Experts advise focusing on structure, safety, and automation when implementing new storage racking in today’s fast-paced temperature-controlled facilities.
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.
When it comes to maintaining a safe and efficient cold storage warehouse, material handling experts say it’s best to start with the basics. And that means the right storage racking, which can serve as a building block in today’s fast-paced refrigerated and freezer environments. The need for freshness means that products are moving in and out quickly in these settings, increasing the risk of equipment damage and employee injuries, and putting quality and safety at the top of any warehouse manager’s operations checklist. Rising demand for cold storage nationwide is exacerbating the trend.
“In these environments, there are a lot of fast-moving parts [because you’re] bringing in and taking out product at a very high rate. … People operating lift equipment are moving at such a fast pace, there’s a higher probability of damage with the racking itself,” explains Skip Eastman, former CEO and current board member at Twinlode Corp., the parent company of Indiana-based material handling solutions provider Twinlode Automation. “And if we’re talking about a freezer, people can’t stay in there for an excessive amount of time, even with insulated clothing.”
As a result, Eastman and others say good design and proper installation of racking systems is taking on a higher profile today, especially as organizations look toward automated solutions to boost efficiency and productivity. This applies to all types of rack solutions, from standard storage racking to pallet flow rack to systems that incorporate conveyors and automated storage and retrieval (AS/RS) solutions. Whether a company is looking for better ways to maintain its current system or ideas for implementing a new one, the experts say leaders should focus on three essential points: structure, safety, and automating for the future.
“The racking and storage design in any temperature-controlled warehouse should be, first and foremost, structurally sound, installed with flexibility in mind, and built for the long term,” says Justin Kukal, vice president of automation strategy and implementation for Agile Cold Storage, an Atlanta-based company launched this year that is building a nationwide network of automated and conventional temperature-controlled warehouses. “A quality manufacturer and steel supplier make or break your long-term rack investment.”
STRUCTURALLY SOUND
Eastman agrees that structure makes a difference in harsh environments and says that racks made from structural steel are the best option for cold or freezer storage, where lower temperatures can affect the toughness of the racking system, making it more susceptible to damage if hit by a forklift or other equipment. Structural steel rack is hot rolled, its components welded together, making it strong enough to support very heavy loads and better able to withstand forklift impact. In comparison, roll-formed rack is cooled and then molded into different shapes and often features adjustable supports and shelves. This type of racking is often more versatile but not as durable in cold environments. Eastman also recommends reinforcing the structural steel supports and adding impact protection on the aisles of cold storage racking to help minimize damage from forklifts or other equipment—again, because the harsh environment can increase the risk of damage from impact.
“[In my experience], customers who do that have fewer problems with trying to replace parts after they are damaged,” he explains.
Burnie Taylor, COO and senior vice president at Agile Cold Storage, agrees, adding that the evolution of rack design and other technologies allows for better solutions across the board. As one example, he says low-oxygen fire-prevention technology—which reduces the oxygen in an environment to a level that keeps fires from igniting—eliminates the need for in-rack sprinkler systems and has made it more feasible to build higher structures that better utilize a facility’s cubic capacity. Such systems are often implemented in AS/RS environments, where human exposure to low oxygen can be minimized.
“Better manufacturing processes have increased the tensile strength of racking, and designs are being engineered to last,” adds Taylor. “The sub-technologies that work within the racking, such as fire protection and prevention, have evolved as well, allowing for taller and less-intrusive rack designs.”
Eastman says the finish on the rack is important too. Products must be processed, cleaned, and painted properly to avoid peeling and to withstand cleaning and sanitizing processes, which vary based on the customer’s operation. More complex systems—those that involve conveyors or other automation, for instance—may need to include shielded or sealed bearings or sealed motors, depending on the environment.
“One of the most important things is that whoever you work with has a clear-cut understanding of your environment,” Eastman says. “You have to select the right people to be working with so they are in tune with what goes on in your organization.”
SAFE AND SECURE
Beginning with a secure structure is the first step toward ensuring a safe racking system. Eastman, Kukal, and Taylor emphasize that the best-quality materials, reinforced and installed properly, will create a solid structure that can withstand the fast-paced traffic and extreme temperatures of a cold-storage environment.
Training is the other key element, according to Taylor. Quite simply, having the right people, with the right equipment, doing the right things is the best way to maintain a safe and efficient culture, he says.
“[Companies should] ensure that employees are trained and equipped with the standard personal protective equipment as well as specialized equipment such as thermal protection and fall protection,” he explains, adding that the advent of high-bay racking—which features multiple levels of storage and allows more pallet locations in a given footprint—has increased the need for safety equipment and training. Such systems take advantage of ceiling height, adding vertical storage that can be accessed via reach trucks, cranes, or automated systems. Depending on the environment, companies may need to add specialized equipment such as narrow-aisle forklifts or personnel lifts and platforms that allow access to the higher levels. All of these scenarios require “a robust safety program for your front-line maintenance and leadership team members,” Taylor says.
Eastman reiterates the importance of working with trusted suppliers.
“There are so many [elements to consider] when it comes to safety,” he says, pointing to local building codes, fire codes, insurance issues, and broader industry guidelines that play into the safe design and installation of racks. “The way we store [items] and the density we’re allowed to store them is predicated on local codes, but you also have to make sure all these are within the requirements of whoever is insuring the building. … [As a result], you need to make sure you are working with people that can help you with the process; they may not have all the answers, but they should be able to help you find them.”
AUTOMATE FOR THE LONG TERM
Automation is quickly becoming a trend in cold storage, and two elements are driving it: speed and a chronic labor shortage. Automation can help improve both safety and productivity in the warehouse, addressing the need to get products in and out quickly in a climate that makes it tough to attract workers. E-commerce is a factor as well. Recent research points to growing demand for cold storage facilities nationwide, in part due to an increase in e-grocery delivery. Online grocery sales are expected to increase 13% by 2022, according to research from commercial real estate giant CBRE. Nearly half of U.S. consumers already shop for packaged food products online, a figure that is expected to rise to 70% by 2022, the company also said. A large portion of that will likely be perishable food items, requiring more freezer/cooler space for storage and distribution, CBRE researchers wrote in a late 2019 report titled Food on Demand: Cold Storage Logistics Unpacked.
A shift toward AS/RS and other automated solutions will help organizations make the best use of those spaces and keep pace with the growing volume of products and deliveries.
“In today’s environment, everything moves even faster than [it did just a few] years ago, so you have to start looking into an automation phase,” Eastman explains.
Automation can reduce employees’ exposure to harsh conditions, for example, and as a result, speed the loading and unloading process while freeing up labor for other warehouse tasks. Eastman points to AS/RS as a common solution in cold storage environments, noting that such systems can be fully automated or semi-automated depending on an organization’s needs. Kukal adds that the broader cold storage industry is moving toward fully automated high-bay rack-supported structures as a way to accommodate demand for more products and faster delivery—a trend that also begins with a “back to basics” approach focused on proper structure and design.
“With high-bay rack-supported structures, you have the ability to maximize the storage density, and the automation eliminates most, if not all, damage caused due to rack strikes by conventional forklifts,” he explains. “The challenge for most racking providers has shifted to including the load requirements for the structures as well as the pallet loads being stored.”
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."