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.”
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.