Improper battery rotation was costing DSC Logistics big money. An automated lift truck battery management system put a stop to that—and paid for itself in a few weeks.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Old habits die hard ... especially when it comes to swapping out lead-acid lift truck batteries. Observe forklift operators in a battery room, and you're likely to see them do one of two things: walk up and down the aisles looking at batteries before choosing the one that looks newest, or nip inside and grab the battery that's closest to the entrance. It's hard to blame them for going either of those routes. Most people will assume that the newest piece of equipment will be the best performer. And operators don't want to spend more time "out of the saddle" than they have to, especially if their pay is based on productivity.
Understandable as those habits may be, they almost guarantee that operators will fail to choose a battery that has been properly charged and fully cooled. That's a problem, because routinely selecting and using the "wrong" batteries will cause their performance and longevity to degrade. That, in turn, translates into more frequent changes during a shift as well as the need to keep a larger number of batteries on hand.
Until three years ago, that was the situation at the University Park, Ill., distribution center (DC) operated by the third-party logistics (3PL) company DSC Logistics. When managers noticed a pattern of unusually frequent changes and shorter-than-expected battery life, they found that incorrect battery selection was to blame. After their original solution produced disappointing results, they turned to an automated battery management system that not only eliminated those problems but also paid for itself in a matter of weeks.
FREQUENT CHANGES RAISE RED FLAGS
The 575,000-square-foot DC operates three shifts five days a week, handling mostly dry and some refrigerated food at the pallet, layer, and individual case level. University Park has a fleet of 45 forklifts, including 22 standup counterbalanced trucks, 11 standup deep-reach trucks, one order picker, and four pallet jacks, all manufactured by Crown Equipment Corp. (The balance are short-term rental trucks.) The fleet is powered by a pool of 85 batteries, all of them purchased from EnerSys, including a single model for all of the standup counterbalanced and deep-reach trucks. That degree of standardization pays off by simplifying vehicle maintenance and operator/technician training; it also helps to keep purchase prices reasonable, says Jim Chamberlain, DSC's senior director of industrial engineering and continual improvement.
While reviewing reports in DSC's labor management system (LMS) some years ago, Chamberlain and his colleagues noticed that lift truck operators frequently made more than one battery change per shift. Short battery run times were compromising productivity, but that wasn't the only problem. There also appeared to be a correlation between the frequent changes and the batteries' shorter-than-expected lifespans.
Observation revealed that improper battery selection was to blame, so the operations and industrial engineering teams came up with a "first in, first out" process to help drivers choose batteries that had been charged and fully cooled. In the battery changing area, there would be one empty storage slot; drivers were told to always put their used battery in that slot and take the fresh one immediately to the right.
"In theory, if everyone [follows the procedure], drivers will never get back to the battery they just put in until they have come all the way around [the storage slots]," Chamberlain explains. But even with that simple visual system, compliance was spotty, he says.
This method produced limited improvement, so DSC asked its battery supplier for ideas. EnerSys suggested an automated battery management system that could address all of its customer's concerns.
SURPRISE TEST RESULTS
The automated battery management system installed by EnerSys, called EZ Select, ensures that all batteries are evenly rotated. "The system monitors the chargers, and when a charge is complete, that battery goes into a queue organized by cool-down time," explains Paul Roeser, national accounts manager for EnerSys.
At DSC's University Park facility, when an operator enters the battery changing area, he or she uses an automatic battery-change cart to insert the depleted battery into an empty slot before hooking the battery up to a charger. Next, the operator looks at EZ Select's light-emitting diode (LED) display panel, which is mounted on a pole at one end of the battery-charging area. The display panel indicates the number of the charger position where the next available properly charged (and longest-cooled) battery is located, Roeser explains. The operator uses the cart to extract the fresh battery, rolls it back to the lift truck, and installs it in the vehicle.
If an operator attempts to take a battery other than the one indicated on the screen, an alarm immediately sounds. The battery management system also applies a date and time stamp to the error, a feature that identifies which operators are making the mistakes. That allows DSC to coach employees who need more training, an approach that quickly paid off. "Now, the employees get it: If we all follow this, then we'll all get good batteries," Chamberlain says. "It's actually fostered more of a team mentality."
Before EnerSys and DSC turned on all the system's capabilities, they ran it "blind" for a week, recording activity but without providing any instructions to operators. The purpose was to get an accurate baseline of operators' current behaviors. The results, in Chamberlain's description, were "startling." It turned out that operators were choosing the right battery only 3 percent of the time. The system documented that they were choosing whichever battery was closest, most convenient, or newest. The blind test, moreover, showed why run times and life spans were so short: The average cool-down time for the batteries the operators selected was just two hours, Chamberlain says.
LESS COST, MORE EFFICIENCY
The automated battery management system, together with operator training, has helped DSC Logistics all but eliminate battery-selection errors. When the system was first installed in 2012, the accuracy of battery selection soared to over 96 percent from 3 percent, and the average cool-down time for each battery rose to 10 hours from two. As a result, Chamberlain says, "We are getting proper run times now ... We've pretty much gone from two to around one change per shift."
Those changes have also improved average battery life spans. "We conservatively estimate that we put an additional six months on a battery's life with this system," but it can be considerably more, depending on the circumstances, says Roeser of EnerSys.
Automated selection has also reduced the time spent changing batteries at the University Park DC by 430 hours annually. There are two reasons for that, Roeser says: Operators no longer walk around looking at batteries before deciding which one to take, and the number of battery changes per shift has been greatly reduced.
Because all of the batteries are properly charged and cooled, more of them are available for use at any one time. That has allowed the three-shift operation to cut down on the number of batteries it maintains per truck from 2.5 to just over two.
An EnerSys analyst monitors the data the EZ Select system uploads daily. The vendor uses that information to identify potential problems with batteries or chargers. Based on trend data, the company can recommend an action plan to drive out costs, Roeser says.
Chamberlain notes that this type of analysis allowed the system, which required an initial investment of less than $24,000, to essentially pay for itself in just one month. To accommodate additional business, DSC had been planning to add another lift truck to its fleet. "With the information from the battery management system, we realized that we already had a healthy ratio of batteries to trucks, and that we could add a truck without buying any additional batteries, chargers, or stands," he recalls. According to EnerSys, DSC achieved savings of $25,000 in the first year after installation and is projecting annual savings in future years of about $31,000.
That was enough to convince Chamberlain and his colleagues to spread the word about the benefits of automated battery selection. "We have this system now in 11 of our logistics centers," he says. "Our goal is to continue rolling them out because they have had such a positive impact on our business."
The system's impact extends well beyond time and cost reduction, in Chamberlain's view. "Our customers are always challenging us to improve what we do for them and how our business is run," he says. Automated battery management has helped DSC meet that expectation. "What it has done is take something that for us was subjective and inconsistent, and turned it into something controlled and standardized," he says. "There really isn't a downside."
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.