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.
Demand for a more efficient supply chain is shining a light on today's warehouse operations, a trend that's sparking interest in alternative power solutions for industrial trucks. Of those alternatives to the traditional lead-acid battery, one in particular—the lithium-ion battery—has captured the market's attention.
Experts say productivity is at the heart of the issue, as fleet managers look for ways to work smarter and maximize equipment uptime. But industry adoption of lithium-ion batteries is still far from widespread, as higher acquisition costs and other factors make the technology suitable mainly for operations running large forklift fleets and/or making heavy use of their equipment.
Still, interest is growing, and battery makers say alternative power solutions will soon see wider adoption. That's why they're stepping up to the plate with solutions designed to "take away the pain points" customers are experiencing, explains Harold Vanasse, senior director of marketing, motive power Americas, for Reading, Pa.-based battery power solutions provider and battery manufacturer EnerSys, which showcased its new line of NexSys iON lithium-ion batteries and accessories at this spring's ProMat trade show in Chicago. He emphasizes the ever-present drive to become more productive, reduce downtime, maximize facility space, and minimize maintenance requirements.
"There's one thing driving this trend: the benefits the technology brings, especially its zero maintenance," Vanasse says of the rise of lithium-ion batteries, which unlike their lead-acid counterparts, don't require the labor-intensive process of watering. With lead-acid batteries, water inside the battery is consumed during operation and must be replenished. Staff must monitor batteries and water them on a regular schedule, a process that takes time, dedicated warehouse space, and equipment. Eliminating those requirements contributes to a more efficient and productive warehouse operation, lithium proponents say.
"That's the drive" behind today's battery innovations, Vanasse says.
ADVANCEMENTS IN TECHNOLOGY AND THE "WOW" FACTOR
You didn't have to walk too many aisles at the ProMat show to witness the growth in lithium solutions for material handling equipment. The biennial trade show highlights the newest innovations in manufacturing, distribution, and supply chain technology, and this year, dozens of manufacturers featured lithium batteries as well as equipment powered by lithium solutions. The sense of "newness" surrounding the products is bringing a "wow" factor to an industry that has seen little innovation in the last 100 years or so, industry experts say.
"[Lithium] signifies the advance of new technology in an industry that has been very traditional and has not seen much innovation," says Max Khabur, head of marketing for Irvine, Calif.-based lithium-battery maker OneCharge. "When there is something new to talk about ... it brings a lot of excitement and a new competitive angle to a very traditional industry."
Founded in 2015, OneCharge makes lithium-ion batteries for material handling equipment and offers more than 450 models for Class I, II, and III forklifts. Khabur compares the growing popularity of lithium power for material handling applications with the rise of electric cars and trucks: As lithium-battery technology has advanced and become broadly accepted in the consumer market, there's been increasing interest in applying it in the industrial sector, he says. The interest is fueling market growth: The overall lithium-ion battery market is expected to reach $93 billion by 2025, a 17-percent compound annual growth rate, according to a 2019 study by market research firm Grand View Research. Automobiles and other consumer electronics are expected to drive the bulk of that growth, but industrial and material handling applications will contribute as well, industry experts say.
"Just a couple of decades ago, [lithium] was still unheard of in this market," explains Khabur. "Now, the technology is evolving ... And, as with every new technology, there are more and more competitors."
"The newer technologies are certainly out there, with lithium being the buzzword [today]," adds Brian Faust, general manager for Reading, Pa.-based battery, charger, and accessories manufacturer Douglas Battery, which offers traditional lead-acid batteries and is also developing a sealed lead-acid product, expected to be available next year. Sealed lead-acid batteries offer similar benefits to lithium-ion solutions, including zero maintenance because they also don't need to be watered. "Probably over the next two or three years we'll see where [alternative power] settles down in our industry."
BENEFITS ABOUND, BUT QUESTIONS LINGER
Khabur and others agree that, today, lithium-ion batteries are best suited to operations where lift trucks are used for two or three shifts a day. Typical OneCharge customers have multiple pieces of equipment and are looking to get the most out of the vehicles during every shift, Khabur says.
"Our clients want to use the machinery with maximum efficiency," he says, pointing to the convenience and productivity-enhancing features of the technology as key selling points. Among other benefits, lithium-ion batteries charge faster and run longer than traditional solutions, eliminating the need to change a forklift battery at each shift, experts say. Their lifespan is also more than twice as long as their lead-acid counterparts'. And as Vanasse pointed out, they don't require watering, which eliminates the need for dedicated battery maintenance space and reduces labor requirements. The technology also helps reduce energy use because lithium-ion units use less electricity for charging, Khabur explains. On the downside, lithium-ion batteries still cost about three times as much as traditional lead-acid units, although the purchase price has come down in recent years. Khabur says that barrier will shrink as the technology evolves.
"Each year, we are [developing] new and more effective batteries," he says, adding that OneCharge sold 1,200 batteries in 2018 and hopes to double that in 2019.
Although the benefits and the newness of the technology will continue to garner attention for the products, questions linger over how quickly they'll move into widespread use. Experts point out that although both lithium-ion and sealed lead-acid batteries are maintenance-free in comparison to lead-acid batteries, they don't eliminate **ital{all} the maintenance associated with battery-powered material handling equipment. Lithium-ion batteries still require periodic inspection of cables, terminals, and the like, and forklifts themselves still require routine maintenance.
Battery end-of-life is also a sticking point. Virtually all lead-acid batteries are recycled by the manufacturer, a service included in the cost of the battery, according to Faust and others. In the United States, 99 percent of all lead-acid batteries are recycled, the highest percentage of any U.S. product, says John Connell, vice president of battery manufacturer Crown Battery's SLI Product Group. He adds that lead-acid battery makers largely rely on recycled lead to produce new batteries.
That's not the case with lithium-ion batteries, which are more complex and costly to recycle. Currently, lithium batteries are collected and recycled at a rate of less than 5 percent, according to the U.S. Department of Energy (DOE), which launched a program to boost the recycling rate earlier this year. In February, the DOE announced the opening of a battery-recycling center at Argonne National Laboratory in Chicago aimed at reclaiming and recycling critical materials from lithium batteries, with the goal of recovering 90 percent of key materials. In the meantime, the material handling industry is also researching the best end-of-life solutions, which include reuse and repurposing lithium-ion batteries for other energy needs, according to Khabur, who adds that OneCharge has a few batteries in the field that are nearing the end of their five-year warranty and may last well beyond it.
"If taken good care of and charged often, [these batteries] will last longer," he says. "And they can be repurposed. There may be many other uses. There is still much research and development [under way]."
IT'S ALL ABOUT PRODUCTIVITY
Regardless of how it all plays out, most experts agree that in the eyes of the end user, the technology inside the forklift doesn't really matter, as long as the product delivers the power to do the job efficiently and effectively.
"End users couldn't care less about what kind of battery is in their truck," Khabur says. "It's not a crucial detail for their business. What matters when they are looking for a solution [is that] it delivers the promised benefits and does not require everyday maintenance."
Faust adds that when it comes to batteries, end users are most concerned about uptime—and cost.
"[Customers] want their batteries to run longer and require less maintenance because that increases productivity. But not everybody wants to pay for it," he explains, circling back to the higher initial costs of lithium-ion units and the resulting need to choose the solution that makes the most sense for a given application.
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.