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.
Polaris Industries' star is shining brightly these days. In fact, business has been so good that the company is expanding its picking capabilities at its largest distribution center, located in Vermillion, S.D. The well-known maker of snowmobiles, off-road vehicles, and other sporting equipment uses this facility and a regional one in Wilmington, Ohio, to distribute parts and accessories.
For the expansion project, the company has chosen a fulfillment method that combines conveyors with split-case picking. Known as zone routing, the strategy is a form of goods-to-person order fulfillment, meaning it eliminates the need for workers to travel up and down aisles to gather items for orders. And it can be a highly efficient strategy. Zone routing often results in productivity rates of 100 to 150 line items picked per operator per hour, according to Dematic, a company that specializes in automated material handling and logistics solutions and that supplied the Polaris zone routing system.
"One reason to use conveyance and zone routing is an efficiency play, as it eliminates walking. Instead, the cartons come to you," says Paul Eickhoff, director of operations for Polaris Parts, Garments, and Accessories (PG&A) distribution.
As for how it works, zone routing is essentially a variation of pick-and-pass technology. In pick-and-pass operations, conveyors send order cartons or totes through each of the various pick zones. Workers select any items needed from their zones and pass the carton along to the picker in the next zone. What's different about zone routing is that the carton is not routed through each zone. It is diverted only to those zones that contain items required for the order. In a sense, it has the advantages of a goods-to-person system at a fraction of price. Think of this as goods-to-person "lite."
"Zone routing is an accepted technology with a good return on investment," notes Ken Ruehrdanz, manager, distribution systems market for Dematic. "You can get a lot of throughput and performance from zone routing. It works for low, medium, and high rates, and is productive while being fairly compact." For these reasons, he says, the application has caught on across a wide range of industries, including apparel, industrial supplies, food and beverages, office supplies, pharmaceuticals, medical supplies, and personal care products.
Polaris is no newcomer to zone routing; it has used the strategy at both of its facilities for some years now. In fact, the system now undergoing expansion in Vermillion dates back to 1997. The current initiative calls for additional Dematic conveyors and new racking to be installed to double the split-case picking zones to 16 from eight. The new conveyors for the system are being installed next to the old conveyors. The two will run side by side until the transition is complete. The facility is also adding new conveyors that will allow cases to be picked directly to conveyor belts.
THERE'S SLOTS TO LIKE
For Polaris, much of zone routing's appeal is its ability to handle a wide range of products. The Vermillion facility alone houses 60,000 stock-keeping units (SKUs), which range from service parts and tires to filters and accessories. That kind of variety would be difficult to accommodate in a fully automated system, such as a miniload shuttle setup.
Not so with zone routing. Zones can be configured to be as large or small as needed, depending on the products' size, how often they're ordered, and the need to situate like-products together. Plus, these systems allow items to be stored in pallet flow racks, carton flow racks, and shelving, and permit fast reconfiguration as needs change.
Zone routing also gives companies the flexibility to handle fluctuations in volume, whether they're caused by seasonal swings or simply uneven daily order patterns. For instance, at Polaris, as many as five people might be assigned to a zone during peak periods, which typically occur between 11 and 2. When activity is slow, a single worker can cover two or more zones.
To take best advantage of all of that flexibility, of course, you must have good slotting. The system must be able to keep precise track of the whereabouts of every item. And it has to be able to balance work evenly across the various zones to avoid logjams while still ensuring workers in other areas are kept busy.
At Polaris, it's a job that's never finished. "Reslotting is a daily process," acknowledges Eickhoff. "We have someone working on it full time. Off road, on road, snow, and summer—we are in a constant state of motion on our SKUs and introduce lots of new products on a regular basis."
INS AND OUTS
While zone routing has been around for a couple of decades, advancements in conveyor design have made the process even more economical and productive. Some systems now allow cartons to be introduced at different start points, eliminating the time they would otherwise spend passing by zones with no picks. "If volumes are high and order sizes are small, you don't want the cartons to have to flow through the entire system," explains Luther Webb, director of operations and solutions consulting at Intelligrated, an automated material handling technology supplier. "You can also create 'early outs' so that the carton can go to shipping from a number of the zones without passing every zone," he says.
Today's systems also employ loops so that if a traffic jam develops in one zone, incoming cartons can be routed around the zone and sent back to it later. Alternatively, control software can be deployed to direct the carton to another zone that contains the same product.
Other conveyor technology advances, such as 24-volt direct current operation, help save energy and wear on equipment components. Most zone routing systems contain sensors designed to power down sections of conveyor when no cartons are present. Plus, new designs and faster diverts allow for more efficient processing than in the past. "Conveyors and diverts now have the ability to handle higher rates," says Boyce Bonham, director of integrated systems and controls at Hytrol Conveyor Co. "In the past, we could handle rates of about 20 to 25 [diverted] cartons a minute. Better controls and equipment now allow for about 35 to 40 cartons a minute through those zones."
Since zone routing systems usually incorporate conventional conveyors and controls, implementation can often be completed in a matter of months—a big time savings over designing and installing a fully automated goods-to-person system. "It is a quick turnaround," says Bonham. "It is low risk, and a tried-and-proven technology." On top of that, the technology is highly scalable—a plus for fast-growing operations like Polaris.
As for the "brains" of the operation, most zone routing systems are overseen by a warehouse control system. Polaris, for example, uses the Dematic Sort Director, which receives pick instructions from a warehouse management system (WMS) and then transmits directions to the handling equipment. But systems can also be set up to accept order information directly from an order entry system or enterprise system, bypassing the need for a WMS altogether.
CARTON READY
When planning for the expansion of its picking system, Polaris decided to change its process to have workers pick items directly into shipping cartons rather than in-house totes. This saves the step of unloading items from the tote and repacking them in a shipping carton later in the process. But the decision also had some implications for the conveyor design. In particular, the shift meant the new conveyors had to be a bit more carton-friendly than their predecessors. For example, the rollers had to be spaced closer together than they were in previous models. In addition, the conveyors and transfer points had to be designed to convey empty (or nearly empty) cartons that have little weight to provide the necessary friction.
Polaris's new conveyors also feature accumulation areas to keep cartons from bumping up against one another. This is crucial for any zone routing application, says Intelligrated's Webb. "Accumulation allows you to pause the carton for a moment and wait for that zone to clear."
In Polaris's daily operations, bar codes attached to each carton are scanned automatically as the carton approaches a zone. If nothing from that zone is needed for the order, the carton continues its journey. But if that zone does contain a required item, a set of small belts, about the width of a car's fan belt, pop up between the conveyor's rollers to gently divert the carton to a nonpowered conveyor spur at the pick zone.
When a carton arrives at the zone, a worker stationed there scans its bar code with a radio-frequency (RF) device to find out what items are needed. (Voice and pick-to-light technology can also be used for this purpose.) Once the selections have been made, the worker deposits the carton back onto the powered conveyor system. If more items are needed to complete the order, the carton then heads to the appropriate zones; if not, it proceeds directly to shipping.
While Polaris opted to pick directly to cartons, not all operations make that choice. Some companies prefer to use totes to gather picks and repack the items later, according to Dematic's Ruehrdanz. That might be the case if the company's processes call for a worker to scan each item right before shipping for one last accuracy check or add extra protective packaging for high-value items.
It's worth noting that uses for zone routing systems aren't limited to order picking. Polaris, for instance, is also using the conveyors to feed replenishment. Workers can deposit original cartons from vendors or totes of repacked items directly onto the conveyor at the start of the zone routing system. The control system then diverts the cartons or totes to zones that require replenishment. Workers there scan the bar-code labels for directions on where in the racks to place the incoming items. Inventory systems are updated at the same time to reflect that the products are now available for orders.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
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."