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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
DAT Freight & Analytics has acquired Trucker Tools, calling the deal a strategic move designed to combine Trucker Tools' approach to load tracking and carrier sourcing with DAT’s experience providing freight solutions.
Beaverton, Oregon-based DAT operates what it calls the largest truckload freight marketplace and truckload freight data analytics service in North America. Terms of the deal were not disclosed, but DAT is a business unit of the publicly traded, Fortune 1000-company Roper Technologies.
Following the deal, DAT said that brokers will continue to get load visibility and capacity tools for every load they manage, but now with greater resources for an enhanced suite of broker tools. And in turn, carriers will get the same lifestyle features as before—like weigh scales and fuel optimizers—but will also gain access to one of the largest networks of loads, making it easier for carriers to find the loads they want.
Trucker Tools CEO Kary Jablonski praised the deal, saying the firms are aligned in their goals to simplify and enhance the lives of brokers and carriers. “Through our strategic partnership with DAT, we are amplifying this mission on a greater scale, delivering enhanced solutions and transformative insights to our customers. This collaboration unlocks opportunities for speed, efficiency, and innovation for the freight industry. We are thrilled to align with DAT to advance their vision of eliminating uncertainty in the freight industry,” Jablonski said.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.