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.
Just 29% of supply chain organizations have the competitive characteristics they’ll need for future readiness, according to a Gartner survey released Tuesday. The survey focused on how organizations are preparing for future challenges and to keep their supply chains competitive.
Gartner surveyed 579 supply chain practitioners to determine the capabilities needed to manage the “future drivers of influence” on supply chains, which include artificial intelligence (AI) achievement and the ability to navigate new trade policies. According to the survey, the five competitive characteristics are: agility, resilience, regionalization, integrated ecosystems, and integrated enterprise strategy.
The survey analysis identified “leaders” among the respondents as supply chain organizations that have already developed at least three of the five competitive characteristics necessary to address the top five drivers of supply chain’s future.
Less than a third have met that threshold.
“Leaders shared a commitment to preparation through long-term, deliberate strategies, while non-leaders were more often focused on short-term priorities,” Pierfrancesco Manenti, vice president analyst in Gartner’s Supply Chain practice, said in a statement announcing the survey results.
“Most leaders have yet to invest in the most advanced technologies (e.g. real-time visibility, digital supply chain twin), but plan to do so in the next three-to-five years,” Manenti also said in the statement. “Leaders see technology as an enabler to their overall business strategies, while non-leaders more often invest in technology first, without having fully established their foundational capabilities.”
As part of the survey, respondents were asked to identify the future drivers of influence on supply chain performance over the next three to five years. The top five drivers are: achievement capability of AI (74%); the amount of new ESG regulations and trade policies being released (67%); geopolitical fight/transition for power (65%); control over data (62%); and talent scarcity (59%).
The analysis also identified four unique profiles of supply chain organizations, based on what their leaders deem as the most crucial capabilities for empowering their organizations over the next three to five years.
First, 54% of retailers are looking for ways to increase their financial recovery from returns. That’s because the cost to return a purchase averages 27% of the purchase price, which erases as much as 50% of the sales margin. But consumers have their own interests in mind: 76% of shoppers admit they’ve embellished or exaggerated the return reason to avoid a fee, a 39% increase from 2023 to 204.
Second, return experiences matter to consumers. A whopping 80% of shoppers stopped shopping at a retailer because of changes to the return policy—a 34% increase YoY.
Third, returns fraud and abuse is top-of-mind-for retailers, with wardrobing rising 38% in 2024. In fact, over two thirds (69%) of shoppers admit to wardrobing, which is the practice of buying an item for a specific reason or event and returning it after use. Shoppers also practice bracketing, or purchasing an item in a variety of colors or sizes and then returning all the unwanted options.
Fourth, returns come with a steep cost in terms of sustainability, with returns amounting to 8.4 billion pounds of landfill waste in 2023 alone.
“As returns have become an integral part of the shopper experience, retailers must balance meeting sky-high expectations with rising costs, environmental impact, and fraudulent behaviors,” Amena Ali, CEO of Optoro, said in the firm’s “2024 Returns Unwrapped” report. “By understanding shoppers’ behaviors and preferences around returns, retailers can create returns experiences that embrace their needs while driving deeper loyalty and protecting their bottom line.”
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
That clash has come as retailers have been hustling to adjust to pandemic swings like a renewed focus on e-commerce, then swiftly reimagining store experiences as foot traffic returned. But even as the dust settles from those changes, retailers are now facing renewed questions about how best to define their omnichannel strategy in a world where customers have increasing power and information.
The answer may come from a five-part strategy using integrated components to fortify omnichannel retail, EY said. The approach can unlock value and customer trust through great experiences, but only when implemented cohesively, not individually, EY warns.
The steps include:
1. Functional integration: Is your operating model and data infrastructure siloed between e-commerce and physical stores, or have you developed a cohesive unit centered around delivering seamless customer experience?
2. Customer insights: With consumer centricity at the heart of operations, are you analyzing all touch points to build a holistic view of preferences, behaviors, and buying patterns?
3. Next-generation inventory: Given the right customer insights, how are you utilizing advanced analytics to ensure inventory is optimized to meet demand precisely where and when it’s needed?
4. Distribution partnerships: Having ensured your customers find what they want where they want it, how are your distribution strategies adapting to deliver these choices to them swiftly and efficiently?
5. Real estate strategy: How is your real estate strategy interconnected with insights, inventory and distribution to enhance experience and maximize your footprint?
When approached cohesively, these efforts all build toward one overarching differentiator for retailers: a better customer experience that reaches from brand engagement and order placement through delivery and return, the EY study said. Amid continued volatility and an economy driven by complex customer demands, the retailers best set up to win are those that are striving to gain real-time visibility into stock levels, offer flexible fulfillment options and modernize merchandising through personalized and dynamic customer experiences.
Geopolitical rivalries, alliances, and aspirations are rewiring the global economy—and the imposition of new tariffs on foreign imports by the U.S. will accelerate that process, according to an analysis by Boston Consulting Group (BCG).
Without a broad increase in tariffs, world trade in goods will keep growing at an average of 2.9% annually for the next eight years, the firm forecasts in its report, “Great Powers, Geopolitics, and the Future of Trade.” But the routes goods travel will change markedly as North America reduces its dependence on China and China builds up its links with the Global South, which is cementing its power in the global trade map.
“Global trade is set to top $29 trillion by 2033, but the routes these goods will travel is changing at a remarkable pace,” Aparna Bharadwaj, managing director and partner at BCG, said in a release. “Trade lanes were already shifting from historical patterns and looming US tariffs will accelerate this. Navigating these new dynamics will be critical for any global business.”
To understand those changes, BCG modeled the direct impact of the 60/25/20 scenario (60% tariff on Chinese goods, a 25% on goods from Canada and Mexico, and a 20% on imports from all other countries). The results show that the tariffs would add $640 billion to the cost of importing goods from the top ten U.S. import nations, based on 2023 levels, unless alternative sources or suppliers are found.
In terms of product categories imported by the U.S., the greatest impact would be on imported auto parts and automotive vehicles, which would primarily affect trade with Mexico, the EU, and Japan. Consumer electronics, electrical machinery, and fashion goods would be most affected by higher tariffs on Chinese goods. Specifically, the report forecasts that a 60% tariff rate would add $61 billion to cost of importing consumer electronics products from China into the U.S.