Practical recommendations abound at National Forklift Safety Day 2024
OSHA, industrial safety, and forklift industry leaders addressed real-life considerations in enhancing operator safety at the 11th annual Industrial Truck Association (ITA) program.
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.
The Industrial Truck Association (ITA) created National Forklift Safety Day as an opportunity to educate customers, policymakers, and government officials about the safe use of forklifts and the importance of effective operator and pedestrian training. Those topics were front and center at ITA’s 11th annual National Forklift Safety Day program, held June 11 in Washington, D.C.
Reginald Jackson, of the Occupational Safety and Health Administration’s (OSHA’s) Office of General Industry and Agricultural Enforcement, emphasized the agency’s mission to ensure “equal access to the highest safety standards” for all workers and to “eliminate barriers that make it harder for some workers to be safe.” Everyone has the right to representation in health and safety matters and to fair treatment by their employers, regardless of the size of the company or the industry they work in, he said; accordingly, OSHA is “embedding equity in everything we do.”
Jackson also spoke about National Emphasis Programs (NEPs) that target specific areas for more intense scrutiny. One example is the NEP on warehousing and distribution center operations, which has opened 623 inspections since it went into effect in July 2023, he noted. The most common violations to date, he said, have been unsafe electrical usage; facility maintenance issues such as blocked exits; inadequate or improper forklift safety training; and lack of seatbelts. A separate NEP targeting outdoor and indoor heat-related hazards has been very active, initiating more than 4,300 inspections since it launched in April 2022, he said.
Cesar Jimenez, vice president of regulatory affairs, product planning, product assurance, and automated solutions, Toyota Material Handling Inc., is this year’s National Forklift Safety Day chair. He began with an overview of ITA’s engineering committee’s role in helping to develop and update forklift safety standards. He then segued to safety technology, emphasizing that it is an adjunct to, and not a substitute for, proper operator training.
After touching on available technologies such as blue and red lights, proximity sensing, and forklift-mounted cameras, Jimenez offered some thoughts about the future. While some current safety technologies will become common in the next five to 10 years, he would like to see some become standard, rather than optional, “similar to what happened in the auto industry.” Jimenez also expects to see new artificial intelligence (AI)-assisted technologies that can, for example, anticipate collisions and provide predictive analytics for lift truck maintenance.
Larry Pearlman, president and founder, SafetyAnd Consulting Associates, called safety “a head and heart journey” that requires leadership, technical expertise, and a culture that values people throughout the organization. A safety culture, he explained, incorporates elements that are tangible (management systems and key performance indicators, hazard management processes, and organizational structure and accountabilities) and intangible (safety leadership and commitment, behaviors, and competencies). He recommended engaging with the procurement organization to make clear that paying more for good equipment design and safety-assist technology can produce a measurable “return on risk reduction,” as he put it.
While safety must be a companywide priority, Pearlman said, frontline leaders have the greatest day-to-day impact on safety; a single decision or act can have a widespread impact. Supervisors who solicit feedback from forklift operators in a targeted but supportive and conversational way enhance operators’ engagement, bringing measurable improvements in safety performance, he said.
Ajay Bhardwaj, director, environmental health and safety (EHS) – Americas at Adient, a manufacturer of automotive seating running approximately 800 powered industrial trucks, described his company’s approach to safety, which encompasses an array of strategies and policies. A partial list includes:
Ensure that lessons are learned from incidents by mandating the sharing of information among all facilities. This includes discussions of the causes of, appropriate responses to, and prevention of incidents.
Adjust metrics to reflect changing circumstances and priorities. “The problems and opportunities of today are not those of the future,” Bhardwaj said.
Embed safety into functional responsibilities. For example, packaging design, industrial engineering, warehouse and material handling layout, and other functional areas have “intertwined responsibilities and oversight” that influence each other’s performance, and thus impact safety, Bhardwaj said.
Carefully evaluate technology that can reduce risk. Adient gives “honest feedback” to vendors and is willing to ask for modifications or walk away if the technology does not fit the company’s needs, Bhardwaj said.
A video recording of the June 11 program is available on ITA’s website for on-demand viewing at no charge. To watch the video, go to www.indtrk.org/national-forklift-safety-day.
Approval of California’s zero emissions forklift rule may be near
In a separate meeting, ITA General Counsel Gary Cross provided members with an update on a California Air Resources Board (CARB) proposed regulation that would require most forklifts operating in the state to produce zero emissions. The rule would phase out sales and operation of certain types of internal combustion equipment and phase in electric and hydrogen fuel cell equipment over a period of years. (DC Velocityreported on the proposed rule in 2021.) It includes a number of exceptions, such as for diesel-powered equipment and specified outdoor applications. ITA and CARB have held a series of discussions for the past three-plus years; the state agency “has agreed with key ITA positions” and made some related modifications to the proposed final rule, which will likely be adopted later this year, according to Cross. CARB will hold a public hearing on June 27, which interested parties can attend in person or via Zoom. DC Velocity will publish an update on the main provisions of the final rule in July.
For more than 70 years, the Industrial Truck Association has represented industrial truck manufacturers and suppliers of component parts and accessories that conduct business in the United States, Canada, and Mexico. Based in Washington, D.C., the organization maintains an influential voice in international standards development for the industry. ITA also advances engineering practices to promote safe products, disseminates statistical marketplace information, and provides industry forums for learning and networking.
The practice consists of 5,000 professionals from Accenture and from Avanade—the consulting firm’s joint venture with Microsoft. They will be supported by Microsoft product specialists who will work closely with the Accenture Center for Advanced AI. Together, that group will collaborate on AI and Copilot agent templates, extensions, plugins, and connectors to help organizations leverage their data and gen AI to reduce costs, improve efficiencies and drive growth, they said on Thursday.
Accenture and Avanade say they have already developed some AI tools for these applications. For example, a supplier discovery and risk agent can deliver real-time market insights, agile supply chain responses, and better vendor selection, which could result in up to 15% cost savings. And a procure-to-pay agent could improve efficiency by up to 40% and enhance vendor relations and satisfaction by addressing urgent payment requirements and avoiding disruptions of key services
Likewise, they have also built solutions for clients using Microsoft 365 Copilot technology. For example, they have created Copilots for a variety of industries and functions including finance, manufacturing, supply chain, retail, and consumer goods and healthcare.
Another part of the new practice will be educating clients how to use the technology, using an “Azure Generative AI Engineer Nanodegree program” to teach users how to design, build, and operationalize AI-driven applications on Azure, Microsoft’s cloud computing platform. The online classes will teach learners how to use AI models to solve real-world problems through automation, data insights, and generative AI solutions, the firms said.
“We are pleased to deepen our collaboration with Accenture to help our mutual customers develop AI-first business processes responsibly and securely, while helping them drive market differentiation,” Judson Althoff, executive vice president and chief commercial officer at Microsoft, said in a release. “By bringing together Copilots and human ambition, paired with the autonomous capabilities of an agent, we can accelerate AI transformation for organizations across industries and help them realize successful business outcomes through pragmatic innovation.”
That result came from the company’s “GEP Global Supply Chain Volatility Index,” an indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. The October index number was -0.39, which was up only slightly from its level of -0.43 in September.
Researchers found a steep rise in slack across North American supply chains due to declining factory activity in the U.S. In fact, purchasing managers at U.S. manufacturers made their strongest cutbacks to buying volumes in nearly a year and a half, indicating that factories in the world's largest economy are preparing for lower production volumes, GEP said.
Elsewhere, suppliers feeding Asia also reported spare capacity in October, albeit to a lesser degree than seen in Western markets. Europe's industrial plight remained a key feature of the data in October, as vendor capacity was significantly underutilized, reflecting a continuation of subdued demand in key manufacturing hubs across the continent.
"We're in a buyers' market. October is the fourth straight month that suppliers worldwide reported spare capacity, with notable contractions in factory demand across North America and Europe, underscoring the challenging outlook for Western manufacturers," Todd Bremer, vice president, GEP, said in a release. "President-elect Trump inherits U.S. manufacturers with plenty of spare capacity while in contrast, China's modest rebound and strong expansion in India demonstrate greater resilience in Asia."
Even as the e-commerce sector overall continues expanding toward a forecasted 41% of all retail sales by 2027, many small to medium e-commerce companies are struggling to find the investment funding they need to increase sales, according to a sector survey from online capital platform Stenn.
Global geopolitical instability and increasing inflation are causing e-commerce firms to face a liquidity crisis, which means companies may not be able to access the funds they need to grow, Stenn’s survey of 500 senior e-commerce leaders found. The research was conducted by Opinion Matters between August 29 and September 5.
Survey findings include:
61.8% of leaders who sought growth capital did so to invest in advanced technologies, such as AI and machine learning, to improve their businesses.
When asked which resources they wished they had more access to, 63.8% of respondents pointed to growth capital.
Women indicated a stronger need for business operations training (51.2%) and financial planning resources (48.8%) compared to men (30.8% and 15.4%).
40% of business owners are seeking external financial advice and mentorship at least once a week to help with business decisions.
Almost half (49.6%) of respondents are proactively forecasting their business activity 6-18 months ahead.
“As e-commerce continues to grow rapidly, driven by increasing online consumer demand and technological innovation, it’s important to remember that capital constraints and access to growth financing remain persistent hurdles for many e-commerce business leaders especially at small and medium-sized businesses,” Noel Hillman, Chief Commercial Officer at Stenn, said in a release. “In this competitive landscape, ensuring liquidity and optimizing supply chain processes are critical to sustaining growth and scaling operations.”
With six keynote and more than 100 educational sessions, CSCMP EDGE 2024 offered a wealth of content. Here are highlights from just some of the presentations.
A great American story
Author and entrepreneur Fawn Weaver closed out the first day of the conference by telling the little-known story of Nathan “Nearest” Green, who was born into slavery, freed after the Civil War, and went on to become the first master distiller for the Jack Daniel’s Whiskey brand. Through extensive research and interviews with descendants of the Daniel and Green families, Weaver discovered what she describes as a positive American story.
She told the story in her best-selling book, Love & Whiskey: The Remarkable True Story of Jack Daniel, His Master Distiller Nearest Green, and the Improbable Rise of Uncle Nearest. That story also inspired her to create Uncle Nearest Premium Whiskey.
Weaver discussed the barriers she encountered in bringing the brand to life, her vision for where it’s headed, and her take on the supply chain—which she views as both a necessary cost of doing business and an opportunity.
“[It’s] an opportunity if you can move quickly,” she said, pointing to a recent project in which the company was able to fast-track a new Uncle Nearest product thanks to close collaboration with its supply chain partners.
A two-pronged business transformation
We may be living in a world full of technology, but strategy and focus remain the top priorities when it comes to managing a business and its supply chains. So says Roberto Isaias, executive vice president and chief supply chain officer for toy manufacturing and entertainment company Mattel.
Isaias emphasized the point during his keynote on day two of EDGE 2024. He described how Mattel transformed itself amid surging demand for Barbie-branded items following the success of the Barbie movie.
That transformation, according to Isaias, came on two fronts: commercially and logistically. Today, Mattel is steadily moving beyond the toy aisle with two films and 13 TV series in production as well as 14 films and 35 shows in development. And as for those supply chain gains? The company has saved millions, increased productivity, and improved profit margins—even amid cost increases and inflation.
A framework for chasing excellence
Most of the time when CEOs present at an industry conference, they like to talk about their companies’ success stories. Not J.B. Hunt’s Shelley Simpson. Speaking at EDGE, the trucking company’s president and CEO led with a story about a time that the company lost a major customer.
According to Simpson, the company had a customer of their dedicated contract business in 2001 that was consistently making late shipments with no lead time. “We were working like crazy to try to satisfy them, and lost their business,” Simpson said.
When the team at J.B. Hunt later met with the customer’s chief supply chain officer and related all they had been doing, the customer responded, “You never shared everything you were doing for us.”
Out of that experience, came J.B. Hunt’s Customer Value Delivery framework. The framework consists of five steps: 1) understand customer needs, 2) deliver expectations, 3) measure results, 4) communicate performance, and 5) anticipate new value.
Next year’s CSCMP EDGE conference on October 5–8 in National Harbor, Md., promises to have a similarly deep lineup of keynote presentations. Register early at www.cscmpedge.org.
2024 was expected to be a bounce-back year for the logistics industry. We had the pandemic in the rearview mirror, and the economy was proving to be more resilient than expected, defying those prognosticators who believed a recession was imminent.
While most of the economy managed to stabilize in 2024, the logistics industry continued to see disruption and changes in international trade. World events conspired to drive much of the narrative surrounding the flow of goods worldwide. Additionally, a diminished reliance on China as a source for goods reduced some of the international trade flow from that manufacturing hub. Some of this trade diverted to other Asian nations, while nearshoring efforts brought some production back to North America, particularly Mexico.
Meanwhile trucking in the United States continued its 2-year recession, highlighted by weaker demand and excess capacity. Both contributed to a slow year, especially for truckload carriers that comprise about 90% of over-the-road shipments.
Labor issues were also front and center in 2024, as ports and rail companies dealt with threats of strikes, which resulted in new contracts and increased costs. Labor—and often a lack of it—continues to be an ongoing concern in the logistics industry.
In this annual issue, we bring a year-end perspective to these topics and more. Our issue is designed to complement CSCMP’s 35th Annual State of Logistics Report, which was released in June, and includes updates that were presented at the CSCMP EDGE conference held in October. In addition to this overview of the market, we have engaged top industry experts to dig into the status of key logistics sectors.
Hopefully as we move into 2025, logistics markets will build on an improving economy and strong consumer demand, while stabilizing those parts of the industry that could use some adrenaline, such as trucking. By this time next year, we hope to see a full recovery as the market fulfills its promise to deliver the needs of our very connected world.