At the Modex exhibition and conference in Atlanta, attendees can get up close and personal with sizzling new technology, equipment, and services for the supply chain.
Thinking of distribution centers as cavernous facilities full of boxes, pallets, and racks is so 20th century. Nowadays, they are hot spots of technological innovation. Think about it: Conveyors that turn themselves off when there's nothing to convey. Customized packaging material made on the spot. Driverless lift trucks. Glasses that can tell you what and how much to pick.
Need to keep pace with the latest and greatest technological innovations? The Modex Show organized by MHI (formerly the Material Handling Industry of America) might be just the ticket. One of the largest expositions for supply chain solutions in the Americas, Modex will be showcasing products and services from more than 850 exhibitors at Atlanta's Georgia World Congress Center from April 9-12.
For ease of navigation, the 250,000-square-foot show floor will be divided into function-specific solution centers: Manufacturing & Assembly, Fulfillment & Delivery, Information Technology (IT) Solutions, The Knowledge Center, Smart City Logistics and Connected Supply Chain, and Transportation & Logistics. Exhibitors from across North America will be on hand to showcase the following technologies and services:
Material handling equipment and systems, which includes a broad range of products, from the highly complex (like automated guided vehicles and automated storage and retrieval systems) to the elegantly simple (like casters, racks, and shelves).
Packaging, containers, and shipping equipment, which encompasses not just pallets, containers, and shrink wrap but also packaging machinery, equipment designed for the inspection of products by weight or scanning, and palletizers.
Inventory management and controlling technologies, which includes computers, controllers, and software programs as well as systems integrators.
Dock and warehouse equipment and supplies, such as dock levelers, pads, and doors; flooring; hoists; cranes; monorails; and below/hook lifting devices.
Consultants and distribution system planners, including simulators, modelers, and third-party logistics service providers.
Automatic identification equipment and systems, such as bar-code printers and scanners, radio-frequency identification (RFID) systems, vision systems, and voice recognition systems.
Supply chain management, which serves as a catch-all category for such products and services as alternative fuel systems, parcel management and distribution, reverse logistics, and inventory security services.
Smart city logistics and connected supply chain, connected technologies, including "smart city" technologies that can help urban areas address the increasing challenges of congestion, noise, and pollution associated with more frequent last-mile deliveries to their growing populations.
Transportation and logistics, such as road, rail, sea, and air freight services; parcel delivery; and autonomous vehicles.
A GLIMPSE OF THE FUTURE
In addition to the exhibition, an extensive educational conference will run concurrently with the show. The conference features five keynote addresses, a "Women in the Supply Chain" forum, and more than 100 supplier-led seminars on a broad array of manufacturing, distribution, and supply chain topics.
The Modex keynote presentations will offer a glimpse of the future and insights into how businesses can prepare themselves for what lies ahead. On Monday, April 9, Juan Perez, chief information and engineering officer at UPS, will deliver the opening keynote address, "Anticipating Tomorrow's Supply Chain Challenges - Today." In his presentation, Perez will discuss the importance of embracing innovation and describe how UPS is preparing for the "Fourth Industrial Revolution," which will be enabled by the Industrial Internet of Things, the ongoing evolution of mobility, and smart cities.
Following the opening keynote, Georgia Governor Nathan Deal will take the stage to welcome Modex attendees to Georgia. In his address, Deal will detail the state's significant investments in supply chain and transportation infrastructure for moving goods quickly and efficiently through the Southeastern region.
On Tuesday, April 10, Andrew McAfee, co-founder and co-director of the Initiative on the Digital Economy and a principal research scientist at the MIT (Massachusetts Institute of Technology) Sloan School of Management, will deliver a talk on the digital revolution and its implications for employment and the economy. Arguing that technology is rewriting the business playbook and that a great deal of standard business practice is now dangerously out of date, McAfee will look at how digital technologies such as robotics, machine learning, artificial intelligence, and autonomous vehicles will impact business moving forward.
Scott Sopher, principal with Deloitte Consulting LLP's supply chain practice, and George W. Prest, MHI's chief executive officer, will present the findings of a new report from MHI on Wednesday, April 11. The organization's "2018 Annual Industry Report" focuses on the supply chain trends and technologies that are transforming supply chains. After the presentation, the speakers will moderate a panel of manufacturing and supply chain leaders discussing the real-world significance of the report's findings.
Later that day, Mike Rowe, TV personality and founder of the mikeroweWORKS Foundation, will present "Why Dirty Jobs Matter." In his presentation, Rowe will talk about skilled labor and why it's being devalued by the media, advertising, and even the government. Rowe will also share his insights into the benefits of hard honest work and how it affects everything from our national identity to our infrastructure to the economy.
EXPERT-LED SEMINARS
Following the keynotes each day, Modex visitors can choose from a wide array of supplier-led educational seminars. These 45-minute sessions will be presented in theaters located right on the show floor. This format allows attendees to learn about various manufacturing, distribution, and supply chain solutions in the educational sessions and then actually see the equipment, systems, and services that can implement those solutions. This year's seminars are divided into six tracks: automation and robotics; data capture, analytics, and information management; manufacturing, planning, and sourcing; sustainability and risk management; transportation, distribution, and warehousing; and workforce and labor.
New to the seminar schedule this year are special conference sessions that will be held in the two newest solution centers, the "Transportation & Logistics" and "Smart City Logistics and Connected Supply Chain" centers. Sessions scheduled for the "Transportation & Logistics" center include "How to Reduce Small Parcel and LTL Transportation Costs in a Challenging Economy," "Technology Disruptors," and "Challenges in the Logistics Workforce." Sessions to be held in the "Smart City" center include "Artificial Intelligence: Evolution of Shipping," "Smart City Logistics - Successfully Navigating the Last Mile," and "Creating the Connected Warehouse." Here's the complete seminar schedule.
Modex will also reach beyond the confines of the convention center to offer supply chain-focused tours of the following Atlanta-area facilities: Telaid Industries Inc., Kroger, Kia Motors' assembly plant, and the ATL aircargo facility. (Preregistration and separate fees are required.)
This year, Modex will be co-located with the Georgia Logistics Summit, an event that brings together nearly 2,000 logistics and supply chain professionals from Georgia and beyond to network, share best practices, and learn about the latest trends in the industry. The 2018 summit is expected to feature nearly 50 speakers, including prominent shippers and leaders in the state's infrastructure and economic development community. A separate fee and registration are required for the summit. Learn more at GeorgiaLogistics.com/Summit.
Pre-registration for Modex 2018 is free online. There is no charge to attend the exhibits, Modex keynotes, or show-floor educational sessions. The website also offers exhibitor search tools, floor plans, a complete list of educational sessions, and information about travel and accommodations.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."