As the pandemic recedes, Michael Mikitka, executive vice president of the Warehousing Education and Research Council (WERC), is more than ready to get back to the business of education. The group’s recent annual conference was just the start.
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.
Michael Mikitka has worked for or led trade associations for most of his career. He began with the Property Loss Research Bureau (PLRB), a trade association of property and casualty insurance companies. It was there that he learned to organize and manage education programs and develop an industry trade show. That experience served him well when in 2000, he entered the supply chain arena, joining the staff of the Warehousing Education and Research Council, better known in the industry as WERC.
Mikitka first served as senior director of the organization’s flagship annual conference and managed WERC’s network of chapters. In 2009, WERC’s board of directors appointed him CEO. He remained in that role until August 2020, when WERC came under the umbrella of MHI, the nation’s largest material handling, logistics, and supply chain association.
Mikitka’s new role is executive vice president of the MHI Knowledge Center and WERC. He is responsible for member engagement and influence as well as overseeing the ongoing education, research, and professional development services that WERC members have enjoyed since its founding in 1977. He recently spoke with DC Velocity Group Editorial Director David Maloney about the latest happenings at WERC.
Q: Could you describe the role of the Warehousing Education and Research Council within the supply chain management profession?
A: The Warehousing Education and Research Council, WERC, is an association of professionals who manage logistics throughout the supply chain. Our focus is on best practices in warehousing as well as the quantitative and qualitative metrics of warehousing and distribution, and warehousing’s role in the overall supply chain.
Q: You started at WERC in 2000, which is more than 20 years ago. A lot has happened in the industry since then. What are the most significant changes you’ve seen during your time at WERC?
A: When I started at WERC, my first job was to focus on its 2001 conference. I remember meeting with the committee at that time and hearing a lot of talk about these online orders—internet orders and e-commerce orders. I’m not even sure if it was called that back then, but it was all about the rise of e-commerce, what it meant, and how companies were handling it. It was a very big deal at the time along with some issues and mandates that were coming down regarding RFID (radio-frequency identification). So, it was an interesting and exciting time.
Obviously, the rise of e-commerce and the e-commerce–driven advances in technology that have taken place over the last 20 years have been amazing and have made an incredible impact. So, the most significant change has been the influence of e-commerce.
But while a lot has changed, a lot has also stayed the same. The pillars and the core of supply chain—people, process, and technology—are still at the heart of it, no matter how fulfillment takes place.
Q: And that e-commerce explosion has really changed the technologies that are used for fulfillment, such as the new types of automated equipment.
A: It has, and we are starting to see a shift again, as there’s been an even bigger push toward automation with some of the workforce challenges and disruptions we’ve experienced over the last two years. Companies are also relaxing some of their expectations regarding their return on investment [in automated systems], knowing that it might take a little bit longer. But we definitely see more of a push in that direction.
Q: You just touched on some of the lingering effects of the pandemic. What are WERC members’ top challenges right now?
A: I think they are similar to what a lot of industries are facing. Obviously, the squeeze with the workforce and the availability of labor. Then there are still regulations dictating what they can do and how they can do it. And of course there are the transportation challenges, the logjams at the ports, and the general supply chain issues that we hear about in the news every day.
Q: WERC became a part of MHI in August 2020. Could you describe the role that you play within MHI and the opportunities presented by the MHI/WERC merger for WERC members?
A: Sure. I have the benefit of having a foot in both organizations, if you will, with oversight of MHI’s Knowledge Center and my continuing role with WERC. With the acquisition came opportunities to look at the supply chain and logistics more holistically. We try to serve both those who provide products and services to the industry and those who use those products and services, the practitioners.
The acquisition provided an opportunity for us to step back and look at the industry together and come up with a collaborative approach. Both organizations see value in maintaining our identities and maintaining our audiences. MHI is a trade association, so its members are companies, whereas WERC is a professional association and our members are individuals. So, how we focus on and how we deliver our services to those two audiences are different. But ultimately, we each have things that we can offer that provide value for both of our groups. So, the collaboration and acquisition have provided opportunities to make products and services available to a greater audience.
Q: WERC recently hosted its first in-person annual conference after two years of being virtual. You were in Louisville, Kentucky, the first week of May. Can you share some highlights of the event?
A: The conference was peer-developed as it has always been, so professionals from a number of companies helped to plan the program. All of our content is always developed by the members for the members and focuses on the takeaways that people will leave the conference with.
This year, there was a big push on workforce issues around retention and hiring. We focused on the impact of automation, evaluating opportunities, assessing what attendees’ needs are, and the core competencies of warehousing and the processes that take place—whether it’s trade issues, transportation issues, or anything that impacts our members and their ability to do their jobs and provide their products and services to their customers.
Q: As you mentioned earlier, WERC’s membership is made up of practitioners. Because of that, education has always been a very strong focus for the group. Could you talk about some of the educational opportunities that are available to your members throughout the year?
A: Certainly. As we see Covid winding down, our chapters are becoming more active, so we’re looking at bringing back local opportunities for facility tours or speaker events. Our Texas chapter last year brought back its regional conference. It was well attended, and we are looking forward to doing that again. So these days, we can deliver our content in a number of different ways, whether it is face-to-face or whether it is online through our series of webcasts.
Q: WERC and DC Velocity have collaborated for many years on the annual Warehouse Metrics study. What was the focus of this year’s study?
A: This year’s study had two areas of focus. We looked at microdistribution, as our members are dealing with the challenges of serving customers in urban settings. With the rise of e-commerce, microdistribution is of great interest to a number of our members.
The study also looked at a number of workforce issues and the impact they are having on the supply chain as well as distribution.
Also new this year, we are making the study more engaging for our members by developing a tool that will allow them to go online, enter their data, and see how it compares with the [performance numbers] in the report. They will then be able to develop a number of reports that they can use and share with their teams. They can also compare facilities within their networks. The goal is to make the tool more usable, more useful, and more engaging for our members.
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.”