David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
When it comes to the landscaping and irrigation trades, getting the right products into customers' hands at the right time is more than just good distribution practice. It is critical to operations.
That's because commercial landscapers and contractors schedule jobs, hire workers, and order supplies based on specific construction schedules. If they miss appointments because the materials they need aren't available, the contractors risk being fined for the delays. Therefore, a reliable source of supply is a must for these businesses.
That's where Ewing Irrigation Products comes in. The Phoenix-based company, which describes itself as the largest family-owned supplier of irrigation and landscaping products in the nation, has built its business by focusing on service.
Ewing operates 200 stores throughout the South and Southwest to serve its customers, which include commercial and residential landscapers, parks and golf courses, and water management agencies. The stores (or branches, as Ewing calls them) are fed from the company's main distribution center in Phoenix and eight "micro" DCs (a ninth micro DC will soon open in Heyward, Calif.). Because of the nature of the business, Ewing has to have an extremely flexible fulfillment system. "We offer everything from a 20-foot-long, 10-inch-wide pipe down to small drip emitters used in irrigation," says Terry Williams, Ewing's vice president of customer experience. "So, it can be very challenging in how we handle it all."
In a bid to streamline operations, the company in 2008 replaced the paper-based fulfillment system at the 95,000-square-foot Phoenix DC with a new warehouse management system (WMS) from Manhattan Associates. At the same time, it integrated RF-based scanning to direct the picking operations.
While the move led to some efficiency gains, it quickly became clear the scanners weren't a good fit with Ewing's operations. For one thing, associates found it tough to juggle a scanner while selecting heavy or unwieldy items like wheelbarrows, bags of mulch, and rolls of turf.
"The RF units were cumbersome for our employees," says Tony Saurer, Ewing's supply chain manager. "They had to put down the RF unit, pick the product, then try to pick up the RF unit again. Workers were always worrying about where the RF gun was."
And that wasn't the only drawback. Accuracy levels were falling short of what the company had hoped for. Most of the errors were occurring in the active pick zone, where a lot of small items are jammed into tight pick slots. Many of the items aren't easily distinguishable from one another—for example, an imprint on the top of a nozzle might be the only visible difference between two models. Workers were forced to rely on the error-prone process of matching up numbers on a pick slot and a tiny screen. The source of the problem lay in the break in eye contact as associates glanced between slot and screen—it was all too easy for them to look back to the wrong slot when they made their picks. Over time, it became more and more evident the facility needed a different picking solution.
HEAR! HEAR!
The answer to Ewing's problems came in the form of voice technology. In 2012, the company rolled out Vocollect's VoiceDirect system at the Phoenix DC. Today, the voice system, working in conjunction with the WMS, directs fulfillment activities in both the active and reserve picking areas of the facility.
The shift to voice has solved the two biggest problems Ewing was experiencing with scanners. Because it provides for hands-free operation (workers receive instructions via headsets), the voice system eliminates the need for associates to juggle a scanner while picking up an item like a 50-pound bag of fertilizer. It has also improved safety by reducing the risk that a worker will drop a heavy item on someone's foot while fumbling with a scanner.
On top of that, the voice technology has nearly eliminated the accuracy problems in the active picking area. With the new system, workers no longer have to glance back and forth between the pick slot and a screen. Instead, they simply read off a check digit attached to the pick location to confirm they're in the right spot. "Voice allows them to maintain a visual with the product and location they are picking from," notes Saurer.
To further enhance accuracy, the picker also reads off the last four digits of the pallet or carton ID to confirm the correct item has been selected.
As a result of the move to voice, picking accuracy has shot up to over 99 percent. That's a hefty 15 percent higher than it was back in the days of the paper-based picking system.
QUICK AND EASY
In addition to the accuracy gains, the company reports that the voice system has streamlined the processing of "multipicks," orders that call for multiple cartons of the same stock-keeping unit (SKU). Under the scanner-based system, picking 25 cartons of, say, a particular spray head model was not much different from picking 25 assorted cartons because the picker still had to scan each carton individually to confirm its selection.
With the voice system, the need for repetitive processing is history. When picking a series of cartons, the worker simply confirms the location, and then reads off the last four digits of the ID for the first carton, followed by the corresponding digits for the last carton. That signals to the software that all of the cartons in between have also been selected—there's no longer any need to enter data for each carton. Managers estimate that this capability alone has cut the time needed to pick a series of cartons from two minutes to about 30 seconds.
As for the actual switchover from scanners to voice, Ewing reports that the voice system proved easy for workers to learn. On top of that, voice turned out to be particularly well suited for the Phoenix facility, whose workforce is about 90 percent Latino. Non-native speakers of English often find it easier to follow voice commands than to try to read screen-based data in English. Currently, all workers at Ewing have chosen English for their voice directions, but the system also offers the option of Spanish prompts.
Though the implementation went smoothly overall, Ewing did encounter one initial speed bump. The difficulty concerned large-quantity orders, which Ewing prefers to pick directly from the reserve area rather than first transfer the stock to an active pick zone. The problem was, Manhattan did not offer a workflow to use voice for reserve picking. And writing a customized software interface would have been cost prohibitive.
But the problem didn't prove to be insurmountable. Working with its vendors, Ewing found a workaround using Vocollect's VoiceExpress application, which turns screen data into voice commands. The WMS generates a "green screen" of data, which then can be "screen scraped" into the VoiceExpress software. The software interprets the data and creates text-to-speech directions for workers.
THE GRASS IS GREENER ...
So how has the voice system worked out? Pretty well, by all accounts. In addition to the accuracy improvements, the company has seen picking productivity jump 20 percent since moving from scanning to voice.
As for labor requirements, the facility has realized a significant reduction in labor needs since the days of the paper-based system. Back then, it required 12 people working 12 hours a day, six days a week, to serve just 100 branches. Now, the company serves 200 branches weekly with the same number of people working a standard eight-hour shift, five days a week. Overtime has been eliminated at the Phoenix facility, which currently ships about 2,000 cartons a day.
Best of all, taken together, these advancements have improved service and product availability to Ewing's customers.
"We looked at this implementation as something that would help our employees and also encourage our customers to want to do business with us," says Williams. "Our main goal is service. And from a company standpoint, this is absolutely helping the customers. Everyone is smiling."
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
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 the state gets federal approval for the final steps 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.