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.
Each year, speakers at the annual National Forklift Safety Day program put on by the Industrial Truck Association (ITA) discuss critical safety-related topics, including the importance of training operators and pedestrians who work around powered industrial trucks (PITs). This year’s event, the ninth, was especially timely in light of the ongoing challenges of hiring, training, and retaining warehouse and manufacturing labor. As several speakers noted, high rates of employee turnover, uncertainty associated with the Covid-19 pandemic, and supply chain bottlenecks have all had an impact on facility safety.
Some highlights from the June 14, 2022, program include:
ITA President Brian Feehan and Chuck Pascarelli, ITA Board of Directors Chair and President, Americas, Hyster-Yale Group, opened with remarks on the industry’s ongoing commitment to forklift safety and ITA members’ leadership in this area. Pascarelli emphasized three important reasons to pay special attention to forklift safety: compliance with laws and regulations; the fact that safe operations make good business sense; and the responsibility of employers to support their employees’ well-being and provide a safe working environment.
Douglas Parker, Assistant Secretary of Labor,Occupational Safety and Health Administration (OSHA), lauded the industrial truck industry for designing equipment and using technology like telematics and automation to enhance workers’ safety. As technology advances, he added, it’s a good time to re-examine safety training requirements and how people work around automation. He also cautioned that Covid-19—“the health and safety issue of our time”—is not over, and that employers must continue to diligently protect essential workers, many of whom work in industries forklift makers serve.
OSHA is paying special attention to preventing heat-related illness, injuries, and deaths—a problem that will likely worsen as climate change continues, Parker said. Heat is a hazard wherever PITs are used, including manufacturing plants and warehouses, not just outdoors, he noted. Under a heat “emphasis program,” OSHA inspectors will conduct proactive inspections for heat-related hazards and will advise employers on issues like rest, fluids, acclimation to heat, and training and monitoring of employees. Approximately 50% of heat fatalities happen in the first 10 days an employee is on the job, he said, adding that today’s high rates of employee turnover suggests the need for extra vigilance by employers.
Finally, Parker addressed the proposed update to OSHA’s 1910.178 PIT safety regulations to reference the latest versions of the B56 national consensus standards and replace the reference to the 1969 version of the standards, a move supported by ITA members. A formal Notice of Proposed Rulemaking (NPR) was issued in February, and the comment period closed in mid May. Parker said that OSHA will consider the 20-plus comments it received as it moves forward with the full rule-making process that is required by law when the agency updates references to national consensus standards that are incorporated into federal regulations.
Jonathan Dawley, National Forklift Safety Day Chair and President and CEO of Kion North America Corp., spoke about how ongoing labor challenges highlight the critical importance of training. Most facilities have new employees coming in who “may not have relevant experience,” he said. Moreover, supply chain issues and the resulting inventory imbalances can overwhelm environments where forklifts are in use. As a result, “variability has become the norm in manufacturing and distribution, and that creates challenges around the standard work” that is a key element of facility safety; simply put, “non-standard practices compromise safety,” he said. Dawley also emphasized that while labor shortages are leading more companies to turn to safety-enhancing technologies like telematics and collision-avoidance systems, it is critical to understand that “technology is not a substitute for building a safety culture.”
Indeed, with so many new employees and so much turnover, executing well on basics like forklift operator and pedestrian awareness training has become more important than ever, Dawley said. He also recommended a concerted focus on communicating safety best practices through such means as signage, town hall meetings, management regularly getting out in front of employees, one-on-one coaching, and tracking safety as a key performance indicator (KPI).
Lorne Weeter, vice president of sales, mobile automation, for Dematic, explained the differences among manually operated powered industrial trucks, automated guided forklifts (AGFs), automated guided vehicles (AGVs), and autonomous mobile robots (AMRs). He then ran through the required elements for converting a lift truck to an AGF, such as a computer “brain” that processes information, laser scanners for collision avoidance, an on-board navigation system, emergency controls, and more. Weeter also noted that AMRs are subject to new design and manufacturing standards: RIA15.08, which is being developed for industrial mobile robots by the American National Standards Institute (ANSI) and the Association for Advancing Automation (formerly known as the Robotics Industry Association, or RIA), rather than the B56.5 standard that applies to AGVs and other mobile burden carriers.
Weeter finished up with recommendations for safety measures to consider when adding automation to an operation. Examples include a comprehensive site safety assessment, new safety protocols that specifically take automated vehicles into account (“An AGV can travel 400 feet per minute, so everyone needs to understand how to safely interact with them”), and extra attention to “pinch points”—locations where pedestrians and automated and manually operated vehicles may end up in the same narrow space.
Brian Duffy, Director of Corporate Environmental and Manufacturing Safety, Crown Equipment Corporation urged facility and fleet managers to review productivity standards and priorities for operators and pedestrians to ensure that they are not in conflict with safety. He also outlined the forklift and pedestrian safety program his company applies in its own manufacturing plants and warehouses. Duffy credits the program, which involves a 20-week process of training, communication, observation, and feedback, with contributing to a steady decline in safety incidents in Crown’s facilities. Some of the program elements he highlighted include:
Taking advantage of personal connections to provide effective peer-to-peer observation and feedback
Adopting “demonstrated performance,” where operators who have received feedback show that they know what to do
Providing positive feedback; rather than focusing only on what’s wrong and how to fix it, praise and reinforce correct procedures
Having corporate and operational leaders and environmental health and safety (EH&S) officers regularly walk through facilities so they can provide feedback on what they’ve personally observed
Making sure everyone understands the potential consequences for individuals and families—not just for the operation—if someone gets hurt in an accident
Industrial Truck Association 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.
A video of ITA’s National Forklift Safety Day presentation will be available at no charge online at www.indtrk.org and at www.dcvelocity.com. And click here to read all of DC Velocity’s special National Forklift Safety Day coverage and forklift safety articles.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.