Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
It might be tempting to think of the racking system in your warehouse or DC as a larger version of the metal shelving in your garage. After all, how complicated could a steel rack be—especially the traditional selective rack, which doesn't even have any moving parts?
Such thinking, however, could lead to a costly—and potentially deadly—disaster. "Storage racks are a load-bearing steel structure, and because they're supporting a variety of different loads, it's important for them to be maintained," says Dave Olson, national sales and marketing manager for the manufacturer Ridg-U-Rak. Rack damage can lead to collapse, he continues, putting your equipment, people, and even financial health at risk.
While rack collapse is rare, it can be extremely dangerous. What can you do to avoid a rack disaster at your facility? Here are some quick tips for preventing rack damage and collapse. (More information can be found in two e-documents created by the Rack Manufacturers Institute (RMI): Considerations for the Planning and Use of Industrial Steel Storage Racks and Guidelines for the Assessment and Repair or Replacement of Damaged Racks. The documents cost $50 each.)
1. Choose your rack with care. There are many different types of racks on the market, from selective rack to high-density drive-in rack to carton flow rack, as well as many different components for each type of rack. If you select the wrong type of rack for your operation, you're more likely to experience rack damage, according to Olson. "A proper analysis and design is required to ensure the storage system provided will meet all of the requirements," he says.
As for what factors to consider, Domenick Iellimo, executive vice president of sales for the storage system manufacturer Frazier Industrial Co., says rack designs should take into account three things: product/unit, handling method, and area.
As for the first of these factors—the products being stored on the rack—it's not enough to simply look at the items' weight and dimensions and how the loads are configured and distributed on the rack, Iellimo warns. You also have to take into account how fast your product turns. For example, a produce warehouse that has a high inventory turn rate will require a heavier-weight or more durable racking system than a warehouse with a lower turn rate. That's because the added activity increases the risk of rack damage.
Similarly, the design should take into account the material handling method being used. "What sometimes happens is that companies are very focused on the unit being stored, and there is not enough focus right up front on the interface between the material handling equipment being used and the rack," Iellimo says.
When this happens, Iellimo warns, you risk designing a rack system with aisles or shelf clearances that are too tight to accommodate the facilities' forklift trucks or other vehicles.
In addition to the considerations mentioned above, it's important to make sure the rack meets the seismic requirements of the area it is located in.
2. Don't adjust racks without consulting a qualified expert. It's true that a rack is made of many different components—such as frames and beams and footplates—that are put together like a giant Erector set. But once those parts have been assembled and installed in a warehouse or DC, it is crucial that you continue to use the rack as it was originally designed. "It is so important to think of a rack as a system," says Steve Rogers, a vice president with the storage system company Hannibal Industries.
Racking systems are now considered a building element and as such, have to conform to very strict codes. That means you should give the same thought and consideration to, say, removing or altering a beam as you would to removing a wall or column in your distribution center.
"Any adjustment to the beam level affects the carrying capacity of the frame and [could potentially] lead to collapse," says Greeba Rampaul-Essue, president of Storage Equipment Safety Service, a company that conducts rack inspections and training. That is to say, if a beam is raised, lowered, or removed, the rack may no longer be capable of bearing the amount of weight it was designed to handle.
Similarly, Rampaul-Essue urges users to be careful when mixing together components from different manufacturers. "One of the key things about a rack is the safety lock that holds the beam in place; if that safety lock is not properly engaged, then your beam is not properly held in place and can be easily dislodged," she explains. "If you're mixing components, you need to make sure that the beam from one manufacturer and the frame from another manufacturer fit together."
3. Don't overload your racks. Loading more product onto a rack than it's designed to handle could damage the structure and eventually lead to failure. According to the RMI and the American National Standards Institute (ANSI), all racks should display a plaque showing the rated load capacity of the pallet rack or the maximum weight it can carry.
DC managers should be particularly careful when they change the types of products stored on their racks or even the type of pallets they use, as these changes could lead to overloading, warns Rogers.
4. Train your employees in rack safety. "If you were to put in a rack system, load it up, go home, and never use it, the rack would stand forever," says Raymond Weber, Eastern regional manager at rack maker Steel King. "However, as soon as your forklift trucks start moving pallets in and out and bumping into the rack, you are creating more load in rack than the structure was initially designed for."
Rampaul-Essue recommends conducting awareness training with employees who work in the rack system to ensure they are using it properly and are mindful of the load tolerances. The training should include how to report any damage to the rack and emphasize how important such reports are.
Properly training forklift drivers is particularly important, as the majority of rack damage is caused by forklifts hitting or bumping the structure. In tandem with that training, Weber recommends making sure your incentive programs for forklift drivers are reasonable so that they're not rushing to hit their numbers, making accidents more likely.
In addition, warehouse supervisors and/or safety staff should be trained on how to conduct a proper rack inspection, says Rampaul-Essue.
5. Conduct periodic rack inspections. MHI and other industry bodies recommend having an external party inspect a distribution center's racking at least annually. This external party could be the rack manufacturer or someone from a third-party inspection company.
Rampaul-Essue takes it a step further. In addition to the external inspections, she suggests that facilities conduct internal inspections for rack misuse or damage on a monthly or even weekly basis.
Inspectors should look not only for damage but also for misuse such as overloading.
6. Install "protective guarding" devices. There are many types of safety equipment that can be installed to protect the rack. Guarding and post protectors can keep forklifts from directly hitting the rack. You can also reinforce the rack by putting in double columns at the base.
Be careful when installing protective barriers, however, as some of them can reduce aisle widths, says Rampaul-Essue. Make sure that your forklift trucks will still have room to maneuver when the barriers are in place.
7. When a rack is damaged, have it checked out by a rack expert immediately. The RMI says that all damaged racks must be repaired or replaced. "Once a rack is damaged, it may continue to stand, but that doesn't mean that it's safe," warns Weber.
Rampaul-Essue agrees, noting that rack may stand for years before one slight bump sends the whole thing tumbling down. Many manufacturers will allow you to send them photos of the damage and will then recommend the best course of action or come out to repair or replace the rack.
But rack owners shouldn't be surprised if repair isn't one of the options offered. Some manufacturers are wary of repair kits, unsure of how they will perform in concert with their racking system. According to Weber of Steel King, there are currently no industry-specified guidelines or policies for rack repair beyond the suggestion by RMI that all repairs be overseen by a rack expert or professional engineer. "Because of that, Steel King takes the stance that any rack that is damaged must be replaced," he says.
GET PROFESSIONAL HELP
No matter what type of rack alteration you're contemplating—repairing, replacing, moving, or simply adjusting a rack—experts agree that it is crucial to consult with a rack expert. But who should that be? Some advise always using a professional engineer. Others say simply hiring a professional engineer isn't enough—what you need is a specialist, someone who is an expert in the type of racking you use.
"It's similar to how you think about doctors," says Rogers. "If you're dealing with a 10-foot selective rack, there are a lot of people out there who can help you. But if you have a 36-foot-tall dynamic storage system in a high seismic zone, then you are going to need the equivalent of a brain surgeon."
Is it safe to buy used rack?
Interest in used racking is on the rise, according to Jason MonteMayer, project manager with enVista, a consulting company that provides a liquidation service for used rack. The trend is driven less by a desire to save money than by pressure to get facilities up and running quickly, he says. Typically, used rack can be purchased and installed faster than new.
What should a buyer look for in a used rack system? Factors to consider include the manufacturer, the age of the system, its condition, what it was previously used for, and whether it includes components from different manufacturers (this could compromise the integrity of the system). MonteMayer urges potential buyers to take particular care when it comes to assessing the equipment's condition. "Companies can do a good job covering up damage, so you want to have someone do an in-person inspection or at least have good-quality pictures of the equipment," he says. "The best option is to have a licensed professional engineer review the equipment and the design to make sure the equipment meets all of your design criteria."
If you're purchasing the rack from a used-equipment dealer, MonteMayer recommends checking on how the equipment has been stored. "One concern is whether the equipment has been sitting outside in the weather and if rust is occurring."
Not surprisingly, most rack manufacturers advise against purchasing used rack. Domenick Iellimo from Frazier says that even if you know who manufactured the rack and how it was used, the equipment still might not be a good fit for your operation. Iellimo tells of a customer that contacted him because he was interested in purchasing a used Frazier rack system. Because Frazier keeps complete records for every rack it manufactures, Iellimo was able to pull the original engineering file for that particular system. The record revealed that the rack would not meet the seismic requirements for the new location.
In addition, building codes governing racks have changed greatly over the years. While existing rack is grandfathered in, once the rack is moved to a new location, it must comply with the new standards. As a result, even a rack designed for exactly the same type of operation as your own might no longer be up to code.
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]."