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.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”