Nearly three months after Hurricane Sandy devastated the northeast United States, the supply chain is struggling to gain the traction needed to help the nation's most populous region get back on its feet.
As the calendar turns, the recovery work that might have otherwise been further along has instead been frustratingly slow to take shape, according to the American Logistics Aid Network (ALAN), a group formed after Hurricane Katrina in 2005 to connect disaster relief agencies with individuals, companies and associations looking to provide logistics capabilities and resources to stricken areas.
In New York City, Long Island, and northern and central New Jersey, areas that bore the brunt of Sandy's wrath, there have been few long-term requests for the transport of building materials necessary to support a normal recovery, according to ALAN officials.
"There is progress. It's just not moving as quickly as we hoped," said Kathy Fulton, ALAN's director of operations.
Sandy made landfall along the New Jersey shore on October 29, packing a lethal combination of rain, wind and snow. Dubbed a "superstorm" for its enormous 900-mile width and a near-record low level of barometric pressure, Sandy spawned massive wind gusts, tidal surges, and blizzard conditions that meteorologists said were unheard of for a tropical storm.
Sandy killed more than 200 people in the U.S. and the Caribbean, and caused about $62 billion in damage. It is the second-costliest natural disaster in U.S. history behind Hurricane Katrina, which cost about $125 billion in inflation-adjusted dollars.
Several factors have slowed the recovery process. Bureaucratic red tape has frustrated homeowners and businesses that have filed insurance claims. There is also Congressional delay in appropriating billions in federal dollars. The House of Representatives, which has been sharply criticized for dragging its feet on voting for relief funding, approved $50.7 billion in aid last week, less than the $60.4 billion bill the Senate passed late last year.
As of Monday, however, final legislation had not been sent to President Obama's desk for signature, meaning that it's been 82 days from the storm's first day and its victims have yet to receive federal aid.
Fulton said the funding should brighten the prospects for recovery and get the wheels of commerce grinding again. "Anything that helps boost the economy for the region will improve the supply chain situation," Fulton said.
But the flow of federal funds may do little at this point to help areas so devastated that relief workers are still in "response" mode to provide food and shelter to those who lost everything. There are even some areas of the region still recovering from Hurricane Irene, an August 2011 storm that hit the Northeast and New England with significant flooding but was nowhere near the magnitude of Sandy.
Temporary housing remains inadequate for the densely populated region living in such a wide area affected by Sandy. Even many relief workers can't find shelter, according to ALAN officials. The supply chain's biggest immediate challenge is to find some type of lodging for those workers so they are capable of helping survivors, Fulton said.
Sandy wreaked such widespread devastation that many trucks have not been able to navigate around the rubble to make deliveries. Perhaps the most enduring images of the enormous physical damage are aerial photos of a seemingly endless line of damaged cars parked January 9 at a Long Island air park waiting to be auctioned.
Another issue is how to dispose of thousands of items sitting in a decrepit warehouse in central Islip, Long Island, about 50 miles east of New York City. The facility houses in-kind donations for multiple relief agencies that lack their own warehouse space, and were donated by individuals, businesses and groups from across the nation. The in-kind donation programs for New York and New Jersey are managed by Adventist Community Services, a highly regarded organization that works through memorandums of understanding with the two states.
However, the aging facility has no heat or running water. The building is set for demolition, and Adventist has until Feb. 8 to remove the goods from the warehouse and find homes for them.
Adventist has sufficient material handling equipment to remove the goods from the facility. However, other agencies are facing a void in available lifttrucks. Many lifttrucks were damaged beyond repair by the storm, and there is a lack of adequate replacement quantities, Fulton said.
Today, ALAN is doing what it can to assist in what has become its biggest disaster relief effort since its inception. For example, it is linking relief groups seeking to replace so-called durable medical equipment like examination beds with a medical surplus recycling program, and will also connect the agencies with transportation providers to get the goods to their destinations.
No one knows how quickly or completely the Northeast will recover from Sandy. John T. "Jock" Menzies, ALAN's president, said a full recovery will take three to five years. Yet Menzies characterized Sandy as a "disaster" but not a "catastrophe," the distinction being a catastrophe creates a totally new way of life and commerce, and that the affected region never returns to what it was like prior to the event.
Before Sandy, ALAN's two biggest involvements were the January 2010 earthquake in Haiti, and the March 2011 earthquake and tsunami in northeast Japan. While the two events may have been somewhat similar, the responses couldn't have been more different, Menzies said.
Haiti, a poor country with socio-economic instability, was virtually flattened by its quake, which killed an estimated 230,000. Three years later, about 600,000 Haitians still live in tents, compared with about 750,000 in the disaster's immediate aftermath.
In contrast, Japan, a wealthier, more advanced society with strong cultural homogeneity and proven resiliency in addressing natural disasters, recovered almost fully within three months after the earthquake and tsunami, even though the World Bank listed it as the costliest natural disaster in recorded history at about $235 billion.
The recovery in Japan was so remarkable, Menzies said, that he had difficulty distinguishing photographs taken after the disaster with those that were taken before the quake.
Fulton said the post-Sandy recovery will be "uneven" across the region, and it will depend on the allocation of funds, the level and effectiveness of political leadership, and the involvement of the respective affected communities. Still, the powerful socio-economic forces in the U.S. give it "great capacity to recover" from the disaster.
Menzies said ALAN, like all those involved in Sandy relief efforts, will learn from the disaster, enabling the group to more effectively deal with future events. Of the many challenges confronting logistics planners, he said, the overarching question may be "if we are going to support the building in areas that are susceptible to these kinds of events."
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]."