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.
Logistics real estate developer Prologis today named a new chief executive, saying the company’s current president, Dan Letter, will succeed CEO and co-founder Hamid Moghadam when he steps down in about a year.
After retiring on January 1, 2026, Moghadam will continue as San Francisco-based Prologis’ executive chairman, providing strategic guidance. According to the company, Moghadam co-founded Prologis’ predecessor, AMB Property Corporation, in 1983. Under his leadership, the company grew from a startup to a global leader, with a successful IPO in 1997 and its merger with ProLogis in 2011.
Letter has been with Prologis since 2004, and before being president served as global head of capital deployment, where he had responsibility for the company’s Investment Committee, deployment pipeline management, and multi-market portfolio acquisitions and dispositions.
Irving F. “Bud” Lyons, lead independent director for Prologis’ Board of Directors, said: “We are deeply grateful for Hamid’s transformative leadership. Hamid’s 40-plus-year tenure—starting as an entrepreneurial co-founder and evolving into the CEO of a major public company—is a rare achievement in today’s corporate world. We are confident that Dan is the right leader to guide Prologis in its next chapter, and this transition underscores the strength and continuity of our leadership team.”
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%."