Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Shuttling trucks and trailers to warehouse doors is a noisy job, with the rumble of heavy diesel engines running as a backdrop to the occasional thump of container doors, loading ramps, and lift trucks.
But if recent automotive manufacturing trends continue, dock and yard operations may soon start to grow just a bit quieter. Steady advances in clean-power technology are opening a new front in the quest to optimize operations, as companies begin to replace their diesel-powered yard trucks with electric vehicle (EV) equivalents.
The shift to electric power for trucks of all types is still in its early days, so few facilities have converted their entire fleets over to electricity. One reason is cost. The upfront cost of a battery-powered over-the-road truck, for example, typically far outweighs the cost of one with an internal combustion engine. Although EV proponents say that premium can be offset by government rebates or recouped through fuel and maintenance savings, those benefits take time to accrue.
Another factor limiting the widespread adoption of electric trucks is range. For instance, battery-powered Class 8 trucks today have less than one-quarter the range of a diesel version, making them a poor fit for long-haul routes covering hundreds of miles. Although manufacturers could add extra batteries to extend that range, the added weight would reduce the vehicles’ payload capacity, reducing their benefit.
But the restrictions that have inhibited the deployment of electric trucks on long-haul routes don’t necessarily apply to vehicles that are used strictly for short-distance moves—vehicles many now see as a strong fit for dock and yard work.
HOME, HOME IN THE YARD
As for what makes them a strong fit, electric units offer a number of advantages. For one thing, yard trucks—also called terminal tractors, spotter trucks, or yard jockeys—often run 16 or 24 hours per day with fresh drivers behind the wheel for each shift. That extended use pattern means that the fuel savings add up quickly with electrics, a huge plus at a time when fossil fuel prices have gone through the roof.
And because they tow trailers and containers within the confines of a dock, yard, or intermodal facility, an electric yard truck never strays far from the electrical charging infrastructure needed to refresh its batteries, reducing the likelihood it will run out of juice and become stranded.
Penske ordered those vehicles fromOrange EV, a Kansas City, Missouri-based manufacturer of heavy-duty electric vehicles. In the right applications, Penske said, those EVs could deliver benefits such as zero tailpipe emissions, the ability to operate up to 24 hours on a single charge, and a 50% shorter stopping distance than standard trucks thanks to regenerative braking systems that use the vehicle’s momentum to recharge its batteries.
“Yard vehicles are a great opportunity for electrification,” says Patrick Watt, vice president for alternative vehicle and emerging technology at Penske Truck Leasing. “They have lower road speeds so they need less energy, they have proximity to charging equipment, and their performance allows drivers to operate in most circumstances,” an improvement over earlier EV models that lacked the strength to compete with diesel, he explains.
Those attributes also make battery-powered yard trucks a strong option for companies that are trying to cut greenhouse gas emissions and shrink their carbon footprint, Watt says. On top of that, these vehicles are ready for deployment right now, he adds. “We’re early in the transition to electric vehicles [in over-the-road applications], so we’re continuing to see advancement of the technology. It’s going to be a much better, more efficient vehicle in 10 years,” Watt says. “But for an electric yard tractor, the technology you see today will continue to be effective for a long, long time.”
Another reason Penske is investing in electric yard tractors is that the electric design has proved popular with yard workers, according to Watt. “We’ve gotten positive driver feedback,” he says, noting that drivers prefer quiet battery-powered models over “sitting in a diesel vehicle that’s idling loudly, [spewing] out emissions, and vibrating more [than] an electric truck. It’s similar to an electric golf cart; it’s a pleasant environment to sit in as you wait for your next shift.”
But even more important is the fact that electric yard trucks have shown to have high rates of uptime, proving resistant to mechanical breakdowns and requiring only short, frequent recharging sessions to keep their batteries powered up. “People think about running the battery cell all the way down and then charging it all the way back up, but with just 15 to 20 minutes of charge at every opportunity that’s a natural break [for the driver], you’ll never have to worry about running it down to zero,” Watt says. “That’s a change of mindset for people who are used to thinking about diesel in miles per gallon or in gallons per hour of operation.”
STAYING OUT OF THE REPAIR SHOP
Avoiding breakdowns and delays is a big selling point for electric yard trucks, agrees Zack Ruderman, vice president of sales and marketing at Orange EV, which currently has some 500 heavy-duty electric yard trucks operating in 130 fleets across 28 states, Canada, and the Caribbean. (The company recently expanded its yard truck rental program to include electric spotter vehicles in 48 states.)
“The market says that their biggest pain point is downtime [when trucks need repairs],” Ruderman explains. “To rent a replacement truck on short notice is expensive in this market. Keeping extra trucks on site is expensive too. But you need the uptime because [yard handling is] a mission-critical operation.”
To keep downtime to a minimum, Orange says its battery-powered trucks can be recharged when the driver is taking a break anyway. As Penske noted, that recharging time adds up fast over lunch periods and 15-minute breaks during shifts.
Additional uptime comes from avoiding long stays in the repair shop, Ruderman says. Orange EV claims that battery-powered trucks break down less than diesel models. Plus, they lack components like engine transmissions, emission control units, and radiators that are time-consuming (and costly) to maintain.
They’re also designed for versatility. Orange EV says its base model can do 70% of all the jobs a diesel model can do, falling short only for the 10% of jobs that involve steep hill grades and the 20% that demand high speeds. To fill those gaps, the manufacturer plans to launch a stronger “port truck” version with greater speed and power in 2023. “Within three years, more than 50% of new yard truck orders will be EVs. Yard trucks are leading the electrical transformation,” Ruderman says.
STAYING POWER
Ruderman may be right. Companies across the supply chain have been testing electric yard trucks in recent years, and they apparently like what they see. The result has been a rapid increase in production and sales of battery-powered trucks for dock and yard management duties.
Many of those users initially chose electric models for environmental reasons, such as greening up their operations or meeting corporate environmental, social, and governance (ESG) goals. But pilot tests have given them extra reasons to continue using electric yard trucks, as they have found additional benefits in fuel savings, extended uptime, and driver satisfaction.
As electric truck production reaches new levels of maturity, the sector is primed for quick growth in the coming years. And much of that growth will likely take place in an often-overlooked corner of the logistics sector, the trailer and container yard outside your local DC.
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%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."