Once viewed as a commodity, storage rack systems have taken their rightful place in the warehousing world as specialized, engineered systems designed with worker protection and high productivity in mind.
Victoria Kickham, an editor at large for Supply Chain Quarterly, 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 Supply Chain Quarterly's sister publication, DC Velocity.
Storage racks are an essential part of any warehouse, their layout and design a considerable undertaking no matter what a facility’s size or purpose. As systems become more complex to handle growth in e-commerce and a generally faster-paced business environment, they are also taking on a higher profile when it comes to safety and efficiency. A poorly designed rack system can fail on many fronts, including potentially causing worker injury if it can’t properly support the items it’s designed to hold. A well-designed system, by contrast, can protect workers from the danger of falling items or rack collapses and also help streamline the flow of products through the facility.
“[Storage] racking went from being almost a commodity to now being highly engineered,” observes Arlin Keck, corporate R&D engineer for rack manufacturerSteel King, emphasizing worker safety as the main reason for the change. “Everything has evolved over time.”
Today, racking system designers must take into account a range of factors when planning a system, including the geographic location of the project, maximum pallet size and the weight of the items being stored, facility layout and design, and the customer’s preferred style or type of racking. Doing so allows designers to create the best possible system for the operation.
Here’s a look at some key considerations to keep in mind when designing or redesigning your storage rack system with an eye toward safety and efficiency.
DESIGN FOR EFFICIENCY
Designing a storage rack system begins with some important questions, according to Joe Rooney, vice president ofBaker Industrial Supply, a Texas-based supplier of retail and warehouse storage products. The process starts with an assessment of the type of facility you’re running—a retail operation, warehouse, manufacturing facility, or e-commerce distribution center, for instance—as well as the types of products being stored and moved, referred to as “loads.” Loads can include products stored on pallets as well as hand-stacked items and boxes. As an example, a typical eight-foot-long rack shelf usually has two pallets stored on each shelf; the combined weight of those two pallets and the product on those pallets makes up the “load” on that shelf.
This catwalk uses Hannibal Industries' TubeRack, which is designed specifically to withstand the dangers of seismic events, according to the company.
Next, designers must take into account various specifications and guidelines. Dave Olson, national sales manager for racking system manufacturerRidg-U-Rak, says designers must base their design on specifications from the Rack Manufacturers Institute (RMI), an industry group within the material handling trade association MHI that provides guidelines and standards for storage racks. In addition, he says, they must ensure the design meets both local and international building codes.
Rooney adds that workflow is another important consideration.
“We also have to consider how [the customer] wants to move [the items]. For a distribution center, it’s about speed. For manufacturers, speed and throughput are not as important,” he explains. “Design has gone from ‘I’ve got this 48-by-40 pallet and I need to store 600 of them and put them on this wall’ to having more of a process. Today, we say ‘Let’s look at your space and see how you can effectively and efficiently move this material.”
Depending on the operation, that may entail a basic pallet rack design, or it may require racking that is part of an automated storage and retrieval system (AS/RS). Either way, the planning and preparation begin with the same initial questions.
“The key thing for any rack system design is the customer’s knowing its product, the mix and usage of SKUs (stock-keeping units), and how it wants to operate its warehouse,” explains Olson, adding that designers and warehouse operators must also consider the type of material handling equipment used in the facility, the type of loads being handled, and the volume of product moving in and out daily. “The customer knowing his needs is critical to formulating the proper rack system and layout—that’s where you start.”
PUT SAFETY FIRST
Designing for safety means ensuring that your rack system will stand up to internal operational damage from forklifts and other material handling equipment as well as external threats, such as earthquakes or hurricanes. Both types of threats require attention in the early stages of design to ensure both an adequate and a safe rack system.
“If [you go] back far enough in the history of racking, racking was treated like an off-the-shelf commodity with few if any design or safety regulations,” explains Steel King’s Keck. “Today, racking is a highly engineered and regulated product with design and safety requirements listed in all state building codes.”
To meet those requirements, designers must account for all loading conditions, which include the size and weight of items being stored and moved, the complexity of the racking structure being used, and seismic conditions and the location of the racking itself (indoors or out, for instance). More complex racking structures can sometimes include a mix of different structures like pick modules, multilevel platforms, and stairways—all of which can affect the load on the entire system.
In addition to adhering to building codes, rack system designers and installers will often recommend extra safety measures to protect against other types of damage and injury. Special structures can help protect against internal damage from forklifts, for example. These can include a variety of rack column protectors, end-of-aisle protectors, free-standing guard railing, pallet support bars, beam safety locks, safety netting, load plaques (affixed to racks as a reminder of their load capacity), and so on. Wire-guided vehicles can help as well; these are very narrow-aisle (VNA) forklifts that use an electromechanical system to control steering. The system is guided by an energized wire secured in the floor. Such systems help boost forklift driver confidence in narrow aisles at increased heights, helping to reduce the risk of a forklift’s hitting and damaging the racking, according to Rooney.
Reinforcing racks to withstand external threats is trickier and can involve advanced rack designs. Today, designing for seismic conditions is a part of almost every project, explains Olson. Extra steps can include using base isolation systems, which help dissipate the seismic energy exerted on a rack system during an earthquake. Olson points to Ridg-U-Rak’s “Pellegrino” base isolation system as an example. The system includes a base isolation unit that is positioned between the upright frame and the floor. The frame is attached to the base isolator, which is in turn anchored to the floor, allowing the rack structure itself to move relative to the floor. The aim is to add flexibility and allow dissipation of the seismic energy exerted on the rack system during an earthquake.
“Designs that incorporate flexibility [are important],” Olson explains, adding that structures that can provide both flexibility and strength help the entire system to flex and move. Such design features can help keep racks from “shedding” their loads, a term used to describe items falling off of a racking system.
Tubular design structures are the newest innovation to add the flexibility needed to withstand seismic events. Andrew Kirby ofHannibal Industries created a product called TubeRack specifically to withstand the dangers of seismic events; he says it was designed to save lives and was inspired by the continuously changing building codes that make it hard for warehouse operators to meet both safety requirements and profitability goals.
“We needed to change something,” says Kirby, an engineer and 30-year industry veteran. “So we came up with a solution to use a system that is flexible yet capable of supporting [a system’s] design weight when displaced. The best way to protect yourself from an earthquake is to allow the product and the pallet racking to move together. That’s what kills people—falling product.”
“The best way to protect yourself from an earthquake is to allow the product and the pallet racking to move together,” says Andrew Kirby of Hannibal Industries.
TubeRack is made from structural steel tubing and is designed to support heavier loads with less steel on lighter slabs. Its modular design eliminates the diagonal braces that connect the front and rear columns of a traditional system, helping to dissipate the energy exerted on the racking during an earthquake. This creates a less rigid system that allows the entire rack to move and flex in the direction of the seismic waves.
“With TubeRack, we take out those diagonals so we add flexibility. We let [the rack] move in the direction that the load is applied,” says Kirby, using a simple example to illustrate his point: The force of an impact between two people walking toward each other down the street is considerably stronger than the force of an impact between two people walking in the same direction. Removing the rigid diagonal beam essentially creates the latter scenario.
“The difference is in how the energy is dissipated,” Kirby says, adding that TubeRack lowers the potential for product shed during a seismic event or impact by up to 70%.
Kirby says it’s also important to leave enough space between the racking and the building to allow for movement. Other seismic recommendations include storing your tallest and heaviest loads at or near the bottom of the rack and avoiding low-friction pallets, such as those made out of plastic, to keep things from sliding around.
INSPECT FOR DAMAGE
Regardless of the threat, experts point to regular inspection and repair of damage as an essential part of maintaining rack system integrity.
“Problems can be exacerbated substantially with damaged frames or beams not properly engaged and locked,” Olson explains.
Keck adds that forklift operators should report any impacts or damage to racking immediately to allow for inspection and repair. Such policies should be encouraging, not punitive, to avoid incidents going unreported.
“If someone damages a rack, they can’t be reprimanded all the time. You have to have a program that ‘eases’ the reporting of those incidents,” Keck explains. “Workers should be encouraged to report any damaged parts or missing hardware. At a minimum, a complete rack walk-through/inspection should be done once a year.”
Many companies will do more frequent formal inspections—quarterly or even monthly—but the experts emphasize that continuous monitoring by all warehouse or distribution center staff is important. On top of that, Kirby recommends conducting a complete re-evaluation of a system every three years to make sure it continues to be safe and meet a business’s changing demands.
In the end, it all circles back to safety.
“These things are important,” he says. “[You need to] safeguard the product, and by safeguarding the product, you safeguard the people.”
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]."