Facing challenges head-on: interview with 2022 NFSD chair Jonathan Dawley
In today’s pandemic-era labor environment, operator and pedestrian safety is more important—and perhaps more difficult to achieve—than ever, says National Forklift Safety Day 2022 Chair Jonathan Dawley.
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.
The world has changed dramatically in the nine years since the Industrial Truck Association (ITA) launched the annual National Forklift Safety Day program to educate customers, policymakers, and government officials about the safe use of forklifts and the importance of proper operator training. The Covid-19 pandemic has deeply impacted businesses, including those that use forklifts, in myriad ways. One of the biggest changes has been in the labor market, where every industry is challenged not just to hire but also to retain trained workers. The high rate of turnover has directly affected forklift safety. “The unique, transitory environment for employees we’re in requires us to be on our game all the time” when it comes to operator and pedestrian safety, says 2022 National Forklift Safety Day Chair Jonathan Dawley.
Dawley is president and CEO of Summerville, South Carolina-based Kion North America Corp., which provides the Linde Material Handling and Baoli brands of lift trucks. He has spent his career in manufacturing industries like material handling, automotive, and infrastructure and heavy construction equipment. He joined the Kion Group in 2020 from Putzmeister Holding GmbH, where he had been president and CEO of the Americas region. Prior to that, he was responsible for the global aftermarket business at JLG Industries Corp., a subsidiary of Oshkosh Corp. He gained extensive experience in intralogistics as well as in the material handling business in senior management roles at Hyster-Yale Materials Handling Inc. from 2005 to 2014, most recently as president of Hyster Co. distribution.
Described by peers and colleagues as a strategic thinker with vision and deep technical knowledge, Dawley has long experience in manufacturing, developing international markets, financial management, and industrial technology and automation. He is active as a board member in the German American Chamber of Commerce (Southeast), the Charleston (South Carolina) Metro Chamber, and the president’s industry board at College of Charleston.
DC Velocity recently spoke with Dawley about the labor-related conditions that are challenging forklift safety today, his thoughts on training technology, and his priorities for National Forklift Safety Day 2022.
Q: What are your current job responsibilities?
A: As president and CEO of Kion North America, I am responsible for sales and marketing; operations, including production, supply chain, and procurement; engineering and product strategy functions; and administrative functions such as human resources and finance. Ultimately, though, my job is to lead the company to success. I am a growth-stage CEO, which means I am changing the culture of the company to manage and support our growth. One thing about our culture that won’t change, though, is our commitment to caring for and developing our people. I put building a sustainable culture at the center of all of my actions.
Q: How did you get into material handling originally?
A: My first exposure came while I was working and getting my college degree. Through that job, I met the COO of a large forklift dealer. He became a customer and later asked me what I was doing with my life. I explained that I was finishing my degree, and he said, “Come talk to me as soon as you finish.” I did, and he hired me as an aftermarket sales rep at the dealership.
I ended up going on to work for automotive OEMs and suppliers for the following 10 years, but material handling really did get in my blood, as I enjoyed the diversity of applications. Eventually, I came back into this business in 2005, when I was hired by one of the leading lift truck manufacturers in North America. I was there for nearly 10 years, holding numerous senior leadership roles. I left the industry for six years but am now back, with the privilege of leading Kion North America.
Q: Is there anything you especially like or find exceptionally interesting about the industrial truck industry?
A: I enjoy the diversity of applications and the opportunity to problem solve in many different industries. As a young person entering the industry, I was able to experience many different market sectors, from automotive manufacturing to warehousing to food and beverage applications. Learning about different industries, processes, and business models, and solving diverse problems for these customers were attractors early on. Plus, the industrial truck industry is the backbone of logistics. It’s exciting to be in an industry that has a direct impact on every supply chain around the world.
Currently, there is so much going on in the area of technology. Customers worry about finding good employees and about employee turnover, and this demographic change is driving more automation. In the past, automation was seen as a disruptive technology that was a threat to jobs, but today it’s clear that with a very tight labor market for the foreseeable future, we have to apply automation as a support for businesses and the economy. At the same time, customers want to ensure their employees’ safety, and they also want to be more efficient and competitive. So, in addition to automation, we are looking at technologies that can help them in areas like energy efficiency and safety.
The technology opportunities are very interesting, but at the end of the day, success comes back around to people. In this industry, you have to get on the ground with people to understand their needs and build relationships.
Q: You have a lot of experience that is timely and relevant today, such as international business development, Industry 4.0, and automation. How will your background contribute to ITA’s efforts to promote forklift safety?
A: Having a background in product strategy and technology is especially relevant in leading a material handling company right now. Manufacturers and warehouse companies are dealing with not being able to get enough employees or are experiencing high rates of employee turnover. When you have high turnover, that means many new employees, so it’s important to keep up with basic levels of training. At the same time, business opportunities are growing and businesses that use forklifts are expanding, so businesses are working at a very fast pace.
In times like these, we can use technology to our benefit. We in the forklift industry can supply systems that enable another layer of safety management on top of the core safety training. For example, collision-avoidance systems can help with operator awareness of safe practices. But technology-based systems are not replacements for training and education—they are supplemental, or supportive of training.
Q: What are your personal priorities as National Forklift Safety Day chair?
A: First, I want to get the industry aligned, from the manufacturer to the dealer, to maximize awareness at the end-user level of the need for training and the basic tool kits and training the industry provides. I would like the industry to create one harmonized message to send to forklift end-users. Second, I’d like to look at how we can leverage technology to support operator training. While technology is not a replacement for basic training and good culture, technologies such as automation and collision-avoidance systems are a good supplement and can reinforce good safety principles. And third, I want to find a way to get dealer networks more engaged with National Forklift Safety Day. Every manufacturer and its dealers should consider holding open houses to drive safety awareness—for example, by holding operator training classes on site during that time.
Q: Are there specific topics this year’s National Forklift Safety Day program will focus on?
A: As always, we will emphasize that forklift safety is not a one-time issue and that it is as important for pedestrians as it is for operators. We will also be looking at the safety-related challenges warehouses and manufacturers are facing as we start to come out of the Covid-19 pandemic and the economy improves. For example, some businesses have grown dramatically, and in some cases that has meant higher levels of inventory. As a result, there may be material in new places in the DC or the factory where there wasn’t anything before. Perhaps that forces a pedestrian to walk outside of the normal marked path, which puts them in the way of equipment, or an operator has to drive around something that wasn’t there yesterday and pedestrians aren’t expecting a forklift to be there. These changing situations can compromise safety and put employees at risk.
Q: The pandemic has had a huge impact on forklift operations and labor. Has this “new normal” affected how end-users approach forklift safety?
A: It has. We need an additional 3.2 million workers in the United States to cover current job openings. As facilities search for employees in a very constrained labor environment, they may end up hiring people who may not have the same capabilities and experience as the previous employee base. That, together with the high rates of turnover that businesses everywhere are seeing, is making safety training more difficult, creating risk for end-users.
There are also two employee-related dynamics many businesses are seeing. One is that some employees do not feel a long-term commitment to the company that hires them, which means you have to engage them and help them feel connected so they will want to stay with the company. Another is that if someone does have a laissez faire attitude about coming to work, then they likely do not have a sense of urgency about safety. So, you have to aim for daily engagement, and supervisors on the line have to constantly be reinforcing the importance of safety. And if we as business leaders don’t establish a culture of accountability, then the safety system falls apart.
Q: What’s the main message you would like DC Velocity’s readers to take away from National Forklift Safety Day?
A: The main message is that safety is a culture. To make safety a priority in companies, that message has to come from the top, and we have to live it ourselves, day in and day out. We can leverage advanced technology to help limit risks, but we also have to ensure people practice the basics of safe operation every day and that training is maintained.
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]."