Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
In the never-ending quest to boost productivity in the warehouse and DC, it's becoming even more important to focus on the care and maintenance of a crucial piece of equipment: industrial storage racks. Experts agree that storage rack safety is gaining more attention industrywide these days, and they say it's vital to develop a proper maintenance and inspection program. After all, weak or damaged racks can contribute to collapse, risking worker safety and causing product damage. Keeping storage racks in prime condition should be a top priority, experts advise.
The best storage rack systems are configured to allow enough room for workers and lift trucks to move about the facility and access products safely and easily.
"I believe [storage rack safety] is becoming more and more important to operators of the warehouse," says Dan Clapp, director of engineering for New Jersey-based storage rack manufacturer Frazier Industrial Co. and a 25-year member of the Rack Manufacturers Institute (RMI), a trade group that promotes the safe design and use of storage racks and other structural systems. "Storage racks are what I call very high-performance structures. A storage rack will typically have one pound of steel supporting 10 pounds of product. We ask the material to do a whole lot of work, [so] the monitoring and the repair is vitally important to the structure."
To stay on top of the issue, Clapp and others recommend that warehouse and DC managers pay close attention to their facility's layout and daily use requirements, adhere to a regular inspection schedule, and take quick action to repair or replace weak or damaged storage racks.
DESIGNED FOR SAFETY
The best storage rack systems are configured to allow enough room for workers and lift trucks to move about the facility and access products safely and easily. Clapp recommends that companies work closely with their rack supplier or systems integrator when designing a facility or adding storage racks—and that they resist the urge to get "every last inch" of storage space out of the facility. Providing a little extra clearance around pallets and in the aisles can make it easier for workers to access products and reduces the risk of accidents, he explains.
"I suggest they consider opening up the clearances," he says, comparing warehouse aisles with roads and highways: wider lanes are easier to navigate than a narrow maze of pathways. "Develop a layout on the basis of clearances required around the loads—and be generous with the clearances. You will gain a tremendous amount of productivity that way."
Damage to storage racks is almost always related to misuse and abuse, and forklifts are most often the culprits, adds Tom Wagner, a regional manager with New Jersey-based storage solutions provider Unex Manufacturing. Industrial steel storage racks are designed to last for years if properly installed and maintained, he says.
"It's hard to damage them through normal wear and tear," Wagner explains. "If it's not getting hit, it's not going to wear out like a piece of machinery would. Abuse and misuse is where the need [to] replace and repair comes in."
In addition to developing a sensible layout and making sure the equipment is properly installed, Wagner emphasizes the need for regular monitoring for rack damage and ensuring that safety devices, such as pins and bolts that reinforce connection points, are in place and secured.
"So many places you go in, those are missing or gone," he explains, adding that such items cost little to replace when compared with the cost of product loss or worker injury due to a rack collapse, which can be catastrophic.
"It looks like dominoes when it goes," Wagner says of a rack failure.
GUIDELINES FOR INSPECTION
Storage racks should be inspected at least once a year, Clapp and others say—and possibly more frequently, depending on how quickly the inventory is turned. Continuous observation and assessment should be a part of every maintenance plan as well. Experts say warehouse employees should be on the lookout for damage as well as wear and tear when working around storage racks, and forklift drivers should report any impacts right away.
Thomas Gibbs, founder of Bolingbrook, Ill.-based independent pallet rack inspection company United Rack Services, agrees.
"The more the product is cycled, the more often [racking] should be inspected," explains Gibbs, whose company conducts storage rack safety inspections and training at warehouses throughout North America. "An archival storage facility, for example, where they put [product] into the racking and hardly ever pull it, will require [less-frequent inspections]. But a grocery distributor, where they are constantly turning over product, should [inspect its racks] more often."
That's because more-frequent use can increase wear and tear and lead to more accidents, especially fork truck collisions. Harsh environments, such as pallet or storage racking inside a freezer, can also shorten service life and create the need for more frequent inspections. As part of the inspection process, experts such as Gibbs will assess the general condition of the racking and look for any damage or weakness to the structure. They will make sure the structures are anchored properly, that safety locks are in place, and that no hardware or other pieces of the system are missing, for example. They will also assess any modifications that may have been made to the system to ensure those changes did not affect its safety, among other issues.
Clapp's work at the Rack Manufacturers Institute aims to help companies determine how frequently their storage racking should be inspected. RMI, an industry group within the trade association MHI, offers guidelines and standards for storage racks; Clapp says its document Considerations for the Planning and Use of Industrial Steel Storage Racksis a guideline that includes practical recommendations for rack maintenance and inspection. RMI has developed storage rack standards for more than 50 years, and its most recent—RMI/ANSI MH16.1-2012—serves as the default standard for storage rack implementation for the International Building Code. The group's R-Mark Certification program denotes manufacturers that have demonstrated the knowledge and skill required to meet the latest RMI standard for pallet storage racks, according to Clapp.
REPAIRED AND READY FOR DUTY
RMI emphasizes that rack safety and inspection is everyone's responsibility and that damage to racks should be reported immediately. Clapp adds that any damage to the structure should be repaired or the components replaced, no questions asked.
"The reason we say that is, again, [industrial storage racks are] high-performance structures. We are asking the steel to do every bit of its capability, so any damage will degrade its performance—maybe not enough to collapse the system, but you never know. So we recommend inspection, and to repair any damage found."
Companies should work with a rack engineer (usually a representative from the product's manufacturer or the systems integrator) to repair or replace damaged racks and components. Damage can include impacts to the frame or other portions of the rack (usually from a fork truck) as well as loose or missing hardware and anchors. The rack engineer can evaluate damage to determine if there is a safety concern; in those cases, the rack should be unloaded until the repair can be made, according to RMI.
Such issues are likely to gain prominence, experts add, during a time when most warehouses and DCs are working to get more products out the door faster than ever.
"A lot of companies are realizing that safety is good business," Gibbs explains. "It's really just a matter of what priority [the company] gives to [rack safety], and I've seen an increase in the priority most are giving it."
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.