoted to shipping are the most active. Forklift operators load full pallets on some 240 trucks per day in a three-shift operation. That number climbs to 300 during the peak shipping season from March to August.
That means those doors are open a large part of the time, and open doors invite in cold air in the winter, hot air in the summer, and snow or rain whenever they occur.
Over the past two years, the shipping area has substantially reduced its energy use and heating costs as the result of a switch from natural gas heating to steam as well as two investments at and around the dock doors.
Kutney says the dock door project arose out of a push to improve dock safety. He says a conversation about dock locks and safety with dock equipment specialist Rite-Hite led to a discussion about ways to seal dock doors in order to reduce energy use.
The effort had two major parts: one directly addressing the dock doors, the second using fans to recapture heated air from the ceiling.
At the doors, the goal was to create tight seals to prevent energy loss while the doors were in use. To achieve that, Kutney selected a group of complementary dock shelters and dock leveler pit seals from Rite-Hite.
A major source of heat loss at dock doors is the gapping that occurs between a trailer's swing-out doors and the trailer sides when the doors are open. According to Rite-Hite, the two-inch gaps along the hinges equate to a two-and-a-half-foot hole in the wall. That allows a lot of cold air to enter and warm air to escape in Milwaukee's often-frigid winters.
MillerCoors replaced its existing dock seals with a dock shelter called the Eliminator-GapMaster II from Rite-Hite's Frommelt line of products. The soft-sided shelter features polyethylene hooks on its side curtains that seal those trailer door hinge gaps when a trailer is backed into position. At the same time, it creates a seal around the trailer tops and sides without impeding lift trucks' access to the trailer.
Another source of energy loss at MillerCoors' docks was through the steel decks of the dock levelers. To seal those areas, MillerCoors installed PitMaster Under-leveler Seal components, also a Frommelt product. Rite-Hite says the product seals gaps where the leveler, trailer, and dock shelter meet—essentially the fourth side of the door opening. It also creates a pocket of air beneath the leveler, which acts as an insulating barrier to reduce heat transfer through the leveler deck.
MillerCoors also installed weather seals to close off gaps between the sides of the leveler and the pit walls.
Fans bring down the heat
In addition to plugging leaks at the docks, Kutney asked Rite-Hite to address an issue common to distribution centers in areas with cold winters: heated air rising to the ceiling. Rite-Hite says that air temperature in a typical DC will be one-half to 1 degree F warmer for every foot in height when air is not circulated. That drives up heating costs as heating systems struggle to warm air at floor level. Kutney says the temperature at the ceiling level in the shipping area was as much as 20 degrees warmer than at floor level.
MillerCoors installed three 24-foot high-volume, low-speed (HVLS) fans from Rite-Hite in the dock staging area. Rite-Hite says the fans work by forcing warm air down toward the floor, where it mixes with cooler air and eventually rises again, only to be pushed down once more in a process called destratification.
According to Rite-Hite, the shipping center saw its natural gas costs drop by $70,000 in the first 18 months after the installation of the seals and fans. Although costs have continued to decline, Kutney notes that the company has since replaced its overhead gas-powered dock heaters with more efficient heaters powered by steam, so it's difficult to say how much of further savings can be attributed to the seals and fans alone. Nonetheless, he says he's confident that MillerCoors recovered its investment within two years, a full year sooner than anticipated.
Furthermore, the seals and fans have created a much more comfortable environment for workers, he says. The docks are warmer in the winter, and the fans provide some cooling in the summer.
In addition, he says, the seals keep the dock area dry during wet weather, making operations safer.
All in all, Kutney says he's pleased with both the savings and the improvements in the work environment from the investment. "It's paid off in a lot of ways," he says.
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If they pass the remaining requirements to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.
Declaring that it is furthering its mission to advance supply chain excellence across the globe, the Council of Supply Chain Management Professionals (CSCMP) today announced the launch of seven new International Roundtables.
The new groups have been established in Mexico City, Monterrey, Guadalajara, Toronto, Panama City, Lisbon, and Sao Paulo. They join CSCMP’s 40 existing roundtables across the U.S. and worldwide, with each one offering a way for members to grow their knowledge and practice professional networking within their state or region. Overall, CSCMP roundtables produce over 200 events per year—such as educational events, networking events, or facility tours—attracting over 6,000 attendees from 3,000 companies worldwide, the group says.
“The launch of these seven Roundtables is a testament to CSCMP’s commitment to advancing supply chain innovation and fostering professional growth globally,” Mark Baxa, President and CEO of CSCMP, said in a release. “By extending our reach into Latin America, Canada and enhancing our European Union presence, and beyond, we’re not just growing our community—we’re strengthening the global supply chain network. This is how we equip the next generation of leaders and continue shaping the future of our industry.”
The new roundtables in Mexico City and Monterrey will be inaugurated in early 2025, following the launch of the Guadalajara Roundtable in 2024, said Javier Zarazua, a leader in CSCMP’s Latin America initiatives.
“As part of our growth strategy, we have signed strategic agreements with The Logistics World, the largest logistics publishing company in Latin America; Tec Monterrey, one of the largest universities in Latin America; and Conalog, the association for Logistics Executives in Mexico,” Zarazua said. “Not only will supply chain and logistics professionals benefit from these strategic agreements, but CSCMP, with our wealth of content, research, and network, will contribute to enhancing the industry not only in Mexico but across Latin America.”
Likewse, the Lisbon Roundtable marks the first such group in Portugal and the 10th in Europe, noted Miguel Serracanta, a CSCMP global ambassador from that nation.