Contributing Editor Toby Gooley is a freelance writer and editor specializing in supply chain, logistics, material handling, and international trade. She previously was Editor at CSCMP's Supply Chain Quarterly. and Senior Editor of SCQ's sister publication, DC VELOCITY. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Each year, speakers at the annual National Forklift Safety Day program put on by the Industrial Truck Association (ITA) discuss critical safety-related topics, including the importance of training operators and pedestrians who work around powered industrial trucks (PITs). This year’s event, the ninth, was especially timely in light of the ongoing challenges of hiring, training, and retaining warehouse and manufacturing labor. As several speakers noted, high rates of employee turnover, uncertainty associated with the Covid-19 pandemic, and supply chain bottlenecks have all had an impact on facility safety.
Some highlights from the June 14, 2022, program include:
ITA President Brian Feehan and Chuck Pascarelli, ITA Board of Directors Chair and President, Americas, Hyster-Yale Group, opened with remarks on the industry’s ongoing commitment to forklift safety and ITA members’ leadership in this area. Pascarelli emphasized three important reasons to pay special attention to forklift safety: compliance with laws and regulations; the fact that safe operations make good business sense; and the responsibility of employers to support their employees’ well-being and provide a safe working environment.
Douglas Parker, Assistant Secretary of Labor,Occupational Safety and Health Administration (OSHA), lauded the industrial truck industry for designing equipment and using technology like telematics and automation to enhance workers’ safety. As technology advances, he added, it’s a good time to re-examine safety training requirements and how people work around automation. He also cautioned that Covid-19—“the health and safety issue of our time”—is not over, and that employers must continue to diligently protect essential workers, many of whom work in industries forklift makers serve.
OSHA is paying special attention to preventing heat-related illness, injuries, and deaths—a problem that will likely worsen as climate change continues, Parker said. Heat is a hazard wherever PITs are used, including manufacturing plants and warehouses, not just outdoors, he noted. Under a heat “emphasis program,” OSHA inspectors will conduct proactive inspections for heat-related hazards and will advise employers on issues like rest, fluids, acclimation to heat, and training and monitoring of employees. Approximately 50% of heat fatalities happen in the first 10 days an employee is on the job, he said, adding that today’s high rates of employee turnover suggests the need for extra vigilance by employers.
Finally, Parker addressed the proposed update to OSHA’s 1910.178 PIT safety regulations to reference the latest versions of the B56 national consensus standards and replace the reference to the 1969 version of the standards, a move supported by ITA members. A formal Notice of Proposed Rulemaking (NPR) was issued in February, and the comment period closed in mid May. Parker said that OSHA will consider the 20-plus comments it received as it moves forward with the full rule-making process that is required by law when the agency updates references to national consensus standards that are incorporated into federal regulations.
Jonathan Dawley, National Forklift Safety Day Chair and President and CEO of Kion North America Corp., spoke about how ongoing labor challenges highlight the critical importance of training. Most facilities have new employees coming in who “may not have relevant experience,” he said. Moreover, supply chain issues and the resulting inventory imbalances can overwhelm environments where forklifts are in use. As a result, “variability has become the norm in manufacturing and distribution, and that creates challenges around the standard work” that is a key element of facility safety; simply put, “non-standard practices compromise safety,” he said. Dawley also emphasized that while labor shortages are leading more companies to turn to safety-enhancing technologies like telematics and collision-avoidance systems, it is critical to understand that “technology is not a substitute for building a safety culture.”
Indeed, with so many new employees and so much turnover, executing well on basics like forklift operator and pedestrian awareness training has become more important than ever, Dawley said. He also recommended a concerted focus on communicating safety best practices through such means as signage, town hall meetings, management regularly getting out in front of employees, one-on-one coaching, and tracking safety as a key performance indicator (KPI).
Lorne Weeter, vice president of sales, mobile automation, for Dematic, explained the differences among manually operated powered industrial trucks, automated guided forklifts (AGFs), automated guided vehicles (AGVs), and autonomous mobile robots (AMRs). He then ran through the required elements for converting a lift truck to an AGF, such as a computer “brain” that processes information, laser scanners for collision avoidance, an on-board navigation system, emergency controls, and more. Weeter also noted that AMRs are subject to new design and manufacturing standards: RIA15.08, which is being developed for industrial mobile robots by the American National Standards Institute (ANSI) and the Association for Advancing Automation (formerly known as the Robotics Industry Association, or RIA), rather than the B56.5 standard that applies to AGVs and other mobile burden carriers.
Weeter finished up with recommendations for safety measures to consider when adding automation to an operation. Examples include a comprehensive site safety assessment, new safety protocols that specifically take automated vehicles into account (“An AGV can travel 400 feet per minute, so everyone needs to understand how to safely interact with them”), and extra attention to “pinch points”—locations where pedestrians and automated and manually operated vehicles may end up in the same narrow space.
Brian Duffy, Director of Corporate Environmental and Manufacturing Safety, Crown Equipment Corporation urged facility and fleet managers to review productivity standards and priorities for operators and pedestrians to ensure that they are not in conflict with safety. He also outlined the forklift and pedestrian safety program his company applies in its own manufacturing plants and warehouses. Duffy credits the program, which involves a 20-week process of training, communication, observation, and feedback, with contributing to a steady decline in safety incidents in Crown’s facilities. Some of the program elements he highlighted include:
Taking advantage of personal connections to provide effective peer-to-peer observation and feedback
Adopting “demonstrated performance,” where operators who have received feedback show that they know what to do
Providing positive feedback; rather than focusing only on what’s wrong and how to fix it, praise and reinforce correct procedures
Having corporate and operational leaders and environmental health and safety (EH&S) officers regularly walk through facilities so they can provide feedback on what they’ve personally observed
Making sure everyone understands the potential consequences for individuals and families—not just for the operation—if someone gets hurt in an accident
Industrial Truck Association members manufacture over 90 percent of the forklifts and similar powered industrial trucks sold in North America. The organization promotes standards development, advances safe forklift design and use, disseminates statistical information, and holds industry forums.
A video of ITA’s National Forklift Safety Day presentation will be available at no charge online at www.indtrk.org and at www.dcvelocity.com. And click here to read all of DC Velocity’s special National Forklift Safety Day coverage and forklift safety articles.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
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.” 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 artificial intelligence-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next one to three years. Retailers also said they plan to invest in self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) within the next three years to help with loss prevention.
Those strategies could help improve the brick-and-mortar shopping experience, as 78% of shoppers say it’s annoying when products are locked up or secured within cases. Part of that frustration, according to consumers, is fueled by the extra time it takes to find an associate to them unlock those cases. Seventy percent of consumers say they have trouble finding sales associates to help them during in-store shopping. 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.
Additional areas of frustrations identified by retailers and associates include:
The difficulty of implementing "click and collect" or in-story returns, despite high shopper demand for them;
The struggle to confirm current inventory and pricing;
Lingering labor shortages; and
Increasing loss incidents.
“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.
Census data showed that overall retail sales in October were up 0.4% seasonally adjusted month over month and up 2.8% unadjusted year over year. That compared with increases of 0.8% month over month and 2% year over year in September.
October’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were unchanged seasonally adjusted month over month but up 5.4% unadjusted year over year.
Core sales were up 3.5% year over year for the first 10 months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023. NRF is forecasting that 2024 holiday sales during November and December will also increase between 2.5% and 3.5% over the same time last year.
“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” NRF Chief Economist Jack Kleinhenz said in a release. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”
Despite that positive trend, market watchers cautioned that retailers still need to offer competitive value propositions and customer experience in order to succeed in the holiday season. “The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under invest in their stores,” Nikki Baird, VP of strategy & product at Aptos, a solutions provider of unified retail technology based out of Alpharetta, Georgia, said in a statement. “They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.”
A similar message came from Chip West, a retail and consumer behavior expert at the marketing, packaging, print and supply chain solutions provider RRD. “October’s increase proved to be slightly better than projections and was likely boosted by lower fuel prices. As inflation slowed for a number of months, prices in several categories have stabilized, with some even showing declines, offering further relief to consumers,” West said. “The data also looks to be a positive sign as we kick off the holiday shopping season. Promotions and discounts will play a prominent role in holiday shopping behavior as they are key influencers in consumer’s purchasing decisions.”