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 mega-storm called Sandy began breaking up as it headed through the Great Lakes to Canada, leaving behind a life-altering trail of destruction that will take weeks, if not months, to repair.
By the morning of Oct. 31, Sandy's remnants had reached the lower Great Lakes region, where gale-force warnings were in effect for some areas. The storm was expected to pass over far northern New England and eastern Canada later in the day.
With Sandy essentially history, officials in the U.S. Northeast and Mid-Atlantic focused on rescuing those who stayed behind to ride out the storm and assessing the damage before commencing a long and arduous rebuilding process. Meanwhile, the region's supply chain continued to make slow but steady progress toward recovery.
The marine terminals at the Port Authority of New York and New Jersey would remain closed at least into Oct. 31, the Port Authority said in an alert issued late the previous day. That statement did not sound optimistic about a quick return to business, noting that there was still no electricity and "no time frame" for when it would be restored. The port's channels are closed, access roads are covered with debris, traffic signals are out, rail track has been "compromised," and fence lines are in "widespread disrepair," according to the statement.
Better news emerged from the ports of Virginia and Baltimore, which were both open as of Oct. 31. However, the Port of Virginia, which encompasses facilities in Norfolk, Portsmouth, Richmond, and elsewhere in the state, said the storm's widespread impact would affect vessel schedules "across the entire East Coast port range."
CSX Corp., one of the two main eastern railroads, was working to restore service on lines running between Philadelphia and Albany, N.Y. Trackage there was affected by high water, downed trees, and power outages. In an Oct. 31 statement, CSX warned that deliveries would be delayed by three days or longer.
Norfolk Southern Corp., the second eastern railroad, said service would return by Nov. 1 to "lightly impacted areas" of its network. However, areas the railroad described as "heavily impacted" may not have service until week's end. The railroad did not specify which areas were heavily impacted and which were not.
AIR TRAFFIC TRAVAILS
John F. Kennedy International Airport, probably the nation's most important air cargo facility, resumed limited flights on Oct. 31. The lack of electricity seems to be the airport's biggest problem at this time. A freight forwarding source said power outages are affecting trucking operations and causing delays in customs clearance.
Many forwarders at JFK have rerouted shipments to westward points, holding them for delivery until order is fully restored, the source said.
UPS Inc. said it has resumed all small package and freight operations except in parts of New Jersey, the New York borough of Staten Island, and mountainous areas of Pennsylvania and West Virginia, according to Susan L. Rosenberg, a UPS spokeswoman. The company is also operating at all U.S. airports, including JFK, where it resumed service the afternoon of Oct. 31.
Rival FedEx Corp.'s FedEx Express air unit has temporarily suspended service to approximately 2,100 cities in 12 states and the District of Columbia, according to an Oct. 31 service alert on the Memphis, Tenn.-based company's website. The company's FedEx Ground parcel unit and FedEx Freight less-than-truckload (LTL) unit experienced significantly fewer service suspensions, according to the alert.
Old Dominion Freight Line Inc., one of the nation's leading LTL carriers, is transacting business throughout the region, according to Chip Overbey, senior vice president, strategic development, for the Thomasville, N.C.-based trucker. "At this point, we are picking up and delivering freight in the areas that are open with power and where customers are ready for service," Overbey said Oct. 31 in an e-mail.
Overbey added that Old Dominion is operating at between 60 percent and 70 percent of capacity in such badly hit areas as south-central New Jersey and on Long Island. "To the degree the customers are open, working, and we can get to them, then we are servicing them," he said.
Only the carrier's Brooklyn, N.Y., and Jersey City, N.J., service centers are operating well below capacity. That's because they serve Manhattan and the New Jersey shore, both of which were battered by Sandy, Overbey said, adding that both service centers have power and communication capabilities.
Omaha, Neb.-based truckload carrier Werner Enterprises Inc., which has a large presence in the Northeast, is experiencing lingering delays due to road closures, according to Derek J. Leathers, Werner's president and chief operating officer. Leathers said in a telephone interview that customers could expect delays of one to two days.
Werner currently has extra trucks in the Northeast because it will be involved in relief efforts on behalf of its customers and aid groups such as the American Red Cross, Leathers said. Werner is a big player in the temperature-controlled transportation category, and specialized "reefer" equipment will be in high demand in the coming days and perhaps weeks.
One potential long-term impact of the storm and subsequent rebuilding is that it might exacerbate an ever-worsening shortage of truckload drivers, Leathers said. The restoration efforts will require a huge number of construction workers—people who might otherwise have considered obtaining a commercial drivers license and getting behind the wheel had the disaster not intervened, he said.
ALAN READY FOR ACTION
The American Logistics Aid Network (ALAN), which connects logistics resources with the needs of governments and organizations providing disaster relief, is gearing up for what will be its first major stateside test since it was formed after Hurricane Katrina in 2005. John "Jock" Menzies, ALAN's president, said governments and relief organizations are "just now identifying their needs" and will soon be making requests of resource providers.
Highest on the list, according to Menzies, will be refrigerated transportation equipment and so-called "mega-pumps" designed to rid the infrastructure of standing water.
Menzies expects relief organizations' need for logistics support to be fluid. He noted that governments and organizations go into a disaster with a requirements list, but once they are immersed in the work, they typically find there are tools or resources they need but didn't initially ask for.
The one certainty, Menzies said, is that the post-Sandy relief work will not be brief. "This is going to take a long time," he said. "If you've seen footage of the New Jersey shore, you know it's going to take a while to undo the mess that's been left."
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]."