Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
Teamsters union General President James P. Hoffa has fired Sean M. O'Brien as head of the union's small-package division and lead contract negotiator at UPS Inc. and its UPS Freight less-than-truckload (LTL) unit.
The move triggered a blistering response from O'Brien, who had been tapped for the high-profile role less than seven months ago. In a letter to Hoffa dated Wednesday, O'Brien said he was never given the latitude to work toward getting good contracts for the 268,000 unionized UPS and UPS Freight employees; the five-year contracts expire next Aug. 31. The small-package contract, which covers about 257,000 UPS workers, is the largest collective-bargaining agreement in North America.
In particular, O'Brien chafed at being "taken to the woodshed" by Hoffa or one of his non-elected "minions" each time he reached out to a UPS local that had opposed Hoffa in last November's Teamster general election.
Hoffa, 76, won re-election for a fifth time, but his margin of victory over challenger Fred Zuckerman, head of Local 89 in Louisville, Ky., was very narrow. Notably, Hoffa did not fare well among UPS Teamsters, by far the largest single member bloc in the 1.3-million-member union.
O'Brien has been replaced by Denis Taylor, the principal officer of Local 355 in Baltimore. Taylor started with the Teamsters as a package car driver for UPS.
In a statement, the Teamsters said the move to replace O'Brien was made "in the best interests of the members at UPS," and that the decision was not politically motivated. Taylor is a "tremendous labor leader" who knows UPS "inside and out," according to the statement.
The removal of O'Brien, who heads the influential Local 25 in Boston and is the union's eastern region vice president, lays bare long-simmering fissures between the Washington-based international union, which Hoffa heads, and Teamster officials located beyond of the international's direct sphere of influence. In his letter, O'Brien said he wanted to include local representatives who had opposed Hoffa in contract negotiating strategy, but that he was blocked from doing so because it was "considered treasonous."
O'Brien said the union is being run by non-elected "full-time political hacks" who have never been Teamsters and whom other Teamster officials have complained about for years. "It is a situation which you tolerate, and I don't have the confidence that you have the will to change," O'Brien wrote.
In perhaps the most damning accusations, O'Brien said certain staff members at the international union have turned the UPS division and the union in general "into their own personal playground" and that the "games they are pursuing come at the expense of the membership." The only name mentioned in the letter was that of Todd Thompson, who serves as an executive assistant to Hoffa.
"Sadly, you have chosen the route of least resistance and continue to allow ... Todd Thompson and others (to) run the union so you don't have to," O'Brien wrote to Hoffa.
Unless the status quo changes, it will be impossible to fashion the best possible contract for members employed at UPS, O'Brien warned.
Ken Paff, national organizer for the dissident Teamsters for a Democratic Union (TDU), and a longtime Hoffa opponent, said O'Brien had begun taking a more aggressive stance toward UPS, and had angered Hoffa by publicly declaring that Zuckerman, the firebrand head of Local 89 in Louisville, be on the union's national negotiating committee for the upcoming UPS contracts. Local 89 represents UPS employees at the company's global sort hub known as "Worldport," and has more UPS members than any Teamster local.
"Hoffa didn't want anyone leading contract negotiations that he couldn't control," said Paff in a statement on TDU's website. With O'Brien out, "UPS and UPS Freight Teamsters need to be ready to fight for themselves," he added.
Paff said many Teamsters believe that Hoffa has become too conciliatory toward UPS management, and that he has not fought hard enough to win good contracts for the rank-and-file. Paff has said O'Brien is positioning himself to succeed Hoffa, and his stature would rise or fall depending on how UPS Teamsters perceived the outcome of the contract negotiations.
Zuckerman said in a statement "I don't care what side of the fence you were on in the last election. This is deplorable when you remove the lead negotiator because he is willing to stand up for the members and against the company."
Editor's note: An earlier version of this story mis-stated James P. Hoffa's age. DC Velocity regrets the error.
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
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%."