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.
At International Paper's manufacturing operation in Courtland, Ala., logs enter the building at one end and come out the other in the form of large paper rolls and cases of 8 1/2- by 11-inch paper. It takes trained workers and specialized machinery to keep the pulp and paper flowing in the highly automated operation. But as in most manufacturing plants, things can go wrong. That's why the company makes employee safety a priority.
"It's the most important facet of our business. Without our people being well, we could not run properly," says Tim Agee, who recently retired after 10 years as safety manager of the plant.
Most employers would agree with Agee that their people are their most important asset. Finding good workers is never easy. And when you factor in recruiting and training costs, workers represent a significant investment for employers. Protecting them from injury and lost days is vital to good performance. Most importantly, it is the right thing to do as an employer. That's why it's essential to keep workers informed of safety procedures—first with good training, and then through proper signage and labeling that reinforce safe practices.
SAFE WAY
Safety programs save lives. According to Occupational Safety and Health Administration (OSHA) statistics, workplace fatalities have dropped by more than 65 percent since 1970, while occupational injuries and workplace-related illnesses have declined by 67 percent. Most of this is due to regulations and safety programs that are deployed in workplaces, including the use of proper signage and safety labeling.
OSHA and other federal and state agencies set requirements for most of the safety signage found in a warehouse. The OSHA website (www.osha.gov) is a good resource on regulations. But local jurisdictions also have a say in creating safe work environments. For instance, local fire inspectors are typically charged with assuring that exits are clearly marked, directions to storm shelters are posted, and the locations of fire extinguishers and eyewash stations are clearly identified.
Local requirements can vary greatly, which tends to create headaches for companies that operate facilities in multiple locations. "It is important for managers to know the regulations [that apply to] the dirt under their feet," says Paul Burgess, regulatory specialist at Labelmaster, a company that provides safety labels and related products. "People think they have their ducks in a row, but then are surprised when the local inspectors show up and [tell them] they are not compliant."
Burgess notes that a wealth of material on fire, electrical, and building safety, including hazard marking and signage, can be found on the National Fire Protection Association's website (www.nfpa.org). Most fire departments use NFPA standardized codes as the basis for their own local codes, but individual requirements may vary. For that reason, it's wise to check with your local fire department to see how closely it follows NFPA guidelines and what other codes may be in force.
SIGN LANGUAGE
As for what kinds of signs companies use, Jeff Tanner, vice president of risk management at Kenco, a third-party logistics company, says the signs posted in his company's facilities fall into three basic categories: danger signs, caution signs, and safety instruction signs.
Danger signs warn of conditions that can cause serious harm or even death, such as exposure to high-voltage electricity. Caution signs warn against other possible threats, such as a hot surface or a conveyor that could start without warning. Safety instruction signs provide directions on where people should go in case of emergency or the proper use of a piece of equipment.
"As an advocate of safety, we have to go out and look for areas where we need to develop signs to assure safety," says Tanner. "For instance, we might place a sign near our dock doors that states, 'Jumping from dock doors is prohibited, use the pedestrian door.'"
Other signs might identify areas in which propane fuel is in use, "no smoking" areas, low clearances, or zones where lift trucks are prohibited from entering.
Agee reports that signs play a major role in assuring safety at the International Paper plant. "Every door you go through tells if forklift traffic is on the other side," he says. "Being in 'tornado alley,' there are also signs to direct people to storm shelters."
As for the signage itself, today's signs (which can be bought ready-made from suppliers or created in-house) are just as likely to feature symbols as the traditional text. In fact, symbol signs are growing in use and are required in some instances. Research confirms that people respond faster to graphics, known as pictograms, than to text. "Pictograms improve sign recognition from a distance, well before text is legible," says Jack Rubinger of Graphic Products, a supplier of industrial label printers for safety, productivity, and compliance programs.
We've all seen these symbol-laden signs before: A picture of a person walking with a line drawn through it means "Don't walk here." A pictogram of safety glasses in a battery changing room reminds workers to wear eye protection. A symbol of a horn blowing warns lift truck drivers to hit their horn when approaching a blind corner.
Good signage and labeling are especially important for facilities that experience high turnover, rely heavily on temp workers, or have a lot of visitors. And at warehouses where English is not the first language for a majority of workers, pictograms are essential.
While the primary purpose of signs in facilities is to promote safe practices, good signage can also yield other benefits.
"The [main] reason to use signs is to promote safety, but they can also [improve] workflow," says Barry Alves, label systems consultant at Peak-Ryzex, a systems integration company that also provides labeling solutions. He says that while good signage saves on lost employee workdays, the return on investment from productivity increases alone can be as short as six to eight months.
"The signs can tell people where to be, where not to be, and how to go. It gives them a workflow pattern and process that they can follow," Alves says.
Another way to accomplish that is through floor markings. Some operations mark travel lanes for facility vehicles (and include stop-sign warnings at major intersections to reduce the chance of accidents), while others use floor markings to identify designated pedestrian lanes, where workers and visitors can walk safely away from forklift traffic.
Among the companies that use floor markings to denote pedestrian lanes is Kenco. "We train our people to stay in the lanes [wherever possible], as the lift truck drivers look for you to be there," says Tanner. He adds that some sites mark the pedestrian lanes with large footprints to further indicate where people should walk.
STICK WITH IT
In addition to proper signage, many regulations require specific labeling. Again, OSHA, NFPA, and your local fire department can provide details on what's required. If your facility uses or distributes hazardous chemicals (and just about all do, as the definition is broadly interpreted), you're required to mark them according to the Globally Harmonized System (GHS), a worldwide standard for the classification and marking of chemicals.
"GHS requires distributors to label containers that they are shipping," says Labelmaster's Burgess. "For instance, a case of paint may contain six cans," he says. "The paint cans inside the carton are required to have the hazard standard (GHS) labeling applied to them. The shipping case may also require other markings, but not necessarily GHS labels. Many facilities also may require certain signage where chemicals are stored within the facility."
Many of the markings are placed on these products at the point of manufacture. However, if they're not, you're still responsible for making sure they're marked properly when in your facility and for shipments that you initiate.
In addition to product markings, other labels must be placed on facility infrastructure to alert workers to hazards. According to Graphic Products, the six most common types of safety labels used in industrial facilities are arc flash labels, used in electrical panels to warn of shocks, burns, or possible electrocution; lockout/tag out tags, which assure that machinery is shut down when someone is performing maintenance or other operations; wire and cable marking labels, which identify the types, locations, and functions of the cables used in machinery and communications; pipe and valve marking labels, which let workers know what the pipes are carrying, the direction of flow, and any hazardous materials they might contain; and fire safety and exit signs that show workers where to go in case of emergency.
The International Paper facility, for instance, has a large number of pipes that carry water, steam, oil, and chemicals. "We labeled every pipe we could, on both sides of a wall they go through," says Agee.
Labels can also be placed on material handling equipment to promote safe operation. Many equipment manufacturers include warning and cautionary labels with the systems they provide. But in addition to these, facilities may want to provide instructional labels that encourage operators to use the equipment properly. For instance, a label might direct a lift truck operator to exchange a battery once it drains to a certain power level in order to maintain efficient performance.
The International Paper facility also uses labels to promote safe behaviors. "People know what they can and cannot do there. There isn't any doubt [as to] what is expected," says Agee. "If the maximum lifting [limit] is 50 pounds, there is a label to show that. Safety is number one; that's for sure."
Each facility should have a safety manager who is charged with understanding what signs and labels are needed for compliance as well as providing the informational signs that can boost productivity and efficiency. Good signage and labeling programs do more than just promote safe practices—they instill habits that can assure that a company's most important assets are well protected.
As a contract provider of warehousing, logistics, and supply chain solutions, Geodis often has to provide customized services for clients.
That was the case recently when one of its customers asked Geodis to up its inventory monitoring game—specifically, to begin conducting quarterly cycle counts of the goods it stored at a Geodis site. Trouble was, performing more frequent counts would be something of a burden for the facility, which still conducted inventory counts manually—a process that was tedious and, depending on what else the team needed to accomplish, sometimes required overtime.
So Levallois, France-based Geodis launched a search for a technology solution that would both meet the customer’s demand and make its inventory monitoring more efficient overall, hoping to save time, labor, and money in the process.
SCAN AND DELIVER
Geodis found a solution with Gather AI, a Pittsburgh-based firm that automates inventory monitoring by deploying small drones to fly through a warehouse autonomously scanning pallets and cases. The system’s machine learning (ML) algorithm analyzes the resulting inventory pictures to identify barcodes, lot codes, text, and expiration dates; count boxes; and estimate occupancy, gathering information that warehouse operators need and comparing it with what’s in the warehouse management system (WMS).
Among other benefits, this means employees no longer have to spend long hours doing manual inventory counts with order-picker forklifts. On top of that, the warehouse manager is able to view inventory data in real time from a web dashboard and identify and address inventory exceptions.
But perhaps the biggest benefit of all is the speed at which it all happens. Gather AI’s drones perform those scans up to 15 times faster than traditional methods, the company says. To that point, it notes that before the drones were deployed at the Geodis site, four manual counters could complete approximately 800 counts in a day. By contrast, the drones are able to scan 1,200 locations per day.
FLEXIBLE FLYERS
Although Geodis had a number of options when it came to tech vendors, there were a couple of factors that tipped the odds in Gather AI’s favor, the partners said. One was its close cultural fit with Geodis. “Probably most important during that vetting process was understanding the cultural fit between Geodis and that vendor. We truly wanted to form a relationship with the company we selected,” Geodis Senior Director of Innovation Andy Johnston said in a release.
Speaking to this cultural fit, Johnston added, “Gather AI understood our business, our challenges, and the course of business throughout our day. They trained our personnel to get them comfortable with the technology and provided them with a tool that would truly make their job easier. This is pretty advanced technology, but the Gather AI user interface allowed our staff to see inventory variances intuitively, and they picked it up quickly. This shows me that Gather AI understood what we needed.”
Another factor in Gather AI’s favor was the prospect of a quick and easy deployment: Because the drones can conduct their missions without GPS or Wi-Fi, the supplier would be able to get its solution up and running quickly. In the words of Geodis Industrial Engineer Trent McDermott, “The Gather AI implementation process was efficient. There were no IT infrastructure or layout changes needed, and Gather AI was flexible with the installation to not disrupt peak hours for the operations team.”
QUICK RESULTS
Once the drones were in the air, Geodis saw immediate improvements in cycle counting speed, according to Gather AI. But that wasn’t the only benefit: Geodis was also able to more easily find misplaced pallets.
“Previously, we would research the inventory’s systemic license plate number (LPN),” McDermott explained. “We could narrow it down to a portion or a section of the warehouse where we thought that LPN was, but there was still a lot of ambiguity. So we would send an operator out on a mission to go hunt and find that LPN,” a process that could take a day or two to complete. But the days of scouring the facility for lost pallets are over. With Gather AI, the team can simply search in the dashboard to find the last location where the pallet was scanned.
And about that customer who wanted more frequent inventory counts? Geodis reports that it completed its first quarterly count for the client in half the time it had previously taken, with no overtime needed. “It’s a huge win for us to trim that time down,” McDermott said. “Just two weeks into the new quarter, we were able to have 40% of the warehouse completed.”
The less-than-truckload (LTL) industry moved closer to a revamped freight classification system this week, as the National Motor Freight Traffic Association (NMFTA) continued to spread the word about upcoming changes to the way it helps shippers and carriers determine delivery rates. The NMFTA will publish proposed changes to its National Motor Freight Classification (NMFC) system Thursday, a transition announced last year, and that the organization has termed its “classification reimagination” process.
Businesses throughout the LTL industry will be affected by the changes, as the NMFC is a tool for setting prices that is used daily by transportation providers, trucking fleets, third party logistics service providers (3PLs), and freight brokers.
Representatives from NMFTA were on hand to discuss the changes at the LTL-focused supply chain conference Jump Start 25 in Atlanta this week. The project’s goal is to make what is currently a complex freight classification system easier to understand and “to make the logistics process as frictionless as possible,” NMFTA’s Director of Operations Keith Peterson told attendees during a presentation about the project.
The changes seek to simplify classification by grouping similar items together and assigning most classes based solely on density. Exceptions will be handled separately, adding other characteristics when density alone is not enough to determine an accurate class.
When the updates take effect later this year, shippers may see shifts in the LTL prices they pay to move freight—because the way their freight is classified, and subsequently billed, could change as a result.
NMFTA will publish the proposed changes this Thursday, January 30, in a document called Docket 2025-1. The docket will include more than 90 proposed changes and is open to industry feedback through February 25. NMFTA will follow with a public meeting to review and discuss feedback on March 3. The changes will take effect July 19.
NMFTA has a dedicated website detailing the changes, where industry stakeholders can register to receive bi-weekly updates: https://info.nmfta.org/2025-nmfc-changes.
Trade and transportation groups are congratulating Sean Duffy today for winning confirmation in a U.S. Senate vote to become the country’s next Secretary of Transportation.
Once he’s sworn in, Duffy will become the nation’s 20th person to hold that post, succeeding the recently departed Pete Buttigieg.
Transportation groups quickly called on Duffy to work on continuing the burst of long-overdue infrastructure spending that was a hallmark of the Biden Administration’s passing of the bipartisan infrastructure law, known formally as the Infrastructure Investment and Jobs Act (IIJA).
But according to industry associations such as the Coalition for America’s Gateways and Trade Corridors (CAGTC), federal spending is critical for funding large freight projects that sustain U.S. supply chains. “[Duffy] will direct the Department at an important time, implementing the remaining two years of the Infrastructure Investment and Jobs Act, and charting a course for the next surface transportation reauthorization,” CAGTC Executive Director Elaine Nessle said in a release. “During his confirmation hearing, Secretary Duffy shared the new Administration’s goal to invest in large, durable projects that connect the nation and commerce. CAGTC shares this goal and is eager to work with Secretary Duffy to ensure that nationally and regionally significant freight projects are advanced swiftly and funded robustly.”
A similar message came from the International Foodservice Distributors Association (IFDA). “A safe, efficient, and reliable transportation network is essential to our industry, enabling 33 million cases of food and related products to reach professional kitchens every day. We look forward to working with Secretary Duffy to strengthen America’s transportation infrastructure and workforce to support the safe and seamless movement of ingredients that make meals away from home possible,” IFDA President and CEO Mark S. Allen said in a release.
And the truck drivers’ group the Owner-Operator Independent Drivers Association (OOIDA) likewise called for continued investment in projects like creating new parking spaces for Class 8 trucks. “OOIDA and the 150,000 small business truckers we represent congratulate Secretary Sean Duffy on his confirmation to lead the U.S. Department of Transportation,” OOIDA President Todd Spencer said in a release. “We look forward to continue working with him in advancing the priorities of small business truckers across America, including expanding truck parking, fighting freight fraud, and rolling back burdensome, unnecessary regulations.”
With the new Trump Administration continuing to threaten steep tariffs on Mexico, Canada, and China as early as February 1, supply chain organizations preparing for that economic shock must be prepared to make strategic responses that go beyond either absorbing new costs or passing them on to customers, according to Gartner Inc.
But even as they face what would be the most significant tariff changes proposed in the past 50 years, some enterprises could use the potential market volatility to drive a competitive advantage against their rivals, the analyst group said.
Gartner experts said the risks of acting too early to proposed tariffs—and anticipated countermeasures by trading partners—are as acute as acting too late. Chief supply chain officers (CSCOs) should be projecting ahead to potential countermeasures, escalations and de-escalations as part of their current scenario planning activities.
“CSCOs who anticipate that current tariff volatility will persist for years, rather than months, should also recognize that their business operations will not emerge successful by remaining static or purely on the defensive,” Brian Whitlock, Senior Research Director in Gartner’s supply chain practice, said in a release.
“The long-term winners will reinvent or reinvigorate their business strategies, developing new capabilities that drive competitive advantage. In almost all cases, this will require material business investment and should be a focal point of current scenario planning,” Whitlock said.
Gartner listed five possible pathways for CSCOs and other leaders to consider when faced with new tariff policy changes:
Retire certain products: Tariff volatility will stress some specific products, or even organizations, to a breaking point, so some enterprises may have to accept that worsening geopolitical conditions should force the retirement of that product.
Renovate products to adjust: New tariffs could prompt renovations (adjustments) to products that were overdue, as businesses will need to take a hard look at the viability of raising or absorbing costs in a still price-sensitive environment.
Rebalance: Additional volatility should be factored into future demand planning, as early winners and losers from initial tariff policies must both be prepared for potential countermeasures, policy escalations and de-escalations, and competitor responses.
Reinvent: As tariff volatility persists, some companies should consider investing in new projects in markets that are not impacted or that align with new geopolitical incentives. Others may pivot and repurpose existing facilities to serve local markets.
Reinvigorate: Early winners of announced tariffs should seek opportunities to extend competitive advantages. For example, they could look to expand existing US-based or domestic manufacturing capacity or reposition themselves within the market by lowering their prices to take market share and drive business growth.
By the numbers, global logistics real estate rents declined by 5% last year as market conditions “normalized” after historic growth during the pandemic. After more than a decade overall of consistent growth, the change was driven by rising real estate vacancy rates up in most markets, Prologis said. The three causes for that condition included an influx of new building supply, coupled with positive but subdued demand, and uncertainty about conditions in the economic, financial market, and supply chain sectors.
Together, those factors triggered negative annual rent growth in the U.S. and Europe for the first time since the global financial crisis of 2007-2009, the “Prologis Rent Index Report” said. Still, that dip was smaller than pandemic-driven outperformance, so year-end 2024 market rents were 59% higher in the U.S. and 33% higher in Europe than year-end 2019.
Looking into coming months, Prologis expects moderate recovery in market rents in 2025 and stronger gains in 2026. That eventual recovery in market rents will require constrained supply, high replacement cost rents, and demand for Class A properties, Prologis said. In addition, a stronger demand resurgence—whether prompted by the need to navigate supply chain disruptions or meet the needs of end consumers—should put upward pressure on a broad range of locations and building types.