Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
sponsored the seventh annual National Forklift Safety Day on June 9. The event provides an opportunity for the industry to educate customers, government officials, and other stakeholders about the safe use of forklifts, including the importance of training for operators and for pedestrians who work around forklifts. ITA members manufacture over 90 percent of the forklifts and similar powered industrial trucks sold in North America. The organization promotes standards development, advances safe forklift design and use, disseminates statistical information, and holds industry forums.
This year’s National Forklift Safety Day program was presented virtually, with videos and webinar-style presentations by experts on a range of safety-related topics. The following are some of the highlights:
ITA President Brian Feehan and Jay Gusler, ITA Chairman and Executive Vice President of Operations, Mitsubishi Caterpillar Forklift America (MCFA), welcomed viewers. Their remarks focused on the ongoing commitment to forklift safety by the organization, its members, and the industry as a whole. “Safety has been and will continue to be paramount to our industry,” said Gusler. “Collectively we dedicate a tremendous amount of time and effort to ensure the safety of our products. ... Safety requires dedication, time, and perseverance. We must take the time to ensure proper safety training is adhered to and make it a priority.”
Loren Sweatt, Principal Deputy Assistant Secretary of Labor, Occupational Safety and Health Administration (OSHA), noted that 2020 marks 50 years since OSHA was formed and federal workplace safety and health protections were signed into law. Despite long-term progress in reducing the number of forklift-related accidents, in FY 2018, the number of serious forklift-related injuries increased by 4% over the previous year, and there were 85 fatalities, she said. Emphasizing the importance of proper training, she pointed out that in FY 2019, four of the five most frequently cited violations of the powered industrial truck rules in CFR 1910.178 involved inadequate or improper operator training, evaluation, and certification.
Sweatt urged forklift users to take advantage of OSHA’s educational resources, including a free on-site health and safety consultation for small businesses. Businesses may also apply to participate in the Voluntary Protection Program (VPP), under which management, labor, and OSHA collaborate to prevent fatalities, injuries, and illnesses by focusing on hazard prevention and control, worksite analysis, training, management commitment, and worker involvement.
Sweatt added that OSHA is examining an update to its powered industrial truck (PIT) standards, and that two regulatory actions are currently in process. The first would update employer requirements for operations, maintenance, and worker training, she said. The agency is now analyzing comments submitted in response to a request for information (RFI) issued last year. The second—something the forklift industry has long advocated—would update references to PIT consensus standards in OSHA rules. If the proposal moves forward, Sweatt explained, OSHA rules will incorporate by reference current industry practice, forklift design, and technology, rather than older, sometimes outdated information. OSHA expects to publish a notice of proposed rulemaking by the end of this year, she said.
Finally, Sweatt outlined the many resources OSHA has made available to assist workplaces in coping with the COVID-19 pandemic. OSHA is closely coordinating with the Centers for Disease Control and other federal agencies to monitor the pandemic, she said. She recommended that facility managers take advantage of OSHA’s guidance about workplace risk assessment, controls, cleaning, and more at www.osha.gov/coronavirus.
Pedestrian safety was the focus of a presentation by Chuck Leon, Technical Specialist, Workplace Safety and Prevention Services (WSPS). Leon offered many suggestions for reducing risk to pedestrians where forklifts are in use. Examples include:
To identify potential trouble spots, create a map of your facility that shows storage aisles, forklift travel lanes, and pedestrian walkways.
Manage traffic flows. For example, if a forklift is working in an area with a blocked view, have another person present to control and direct pedestrians.
Mitigate or eliminate blind spots; if an operator has to work around an obstacle, such as stacked pallets stored on the floor, then remove it.
Train pedestrians how to safely walk and work around mobile equipment. Let them sit on a parked forklift with loaded forks to show them what operators see.
Establish rights of way in all directions for both pedestrians and operators.
Make sure barriers, gates, and floor and wall markings are high-visibility and clearly marked. Refresh the paint and markings at regular intervals.
Use high-visibility PPE. Some companies use different colors for staff, visitors, and contractors, which signals to operators that some pedestrians may not know the facility’s policies and procedures.
J. Scott Bicksler, Lead Safety Manager for the staffing agency Aerotek, spoke about the safety of forklift operators who are temporary employees. Bicksler, whose company employs about 9,000 lift truck operators, explained how the host employer and the staffing agency can best work together in three important areas:
1. Evaluating and contracting—Before signing a contract with a temporary labor agency, the host employer and the agency should conduct a joint risk assessment, including a site visit and evaluation of the OSHA 300 log (a form for recording information about reportable injuries and illnesses). The contract should specify each party’s responsibilities for activities such as operator training, OSHA reporting, and provision of protective gear, among others. Job descriptions for each position should be clearly defined.
2. Training for temporary workers and supervisors—Typically the staffing agency is responsible for general safety awareness training, and the host must give temporary workers training that is equivalent to what regular employees in the same jobs receive, Bicksler said. Supervisors must know the limitations and requirements for training temporary forklift operators; if a temp is moved to a new position or the job description changes, the employer must notify the staffing agency right away, as any change can impact workers’ compensation claims—for example, if an accident occurs in a job the worker has not been trained for.
3. Injury and illness reporting, response, and recordkeeping—Temporary employees need to know to whom they should report an injury or incident. When an incident or injury occurs, supervisors should immediately inform the agency and also record the incident in the OSHA 300 log. Research has found that waiting to report and record injuries contributes to higher workers compensation costs, Bicksler said.
(For more about working with temporary forklift operators, read the 2018 DCV Q&A with Bicksler.)
The COVID-19 pandemic has helped business and the public understand how vital forklifts are to the functioning of the global supply chain, said Chuck Moratz, NFSD Task Force Chair and Senior Vice President, Global Engineering, Clark Material Handling Co. Lift trucks are critical tools that allow grocery stores, pharmacies, and other essential businesses to ensure that the public gets needed personal hygiene products, food, medicines, and safety supplies, he said.
In a discussion of forklift accident trends, Moratz noted that after declining steadily for years after OSHA began requiring operator training and certification in the early 1990s, the number of forklift accidents rose slightly after 2011, and the number of fatal accidents saw an uptick in 2018. He attributed the rise in large part to a significant increase since 2011 in the number of rider forklifts and pallet trucks being used in the United States. Moratz emphasized that safety is everyone’s responsibility, because the data “are not really numbers we’re talking about. Each number represents people: your co-workers, family, and friends whose lives have been disrupted by accidents.”
The Industrial Truck Association’s National Forklift Safety Day webcast is still available at no charge online. Registrants will receive access to the slides from the presentations by Sweatt, Leon, and Bicksler. Click here to register. And click here to read all of DC Velocity’s special NFSD 2020 coverage and forklift safety articles.
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]."