In our continuing series of discussions with top supply-chain company executives, Mike Pilgrim discusses problems equipment manufacturers have securing production materials, the effects of urbanization on dock designs, and new dock technologies.
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.
Mike Pilgrim has been in the material handling industry for more than 40 years. Since 2001, he has served as president of Systems LLC, a manufacturer of loading dock equipment under the Poweramp, McGuire, and DLM brands. Pilgrim started out in the loading dock business as a sales coordinator. He quickly moved up the corporate ranks to become a VP of sales before joining Systems. He is also a former chairman of MHI’s Loading Dock Equipment Manufacturers (LODEM) group.
Q: How would you describe the current state of the industry?
A: The good news is industry shipments for dock levelers and truck-restraining devices are at the highest levels in the past 25 years. However, the current challenges over the past 15 months seem endless. The Covid era has raised havoc with every aspect of manufacturing and materials management. As an industry, we have seen leadtimes go from the standard four to six weeks to 20 to 26 weeks. This is due to a combination of components like microchips going from eight weeks to 52, cylinders from 12 weeks to 36, powerpacks from 12 weeks to nine months, tubing from eight weeks to 10 months, and so on.
Dock levelers use specialty steel, which is high-strength treadplate. Both leadtimes and supply have been adversely affected. Seals and shelters have been negatively impacted by foam and wood material shortages and inflationary cost. Offshore producers of curtain materials, electronics, and steel products face extended leadtimes and extremely high transportation costs in addition to logistical difficulties at the ports. Steel indexes for hot- and cold-rolled products have risen fourfold from late 2020 to late 2021. Labor here at home has been negatively impacted as we compete for an ever-shrinking workforce and by employees’ increasing need for flexibility during the pandemic. Although we are experiencing record demand and uncertainty of raw materials, our company has maintained a 96% on-time–delivery rate.
Q: Docks are among the most dangerous places in a facility, with a lot of lift truck traffic and vehicles moving in and out of trailers. How can technology make this environment safer?
A: A clear trend in the industry is an ever-increasing percentage of truck restraints, pushbutton levelers, and integrated control panels. They provide a clear trend toward a safer and more efficient dock operation. With a greater influence of logistical providers such as Uber Freight and companies levying demurrage charges for idle time their trucks sit at the dock, companies are routinely being evaluated on how safe and efficient the operation is. Added into this mix is a higher turnover rate and consequent influx of new employees. In response, companies are trending toward safe and easy-to-use pushbutton dock levelers and truck restraints with controls that include the operation of the dock doors and light accessories. Many companies are adding accent lights at the dock and door, which are coordinated with the “safe” status of the dock controller, producing [safer] conditions for the dock worker and those in the immediate area.
Q: What is the most significant change in dock products you’ve seen during your time in the industry?
A: I have been active in the loading dock industry for nearly 40 years. I entered the industry when truck restraints and pushbutton levelers were in their infancy. Clearly, ergonomics and safety has been a driving force, and so our industry has evolved, and these products are now the standard. Companies recognize the loading dock as the lifeblood of the distribution center, and the equipment installed should last 10 to 15, even 20, years. It is critical that companies look not only at the operation they have today, but also consider the growth and changing needs within their workforce for the future.
An example of this is evolving right now in our industry. In the past, the dock area was void of data that can help a facility monitor safety, energy efficiency, and productivity. Today, our controllers can incorporate IoT (internet of things) technology that allows management to wirelessly compile data such as dock availability, time to load, inactivity, and use of safety devices to maximize their efficiency. This is critical today, particularly in cases where food safety is important.
We recently completed a project where the sustainability people at corporate were able to monitor a remote distribution center where the doors were open with periods of extended inactivity. In just three months, this customer was able to reduce the time the doors remained open by half. That is a huge potential savings and just one of the ways the data produced at the dock can help management personnel become more efficient. As the company’s needs expand to include gate access, yard management, and driver information, the foundation of these new dock controllers expands to accommodate this larger ecosystem.
Q: More e-commerce and other fulfillment facilities are moving into urban areas. How will that affect dock designs?
A: Last-mile and urban satellite facilities have created new approaches to dock design. Most of these facilities will still require receiving of conventional truck-trailers for loading and unloading. Generally, these facilities will also accommodate straight trucks for both conventional loading and liftgate deliveries. For these applications, the dock, restraint, and seal interface will be different, and consulting with your dock professional is critical. In addition, sprinter vans are becoming extremely popular for deliveries, and service to these vehicles gets quite challenging. Many companies require modified access to get these vehicles into the building or the designated area where loading takes place.
Q: How has the growth of automation affected dock operations?
A: Automated truck loading systems exist in our industry. Many require modification to the trailer and warehouse floor along with a greater staging area. A technology that’s currently trending is automated loading with robotics or automated guided vehicles (AGVs). We have worked with several clients to interlock and monitor the status of these docks while sophisticated AGVs load or unload packages. Along the same line and a steppingstone to the future is advancing the technology to accommodate credentialing of equipment operators and the eventual arrival of autonomous vehicles.
Q: Your company is part of the Chamberlain Group, which specializes in “smart access solutions.” Can you explain what that means and how Systems fits into the group?
A: Systems joined the Chamberlain Group in 2017. At the time, we had our own iDock Connect solution for online dock analytics, which had some striking similarities to Chamberlain’s myQ facility software. The myQ product is very popular with residential users, having literally millions of consumers exposed to it on a daily basis. These same users are employed in warehouses and distribution centers, and therefore, having a platform that extends from residential use to industrial use makes perfect sense, and today myQ is a part of our smart control platform. Chamberlain Group is the leader in access management, so whether it’s your home garage, telematics in your car, gated home development, apartment access, or access to your industrial facility, the foundation of myQ is established and its ability to grow as your needs develop is assured. This is a huge competitive advantage for Systems.
Q: Are there any particular projects or products you are working on that you wish to share?
A: With a growing demand for online dock analytics, we wanted to expand this offering to all existing loading docks with the introduction of iDock Link. Link utilizes IoT technology to connect a loading dock online to myQ, regardless of what dock equipment is already installed. Sensors can track and report on activity such as the time a truck is present, use of the leveler or restraint, how long a door is open, forklift activity, and more. A facility can add these components with Link to its loading docks and still obtain the benefits of myQ Dock Management without having to replace all of its existing equipment.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.