In our continuing series of discussions with top supply-chain company executives, Gregg Schiltz discusses new bar-code technologies and how well-designed labeling programs can drive efficiencies.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Gregg Schiltz is chief operations officer at ID Label, a manufacturer of custom, variable-information bar-code labels, asset tags, and facility signage. He is responsible for day-to-day operations of the company, including manufacturing, sales, marketing, IT, and finance. Schiltz joined ID Label in 2008 as the company’s director of installation services, a division he formed and managed for seven years. He was promoted to general manager in 2015 and COO in 2017.
GREGG SCHILTZ
Q: Where do you see the material handling market heading in 2022?
A: We expect to see the current trends continue: a shortage of available warehouse space, bottlenecks in the supply chain, and increased demand from consumers. These market trends were there pre-Covid, but they’ve been amplified. Consumers are buying more items online, and no one expects that to pull back anytime soon.
For our industry, that means continued demand for space, material handling equipment, software, and bar coding. It demonstrates how integral our industry is to our economy. E-commerce doesn’t work without local storage and last-mile distribution.
Q: Earlier in your career, you worked in operations. How has that experience benefited you now that you work for a supplier?
A: I think it’s been a vital foundation for me. With my prior experience, I know the challenges our customers face and how we can help address them as a custom manufacturer. We have several employees who’ve had experience in warehouse and DC operations. We try to look for that when we recruit and hire. It’s part of how ID Label approaches the market. We train our team to have an empathetic attitude. It helps them listen to customers to understand their needs; then we can design a solution that works for their specific environments.
Q: In what ways can proper labeling create efficiencies within facilities?
A:Bar coding is a key part of a smart warehouse operation. The labels and signs pair with mobile scanning technology, warehouse management software, and a well-planned layout and numbering scheme. Each part is reliant on the others to maximize operational efficiency. At the end of the day, the role of bar coding is to allow data capture within inventory management software. That software needs our labeling products and vice versa. The net result is better inventory management, traceability of parts and finished goods, faster picking and fulfillment, speed, velocity, improved worker movement, and higher productivity—all the above.
It’s a little like the postal system. Every day, they deliver millions of pieces of mail because there is a distribution system in place with individual locations (addresses) so mail can be delivered from point A to B in the most efficient manner.
Q: How are new IT technologies impacting your labeling products and the tracking of inventory in general?
A: New technologies go hand in hand with advances in labeling products. Today’s mobile imagers, for instance, are more sophisticated, which means they can scan from longer ranges at increased scan read rates. That allows manufacturers like ID Label to develop products that take advantage of these capabilities.
Our overhead signs feature retroreflective graphics. These materials enable optimal scan accuracy from long distances—typically 50 feet or more. This is due to the intensity of the light reflecting off the bar code as it’s returned to the mobile scanning device. We also use this material in newer facilities that feature high-bay racking intended to accommodate more units and SKUs. Retro rack-bay labeling on the higher levels accommodates accurate scanning from the ground.
Newer imaging technology can also read two-dimensional bar codes. Unlike typical linear bar codes, 2D bar codes can store thousands of characters of information. That’s because they encode data both vertically and horizontally. They can contain information like product name, serial number, lot number, date of arrival, date to be shipped, and more. A single scan captures all the pertinent information, which is then easily accessible in the facility’s inventory management software.
On the label manufacturing side, newer technology advancements allow us to install in-line verification systems on our presses, so we’re able to monitor bar-code scan quality and read rates in real time as labels are produced. This helps us produce the highest-quality product, which means happy customers.
Q: What is the most popular facility sign that you produce, and how is it being used?
A: The most common sign is a 16- by 11-inch bent PVC sign. These are typically installed above bulk storage areas that contain large, bulky items or pallets of fast-moving products. The signs commonly feature a retroreflective graphic—a bar code and human-readable letters and numbers. Workers in lift trucks can easily drop or pick their load and scan the overhead sign to log it into the WMS without leaving the forklift. That’s just another way bar coding drives efficiency and speed.
Q: What is the one piece of advice you would give to facility managers about their labeling programs?
A: Based on my experience, labeling is typically one of the last items that warehouse managers think of. This can leave them scrambling to find product if there hasn’t been enough time built into their planning. The last thing you want to see is a multimillion-dollar facility miss its go-live date due to lack of location labels.
My advice is to consult with your labeling partner at the start of any project. With today’s supply chain challenges, that’s more important than ever. Hand in hand with that is mapping your facility for efficiency. Signs and labels tell the story of how to navigate a warehouse, and they communicate information to your staff. Most warehouse location IDs consist of four to six fields that reflect the layout and organization of a facility. This nomenclature is a shorthand language to help workers quickly know where products are to be stored or picked. And that logic is also built into the warehouse’s inventory management software.
Beyond that, be sure to use quality products that perform in your environment, whether that’s ambient or cooler/freezer settings. If the location labels are easily damaged, smudged, or peel and fall, the result is lost efficiency and potential errors from manual data entry.
Q: What is the most significant change in labeling you have seen during your time in the industry?
A: We’ve seen materials and adhesives progress dramatically over the past 10 years or so. The industry has moved from using general all-purpose adhesives and paper face sheets for everything. The focus now is on designing custom solutions for specific applications and environments featuring more durable poly materials and advanced adhesives. Bar-code labeling today needs to perform in extreme cold and heat, in outdoor settings with extended exposure to ultraviolet rays, in challenging manufacturing environments—you name it.
For instance, with the growing demand for cold storage facilities, labeling has had to adapt. We developed Arctic Xtreme cold storage labels to meet this demand. They perform extremely well in cold, wet, and subzero conditions—down to -65F. And they can be installed in temperatures as low as -20F.
Repositionable labels are another advancement. Our Clean Release labels adhere tightly to warehouse racking and shelving but are easily removable and reusable without any adhesive residue left behind. This supports our customers’ need for greater flexibility in slotting and reconfiguring their locations to meet seasonal demands or needs arising from facility expansion.
As our customers’ needs change, we’ll be there with innovative bar-coding solutions. That’s the advantage of being a custom manufacturer. There’s no “one size fits all” in our world.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”