In our continuing series of discussions with top supply-chain company executives, Loren Swakow discusses changes in the lift truck market, his company’s growth, and the impact of telematics.
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.
Loren Swakow is managing director of Noblelift North America, a China-based forklift manufacturer that hired Swakow in 2016 to bring the brand to the U.S. and Canada. He has since overseen the spinoff of Noblelift Canada into a separate entity with 30 dealers. Noblelift currently has 115 dealers in the United States as well as dealers in Mexico and Colombia.
A life-long Chicagoan, Swakow was president of Scott Lift Truck in Elk Grove Village, Illinois, from 1977 to 2012. He holds a business degree from Carthage College in Wisconsin and an MBA from Northern Illinois University. Swakow is a past president of MHEDA (the Material Handling Equipment Distributors Association) and past president of CITDA (Chicago Industrial Truck Dealers).
Q: How would you describe the current state of the material handling industry?
A: The material handling industry in America continues to flourish. E-commerce requires a lot of products to be moved continuously. We can see our brick-and-mortar stores continue to disappear. Americans are consuming online.
This requires efficient distribution centers. I believe they are driving the market. They need material handling equipment in volume. They require frequent deliveries to keep their stock levels optimum. These trucks coming in are all loaded with material handling equipment as well. The industrial buildings are getting taller to make the most of a smaller footprint. This requires a new style of lift truck that can reach up to 400 inches. This, in turn, requires the owner to buy new equipment. A lift truck that can go up to 400 inches is cheaper than the land to expand to hold extra product.
The wide acceptance of lithium power as the preferred source of energy is driving the market as well. Lithium batteries generally have a 10-year warranty. There are electric trucks that can have 50-degree gradeability. Cleaner, no maintenance, fast charging, opportunity charging, etc. are pushing the electric and internal combustion market to lithium. We are seeing higher and higher capacities as well. With the continual drop in lithium pricing out of China, the lithium lift truck is competing in price with the lead acid truck—we are seeing many cases where lithium can even be less expensive at initial purchase point. Leasing companies see this and are increasing residuals on lithium trucks. A five-year-old lead acid truck needs a battery. A five-year-old lithium truck still has five years of warranty left on the battery.
I feel these two issues—e-commerce and lithium—are keeping material handling growing at a rate faster than the economy.
Q: You have been in the lift truck industry since 1977. What major changes have you seen during your 45-plus years in the business?
A: Some of the biggest changes I’ve seen center on the safety of the driver and the pedestrians in the work area. Blue lights, strobes, headlights, and so forth used to be options. Now they are standard equipment. This helps protect the pedestrian, especially as we move to electric trucks, which are quieter than internal combustion units. The addition of a rear horn button so the driver can sound the horn without having to take his eyes away from the direction of travel is also helping to warn pedestrians of an oncoming vehicle.
Driver safety has been improved greatly as well. Seat belts, including those with ignition lock-out, are common. Speed reduction in turns is standard, reducing rollovers. Speed reduction with forks in the air also helps stabilize the truck. The advancements in safety are removing driver error from the equation and saving lives.
I have also seen the advent of OSHA certification, a justifiable requirement to drive a lift truck. The ergonomics of the lift truck have seen major advances as well. Driver comfort is important. Adjustable steering wheels are standard. Seats have greatly improved too, with multiple settings to adapt to each driver. When I think about the seats we were selling in the 1970s, I wonder how the driver could sit in them for hours at a time. Monitors in the dash now give the driver access to information on the machine’s operating condition.
The second major change I have witnessed would be with electric lift trucks, primarily Class I. We have moved from carbon pile, to contactors, to rectifiers, to solid state—all with the goal of reducing heat production in electric lift trucks and increasing efficiency. Heat is lost energy. The drive motor has seen major improvements as well. From DC to AC, with AC having the ability to put power back to the battery. These new motors also have a very long life span compared to electric motors with carbon brushes.
Electric lift trucks were slowly eating into the market share of internal combustion trucks. Now with the advent of lithium and all its attributes, I expect that replacement of IC trucks by electrics to increase. Lithium is here to stay. We are also seeing higher voltage in lift trucks compared to the 1970s. We have an 80-volt 5,000-pound truck that has twice the voltage of the old 36-volt electric truck. Again, higher voltage is more efficient and has less heat output and longer run times. All of this in a smaller configuration. We are using a lithium iron compound, the most stable and safe compound on the market.
Q: How have telematics and real-time information technologies affected lift truck operations?
A: Information gathering and dissemination has always been an important topic for American business. Telematics came into vogue when the large distribution centers with hundreds of lift trucks needed to keep track of their fleet—not only monitoring the location of the trucks but also tracking critical maintenance and operational information. This can be reviewed in an office without having to inspect the lift truck. This also prevents a lot of major repairs by noting an issue before it becomes crucial. Fleets of lift trucks are expensive. Fleet management is paramount to protect that investment.
With today’s large buildings, you need communication with the driver. Coming back and forth to the office is terribly inefficient. Lift trucks now come with USB ports to power communication devices or tablets, making the drive more efficient. Real-time information sharing between management and the driver promotes efficiency and saves both fuel and time, which translates into money for the owner.
Q: Noblelift has seen tremendous growth in recent years, with sales projected to rise 25% in 2023. To what does your company owe its success?
A: The product is exceptional. Our warranty cost compared to revenue is less than one-half of 1%.
When Noblelift first offered me the job in 2016, I turned it down. I had never heard of Noblelift, and I had a preconceived notion of Chinese quality. They asked me to come over for an interview. After I had personally seen the quality of the workmanship and rigorous inspection processes, I readily accepted the position. I will admit, I was extremely impressed with the quality control and high-tech manufacturing with robotics. I also found out they were building products for many well-respected OEMs, many of which I had represented at one time or another.
Our dealers felt the same way. They would give it a try, as I was offering free returns with no restocking charge. They discovered the same quality and slowly began to embrace the brand. We felt strongly that the brand needed to be promoted, and we have been marketing to achieve that.
China also put a bonus plan in place that promotes our team, so we are all pulling in the same direction. Last year, this amounted to 18% of pay. Morale is good, and financials are shared. We measure ourselves against the previous year’s month. We compare October of 2023 against October of 2022. This format takes cycles out of the comparison and I believe is a good measure of our consistent growth. We have been surpassing the previous year’s month [in terms of performance] on a regular basis for over four years now. With the addition of new products on a regular basis, I expect double-digit growth to continue for years to come.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.