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.
That changing landscape is forcing companies to adapt or replace their traditional approaches to product design and production. Specifically, many are changing the way they run factories by optimizing supply chains, increasing sustainability, and integrating after-sales services into their business models.
“North American manufacturers have embraced the factory of the future. Working with service providers, many companies are using AI and the cloud to make production systems more efficient and resilient,” Bob Krohn, partner at ISG, said in the “2024 ISG Provider Lens Manufacturing Industry Services and Solutions report for North America.”
To get there, companies in the region are aggressively investing in digital technologies, especially AI and ML, for product design and production, ISG says. Under pressure to bring new products to market faster, manufacturers are using AI-enabled tools for more efficient design and rapid prototyping. And generative AI platforms are already in use at some companies, streamlining product design and engineering.
At the same time, North American manufacturers are seeking to increase both revenue and customer satisfaction by introducing services alongside or instead of traditional products, the report says. That includes implementing business models that may include offering subscription, pay-per-use, and asset-as-a-service options. And they hope to extend product life cycles through an increasing focus on after-sales servicing, repairs. and condition monitoring.
Additional benefits of manufacturers’ increased focus on tech include better handling of cybersecurity threats and data privacy regulations. It also helps build improved resilience to cope with supply chain disruptions by adopting cloud-based supply chain management, advanced analytics, real-time IoT tracking, and AI-enabled optimization.
“The changes of the past several years have spurred manufacturers into action,” Jan Erik Aase, partner and global leader, ISG Provider Lens Research, said in a release. “Digital transformation and a culture of continuous improvement can position them for long-term success.”
Women are significantly underrepresented in the global transport sector workforce, comprising only 12% of transportation and storage workers worldwide as they face hurdles such as unfavorable workplace policies and significant gender gaps in operational, technical and leadership roles, a study from the World Bank Group shows.
This underrepresentation limits diverse perspectives in service design and decision-making, negatively affects businesses and undermines economic growth, according to the report, “Addressing Barriers to Women’s Participation in Transport.” The paper—which covers global trends and provides in-depth analysis of the women’s role in the transport sector in Europe and Central Asia (ECA) and Middle East and North Africa (MENA)—was prepared jointly by the World Bank Group, the Asian Development Bank (ADB), the German Agency for International Cooperation (GIZ), the European Investment Bank (EIB), and the International Transport Forum (ITF).
The slim proportion of women in the sector comes at a cost, since increasing female participation and leadership can drive innovation, enhance team performance, and improve service delivery for diverse users, while boosting GDP and addressing critical labor shortages, researchers said.
To drive solutions, the researchers today unveiled the Women in Transport (WiT) Network, which is designed to bring together transport stakeholders dedicated to empowering women across all facets and levels of the transport sector, and to serve as a forum for networking, recruitment, information exchange, training, and mentorship opportunities for women.
Initially, the WiT network will cover only the Europe and Central Asia and the Middle East and North Africa regions, but it is expected to gradually expand into a global initiative.
“When transport services are inclusive, economies thrive. Yet, as this joint report and our work at the EIB reveal, few transport companies fully leverage policies to better attract, retain and promote women,” Laura Piovesan, the European Investment Bank (EIB)’s Director General of the Projects Directorate, said in a release. “The Women in Transport Network enables us to unite efforts and scale impactful solutions - benefiting women, employers, communities and the climate.”
Oh, you work in logistics, too? Then you’ve probably met my friends Truedi, Lumi, and Roger.
No, you haven’t swapped business cards with those guys or eaten appetizers together at a trade-show social hour. But the chances are good that you’ve had conversations with them. That’s because they’re the online chatbots “employed” by three companies operating in the supply chain arena—TrueCommerce,Blue Yonder, and Truckstop. And there’s more where they came from. A number of other logistics-focused companies—like ChargePoint,Packsize,FedEx, and Inspectorio—have also jumped in the game.
While chatbots are actually highly technical applications, most of us know them as the small text boxes that pop up whenever you visit a company’s home page, eagerly asking questions like:
“I’m Truedi, the virtual assistant for TrueCommerce. Can I help you find what you need?”
“Hey! Want to connect with a rep from our team now?”
“Hi there. Can I ask you a quick question?”
Chatbots have proved particularly popular among retailers—an October survey by artificial intelligence (AI) specialist NLX found that a full 92% of U.S. merchants planned to have generative AI (GenAI) chatbots in place for the holiday shopping season. The companies said they planned to use those bots for both consumer-facing applications—like conversation-based product recommendations and customer service automation—and for employee-facing applications like automating business processes in buying and merchandising.
But how smart are these chatbots really? It varies. At the high end of the scale, there’s “Rufus,” Amazon’s GenAI-powered shopping assistant. Amazon says millions of consumers have used Rufus over the past year, asking it questions either by typing or speaking. The tool then searches Amazon’s product listings, customer reviews, and community Q&A forums to come up with answers. The bot can also compare different products, make product recommendations based on the weather where a consumer lives, and provide info on the latest fashion trends, according to the retailer.
Another top-shelf chatbot is “Manhattan Active Maven,” a GenAI-powered tool from supply chain software developer Manhattan Associates that was recently adopted by the Army and Air Force Exchange Service. The Exchange Service, which is the 54th-largest retailer in the U.S., is using Maven to answer inquiries from customers—largely U.S. soldiers, airmen, and their families—including requests for information related to order status, order changes, shipping, and returns.
However, not all chatbots are that sophisticated, and not all are equipped with AI, according to IBM. The earliest generation—known as “FAQ chatbots”—are only clever enough to recognize certain keywords in a list of known questions and then respond with preprogrammed answers. In contrast, modern chatbots increasingly use conversational AI techniques such as natural language processing to “understand” users’ questions, IBM said. It added that the next generation of chatbots with GenAI capabilities will be able to grasp and respond to increasingly complex queries and even adapt to a user’s style of conversation.
Given their wide range of capabilities, it’s not always easy to know just how “smart” the chatbot you’re talking to is. But come to think of it, maybe that’s also true of the live workers we come in contact with each day. Depending on who picks up the phone, you might find yourself speaking with an intern who’s still learning the ropes or a seasoned professional who can handle most any challenge. Either way, the best way to interact with our new chatbot colleagues is probably to take the same approach you would with their human counterparts: Start out simple, and be respectful; you never know what you’ll learn.
With the hourglass dwindling before steep tariffs threatened by the new Trump Administration will impose new taxes on U.S. companies importing goods from abroad, organizations need to deploy strategies to handle those spiraling costs.
American companies with far-flung supply chains have been hanging for weeks in a “wait-and-see” situation to learn if they will have to pay increased fees to U.S. Customs and Border Enforcement agents for every container they import from certain nations. After paying those levies, companies face the stark choice of either cutting their own profit margins or passing the increased cost on to U.S. consumers in the form of higher prices.
The impact could be particularly harsh for American manufacturers, according to Kerrie Jordan, Group Vice President, Product Management at supply chain software vendor Epicor. “If higher tariffs go into effect, imported goods will cost more,” Jordan said in a statement. “Companies must assess the impact of higher prices and create resilient strategies to absorb, offset, or reduce the impact of higher costs. For companies that import foreign goods, they will have to find alternatives or pay the tariffs and somehow offset the cost to the business. This can take the form of building up inventory before tariffs go into effect or finding an equivalent domestic alternative if they don’t want to pay the tariff.”
Tariffs could be particularly painful for U.S. manufacturers that import raw materials—such as steel, aluminum, or rare earth minerals—since the impact would have a domino effect throughout their operations, according to a statement from Matt Lekstutis, Director at consulting firm Efficio. “Based on the industry, there could be a large detrimental impact on a company's operations. If there is an increase in raw materials or a delay in those shipments, as being the first step in materials / supply chain process, there is the possibility of a ripple down effect into the rest of the supply chain operations,” Lekstutis said.
New tariffs could also hurt consumer packaged goods (CPG) retailers, which are already being hit by the mere threat of tariffs in the form of inventory fluctuations seen as companies have rushed many imports into the country before the new administration began, according to a report from Iowa-based third party logistics provider (3PL) JT Logistics. That jump in imported goods has quickly led to escalating demands for expanded warehousing, since CPG companies need a place to store all that material, Jamie Cord, president and CEO of JT Logistics, said in a release
Immediate strategies to cope with that disruption include adopting strategies that prioritize agility, including capacity planning and risk diversification by leveraging multiple fulfillment partners, and strategic inventory positioning across regional warehouses to bypass bottlenecks caused by trade restrictions, JT Logistics said. And long-term resilience recommendations include scenario-based planning, expanded supplier networks, inventory buffering, multimodal transportation solutions, and investment in automation and AI for insights and smarter operations, the firm said.
“Navigating the complexities of tariff-driven disruptions requires forward-thinking strategies,” Cord said. “By leveraging predictive modeling, diversifying warehouse networks, and strategically positioning inventory, JT Logistics is empowering CPG brands to remain adaptive, minimize risks, and remain competitive in the current dynamic market."
With so many variables at play, no company can predict the final impact of the potential Trump tariffs, so American companies should start planning for all potential outcomes at once, according to a statement from Nari Viswanathan, senior director of supply chain strategy at Coupa Software. Faced with layers of disruption—with the possible tariffs coming on top of pre-existing geopolitical conflicts and security risks—logistics hubs and businesses must prepare for any what-if scenario. In fact, the strongest companies will have scenarios planned as far out as the next three to five years, Viswanathan said.
Grocery shoppers at select IGA, Price Less, and Food Giant stores will soon be able to use an upgraded in-store digital commerce experience, since store chain operator Houchens Food Group said it would deploy technology from eGrowcery, provider of a retail food industry white-label digital commerce platform.
Kentucky-based Houchens Food Group, which owns and operates more than 400 grocery, convenience, hardware/DIY, and foodservice locations in 15 states, said the move would empower retailers to rethink how and when to engage their shoppers best.
“At HFG we are focused on technology vendors that allow for highly targeted and personalized customer experiences, data-driven decision making, and e-commerce capabilities that do not interrupt day to day customer service at store level. We are thrilled to partner with eGrowcery to assist us in targeting the right audience with the right message at the right time,” Craig Knies, Chief Marketing Officer of Houchens Food Group, said in a release.
Michigan-based eGrowcery, which operates both in the United States and abroad, says it gives retail groups like Houchens Food Group the ability to provide a white-label e-commerce platform to the retailers it supplies, and integrate the program into the company’s overall technology offering. “Houchens Food Group is a great example of an organization that is working hard to simultaneously enhance its technology offering, engage shoppers through more channels and alleviate some of the administrative burden for its staff,” Patrick Hughes, CEO of eGrowcery, said.