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.
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.
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.
That strategy is described by RILA President Brian Dodge in a document titled “2025 Retail Public Policy Agenda,” which begins by describing leading retailers as “dynamic and multifaceted businesses that begin on Main Street and stretch across the world to bring high value and affordable consumer goods to American families.”
RILA says its policy priorities support that membership in four ways:
Investing in people. Retail is for everyone; the place for a first job, 2nd chance, third act, or a side hustle – the retail workforce represents the American workforce.
Ensuring a safe, sustainable future. RILA is working with lawmakers to help shape policies that protect our customers and meet expectations regarding environmental concerns.
Leading in the community. Retail is more than a store; we are an integral part of the fabric of our communities.
“As Congress and the Trump administration move forward to adopt policies that reduce regulatory burdens, create economic growth, and bring value to American families, understanding how such policies will impact retailers and the communities we serve is imperative,” Dodge said. “RILA and its member companies look forward to collaborating with policymakers to provide industry-specific insights and data to help shape any policies under consideration.”