State-of-the-art tech tools help keep the beverages flowing
Beverage distributor Odom Corp. needed better visibility and control over its four-state fulfillment operation. It found the answer in a complete intralogistics solution that includes everything from lift trucks and racking to an integrated software suite.
For nearly a century, Odom Corp. has distributed beverages across the Pacific Northwest, serving customers ranging from stadium venues and grocery stores to restaurants and mom-and-pop diners. Founded in Alaska in 1932, the company has since expanded into Washington, Oregon, Idaho, and Hawaii. Today, the Bellevue, Washington-based company delivers more than 30 million cases of beer, wine, cider, and soda per year.
It accomplishes all that with 1,650 employees working in four distribution centers that occupy more than 700,000 square feet of space. But as the company added new suppliers, locations, and stock-keeping units (SKUs) over the years, it found it increasingly difficult to standardize operations and monitor end-to-end performance across the enterprise.
After evaluating the operation, company leaders drew up a “wish list” of what they wanted in a solution: They needed a way to provide a standardized operator experience across the company as well as gain better visibility into picking, labor, and costs. And because labor challenges are prevalent in the industry, they also needed a uniform way to train and retrain operators across multiple pieces of equipment throughout the four-state operation. And finally, they needed a technology solution to tie it all together—one that would allow them to track activity and communicate across the entire enterprise to ensure customers receive the correct shipment on the promised date.
STANDARD PROCEDURES
For help finding a solution, Odom turned to lift truck manufacturer and logistics technology vendor The Raymond Corp. in 2014. Initially, Odom was interested mainly in Raymond’s iWarehouse Intelligent Warehouse Solutions suite, which includes a fleet and asset management system and a labor management system (LMS). But as the years passed, it became more firmly entrenched in the Raymond ecosystem. By 2021, Raymond was providing Odom with complete intralogistics solutions composed of telematics and other software systems, operator-assist technologies, more than 100 lift truck models, racking, energy solutions, maintenance agreements, tracking, and more.
A key advantage of this arrangement is that all of those tools operate as a single, integrated set of solutions that provides a comprehensive view of the company’s entire enterprise, Odom says.
“Instead of having 10 to 15 different brands of equipment in the warehouse, we had one holistic experience, all connected with one integrated technology solution. That really gave us a lot of advantages,” Mike McCartney, director of operations, the Odom Corp.–Alaska, said in a prepared statement.
For instance, with one brand of product, operators know what to expect when they get on a piece of equipment. The standardization of equipment across Odom’s facilities also means that an employee from one site can go help out at another without requiring any additional training, which reduces labor costs.
Similarly, the integrated technology bundle has allowed Odom to gather information on its fleet, assets, and workforce throughout the enterprise—information it can then use to enhance efficiency and reliability. For instance, the iWarehouse suite’s LMS provides Odom with clear visibility into where and how labor dollars are being spent, allowing the distributor to quickly and easily analyze costs and identify inefficiencies—such as missing time—at every level of the operation. In fact, since initial implementation, Odom has seen an 86% drop in missing or unaccounted-for time—down to 36%.
A WELCOME ASSIST
At the same time, the operation’s accuracy has improved, thanks to an operator-assist system that has helped Odom address one of its biggest weaknesses: operators putting cases on the wrong pallet. The technology in this case is the Raymond Pick2Pallet product, a put-to-light technology within the truck forks that’s designed to reduce picking errors. Odom’s system, which was custom engineered for use with beverage pallets, uses a combination of colored LED lights and audible instructions to provide directions and reinforce correct product placement.
The Raymond Pick2Pallet system not only allowed Odom to train and develop its pickers quickly, but also allows supervisors to take swift corrective action if they see problems developing.
“When we see the employees’ errors increasing, we will put them on the “Pick2Pallet LED Light System” jacks, and within a single day, their errors are reduced to an acceptable level,” Odom’s Vaughn Sommerseth, warehouse manager, NW Beverages, said in the statement.
Together, the equipment and suite of logistics technologies are helping Odom reduce errors, cut costs, and boost productivity, supporting a consistent experience across all of its locations as the company continues to grow.
Motion Industries Inc., a Birmingham, Alabama, distributor of maintenance, repair and operation (MRO) replacement parts and industrial technology solutions, has agreed to acquire International Conveyor and Rubber (ICR) for its seventh acquisition of the year, the firms said today.
ICR is a Blairsville, Pennsylvania-based company with 150 employees that offers sales, installation, repair, and maintenance of conveyor belts, as well as engineering and design services for custom solutions.
From its seven locations, ICR serves customers in the sectors of mining and aggregates, power generation, oil and gas, construction, steel, building materials manufacturing, package handling and distribution, wood/pulp/paper, cement and asphalt, recycling and marine terminals. In a statement, Kory Krinock, one of ICR’s owner-operators, said the deal would enhance the company’s services and customer value proposition while also contributing to Motion’s growth.
“ICR is highly complementary to Motion, adding seven strategic locations that expand our reach,” James Howe, president of Motion Industries, said in a release. “ICR introduces new customers and end markets, allowing us to broaden our offerings. We are thrilled to welcome the highly talented ICR employees to the Motion team, including Kory and the other owner-operators, who will continue to play an integral role in the business.”
Terms of the agreement were not disclosed. But the deal marks the latest expansion by Motion Industries, which has been on an acquisition roll during 2024, buying up: hydraulic provider Stoney Creek Hydraulics, industrial products distributor LSI Supply Inc., electrical and automation firm Allied Circuits, automotive supplier Motor Parts & Equipment Corporation (MPEC), and both Perfetto Manufacturing and SER Hydraulics.
The move delivers on its August announcement of a fleet renewal plan that will allow the company to proceed on its path to decarbonization, according to a statement from Anda Cristescu, Head of Chartering & Newbuilding at Maersk.
The first vessels will be delivered in 2028, and the last delivery will take place in 2030, enabling a total capacity to haul 300,000 twenty foot equivalent units (TEU) using lower emissions fuel. The new vessels will be built in sizes from 9,000 to 17,000 TEU each, allowing them to fill various roles and functions within the company’s future network.
In the meantime, the company will also proceed with its plan to charter a range of methanol and liquified gas dual-fuel vessels totaling 500,000 TEU capacity, replacing existing capacity. Maersk has now finalized these charter contracts across several tonnage providers, the company said.
The shipyards now contracted to build the vessels are: Yangzijiang Shipbuilding and New Times Shipbuilding—both in China—and Hanwha Ocean in South Korea.
Asia Pacific origin markets are continuing to contribute an outsize share of worldwide air cargo growth this year, generating more than half (56%) of the global +12% year-on-year (YoY) increase in tonnages in the first 10 months of 2024, according to an analysis by WorldACD Market Data.
The region’s strong contribution this year means Asia Pacific’s share of worldwide outbound tonnages overall has risen two percentage points to 41% from 39% last year, well ahead of Europe on 24%, Central & South America on 14%, Middle East & South Asia (MESA) with 9% of global volumes, North America’s 8%, and Africa’s 4%.
Not only does the Asia Pacific region have the largest market share, but it also has the fastest growth, Netherlands-based WorldACD said. After origin Asia Pacific with its 56% share of global tonnage growth this year, Europe came in as the second origin region accounting for a much lower 17% of global tonnage growth. That was followed closely by the MESA region, which contributed 14% of outbound tonnage growth this year despite its small size, bolstered by traffic shifting to air this year due to continuing disruptions to the region’s ocean freight markets caused by violence in the vital Red Sea corridor to the Suez Canal.
The types of freight that are driving Asia Pacific dominance in air freight exports begin with “general cargo” contributing almost two thirds (64%) of this year’s growth, boosted by large volumes of e-commerce traffic flying consolidated as general cargo. After that, “special cargo” generated 36%, with 80% of that portion consisting of the vulnerables/high-tech product category.
Among the top 5 individual airport or city origin growth markets, the world’s busiest air cargo gateway Hong Kong also remained the biggest single generator of YoY outbound growth in October, as it has for much of this year. Hong Kong’s +15% YoY tonnage increase generated around twice the growth in absolute chargeable weight of second-placed Miami, even though the latter had recorded +31% YoY growth compared with its tonnages in October last year. Dubai was the third-biggest outbound growth market, thanks to its +45% YoY increase in October, closely followed by Shanghai and Tokyo.
And on the inverse side of the that trendline, the top 5 YoY decreases in inbound tonnages were recorded in Teheran, Beirut, Beijing, Dhaka, and Zaragoza. Notably, Teheran’s and Beirut’s inbound tonnages almost completely wiped out as most commercial flights to and from Iran and Lebanon were suspended last month amid Middle East violence; tonnages at both airports were down by -96%, YoY, in October. Other location that saw steep declines included Dhaka, Beirut and Zaragoza – affected by political unrest, conflict, and flooding, respectively –followed by China’s Qingdao and Mexico’s Guadalajara.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Cowan is a dedicated contract carrier that also provides brokerage, drayage, and warehousing services. The company operates approximately 1,800 trucks and 7,500 trailers across more than 40 locations throughout the Eastern and Mid-Atlantic regions, serving the retail and consumer goods, food and beverage products, industrials, and building materials sectors.
After the deal, Schneider will operate over 8,400 tractors in its dedicated arm – approximately 70% of its total Truckload fleet – cementing its place as one of the largest dedicated providers in the transportation industry, Green Bay, Wisconsin-based Schneider said.
The latest move follows earlier acquisitions by Schneider of the dedicated contract carriers Midwest Logistics Systems and M&M Transport Services LLC in 2023.