Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Business software giant Oracle Corp. released a suite of updates to its supply chain management
product today and said the cloud-based platform now supports the warehouse management system (WMS)
that it acquired when it bought LogFire Inc. last year.
Redwood Shores, Calif.-based Oracle will include the WMS module in the latest version of its
Oracle Supply Chain Management (SCM) Cloud product, which is part of the firm's Oracle Cloud
Applications Release 13. When Oracle acquired LogFire in 2016, it said that adding a WMS tool
to its SCM Cloud would allow users to keep up with industry trends like omnichannel
fulfillment, integrated logistics, and dynamic sourcing.
Users of Oracle's Release 12 product could also use the WMS feature, but this is
the first upgrade to include warehouse management at launch. Release 13 also includes six other
capabilities: sales and operations planning (S&OP), demand management, supply planning,
supply chain collaboration, quality management, and maintenance.
Taken together, the new capabilities will allow organizations to manage the challenges
associated with the supply chain's digital revolution, such as looking for new channels to
sell their products, building direct relationships with consumers, and providing services
as well as products, Oracle's Jon S. Chorley, chief sustainability officer and group vice
president of supply chain management product strategy, said in an interview.
Supply chain users have originally been hesitant to switch from on-premise software to
cloud deployments for warehouse management, Chorley admitted. However, many of those
doubters have since seen their concerns about the security, reliability, and
functionality of cloud-based platforms put to rest by the success of other users, he said.
Running software in the cloud allows Oracle to ensure that its software platforms keep
up with market changes because the vendor itself can manage software and hardware updates,
said Chorley.
Customers can choose to deploy individual modules of Oracle's new platform instead of
the entire suite, as long as they ensure the different parts are interoperable. "We play
well with others too," Chorley said.
The latest release follows
a February update to its SCM Cloud, when Oracle added
operations automation and expanded Internet of Things (IoT) capabilities to the platform.
ONE commissioned its Alternative Marine Power (AMP) container at Ningbo Zhoushan Port Group (NZPG)’s terminal in China on December 4.
ONE has deployed similar devices for nearly a decade on the U.S. West Coast, but the trial marked the first time a vessel at a Chinese port used shore power through Lift-on/Lift-off operations of an AMP container, a proven approach to boosting cold ironing and reducing emissions while in port, ONE said.
“One approach to reduce carbon footprint is through shore power usage,” ONE Global Chief Officer, Hiroki Tsujii, said in a release. “Today we will introduce the utilization of a containerized AMP unit to support further reduction. The use of an AMP unit is a familiar and effective approach within this industry. To be successful, close cooperation among various concerned parties is necessary. We believe this will contribute to carbon footprint reduction in a practical and expedited way, and we hope it is a good symbol of collaboration among relevant parties.”
ONE provides container shipping services to over 120 countries through its fleet of over 240 vessels with a capacity exceeding 1.9 million TEUs. The company says it is committed to exploring innovative solutions to reduce its environmental impact, support the adoption of sustainable port operations, and contribute to a greener future for all.
Looking to get a better handle on your freight and transportation costs in the new year? It may be time to take a good, hard look at your packaging strategy and to consider switching from a standard approach to right-sized packaging, a process that utilizes automated, on-demand box creation.
Right-sizing solutions have been around for years, but experts say the industry is just now reaching a tipping point where value and savings can be seen in black and white—and where changes made inside the warehouse can make a big difference on the outside.
“Really, in the last year, we’ve been able to prove on paper—with historical data from freight companies, partners, and brokers—that the cost savings are substantial. More than we even thought,” says Brian Reinhart, chief revenue officer for right-sized packaging solutions provider PackSize. “We have tools that show that, on average, customers that right size will save somewhere between 20% and 30% within their freight operations as opposed to when they did not right-size.”
That’s a big number, and one that’s directly tied to shipping and transportation costs. Quite simply, by using the smallest possible box for an order, you can fit more orders on a pallet and in a truck, which reduces your freight burden, Reinhart adds. When combined with other benefits such as materials reduction and labor savings, right-sized packaging may finally be taking its place at the cost-reduction table.
Here are three ways right-sized packaging can make a difference in a company’s bottom line.
REDUCING MATERIALS USAGE
Right-sizing allows companies to reduce the amount of packaging materials they use by fitting the box to the order. That way, they’re not putting small items into a too-big box and filling the extra space with dunnage. Plus, it cuts down on the number and variety of boxes companies need to have on hand: Auto-boxing systems use a continuous cardboard material called fanfold, which is folded into a bale and cut to size for each order.
“Right-sized auto-boxing eliminates the need to store multiple box sizes and additional void-fill materials,” explains David Gray, senior vice president of sales for on-demand packaging supplier Sparck Technologies. “Switching from standard stock boxes to fanfold cardboard can reduce corrugate material usage by an average of 29% and material costs by an average of 38%.”
Those actions can also help reduce shipping fees.
“Carriers typically charge based on package size and weight,” Gray adds. “Automated right-sized packaging solutions prevent excess air or volume in boxes, making each shipment as compact and lightweight as possible.
“Even small weight reductions can drive significant savings in overall transportation costs. Choosing the smallest, safest packaging fit for each item is a crucial strategy for effectively managing rising shipping rates.”
TRIMMING TRANSPORTATION COSTS
Here’s another way to think about transportation savings: The more boxes you can fit on a truck, the fewer trucks you’ll need.
“[Right-sizing] also adds flexibility into the network planning and route optimization of those trucks,” Reinhart explains, noting that a truck with more orders on it can make more stops, eliminating the number of empty miles that truck has to travel.
“You want to spend time loading and unloading. Driving time is inefficient time. So the more products you can fit on the truck, the more efficient [you are].”
Gray agrees, adding that optimizing load capacity can also help companies meet sustainability targets.
“[Right-sizing your packaging] reduces the number of vehicles required, resulting in lower shipping costs and a smaller carbon footprint,” he says. “As companies prioritize sustainability and efficiency, right-sized packaging aligns with these goals, helping to streamline logistics while minimizing environmental impact.”
OPTIMIZING LABOR
Gray says automated fit-to-size packaging technology can reduce labor costs by an average of 88% and eliminate up to 20 packing stations. This helps alleviate the stress of finding warehouse labor, which is particularly challenging during peak periods.
Reinhart adds that right-sized packaging can help make other operations in the warehouse more efficient as well. He points to manual tasks using picking carts as an example. Many large distribution centers will have hundreds of workers pushing carts throughout the facility and picking items directly into boxes positioned on the carts. Right-sizing those boxes allows workers to fit 20% to 30% more onto the shipping cart, he says.
“Now, you can put 10 boxes on the cart, whereas before you could only put six or seven,” Reinhart explains. “So you need fewer operators.”
Those labor savings can, in turn, benefit other parts of the business.
“Since labor costs account for a significant portion of a warehouse’s budget, any reduction in these expenses can have a profound impact on a company’s bottom line,” Gray explains. “Lower labor costs mean increased profitability, which can be reinvested into the business to drive growth and innovation. By minimizing labor expenses, companies can offer customers more competitive pricing, leading to increased market share and customer loyalty.”
Those benefits are increasingly putting a spotlight on packaging—making it a critical area for cost-containment and cost-reduction strategies, according to Gray.
“By optimizing packaging sizes, companies can reduce waste, lower shipping expenses, and improve overall operational efficiency, making it a valuable focus area for managing rising costs,” he says.
Reinhart concurs.
“What we’re really seeing now is people looking for things you can do inside the warehouse to create value outside the warehouse—and that’s where right-sized packaging [fits in],” he says. “If you can create that [value], it becomes a no-brainer for the customer.”
As the workhorse of the warehouse, the forklift typically gets all the tough jobs and none of the limelight. That finally changed recently, when a 46-year-old truck made headlines by winning the “Oldest Toyota Forklift Contest.”
The contest was organized by Intella Parts LLC, a Holland, Michigan-based supplier of aftermarket forklift parts for Toyota as well as other brands like Yale, Taylor, CAT, and Hyster lift trucks. This year’s winner was a 1978-vintage Toyota 42-3FGC20, a gas-powered forklift built in Toyota’s factory in Takahama-shi, Aichi, Japan. Alexander Toolsie of Burlington, Ontario, submitted the winning entry and was awarded a $100 gift certificate for Toyota forklift parts at Intella and a $100 Visa gift card.
The competition follows a similar contest held last year, when Intella launched a search for the oldest running Hyster forklift. The winner was a 1945 Hyster model that’s still in use at Public Steel in Amarillo, Texas.
According to Intella, the contests have been so popular that it plans to expand the competition to additional forklift brands next year.
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Averitt Express Charities contributed $100,000 to the Hurricane Helene disaster through its Averitt Cares for Kids program.
Motive, an artificial intelligence (AI)-powered fleet management platform, has launched an initiative with PGA Tour pro Jason Day to support the Navy SEAL Foundation (NSF). For every birdie Day makes on tour, Motive will make a contribution to the NSF, which provides support for warriors, veterans, and their families. Fans can contribute to the mission by purchasing a Jason Day Tour Edition hat at https://malbongolf.com/products/m-9189-blk-wht-black-motive-rope-hat.
MTS Logistics Inc., a New York-based freight forwarding and logistics company, raised more than $120,000 for autism awareness and acceptance at its 14th annual Bike Tour with MTS for Autism. All proceeds from the June event were donated to New Jersey-based nonprofit Spectrum Works, which provides job training and opportunities for young adults with autism.
Freight transportation and supply chain solutions specialist Averitt contributed $100,000 to the Hurricane Helene disaster relief efforts through its “Averitt Cares for Kids” program. The funds, which were raised through associate contributions and a company match, were donated to the humanitarian aid organization Samaritan’s Purse.
In response to the devastation caused by Hurricane Helene, Team Penske and its affiliated companies, including Penske Automotive Group and Penske Transportation Solutions, have donated $1 million toward the hurricane relief efforts. The donations were made to the Boone, North Carolina-based nonprofit Samaritan’s Purse.
Logistics services company DHL has partnered with Amsterdam’s Van Gogh Museum to expand the museum’s Heart for Art educational program to Buenos Aires, Argentina. Launched in the U.S. in 2022, the Heart for Art initiative is designed to make art accessible for all and introduce students with limited access to art education to the works of Vincent van Gogh. DHL is providing full-service international shipping and logistics coordination to ensure instructors have all the materials needed.
On the eve of the second World War, American factories were at peak production, churning out cars, washing machines, building materials, and radios for both domestic consumption and export worldwide.
U.S. factories were so prolific and efficient that they easily pivoted to become the “arsenal of democracy,” a phrase President Roosevelt coined in December of 1940—a year before the U.S. entered the war. At that time, our factories had enough capacity to produce much of the materiel that Britain desperately needed to hold off German advances.
Following Pearl Harbor and the United States’ entry into World War II, American factories threw their full weight behind the war effort. Detroit’s factories switched from manufacturing cars to producing tanks and jeeps. Clothing makers went from sewing dresses to stitching together uniforms and parachutes. Many historians believe that it was America’s ability to outproduce Germany and Japan that won the war.
However, beginning in the 1980s, America began switching from exporting its manufactured goods to exporting its manufacturing capabilities. Goods could be produced more cheaply elsewhere, so it made some sense to outsource production. Slowly, our manufacturing base eroded.
We still make things in the U.S.A., just not at the same percentage of total consumption that we used to. America’s trade deficit currently runs to about $70 billion in goods and services per month. And while some production is being reshored, our manufacturing capabilities are not nearly where they need to be should a major conflict erupt.
The biggest problem is that we don’t have enough trained workers. When we shipped out our manufacturing, we also shipped out our knowledge and skills base. Much of that went to China, a country that is both our second-largest trading partner and one of our chief adversaries.
An August Associated Press article described the U.S. Navy’s ability to build warships as “in a terrible state—the worst it has been in a quarter century” due to a lack of available manpower.
That could be a serious problem. A July report from the congressionally created Commission on the National Defense Strategy concluded that, “The threats the United States faces are the most serious and most challenging the nation has encountered since 1945 and include the potential for near-term major war.” It goes on to say that the risks are rising, not diminishing, and we are not prepared for a major conflict.
I don’t write this to scare you. I’m merely asking whether, if the unimaginable happens, America has the manufacturing and supply chain capabilities we need to respond as we once did.