Despite the sub-zero temps, no one's complaining about working conditions in the freezer of North America's largest refrigerated warehouse. That's because it's "staffed" by a sophisticated mega-AS/RS that performs virtually all of the work.
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.
Working in a freezer for an eight-hour shift is among the most difficult jobs in the supply chain world. In order to spare workers (and forklifts) from having to toil in adverse conditions—think temperatures that dip to a frosty minus 10 degrees Fahrenheit—a new warehouse in Richland, Wash., is instead relying on an automated storage and retrieval system (AS/RS) from Dematic to handle most of the work. The AS/RS is believed to be one of the largest ever built in a freezer. It offers over 36 million cubic feet of storage capacity and can handle throughput volumes in excess of 250 trucks and 20 railcars a day.
The Richland facility, which opened in July, is owned and operated by Preferred Freezer Services, a New Jersey-based company with 35 refrigerated warehouses in the U.S. and a handful of others in Asia.
As a public warehouse company, Preferred Freezer Services built the facility to serve the needs of a specific group of clients, primarily potato growers in the Pacific Northwest. One of the facility's larger customers is Lamb Weston, a supplier of frozen vegetable products that is part of ConAgra Foods.
The new facility offers 455,000 square feet of refrigerated space, with 312,000 of it dedicated to the automated freezer. The AS/RS within measures 116 feet high and features deep-lane racking served by 15 storage/retrieval cranes. The system provides very dense storage for more than 117,000 pallets of frozen french fries, hash browns, and other frozen products. The steel pallet racks, supplied by Frazier Industrial, also serve as the main structural support for the freezer's roof and walls.
HIGH AND MIGHTY
A majority of the goods handled at the new facility arrive in Preferred Freezer Services' company-owned trucks, rather than vehicles operated by its clients or outside carriers. Preferred Freezer has learned that the more of its supply chain it handles itself, the lower the risk that products will be damaged or will jam up its automated handling systems. Therefore, about 65 percent of incoming goods are transported in Preferred Freezer's trucks.
"We want to make sure we control the flow, so we made the decision to use our own people," says Burnie Taylor, director of major capital projects and general manager in Richland.
The trucks pick up finished goods at production plants located within 50 miles of Richland. The vehicles that transport these goods are equipped with conveyance systems inside the 53-foot reefer trailers. Upon arrival at the Richland facility, they're directed to one of four automated docks, where the pallets are conveyed off the trailers and loaded onto a pallet monorail system for transport to the AS/RS. The monorail consists of hanging carts with roller beds. The pallets simply roll off the conveyor and onto the carts. A scanning system then records each pallet number and captures the load's dimensions to ensure it can be handled by the automated system.
The remaining 35 percent of inbound goods (those not arriving on company trucks) enter the facility via commercial trucks. There are six rail doors in the building and 14 other inbound truck docks in addition to the automated doors. Most of the products not delivered by company trucks are either floor stacked, rest on other pallets, or reside on slipsheets. These have to be manually transferred to slave pallets that are suitable for use in the automated system. The pallets are then loaded onto the monorail for transport to the AS/RS.
The AS/RS is spread out over three separate 104,000-square-foot freezer rooms, with five aisles and cranes per room. It features 18 possible points of entry and exit. Typically, nine are assigned to incoming goods and the other nine to outgoing products, though all 18 can serve either purpose. The monorail usually delivers the pallet to the entry point closest to the assigned storage location, where it is automatically discharged onto pallet conveyors to enter the system. From there, a storage/retrieval crane picks up the pallet and ferries it to the assigned lane, Where a deep lane cart know as the "Supercap Cart" (supplied by Automha) takes over and carries the load down the lane to the next available position.
From two to six pallets are stored in each lane, with most lanes devoted to a single stock-keeping unit (SKU). Product is put away in multiple aisles to create redundancy throughout the warehouse. This assures that all SKUs are accessible when a crane is down for maintenance and provides for easy access to faster-moving products.
"We have a lot of flex built into the system to manage inventories," says Taylor. He adds that customers often have different rotations for their goods. Some rotate stock according to first in/first out principles, while others rotate products based on expiration dates.
Full pallets are retrieved from the system via a process that's essentially a reversal of the entry process. The moles retrieve the goods and then transfer the pallets to the storage/retrieval cranes for transport to output stations. From there, the monorail system picks up the pallets for transport to outbound docks.
In addition, Preferred Freezer builds "rainbow" pallets of mixed goods for customers. For these, the monorail delivers pallets to four picking stations, where a Tygard Claw layer picker attachment on a Crown sit-down lift truck is used to assemble the pallets. It removes a layer from the source pallet and deposits it onto an order pallet, building rows of mixed SKUs in the process. Individual cartons are also picked by hand and added to the order pallets. When a completed pallet is ready to ship, it is conveyed to the docks via either the monorail system or lift truck.
Many of the mixed pallets are picked in advance of shipment to balance workflow. In this case, the mixed pallets enter the monorail system for transport back to the AS/RS, where they're held until the shipment date. They are then picked in the same manner as standard full pallets.
HOT RESULTS FOR A COOL SYSTEM
By allowing the AS/RS to do most of the work in the freezer, Preferred Freezer can assign its human employees to areas away from the cold, such as the dock, where temperatures hover at a relatively balmy 40 degrees Fahrenheit. "When you look at the labor force and being an employer of choice in the freezer business, it is an advantage not to have people needing to access the freezer," says Taylor.
While the AS/RS's bone-chilling conditions would make it quite uncomfortable for people to work there, other factors make it downright inhospitable. This is the first freezer system in the country (and the second in North America) to incorporate a low oxygen environment for fire prevention. Nitrogen is introduced to the atmosphere inside to virtually eliminate any chance of combustion. Furthermore, the new installation is a lights-out system.
At present, operations are continuing to ramp up in the new building, which is expected to house 200 million pounds of inventory by next month (it's designed to hold up to 250 million pounds). When it reaches full capacity, the facility is projected to have a throughput of 2 billion pounds of products a year.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
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.