Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
J. Scott Bicksler was in the U.S. Army, his job was to teach others how to deal with disaster. As a nuclear, biological, and chemical (NBC) warfare specialist, he helped soldiers understand how to survive an NBC attack and how to operate equipment that would detect and respond to such attacks. He also oversaw inventory tracking and disposal for hazardous materials generated by his unit—a responsibility that led him to dig deeply into Occupational Safety and Health Administration (OSHA) and Environmental Protection Agency (EPA) regulations.
Since retiring from the military, Bicksler has continued to help keep people safe, but now he does so in the private sector, as lead safety manager for Aerotek Inc., a global recruiting and staffing agency. The Hanover, Md.-based company places over 300,000 people annually in almost every industry you can think of. Bicksler has undergone OSHA training and earned certifications in a variety of human resources (HR) areas, including labor relations, insurance and risk management, and human resources law. He has also given presentations to numerous organizations, including the Industrial Truck Association and, most recently, the 21st World Congress on Health and Safety in Singapore.
Warehouses and distribution centers often turn to staffing companies when they need seasonal or other temporary help. In this interview, Bicksler, whose team helps more than 1,850 warehousing and distribution clients safely onboard some 13,000 temporary employees each year, talks with DC Velocity Senior Editor Toby Gooley about employers' and staffing agencies' responsibilities when it comes to warehouse safety.
Q: What are your current responsibilities?
A: As lead safety manager, I have overall responsibility for health and safety in Aerotek's Strategic Sales and Operations (SS&O) organization, and I mentor 10 regional safety managers in the U.S. and Canada. We work with groups whose job is to go out and win business by, for example, reading an RFP (request for proposal) so we have a clear understanding of when health and safety is involved and what responsibilities our team may or may not have. It's our job to understand the services agreement and contract requirements for health and safety, and to get out to those sites and review what's happening there. I am also involved in our government services area, where we provide human capital solutions to government and to prime contractors and subcontractors, and in our managed services provider offering. In the latter, when a large company does business with multiple staffing companies and doesn't have time to work with each directly, it will often go to a managed services provider and ask [it] to take over management of all the staffing providers.
I'm also the legislative and governmental affairs person for the industry association California Staffing Professionals. In that role, I make sure the staffing industry is getting in front of legislators so they understand how a law affecting temporary staffing in industries such as retail could impact the constituents in their districts.
A: ASA and OSHA have joined forces to develop and execute a strategic plan focused on protecting the health and safety of temporary workers in the U.S. The Temporary Worker Initiative has two goals: first, to reduce and prevent temporary workers' exposure to safety and health hazards at the client's work site, and second, to educate staffing companies and their clients and temp workers about their rights and responsibilities under OSHA regulations. Additionally, the alliance has worked to educate federal and state-run OSHA programs about the relationship between staffing companies and their clients. Through the alliance, ASA has also worked with OSHA to publish seven Temporary Worker Initiative bulletins; the last one was about powered industrial truck training. We're currently working on two additional bulletins.
ASA also worked with the National Safety Council to create the Safety Standard of Excellence program, which encourages staffing firms to adopt workplace-safety best practices and standards. Under that program, staffing firms' workplace-safety programs and practices are assessed. Maintaining the Safety Standard of Excellence designation requires an audit every two years. Aerotek is one of perhaps 20 staffing agencies that have earned this designation.
Q: What kinds of temp positions are warehouses and DCs looking to fill these days?
A: There are the usual positions like lift truck operators, loaders and unloaders, shipping and receiving, pick and pack, dispatchers, and inventory clerks. But with the growth of e-commerce, we realized the need ... to attract new talent to support seasonal warehouse demand. One of the top positions warehouses are looking for are PLC (programmable logic controller) programmers. Those positions are hot, as is anything involving computers used in operations. We're also seeing a lot of demand for facility engineers as well as industrial and manufacturing engineers to keep all the material handling equipment and machinery up and running. Engineers with quality assurance and process management skills are in demand as temporary employees for projects.
Q: Do most facilities find temporary labor through an agency?
A: Some try to go it alone if they have their own internal recruiting teams, but a lot of companies don't have the resources to take that on. If there's a specific project or a seasonal need, it can make sense to use temporary staffing companies and take advantage of an agency's established recruiting process and resources. Once that's off their plate, they won't have to worry about payroll, time keeping, or almost any of the HR functions that would be involved with an internal hire; those become the recruiting company's responsibilities.
Q: How do temp agencies find appropriate applicants for warehouse positions?
A: Every staffing company will be different, but as an example, my company has a five-step process. The first step is to understand what a client is looking for. You have to get a good description of the job requirement; if you don't, you're not going to be able to provide it with the best candidate. Once we know that, we can start by checking our internal database of potential employees. After that comes screening, which includes at least two reference checks. We'll also match the candidate's skills to the client's requirement. Depending on the client, we may also need to conduct drug screening or conduct a background investigation. Next is the selection process. We get appropriate candidates in front of the client, or, depending on the location, there may be a telephone interview. We get feedback from both the client and the candidate, which we consider in the hiring decision. The final step occurs once the temp employee starts work. We're in constant contact with the employee after the first day and first week, and on a continuous basis after that to ensure employee satisfaction. We're regularly capturing feedback from the customer, too, to make sure we have provided exactly what it asked us for.
Q: What can warehouse and DC managers do to help that process?
A: Good communication between the lead manager and supervisors who will be working with the temporary employee and human resources is critical. I would hope that any HR department would be going to the floor manager and saying, "Tell me exactly what this person needs to have as skills so we can communicate that directly to the staffing company." If you don't have that kind of communication, a staffing agency can't fill a position accurately and completely.
Q: Which party is responsible for temp employees' safety training and certification—for example, forklift operator certification?
A: The staffing agency is normally required to provide generic powered industrial truck training prior to placement. An agency of our size has more than 10,000 clients; there's no way staffing agencies could do site-specific training or specific site plans for that many clients. Site-specific training and certification is the client's responsibility, and for good reason—the client is supervising the worker, knows the worksite, and is in the best position to ensure safety.
It's the responsibility of the temporary staffing company to have a very clear understanding of the client's requirements and the type of powered industrial truck to be operated. In the case of forklift operators, we recruit for exactly what the client tells us. If the client just asks for a forklift operator, we will recruit for that. If a client wants an operator for a sit-down counterbalanced 5,000-pound Toyota lift truck, then that's what we recruit for. However, employees have to have site-specific forklift training certification. It's important to remember that forklift certification is NOT portable. The policies, procedures, and processes may be totally different from company to company, and they may have totally different forklifts. That's why site-specific training, to be provided by the client, is required.
Let me mention here that many companies use third-party training for temp workers. That's OK as long as it follows OSHA policies and procedures, and they're doing it at the client's job site. But be careful; we're seeing third parties advertising that they'll have forklift operators trained in two hours for $25 or $30. They give them a certificate, but they've only given them general awareness training, not what they actually need.
Q: Should safety-related responsibilities be spelled out in the contract between the staffing agency and the client?
A: It's critical that language about health, safety, and training be included in that contract. It's the elephant in the room. In an OSHA investigation, one of the first things they'll ask about is the agency-client relationship in regard to health and safety, and whether you have contract language specifically defining those responsibilities. Be aware, though, that OSHA makes it clear that as a warehouse or DC operator, you can't contract away your responsibility.
Q: Do you have any additional recommendations regarding the safety of temporary warehouse workers?
A: Yes, I have a few specifically in relation to hiring. First is to never assume anything about training. Always work out in the service agreement who will be responsible for what. If you don't have clarity, then go back to the staffing company, work that out, and put it in writing.
If a temporary employee thinks there is an issue regarding safety or training, or if there is a question about supervision or onboarding, go back to the staffing agency and ask for help addressing it. You don't want contract employees to feel like they're on their own in these situations.
Remember that responsibility for handling workers' compensation falls on the temporary agency, but the client that supervises the worker is responsible for properly filling out the OSHA Form 300 report (for work-related injuries and illness). When possible, the staffing agency should partner with the clinic the client has engaged to provide 24-hour medical coverage. The doctor who normally handles injuries for the facility knows what's typical, and there may be clues about recurring problems. If required, a staffing agency safety manager will do an investigation on-site to understand what happened and why, and how we could prevent it from happening in the future.
Find out about and follow best practices. For example, one aspect of the Safety Standard of Excellence I mentioned earlier covers the onboarding process for temporary employees. Also, ask whether the staffing firm is a member of the American Staffing Association and thus has access to its safety-related information.
As a contract provider of warehousing, logistics, and supply chain solutions, Geodis often has to provide customized services for clients.
That was the case recently when one of its customers asked Geodis to up its inventory monitoring game—specifically, to begin conducting quarterly cycle counts of the goods it stored at a Geodis site. Trouble was, performing more frequent counts would be something of a burden for the facility, which still conducted inventory counts manually—a process that was tedious and, depending on what else the team needed to accomplish, sometimes required overtime.
So Levallois, France-based Geodis launched a search for a technology solution that would both meet the customer’s demand and make its inventory monitoring more efficient overall, hoping to save time, labor, and money in the process.
SCAN AND DELIVER
Geodis found a solution with Gather AI, a Pittsburgh-based firm that automates inventory monitoring by deploying small drones to fly through a warehouse autonomously scanning pallets and cases. The system’s machine learning (ML) algorithm analyzes the resulting inventory pictures to identify barcodes, lot codes, text, and expiration dates; count boxes; and estimate occupancy, gathering information that warehouse operators need and comparing it with what’s in the warehouse management system (WMS).
Among other benefits, this means employees no longer have to spend long hours doing manual inventory counts with order-picker forklifts. On top of that, the warehouse manager is able to view inventory data in real time from a web dashboard and identify and address inventory exceptions.
But perhaps the biggest benefit of all is the speed at which it all happens. Gather AI’s drones perform those scans up to 15 times faster than traditional methods, the company says. To that point, it notes that before the drones were deployed at the Geodis site, four manual counters could complete approximately 800 counts in a day. By contrast, the drones are able to scan 1,200 locations per day.
FLEXIBLE FLYERS
Although Geodis had a number of options when it came to tech vendors, there were a couple of factors that tipped the odds in Gather AI’s favor, the partners said. One was its close cultural fit with Geodis. “Probably most important during that vetting process was understanding the cultural fit between Geodis and that vendor. We truly wanted to form a relationship with the company we selected,” Geodis Senior Director of Innovation Andy Johnston said in a release.
Speaking to this cultural fit, Johnston added, “Gather AI understood our business, our challenges, and the course of business throughout our day. They trained our personnel to get them comfortable with the technology and provided them with a tool that would truly make their job easier. This is pretty advanced technology, but the Gather AI user interface allowed our staff to see inventory variances intuitively, and they picked it up quickly. This shows me that Gather AI understood what we needed.”
Another factor in Gather AI’s favor was the prospect of a quick and easy deployment: Because the drones can conduct their missions without GPS or Wi-Fi, the supplier would be able to get its solution up and running quickly. In the words of Geodis Industrial Engineer Trent McDermott, “The Gather AI implementation process was efficient. There were no IT infrastructure or layout changes needed, and Gather AI was flexible with the installation to not disrupt peak hours for the operations team.”
QUICK RESULTS
Once the drones were in the air, Geodis saw immediate improvements in cycle counting speed, according to Gather AI. But that wasn’t the only benefit: Geodis was also able to more easily find misplaced pallets.
“Previously, we would research the inventory’s systemic license plate number (LPN),” McDermott explained. “We could narrow it down to a portion or a section of the warehouse where we thought that LPN was, but there was still a lot of ambiguity. So we would send an operator out on a mission to go hunt and find that LPN,” a process that could take a day or two to complete. But the days of scouring the facility for lost pallets are over. With Gather AI, the team can simply search in the dashboard to find the last location where the pallet was scanned.
And about that customer who wanted more frequent inventory counts? Geodis reports that it completed its first quarterly count for the client in half the time it had previously taken, with no overtime needed. “It’s a huge win for us to trim that time down,” McDermott said. “Just two weeks into the new quarter, we were able to have 40% of the warehouse completed.”
The less-than-truckload (LTL) industry moved closer to a revamped freight classification system this week, as the National Motor Freight Traffic Association (NMFTA) continued to spread the word about upcoming changes to the way it helps shippers and carriers determine delivery rates. The NMFTA will publish proposed changes to its National Motor Freight Classification (NMFC) system Thursday, a transition announced last year, and that the organization has termed its “classification reimagination” process.
Businesses throughout the LTL industry will be affected by the changes, as the NMFC is a tool for setting prices that is used daily by transportation providers, trucking fleets, third party logistics service providers (3PLs), and freight brokers.
Representatives from NMFTA were on hand to discuss the changes at the LTL-focused supply chain conference Jump Start 25 in Atlanta this week. The project’s goal is to make what is currently a complex freight classification system easier to understand and “to make the logistics process as frictionless as possible,” NMFTA’s Director of Operations Keith Peterson told attendees during a presentation about the project.
The changes seek to simplify classification by grouping similar items together and assigning most classes based solely on density. Exceptions will be handled separately, adding other characteristics when density alone is not enough to determine an accurate class.
When the updates take effect later this year, shippers may see shifts in the LTL prices they pay to move freight—because the way their freight is classified, and subsequently billed, could change as a result.
NMFTA will publish the proposed changes this Thursday, January 30, in a document called Docket 2025-1. The docket will include more than 90 proposed changes and is open to industry feedback through February 25. NMFTA will follow with a public meeting to review and discuss feedback on March 3. The changes will take effect July 19.
NMFTA has a dedicated website detailing the changes, where industry stakeholders can register to receive bi-weekly updates: https://info.nmfta.org/2025-nmfc-changes.
Trade and transportation groups are congratulating Sean Duffy today for winning confirmation in a U.S. Senate vote to become the country’s next Secretary of Transportation.
Once he’s sworn in, Duffy will become the nation’s 20th person to hold that post, succeeding the recently departed Pete Buttigieg.
Transportation groups quickly called on Duffy to work on continuing the burst of long-overdue infrastructure spending that was a hallmark of the Biden Administration’s passing of the bipartisan infrastructure law, known formally as the Infrastructure Investment and Jobs Act (IIJA).
But according to industry associations such as the Coalition for America’s Gateways and Trade Corridors (CAGTC), federal spending is critical for funding large freight projects that sustain U.S. supply chains. “[Duffy] will direct the Department at an important time, implementing the remaining two years of the Infrastructure Investment and Jobs Act, and charting a course for the next surface transportation reauthorization,” CAGTC Executive Director Elaine Nessle said in a release. “During his confirmation hearing, Secretary Duffy shared the new Administration’s goal to invest in large, durable projects that connect the nation and commerce. CAGTC shares this goal and is eager to work with Secretary Duffy to ensure that nationally and regionally significant freight projects are advanced swiftly and funded robustly.”
A similar message came from the International Foodservice Distributors Association (IFDA). “A safe, efficient, and reliable transportation network is essential to our industry, enabling 33 million cases of food and related products to reach professional kitchens every day. We look forward to working with Secretary Duffy to strengthen America’s transportation infrastructure and workforce to support the safe and seamless movement of ingredients that make meals away from home possible,” IFDA President and CEO Mark S. Allen said in a release.
And the truck drivers’ group the Owner-Operator Independent Drivers Association (OOIDA) likewise called for continued investment in projects like creating new parking spaces for Class 8 trucks. “OOIDA and the 150,000 small business truckers we represent congratulate Secretary Sean Duffy on his confirmation to lead the U.S. Department of Transportation,” OOIDA President Todd Spencer said in a release. “We look forward to continue working with him in advancing the priorities of small business truckers across America, including expanding truck parking, fighting freight fraud, and rolling back burdensome, unnecessary regulations.”
With the new Trump Administration continuing to threaten steep tariffs on Mexico, Canada, and China as early as February 1, supply chain organizations preparing for that economic shock must be prepared to make strategic responses that go beyond either absorbing new costs or passing them on to customers, according to Gartner Inc.
But even as they face what would be the most significant tariff changes proposed in the past 50 years, some enterprises could use the potential market volatility to drive a competitive advantage against their rivals, the analyst group said.
Gartner experts said the risks of acting too early to proposed tariffs—and anticipated countermeasures by trading partners—are as acute as acting too late. Chief supply chain officers (CSCOs) should be projecting ahead to potential countermeasures, escalations and de-escalations as part of their current scenario planning activities.
“CSCOs who anticipate that current tariff volatility will persist for years, rather than months, should also recognize that their business operations will not emerge successful by remaining static or purely on the defensive,” Brian Whitlock, Senior Research Director in Gartner’s supply chain practice, said in a release.
“The long-term winners will reinvent or reinvigorate their business strategies, developing new capabilities that drive competitive advantage. In almost all cases, this will require material business investment and should be a focal point of current scenario planning,” Whitlock said.
Gartner listed five possible pathways for CSCOs and other leaders to consider when faced with new tariff policy changes:
Retire certain products: Tariff volatility will stress some specific products, or even organizations, to a breaking point, so some enterprises may have to accept that worsening geopolitical conditions should force the retirement of that product.
Renovate products to adjust: New tariffs could prompt renovations (adjustments) to products that were overdue, as businesses will need to take a hard look at the viability of raising or absorbing costs in a still price-sensitive environment.
Rebalance: Additional volatility should be factored into future demand planning, as early winners and losers from initial tariff policies must both be prepared for potential countermeasures, policy escalations and de-escalations, and competitor responses.
Reinvent: As tariff volatility persists, some companies should consider investing in new projects in markets that are not impacted or that align with new geopolitical incentives. Others may pivot and repurpose existing facilities to serve local markets.
Reinvigorate: Early winners of announced tariffs should seek opportunities to extend competitive advantages. For example, they could look to expand existing US-based or domestic manufacturing capacity or reposition themselves within the market by lowering their prices to take market share and drive business growth.
By the numbers, global logistics real estate rents declined by 5% last year as market conditions “normalized” after historic growth during the pandemic. After more than a decade overall of consistent growth, the change was driven by rising real estate vacancy rates up in most markets, Prologis said. The three causes for that condition included an influx of new building supply, coupled with positive but subdued demand, and uncertainty about conditions in the economic, financial market, and supply chain sectors.
Together, those factors triggered negative annual rent growth in the U.S. and Europe for the first time since the global financial crisis of 2007-2009, the “Prologis Rent Index Report” said. Still, that dip was smaller than pandemic-driven outperformance, so year-end 2024 market rents were 59% higher in the U.S. and 33% higher in Europe than year-end 2019.
Looking into coming months, Prologis expects moderate recovery in market rents in 2025 and stronger gains in 2026. That eventual recovery in market rents will require constrained supply, high replacement cost rents, and demand for Class A properties, Prologis said. In addition, a stronger demand resurgence—whether prompted by the need to navigate supply chain disruptions or meet the needs of end consumers—should put upward pressure on a broad range of locations and building types.