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.
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.
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.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.