Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. 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) sponsored the eighth annual National Forklift Safety Day on June 8, 2021, an event designed to educate customers, government officials, and other stakeholders about the safe use of forklifts and the importance of training operators and pedestrians who work around forklifts. Typically held in Washington, D.C., with an educational program, regulatory updates, and meetings with members of Congress, this year’s event was limited to the educational segment and was presented as a webcast. Highlights include:
ITA President Brian Feehan and Jay Gusler, ITA Chairman and Executive Vice President of Operations,Mitsubishi Logisnext Americas, opened with remarks on the industry’s ongoing commitment to forklift safety. Gusler noted that the pandemic-created surge in e-commerce demand is a factor in the current “very robust” lift truck market. With many more forklifts in operation during the pandemic, he said, companies have had to innovate safety protocols while maintaining existing standards.
James Frederick, Deputy Assistant Secretary of Labor,Occupational Safety and Health Administration (OSHA), said that in FY 2019 (the most recent complete statistics) there were 79 forklift-related fatalities and 8,140 serious injuries. Since FY 2011, forklift-related fatalities increased by 19.7% and serious injuries increased by 32.8%. Temporary employees and those with a year or less in their current jobs are particularly at risk, he said, adding that four of the top five forklift-related violations cited in 2019 involved operator training.
Under the Biden Administration, Frederick said, OSHA will be “reinvigorated,” and the agency will enhance support for “often forgotten” frontline, vulnerable workers and small employers in essential industries. OSHA will also work to eliminate inequalities in workplace health and safety, and to ensure equal protection for all stakeholders. This initiative reflects a Biden Administration directive that federal agencies assess whether workers face systemic barriers to accessing programs benefits and opportunities. In fact, Frederick said, some workers do not receive the same level of safety training as other employees because of language differences, race, ethnicity, immigration status, or other factors.
Tony Sciarotta, Executive Director and Publisher, Reverse Logistics Association (RLA), and Jess Dankert, Vice President for Supply Chain, Retail Industry Leaders Association (RILA), discussed some of the challenges their industries—which heavily rely on warehouses, distribution centers, and fulfillment centers—are currently confronting.
Sciarotta focused on e-commerce business models and the consumer behavior behind product return rates of 8% to 25%, depending on the type of product. He emphasized the need for retailers and their service providers to provide a positive consumer experience supported by seamless, efficient, end-to-end logistics solutions. With the total cost of handling returns reaching as high as 15% of a product’s value, efficient reverse logistics operations are critical for retailers and their service providers, he said.
Dankert reviewed supply chain challenges such as having to implement new safety protocols during the pandemic while keeping the flow of goods moving. She foresees less emphasis on just-in-time inventory practices and more on agility and resilience. There will also be a need for “transformational,” technology-based productivity improvements in distribution operations. People will be key: “A well trained, committed, and above all, safe workforce is nothing less than an imperative for a well functioning, efficient supply chain,” she said.
Michael G. Field, National Forklift Safety Day Chair and President and CEO of The Raymond Corp., noted that while forklift makers understand and follow the best use standards for the equipment they design and manufacture, it is the customer’s responsibility to configure their trucks properly, use them correctly, and adhere to OSHA safety training standards. Technologies like telematics, virtual reality, and online learning, he continued, are effective tools for developing efficiency and expertise, thus creating more confident, capable forklift operators. Proper maintenance is also critical to avoid putting operators at risk; telematics can help guide preventive maintenance schedules and daily safety checks, he noted.
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.
ITA’s National Forklift Safety Day webcast is still available at no charge online. Click here to register. And click here to read all of DC Velocity’s special National Forklift Safety Day coverage and forklift safety articles.
Buoyed by a return to consistent decreases in fuel prices, business conditions in the trucking sector improved slightly in August but remain negative overall, according to a measure from transportation analysis group FTR.
FTR’s Trucking Conditions Index improved in August to -1.39 from the reading of -5.59 in July. The Bloomington, Indiana-based firm forecasts that its TCI readings will remain mostly negative-to-neutral through the beginning of 2025.
“Trucking is en route to more favorable conditions next year, but the road remains bumpy as both freight volume and capacity utilization are still soft, keeping rates weak. Our forecasts continue to show the truck freight market starting to favor carriers modestly before the second quarter of next year,” Avery Vise, FTR’s vice president of trucking, said in a release.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index, a positive score represents good, optimistic conditions, and a negative score shows the opposite.
“ExxonMobil is uniquely placed to understand the biggest opportunities in improving energy supply chains, from more accurate sales and operations planning, increased agility in field operations, effective management of enormous transportation networks and adapting quickly to complex regulatory environments,” John Sicard, Kinaxis CEO, said in a release.
Specifically, Kinaxis and ExxonMobil said they will focus on a supply and demand planning solution for the complicated fuel commodities market which has no industry-wide standard and which relies heavily on spreadsheets and other manual methods. The solution will enable integrated refinery-to-customer planning with timely data for the most accurate supply/demand planning, balancing and signaling.
The benefits of that approach could include automated data visibility, improved inventory management and terminal replenishment, and enhanced supply scenario planning that are expected to enable arbitrage opportunities and decrease supply costs.
And in the chemicals and lubricants space, the companies are developing an advanced planning solution that provides manufacturing and logistics constraints management coupled with scenario modeling and evaluation.
“Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization, creating one of the largest supply chain operations in the world, and through this identified critical solution gaps to enable our businesses to capture additional value,” said Staale Gjervik, supply chain president, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is instrumental in providing solutions for a large and complex business like ours.”
However, that trend is counterbalanced by economic uncertainty driven by geopolitics, which is prompting many companies to diversity their supply chains, Dun & Bradstreet said in its “Q4 2024 Global Business Optimism Insights” report, which was based on research conducted during the third quarter.
“While overall global business optimism has increased and inflation has abated, it’s important to recognize that geopolitics contribute to economic uncertainty,” Neeraj Sahai, president of Dun & Bradstreet International, said in a release. “Industry-specific regulatory risks and more stringent data requirements have emerged as the top concerns among a third of respondents. To mitigate these risks, businesses are considering diversifying their supply chains and markets to manage regulatory risk.”
According to the report, nearly four in five businesses are expressing increased optimism in domestic and export orders, capital expenditures, and financial risk due to a combination of easing financial pressures, shifts in monetary policies, robust regulatory frameworks, and higher participation in sustainability initiatives.
U.S. businesses recorded a nearly 9% rise in optimism, aided by falling inflation and expectations of further rate cuts. Similarly, business optimism in the U.K. and Spain showed notable recoveries as their respective central banks initiated monetary easing, rising by 13% and 9%, respectively. Emerging economies, such as Argentina and India, saw jumps in optimism levels due to declining inflation and increased domestic demand respectively.
"Businesses are increasingly confident as borrowing costs decline, boosting optimism for higher sales, stronger exports, and reduced financial risks," Arun Singh, Global Chief Economist at Dun & Bradstreet, said. "This confidence is driving capital investments, with easing supply chain pressures supporting growth in the year's final quarter."
The firms’ “GEP Global Supply Chain Volatility Index” tracks demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses.
The rise in underutilized vendor capacity was driven by a deterioration in global demand. Factory purchasing activity was at its weakest in the year-to-date, with procurement trends in all major continents worsening in September and signaling gloomier prospects for economies heading into Q4, the report said.
According to the report, the slowing economy was seen across the major regions:
North America factory purchasing activity deteriorates more quickly in September, with demand at its weakest year-to-date, signaling a quickly slowing U.S. economy
Factory procurement activity in China fell for a third straight month, and devastation from Typhoon Yagi hit vendors feeding Southeast Asian markets like Vietnam
Europe's industrial recession deepens, leading to an even larger increase in supplier spare capacity
"September is the fourth straight month of declining demand and the third month running that the world's supply chains have spare capacity, as manufacturing becomes an increasing drag on the major economies," Jagadish Turimella, president of GEP, said in a release. "With the potential of a widening war in the Middle East impacting oil, and the possibility of more tariffs and trade barriers in the new year, manufacturers should prioritize agility and resilience in their procurement and supply chains."
Pharmaceutical groups are breathing a sigh of relief today after federal regulators granted many of them more time to come into compliance with strict track and trace rules required by the Drug Supply Chain Security Act (DSCSA).
The regulation was initially scheduled to be required by 2023, but that has been delayed due to the steep logistics and IT challenges of managing the reams of data that must be generated, stored, and retrieved. The most recent target update was November 27, but industry experts say many businesses would probably have missed that date, too.
Facing that reality, the FDA yesterday again delayed that deadline until next year, setting new deadlines for various trading partners: Manufacturers and Repackagers have until May 27, 2025; Wholesale Distributors have until August 27, 2025; and Dispensers with 26 or more full-time employees have until November 27, 2025.
Pharmaceutical businesses quickly cheered the move. “HDA and our pharmaceutical distributor members applaud the FDA’s decision to grant an exemption for the DSCSA’s enhanced drug distribution security (EDDS) requirements for eligible trading partners,” said Chester “Chip” Davis, Jr., president and CEO of the Healthcare Distribution Alliance (HDA), which is an industry group representing primary pharmaceutical distributors, who connect the nation’s pharmaceutical manufacturers with pharmacies, hospitals, long-term care facilities, and clinics.
“While many in the supply chain have made significant progress throughout the stabilization period, some are still struggling to establish data connections. Given the interdependency of the pharmaceutical supply chain, FDA’s phased-in approach will allow supply chain partners to better align their data exchange processes to ultimately achieve full implementation and also acknowledges the progress made thus far,” Davis said.
“As we continue to make progress toward full DSCSA implementation, HDA and our distributor members will remain engaged with our public- and private-sector partners to share information and education, as we move toward our shared goal: helping patients and providers safely access the medicines they need.”