June 2023 Logistics Manager’s Index Report®
LMI® at 45.6 Growth is INCREASING AT AN INCREASING RATE for: Warehousing Capacity, Warehousing Utilization, Warehousing Prices, and Transportation Capacity Growth is INCREASING AT AN DECREASING RATE for: Inventory Costs Inventory Levels, Transportation Utilization, and Transportation Prices ARE DECREASING For the second time in a row the Logistics Managers’ Index registers as contracting – coming in at 45.6. This is the fourth consecutive month that the index has reached a new all-time low. Our inventory metrics are at the forefront of this decline. Inventory Levels is contracting (-6.5) at 42.9 which is the second fastest rate in the history of the index and the growth rate for Inventory Costs is down (-7.3) to 57.1. The dip in inventories has led to an increase in Warehousing Capacity (+6.8) and Transportation Capacity (+1.9), both of which contribute to a decrease in the overall metric. Transportation Utilization and Transportation Prices are contracting, but at reduced rates from what we saw in May. Researchers at Arizona State University, Colorado State University, Florida Atlantic University, Rutgers University, and the University of Nevada, Reno, and in conjunction with the Council of Supply Chain Management Professionals (CSCMP) issued this report today. Results Overview The LMI score is a combination of eight unique components that make up the logistics industry, including: inventory levels and costs, warehousing capacity, utilization, and prices, and transportation capacity, utilization, and prices. The LMI is calculated using a diffusion index, in which any reading above 50.0 indicates that logistics is expanding; a reading below 50.0 is indicative of a shrinking logistics industry. The latest results of the LMI summarize the responses of supply chain professionals collected in June 2023. When taken as a whole, Q2 economic data was strong in the U.S. – if not in the freight sector. For instance, new home sales are up, unemployment rate is down, and Q1 GDP growth has been revised up to 2% growth with Q2 growth predicted to be around 1.7%. much of this has been spurred by consumer spending, which was up at 4.2% in Q1 – the highest positive rate of change since the end of lockdowns in mid-2021[1]. This is at least partially reflected on the continually higher rates of expansion (or at least slower rates of contraction) that we are often seeing from our Downstream relative to Upstream respondents. Consumers are “downshifting” but spending is still robust – particularly when compared to the rest of the world[2]. This is somewhat buoyed by consumer sentiment which improved significantly in June, reading in at 64.4 according to the University of Michigan’s Consumer Sentiment Index. This reading is up 8.8% from May and 28.8% year-over-year[3], suggesting that consumers are not nearly as worried about a recession as they were a year ago when inflation was driving up prices. Despite this, inflation continues to run higher than most central banks would prefer. The personal-consumption expenditures index read in at 3.8% in May. This is the lowest reading on this metric in two years but still higher than what the Federal Reserve would like to see2. Because consumer savings were robust going into 2022 the high levels of interest have done less to curb spending than would be normally be expected. Due to these unique factors, Atlanta Fed President Raphael Bostic believes that only the most recent few months of interest rates actually did anything to truly slow overall economic growth[4]. This, along with the long-tail effect in which interest rate increases may have somewhat delayed reactions, is behind Chairman Powell’s recent statements that the Fed will put forth two more rate increases this year as they do not expect inflation to reach their goal of 2% until 2025[5]. Bank of America is more bullish on inflation coming down, pointing to the steep inversion of the Treasury yield curve, which suggests that investors believe the Fed will eventually begin pulling interest rates back and avoid an overall recession[6]. Taken together, Wall Street is somewhat optimistic about the state of the economy as well as the stock market had its best six months of the year since 1983. However it should be noted that much of that growth is coming from the service sector – which is less reliant on trucks and warehouses then goods[7]. This dynamic is reflected in the complicated nature of the current economy. While the freight recession has been on for over a year at this point, the overall recession that many prognosticators predicted has yet to occur. This is reflected in the fact that despite these strong economic indicators, the overall LMI reads in at 45.6, which is down (-1.7) from the previous all-time low of 47.3 recorded in May. However, it should also be pointed out that LMI respondents are somewhat optimistic that this will take a turn, predicting an expansion rate of 55.4 over the next 12 months – a reading that is 5.8-points more optimistic than the future prediction of 49.6 and contraction from May. Inventory metrics were the big movers in June. Inventory levels continued their downward movement, dropping (-6.5) to 42.9, which is the second-lowest reading in the history of this metric. Seasonality would suggest that this value should come up soon, but there are some signals that that might not happen. Traditionally we see consumers move from bulkier goods that may require financing (i.e. lawn furniture) in the summer towards smaller goods (i.e. back-to-school items, clothing, and toys) during the back half of the year. Smaller goods have been moving faster throughout the year – as evidenced by the stronger inventory and transportation numbers we have seen for most of 2021. While this could theoretically lead to more volume in Q3 and Q4, there does not appear to be a large glut of holiday inventory on the way. The Chinese manufacturing PMI read in at 49.0 in June. This marks three consecutive months of contraction in what is often the ramp up for back-to-school and holiday production. The overall Chinese PMI is positive at 53.2, but
BSLBATT and Montacargas SERV-IMAN S.A. partners in Panama
Hyster Distributor – Yale Distributor Panama Grupo El Iman is a supplier of a full line of industry award-winning lift trucks, including narrow aisle lift trucks , order pickers, three-way trucks, electric forklifts, stackers, trailers, and counterbalanced trucks, announced a million-dollar industrial lithium battery order from BSLBATT®, a forklift lithium battery manufacturer located in Huizhou, China. The battery module uses an innovation award-winning stand-alone IoT lithium module, and the BSLBATT automotive-grade module is made of commercial-grade steel. Lithium battery modules are secured by nickel-plated busbars to ensure long-term performance. They are designed with premium components to withstand freezing temperatures and controlled by an on-board computer to keep the forklift up and running even in refrigerated applications. It has excellent safety, higher energy density, wider operating temperature range and longer service life. BSLBATT is a Chinese company focused on sustainable energy solutions designed to execute multi-shift warehouse applications. “We offer the most advanced, cost-effective and proven GPRS cloud platform management system in the material handling industry. To achieve this level of excellence, we use automotive-grade industrial PDU battery solutions in our BSLBATT products due to their industry-leading safety, energy density and power density,” said Eric Yi, CEO of BSLBATT. “Reducing the supply chain carbon footprint is BSLBATT’s mission, and automotive-grade industrial PDU battery solutions can help our customers improve operational efficiency while reducing greenhouse gas emissions.” “We are very excited about our partnership with BSL Battery and equally excited about the GPRS cloud platform management system,” said JC, Director at Grupo El Iman / Expert in Forklifts / Movement of Materials. “Director at Grupo El Iman / Expert in Forklifts / Movement of Materials company is eager to witness the success of GPRS cloud platform management system and this strategic cooperation.” BSLBATT’s new through the cloud system on the batteries, GPRS, GPS function, users are able to see key parameters such as battery location, status, BMS information, discharge current, charge current, and charge status in real-time. Simple, traffic-light-style reports enable energy consumption and productivity to be optimized. The software also notifies users immediately of any issues in the fleet using state-of-health information, allowing corrective action to be taken before uptime is affected. Preventative maintenance can also be scheduled automatically. BSLBATT has a wide range of technologies and expertise to help you embrace the path ahead in intralogistics. This includes market-leading battery technologies, chargers, charging algorithms, battery management systems, consulting, and support. BSLBATT’s chargers enable both fast and opportunity charging and are specially optimized to work with GPRS, GPS, and BSLBATT’s range of material handling batteries. 24V, 36V, 48V and 80V BSLBATT solutions for the material handling industry combine high energy density with ultra-fast charging from Fronius chargers to keep electric material handling equipment such as forklifts, reach trucks, pallet jacks and order pickers running 24/7. 7 Runs without interruption. “Electrification and robotics in factories, warehouses and industrial environments are making organizations cleaner, safer and more efficient. GPRS cloud platform management system are ideal for achieving the superior performance BSLBATT needs and delivers.” BSLBATT Haley Ning, director of marketing, said. “Industrial automation and electrification are accelerating, creating more opportunities for our storage solutions across industries.” Industrial automation and industrial electrification are key trends shaping the global energy transition. According to McKinsey, multiple factors are contributing to the rise of electrification including cost reduction opportunities and a regulatory environment which is increasingly mandating zero emissions operations. “We are delighted that Montacargas Serv-Iman S.A has joined the BSLBATT family”, said Ning. If you are interested in our industrial lithium battery in Panama, you can contact him via [email protected]!
Chang Industrial and Hai Robotics combine to launch Advanced Manufacturing Initiative
Chang Industrial and Hai Robotics announced the formation of a strategic partnership targeting North American manufacturers. Chang Industrial has built a consortium of engineering and supply chain partners and features Hai Robotics, a global provider of intelligent automated storage and retrieval systems (ASRS). This collaboration aims to improve flexibility and sustainability in manufacturing offerings. Chang Industrial’s combined goal with Hai Robotics is to optimize all aspects of the value chain, from concept to execution, with emphasis on autonomous systems, workforce optimization, and improved information communication technology for our North American manufacturers. “This partnership allows us to provide the most flexible and cost-effective supply chain technology to our customers and adapt to their changing environment on a real time basis augmented by AI and machine learning. The offerings from Hai Robotics equip the team with stand-alone and mixed fleet capabilities that are integral to Chang Industrial’s successful engineering and program delivery” said Chris Callura, Vice President of Operations and Strategic Partnerships at Chang Industrial. Chang Industrial seeks to modernize today’s supply chain and improve workforce performance through creating technology road maps for companies to advance their technology or innovation initiatives and is excited to have Hai Robotics as a key partner in fulfilling these goals. “Hai Robotics is thrilled to collaborate with Chang Industrial to jointly innovate new solutions to automate factories and improve supply chain performance” according to Will McInnis, Technical Sales and Automation Advisor with Hai Robotics. In forming the advanced manufacturing consortium, the teams of Chang Industrial and Hai Robotics plan on delivering innovative turnkey solutions for their customers worldwide and developing new business together. As it grows and matures, new partners will be introduced, events will be planned, and capabilities will be enhanced. The goal of the partnership is to eliminate packaging waste and plastic storage from most aspects of the supply chain and operations. Sustainability is the goal and that means more profits for clients and measurable improvements for the environment. In addition to manufacturing, the consortium will target healthcare, food processing, consumer products, retail, and wholesale distribution.
Dematic reduces noise of supply chain facilities which enhances worker experience with 3D Noise Mapping audit
Dematic announced the global launch of its Noise Reduction Portfolio, a comprehensive solution to address loud work environments across supply chain facilities. The offering includes before and after 3D noise mapping audits throughout a facility, enhanced rollers, slats, and belt conveyors that can reduce noises at their source by up to 15 decibels. “The well-being of our customers and their employees is a high priority that includes protecting hearing when working in loud environments like distribution centers,” says Andy Randles, Senior Director, Global Lifecycle Support. “By implementing this portfolio of technology, our customers can take the noise levels down in their facilities from a concert hall to a classroom chat. It’s a huge step forward in improving work environments.” To diagnose noise levels, Dematic uses 3D noise mapping to conduct on-site testing at customer facilities that visually identifies acoustic hazards, similar to the way a heatmap identifies temperature hazards. Dematic then builds a noise model to simulate how upgrading equipment would reduce noise levels. The company recommends upgrades and installs quiet rollers, slats, and conveyors as needed. Dematic conducts a second test after installation to demonstrate the difference before and after the upgrade was made. “We’re proud to provide such a comprehensive noise reduction portfolio,” says Randles. “Reducing noise levels in facilities is not only meaningful for worker health and safety, but also to job satisfaction. We’ve heard from customers that morale and productivity among workers goes up when noise levels are lower.” According to the National Institute for Occupational Safety and Health (NIOSH), approximately 22 million workers in the U.S. are exposed to noise loud enough to damage their hearing each year. Similarly, studies in Europe have found up to 30 million workers are exposed to occupational noise that endangers their hearing. Results of research studies like these underscore the importance of furthering technology and solutions that protect worker hearing and improve safety. The new portfolio continues Dematic’s focus on reducing noise levels in customer facilities so workers can better communicate and hear safety sounds. In 2022, Dematic introduced new noise reduction features on its linear sorter that included quiet shoes, merge wedges, and slider belts.
Robroy Industries® named as One Of The “Best and Brightest” Companies to Work for in the nation
Robroy Industries® Enclosure Division, providers in the electrical products industry, has been designated as one of the “2023 Best and Brightest Companies to Work For” in the nation. This significant honor, given by The National Association for Business Resources, recognizes the most influential, trend-setting companies across the country. This award is based on assessments in categories such as communication, work-life balance, employee education, diversity, recognition, retention, and recognizes the commitment of Robroy Industries to excellence in human resource practices and employee enrichment. Robroy Industries Enclosures Division, Stahlin® and AttaBox® brands of non-metallic enclosures based in Belding Michigan has been recognized by The National Association for Business Resources, for 20 consecutive years, as one of the “Best and Brightest Companies to Work For” in Western, Michigan. Says Craig Mitchell, President of Robroy Industries Enclosures Division: “We are honored by this continuing recognition as a great company to have a career with. As a fourth-generation family-owned company, Robroy offers stability and experience of nearly 120 years in business with a forward-looking vision and proven progress. All of that has enabled us to remain highly successful even during challenging times. We support our talented team with a balanced working environment, competitive compensation and benefits, open, honest, transparent communication, and the ability to learn and grow with rewarding career opportunities.”
Global Shop Solutions VP of Operations & Service achieves 25-Year milestone
It’s rare to find employees who work 25 years at the same company, especially in the volatile software industry. That’s why Global Shop Solutions, a provider of ERP software for manufacturers, is proud to announce the 25th anniversary of Mike Melzer, Vice President of Operations & Service. “At Global Shop Solutions headquarters, Mike is often the first to arrive and the last to leave,” says Dusty Alexander, President and CEO of Global Shop Solutions. “We deeply appreciate his energy, integrity, loyalty, and knack for addressing our customers’ most challenging issues. As I’ve often said during our numerous customer visits together, standing alongside Mike makes me feel 10 feet tall – together, we can tackle anything! “Others aptly refer to Mike as our Swiss Army knife™,’ highlighting his ability to create simple solutions to complex problems that others have struggled with,” adds Alexander. “It’s a rare and valuable gift that Mike possesses. We extend our heartfelt thanks to Mike and look forward to many more days at headquarters, Game Day trainings, and customer visits as we continue our mission to elevate manufacturers from good to great!” Melzer earned his Engineering degree at Colorado School of Mines and joined Global Shop Solutions shortly thereafter. Starting out in service and consulting, he spent much of his time on the road converting customers to the latest version of Global Shop Solutions ERP software. The experience taught Melzer how to build good working relationships with customers and brainstorm better ways to get things done. It also paved the way for what was to come. About two years into his tenure with the company, Melzer was chosen to run the company’s service department. Since then, his creative thinking and leadership skills have helped Global Shop Solutions grow from a small family business operating in the U.S. to a globally respected ERP provider. “Mike is highly regarded by customers and Global Shop Solutions employees,” says Alexander. “He still travels frequently to help customers find unique solutions to ERP situations that require out-of-the-box thinking. When back at the office, he devotes significant time to making sure the company keeps employees engaged in their jobs by offering opportunities to learn, grow and advance in their careers.” Melzer is a skilled, experienced and dedicated person who oversees the vital job of keeping Global Shop Solutions customers happy. What has kept Melzer on board for 25 years? “This company is exceptional to work for,” says Melzer. “I love traveling, helping people solve problems, teaching customers and coaching employees. Most of all, Global Shop Solutions is a great group of people. We have a world-class ERP product that I am proud of, but what separates us from the competition is our people.”
Signode to showcase suite of automated turnkey solutions at Pack EXPO
Signode, a global manufacturer of a broad range of automated packaging equipment, tools, consumables, and automation solutions, will present an array of automation advancements and support solutions in booths C-4814 and C-5017 at PACK EXPO Las Vegas 2023. Held at the Las Vegas Convention Center September 11-13, Signode will showcase how the synergy between its portfolio of products and services unlocks the production potential within your unique operation. This year at PACK EXPO Las Vegas, Signode highlights the benefits of automation for manufacturing and distribution operations through its advanced line of Simplimatic® robotics, palletizers and conveyors, Little David® case packing equipment, Lachenmeier® stretch hooding equipment and others. Backed by a team of knowledgeable and tenured engineers and service technicians, Signode is equipped to provide total turnkey solutions to optimize performance for your business. In addition to innovative and industry-leading equipment, Signode’s customizable offerings include reliability service, tooling, and software integration – a total solution tailored to your operation’s specific needs. Since last year’s PACK EXPO, Signode has been focusing on enhancing the overall customer experience. “We want our customers to have the same confidence in our solutions as we do,” says Rick Hantke, Director of Marketing for Automation and Packaging Technologies at Signode. “This is why we’ve expanded our industry-leading portfolio to include support services – to provide peace of mind for our customers throughout their packaging journey. We recently built a state-of-the-art Customer Experience Center and Packaging Lab in Roselle, IL to demonstrate our solutions firsthand, and we offer the Packaging Plus Reliability Services program to help our customers overcome current operational challenges and strategically plan for future advancements.” Whether you’re looking to upgrade a single machine or automate your entire production line, Signode has a solution to meet your needs. Through its consultative approach, Signode works with customers to discover underlying needs and deliver a tailored solution to meet specific requirements.
Cooper Equipment Rentals acquires Warner Rentals Ltd. and Scotty’s Rentals and Landscaping Ltd. in Western Canada
Cooper Equipment Rentals Limited has announced the acquisition of Warner Rentals Ltd. and Scotty’s Rentals and Landscaping Ltd., expanding Cooper’s branch and specialty footprint in western Canada. “Our entire team is excited about these two acquisitions. They reaffirm our on-going commitment to building a truly Canadian, coast-to-coast equipment rental company,” says Justin Wharton, Cooper’s western Canada Director of Operations. “Adding Warner Rentals and Scotty’s to the Cooper network helps us deliver the Cooper Difference – unsurpassed customer care, the best solutions and deep expertise – at a whole new level in western Canada,” adds Cooper CEO Doug Dougherty. Warner Rentals was founded in 1975 by owner Ralph Warner and currently has five locations in Kamloops, Princeton, Revelstoke, Salmon Arm and Scotch Creek, British Columbia. Over the past 48 years, Warner Rentals has become a staple of the communities it serves, with a reputation for quality, integrity, and community involvement. The acquisition of Warner Rentals sees Cooper expand the company’s footprint in the central British Columbia interior and intensifies their service coverage in a rapidly growing and important western Canadian market. “Warner Rentals brings a highly experienced and respected team to the Cooper family, sharing the same deep passion for customers and community.” says Rob Potter, British Columbia Regional Manager for Cooper. “We knew of Cooper’s well-established presence in the market and already have a great working relationship with their team in British Columbia, enhancing our ability to serve customers better across western Canada,” says Ralph Warner, owner of Warner Rentals. Headquartered in Rock View County, Alberta, Scotty’s specializes in providing climate control equipment – including heaters, generators, and tarping services – as well as fencing for residential construction. Since their founding in 2007, the company has built a reputation for providing excellent service and support. The addition of Scotty’s bolsters Cooper’s climate control division, while also adding a new product line in fencing. “We are excited to join the Cooper family. The Company being Canadian was a key factor in this decision, and Cooper’s size allows us to continue to service our customers with a variety of equipment solutions,” says Peter Jensen, owner of Scotty’s. “Our team is looking forward to continuing to deliver the exceptional service we have built our business on, while being part of a larger company that is also committed to servicing local communities with a customer-first approach.” “These acquisitions not only exemplify our unwavering commitment to expanding our presence in western Canada but also reinforce our dedication to providing top-tier rental solutions to all major markets across Canada,” says Brian Spilak, Chief Operating Officer of Cooper “By integrating the strengths of Warner Rentals and Scotty’s with our own, we are poised to continue to deliver an unmatched level of service and support to customers across many new markets.”
Trade cools in June at the Port of Long Beach
Port posts slower month as import volume stalls Trade moving through the Port of Long Beach cooled in June as retailers continued to clear warehouses. Dockworkers and terminal operators moved 597,076 twenty-foot equivalent units (TEUs) last month, a 28.5% decline from June 2022, which was the Port’s busiest June on record. Imports were down 34% to 274,325 TEUs, while exports declined 18% to 94,508 TEUs. Empty containers moving through the Port decreased 25% to 228,243 TEUs. “We are hopeful to obtain a greater percentile of market share,” said Port of Long Beach CEO Mario Cordero. “We remain confident that our reliability, efficiency and unparalleled service will attract additional trade and economic activity to our Port.” “We continue to work with our industry partners to grow cargo volume and raise the bar on sustainable operations,” said Long Beach Harbor Commission President Sharon L. Weissman. “Our highly skilled workforce, infrastructure projects and environmental programs continue to make us the Port of Choice.” Economists report that consumer spending exceeded expectations during the first half of 2023 and may flatten out through the rest of the year. The Port has moved 3,732,676 TEUs during the first half of 2023, down 25.5% from the same period last year. For complete cargo numbers, visit polb.com/statistics.
DT Engineering seeks investment in EOT Crane Safety System
DT Engineering is a specialist manufacturer of overhead cranes and hoists. The DT Digital Trident System is a state-of-the-art product, designed to be installed onto existing overhead cranes or bolted onto new ones during installation. It uses artificial intelligence (AI) algorithms, lasers, and camera technology, to create operator protection zones below-the-hook, true lifts, and ensure that best practice is always observed. The system is built around four pillars: Controlled lift protection zones: AI and camera technology facilitates variable operator protection zones below-the-hook. Crane intelligence: installed and wired into existing crane electrical circuits, it has a single source point of interface for the complete asset. A panel mounted on the crane bridge is tied into a programmable logic controller (PLC)-based system for total automation. Laser alignment technology: users eradicate load swing and snatch loading on initial lifting of a load. Controlled lifting height and load interrogation: ability to set variables for weight and height of initial lifting of a load. Load cell and pin integration creates a tool for providing critical crane disabling points in any final lifting process. Gerry Weston, managing director at DT Engineering Group, said: “To date, we have self-funded the R&D [research and development] to get where we currently hold a market position. “However, in order to take the next steps and realise product potential in international markets, we need investment. We are looking to give up some of the equity for a significant investment into the system and its development post MVP [minimal viable product].” Investment opportunity The company is looking for a profile of investor with industry knowledge and / or with health and safety at their core. The business unit will need to undergo a transformation from provider of a system for one-off crane-by-crane installation, to an out-of-the-box solution manufacturer. An investor that can empower rapid upscale with a global outlook would be welcome to make a proposal. “The offer is compelling,” said Weston. “The system can be utilised in all manufacturing or construction facilities where overhead cranes are used. It is compatible with all industries, especially those in specialist environments, such as sectors where explosive atmospheres are present. The core value proposition is that it will significantly reduce crane-related accidents, improve safety, and minimise downtime. Preliminary testing shows a potential 70% reduction in accidents with a 30% reduction in downtime.” The system prevents untrained personnel and unauthorised access to the crane; AI is used for human detection, recognition and disabling, while cloud-based software provides real-time crane asset data. Users have peace of mind that in the event of any unsafe practice, such as personnel in the lifting zone, the crane will be completely disabled until the risk is removed. Weston continued: “When there is a requirement to rig loads, near-misses are too commonplace, even today. Further, injury to personnel and damage due to misuse remain prevalent in industry. The DT Digital Trident System eradicates those possibilities, but it needs taking to the next level. Response times need improvement with software and hardware upgrades relative to the site asset, and a large scale prototype will need to be developed and tested in an industrial setting.” Potential investors should contact Gerry Weston, managing director at DT Engineering Group, on [email protected].
R.A. Jones introduces an intelligent flexible transfer system that intergrates automation and flexibilty within packing options
The intelligent transfer system incorporates personalized robotics and customized tooling, increasing production line efficiency and speed capabilities R.A Jones recently launched its intelligent Flexible Transfer System (iFTS), a smart automated and customizable transfer system that provides consumer packaged goods (CPGs) companies with a reliable and flexible solution to solve simple or complex automation challenges. Offering the standard building blocks, iFTS draws upon a comprehensive library of fixed automation, various robot types and sizes, and standard or custom tooling to optimize a solution to meet production needs and improve efficiency within the packaging line. The iFTS will be showcased alongside R.A Jones’ Criterion CLI-100 cartoner at PACK EXPO Las Vegas 2023. The iFTS being displayed at the show will demonstrate the receiving of product from upstream systems, such as a Volpak SI-180 pouch machine, which are then placed upon magnetic levitating shuttles which transport, group, and orient the pouches for side-loading of cartons from 3-count to 8-count variations. The system integrates a four-axis robotic pick and place, offering enhanced pouch size change flexibility, and depending on sizing, product can span across two magnetic shuttles. By rotating and collating products so more can fit in the carton, iFTS can help brands cut down on overall carton volume by 10 to 20 percent and create a more sustainable packaging option. Another advanced feature of the transfer system is the shuttles’ ability to detect the presence of a product; if no product is placed on the shuttle, the machine automatically responds to substitute another shuttle in its place in some scenarios. By combining appropriate digital technology, robotics, and tooling, the iFTS can provide greater production efficiency, reliability, and flexibility within packaging operations. “Leveraging over 30 years of robotics experience, R.A Jones is able to provide our customers with a flexible transfer system that can be customized to solve any packaging problem,” said Bob Burkhardt, Product Portfolio Manager at R.A Jones. “Our customers come to us needing to package 300 or more products a minute, so they need an efficient transfer system to help produce compact cartons.” The transfer system can service a variety of products, including bulk packs and dry foods, such as snacks, cereal, and candy as well as electronics and home goods like toothpaste. Standard frame mounting, guarding, and overhead enclosures can be readily adapted around other machines in the line while lower frame mounting enables easy integration of conveyors and other equipment. The system offers a smaller footprint and is scalable, so units can be grouped in a line or in different configurations to incorporate larger robots or solve different problems, such as packaging heavier products. The iFTS is available now and can be purchased alongside other Coesia company machinery to create a fully integrated system or sold individually with an R.A Jones pouching machine or cartoner.
Hy-Brid Lifts announces Director of Sales for South-Central United States
Hy-Brid Lifts, a provder of aerial lift equipment, announces John Davis as director of sales covering the south-central United States. Davis’ responsibilities will include providing customer support as well as continuing the growth and channel development of the Hy-Brid Lifts line of low-level scissor lifts. “I am truly elated to become the latest member of the sales team here at Hy-Brid Lifts. I have felt nothing but love and appreciation from everyone I’ve encountered thus far, and I can clearly see why this company is thriving and growing so successfully,” said Davis. “I look forward to bringing my positive attitude and determination to help Hy-Brid Lifts grow in the south-central districts of the U.S.” John brings 11 years of industry experience to his new role, largely derived from his time at Asco Equipment where he spent two years as the A/P specialist, five years as the parts manager and one year as the rental coordinator. He spent the last three years at Texas State Rentals as the territory sales manager for south Houston. John has plans to use his parts and sales knowledge of scissor lifts to expand the Hy-Brid Lifts customer base using his excellent customer service skills, diligence and winning smile. “We are thrilled to have John join the Hy-Brid Lifts team. He will work directly with our dealer network in the south-central United States, strengthening our ability to serve our customers,” said Dave Wanta, Custom Equipment LLC vice president of sales. “John brings a wealth of sales and rental industry knowledge along with operational experience that will bring great value to our customers. John is a valuable addition to the team, and we look forward to the contributions that he will provide for our company’s continued growth.”
May 2023 Manufacturing Technology orders up from April but continue downward trend
New orders of manufacturing technology totaled $365.9 million in May 2023, according to the latest U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. May orders increased 8.6% over April 2023 but fell short of May 2022 orders by 16.7%. Annual orders for 2023 increased to $2.1 billion, nearly 15% behind orders for the same period in 2022. “May orders increased but not enough to make up for the record decline we saw in April,” said Douglas K. Woods, president of AMT. “Job shops increased orders at a slightly faster pace than the general market, but many large consumers of manufacturing technology decreased orders for the second month in a row. Significant growth from typically smaller consumers of manufacturing technology highlights some interesting changes in how and where goods are manufactured, particularly in anticipation of government spending programs.” For instance, orders from manufacturers of electrical equipment are at the highest monthly level of 2023. This puts the industry on pace to make the second-largest investment in manufacturing technology since 2018. Much of the current investment stems from efforts to mitigate strains on the grid caused by unusual weather patterns. However, more investment from this sector may be on the horizon. The Grid Resilience and Innovation Partnership (GRIP) program, part of the 2021 Bipartisan Infrastructure Act, is expected to send notification of approved projects by the summer of 2023, which may spur more investment in manufacturing technology from this industry. The construction industry has also shown growth in manufacturing technology investment. Construction machinery manufacturers doubled their order volume over April 2023, putting them on pace for the highest order volume since 2012, and hardware, screw, nut, and bolt manufacturers significantly increased orders in May. The increasing need for capacity is likely coming from the increase in residential construction, with new housing starts increasing dramatically in May and new permits on an upward trend since the beginning of the year. In addition to the recent uptick in residential construction, real construction spending on new manufacturing facilities has doubled since the end of 2021. “Despite the positive news for the general economy, such as the upward revision to Q1 GDP two weeks ago and continued employment strength, the manufacturing technology industry is showing signs of a slowdown,” said Woods. “In his June 14 press conference, Federal Reserve Chair Jerome Powell mentioned that manufacturers of durable goods – the consumers of manufacturing technology – would likely feel the effects of elevated interest rates before the broader economy. Our experience in 2016 shows that it is possible for there to be a downturn in the manufacturing technology industry while avoiding a broader recession. Only time and more data will tell if we are in an economic situation more like 2016 than the situation in 2001, as many economists have predicted.”
LiuGong enters second half of 2023 with continued Momentum, strong sales, enhanced team and electric energy
As the second half of 2023 begins, LiuGong continues to build upon its status as one of the fastest growing construction brands in North America. The first half of this year has produced strong results, thanks to a successful CONEXPO/CON-AGG show in March in Las Vegas and the sustained growth in its material handling division alongside its construction equipment products. Business Highlights LiuGong reported $3.932 billion in construction equipment (CE) sales in 2022, per the 2023 KHL Yellow Table released by International Construction in its May-June 2023 issue. This number is quite close with its 2021 sales numbers of $4.055 billion and continues the trend of LiuGong sales growth over the last several years. “I think we have uniquely been a beneficiary of some of the supply chain challenges in our industry over the last two to three years,” said Andrew Ryan, President, LiuGong North America. “When we were in times of tight supply, and whether it was a dealer organization or an end customer needed to find equipment to get the job done, we stood up with availability and we stood up with quality machines. Once the customer or the dealer gave them a chance, they came back really impressed.” The exponential growth over the time since the 2020 CONEXPO/CON-AGG show has been staggering, Ryan said. “From 2020 to 2021, our business grew by 90%,” Ryan said. “From 2021 to ‘22, our business grew by 75%, and we expect our business will grow at least by 50% this year and more likely by 75% as we continue to add more dealer partners and get more of those repeat purchases from our customers.” LiuGong placing significant investment towards the material handling side of the business is also paying dividends. “LiuGong as a corporation made big investments and commitment to be in the forklift in material handling business,” Ryan said. “We invested more than $100 million in factory automation in our plant in China, and commensurately we’ve invested to build a team to help grow the business in North America. “With our new leadership group for the material handling business, we’ve grown the business more than 10 times. We’re very excited about the growth of that business, and we expect long term that it’s going to be between 40 and 50% of the total business that we do in North America.” New Leaders The second half of the year also sees LiuGong enhance its leadership team to keep up with that growth. Mike Zhou, Product Manager, Wheel Loaders, will transition into a newly established position as Product Manager, Battery Electric Vehicles. The battery electric 856H-E MAX Wheel Loader debuted to the North American market at the 2023 CONEXPO/CON-AGG show with the first machine sold to the Los Angeles County Sanitation Districts, and more to follow. Andrew Dargatz joins the LiuGong team as Zhou’s replacement as Product Manager, Wheel Loaders. Dargatz has an extensive resume within the construction equipment industry with more than 15 years of experience. Both Zhou and Dargatz officially began in their new roles on July 1 and report to Chris Saucedo, Senior Vice President, Strategy & Customer Solutions, LiuGong North America. The LiuGong marketing team is strengthened with the addition of Stephanie Gonzales as Channel Marketing Manager. Gonzales has a deep marketing and brand management background, including a decade working with a major automotive OEM. Upcoming Opportunities LiuGong has several either expanded or new growth opportunities the second half of 2023 and is looking ahead to 2024 as one of the industry-leading battery electric vehicle manufacturers. LiuGong was recently awarded a Sourcewell contract in the “Heavy Construction Equipment” category. This multi-year contract allows government and education entities in the United States and Canada to procure equipment and services. The company is set to expand its range of battery electric vehicle models, with more wheel loader models anticipated in the North American market. Beyond wheel loaders, LiuGong has developed electric excavators, forklifts and other products for different markets with the intent to bring more to North America. These two may go together as emissions footprints are being closely scrutinized and opening the window for a range of new products to enter fleets, Ryan explained. “We’re seeing demand from a couple of very important segments,” Ryan said. “First and foremost, our friends in the cement and quarrying aggregates industry are facing a lot of pressure from both shareholders and senior managers and social organizations to reduce their emissions footprint. “The cement industry is documented to account for about 15% of global emissions. So their urgency to make their operation zero emissions is quite high, and they’re looking to LiuGong to be a partner in that effort and help them achieve those goals. “Secondarily, governments around the world are changing regulations and offering lots of incentives to encourage investment in electric machinery. “It will be some time before the industry adopts this technology completely and at a scale level. But we’re very well-positioned at LiuGong for the segment of customers that needs these products and wants these products.”
Continental introduces NightViu LED Driving Lights engineered for construction and off-highway use
Continental, a global supplier of systems, components, and tires to automobile, truck, and agriculture/construction equipment manufacturers, and a trusted provider of OE-engineered aftermarket parts, has introduced 10 new, professional-quality driving lights as part of the company’s NightViu® Lighting Solutions line. These new lights have been designed to help improve operational safety by dramatically increasing nighttime visibility. Engineered for use in agriculture, construction, and mining, the new NightViu Driving Lights are also suitable for marine and powersports applications. They feature rugged aluminum die-cast housings with cataphoretic coating, and resilient shatterproof polycarbonate lenses. Depending on the model, they are rated IP69K or IP67K for Ingress Protection (IP) from dust and water. Advanced optics NightViu Multi-function Driving Lights and Lightbars feature free-form reflectors that direct the light beam exactly where it’s needed. NightViu reversing lights feature Fresnel lenses to create a broad field of illumination directly behind the equipment. NightViu Driving Lights provide up to 5,500 lumens and a beam field length of up to 440 meters. Sophisticated electronics NightViu Driving Lights feature an integrated electronics driver and thermal management system to allow them to operate safely from -40°F to +190°F. The lights’ advanced LED technology delivers exceptional energy efficiency. They produce from 50-100 lumens per watt, depending on the model, and have been designed to ensure that they do not create electrical interference that could affect the vehicles existing electronics. Driving Lights for every application “Our new NightViu Driving Lights provide the illumination that operators need for maximum nighttime safety,” notes Edwin Betancourt Jr, Product Manager, Continental. “With three styles and a choice of configurations, they offer the right light for just about every application.” Continental is a leading aftermarket supplier of OE-engineered parts for HVAC and engine cooling, door systems, tire pressure monitoring systems, engine management, fuel systems, instrumentation, as well as automotive diagnostic systems, premium wiper blades, air, cabin, fuel, and oil filters, and brake system parts and fluid.
Smart Robots do not require housing solution for tight labor market: Hire robots next to flex workers
Smart Robotics and Labour Power Company announce Strategic Partnership: Providing happy flex workers and the right robotic solutions to optimize production power To conquer rising demand, we should not rely on getting workers from afar. Smart Robotics, the global specialist in robotics and warehouse automation, has announced their strategic partnership with employment agency chain Labour Power Company, (yearly revenue €400 mln.) a recruiter and deployer of international flex workers for Logistics. The partners entered collaborative efforts to provide their clients, across Logistics, with enhanced service solutions and to enable better working conditions for warehouse employees. The demand for personnel keeps rising. Whilst countless employment agencies are recruiting outside Europe, Labor Power Company offers a more cost-efficient way. Smart collaboration between humans and robots is the answer to a range of developments, such as an aging population, the ever-increasing demand of highly educated people and the persistent tightness in the labor market. According to Heico Sandee, CTO of Smart Robotics, “Highly productive warehouses are the ones that critically identify areas in their production line that need automating, whilst simultaneously investing in their people. This is part of the reason why Smart Robotics is excited to be partnering with Labour Power Company – to enable people to perform to the highest of their ability, whilst robots take over repetitive and strenuous work.” Robots and flex employees as coworkers In the temporary employment world, robots and flex workers are often seen as competitors. “We think solution-oriented instead of supply-oriented”, explains Han van Horen. “Our customers – especially companies in the logistics, food and process industries – cannot do without people, but they cannot do without robots either. The trick is to get humans and robots to work together in a complimenting manner. We have found the right partner for this in Smart Robotics. Robots are now incredibly smart, but you have to fit them into the organization properly. In the right positions, with the right people around and in the right way. That’s what we focus on. We see ourselves as a strategic partner for our customers.” No housing needed LPC involves Smart Robotics in solving customer challenges. “This is how we arrive at the right solution for each client”, says Van Horen. “As an employer, for example, also look at the housing issue. Robots don’t have to live anywhere. And they don’t have to commute either. The whole of society benefits from this way of thinking and working.” Better working conditions and job satisfaction runs in parallel with optimizing and scaling productivity across logistics. This is why combining the strengths of humans and robots is key to the future success of Logistics.
Common questions on forklift training and trainers
OSHA doesn’t list qualifications for forklift operators, requiring only that the employer certify the operator. The operator need not possess a driver’s license, but must be at least 18 years old under child labor laws. Beyond that, the operator must go through training under a qualified trainer. Unfortunately, OSHA’s criteria for trainers are somewhat vague. Below are some common questions on forklift training. Does OSHA require a certified trainer? No, OSHA does not require that trainers take certain classes, hold a particular certification, or get re-certified at specified intervals. The Powered Industrial Truck Standard states that “all operator training and evaluation must be conducted by persons who have the knowledge, training, and experience to train operators and evaluate their competence.” The employer must ensure that trainers meet these qualifications. An OSHA compliance directive says: “An example of a qualified trainer would be a person who, by possession of a recognized degree, certificate, or professional standing, or who by knowledge, training and experience, has demonstrated the ability to train and evaluate powered industrial truck operators.” The trainer need not operate a forklift as part of his or her job, but must have driving experience. Employers may use more than one trainer, or could bring in trainer from outside the company. However, training must cover hazards specific to the workplace. Can we use online or computer-based training? Operators must receive a combination of formal and practical training. Formal training may include a lecture, discussion, interactive computer learning, video, written material, and so on. Employers may use online or computer-based training for this portion. However, operators must also receive practical training, which means demonstrations performed by the trainer and practical exercises performed by the trainee. Also, operators must receive an actual performance evaluation where they operate the equipment and get evaluated. What training is needed to use attachments? Before using an attachment, operators must understand the limitations and potential hazards. Common attachments include fork extensions, barrel clamps, carpet poles, and personnel baskets. The trainer must have experience using the attachments. An OSHA letter of interpretation dated July 23, 2003, notes that “if the employer uses certain truck attachments and the trainer has never operated a truck with those attachments, the trainer would not have the experience necessary to train and evaluate others” to safely use those attachments. Note that modifications affecting the truck’s capacity must be approved in writing by the equipment manufacturer. Employers must obtain this approval before using the attachment. The unit’s data plate must identify the attachment, and the operating instructions must be updated so operators know how the attachment affects the unit’s load capacity. For example, fork extensions allow carrying a load further from the vehicle body, which reduces the weight capacity. What if someone operated a forklift at a previous job? Some operators may have experience from previous employment. However, they may still need training on the specific types of forklifts used, the particular hazards or conditions in the operating environment, and the use and limitations of attachments. Employers may consider previous operating experience when delivering training, but the employer is ultimately responsible for ensuring that the operator is qualified and can operate safely in the work environment. Is retraining required every three years? No, but an evaluation of the operator’s performance is required every three years. If that evaluation identifies deficiencies, additional training may be required. These evaluations must be conducted by someone who is qualified to train operators and evaluate their competence. Related Video About the Author: J. J. Keller & Associates, Inc. is the most respected name in safety and regulatory compliance. Since its beginning as a one-man consulting firm in 1953, the company has grown to over 1,500 associates serving more than 600,000 customers — including over 90% of the Fortune 1000® companies. The company’s subject-matter expertise spans nearly 1,500 topics, and its diverse solutions include training via online courses, streaming video or DVD; online management tools; managed services; consulting services; online and print compliance manuals and instructional publications; ELogs and mobile technology, forms and supplies. Safety professionals rely on J. J. Keller’s in-house expertise and wide selection of products and services to reduce risk and improve regulatory compliance, performance management, and operational efficiency. For more information, visit JJKeller.com.
The Secrets of Visionary Thinkers: Two simple steps to crushing subconscious assumptions
When we think about famous visionary thinkers, we subconsciously assume that they have some magic characteristic that the rest of don’t have or can’t achieve. But in reality, the only magic they have is an intuitive understanding of how to avoid some very common creative thinking blocks. One of those blocks is the Curse of Knowledge, a cognitive bias, or mental shortcut, that all humans’ share. Stuck Inside the Box: The Curse of Knowledge You’ve probably heard the term “Thinking outside the box.” And you’ve probably, at some point in your career, been asked the think outside the box. But without any understanding of why the box is there or how it was created, it’s hard to know how to break out of it. The reality is that we each create our own “box”, through this Curse of Knowledge. To understand this concept, imagine for a moment that your task is to think of new ideas for salad dressing. Try to come up with a few in your mind right now – don’t skip ahead! Chances are that the ideas that came to your mind were incremental variations of existing flavors or ingredients. You may have thought of fruit-flavored dressing. Or spicy, chipotle dressing. Or perhaps dressing that’s flavored like your favorite cocktail. Or your favorite dessert. All really interesting ideas, IF you are only looking for ideas that don’t change the current nature of salad dressing, nor the way it’s currently manufactured, packaged, sold, or used. The task was to find NEW ideas for salad dressing. That challenge was not limited to simply new flavors, but your brain likely limited your thinking to mostly just new flavors. Here’s why incremental ideas tend to be the first, and sometimes the only, kind of ideas to emerge. All humans rely on past knowledge to subconsciously try to shortcut problem-solving. We instantly – and subconsciously – call on everything we know from the past to come up with solutions for the new problem. While this ability to call on past learning is an incredibly useful trait in many situations (it’s one of the reasons we’re at the top of the food chain), when you’re looking for new ideas and solutions, it actually becomes a significant barrier. It limits your thinking to nothing but slight variations of what already exists. The minute you saw the words “salad dressing”, your brain made a bunch of instantaneous assumptions that you’re likely not aware of. Those assumptions were probably things like: Salad dressing comes in a bottle It’s liquid It’s stored in the refrigerator It’s used on lettuce Salad is eaten from a bowl or plate Salad is eaten with a fork Using the salad dressing challenge again, now assume one of the above “facts” does NOT have to be true. What ideas could you come up with then? You might think of ideas like: Salad dressing that you heat in the microwave (not cold) Dressing for fruit, or for meat (not used on lettuce) A powder whose full flavor is activated when it contacts the moisture of the lettuce (not liquid) Salad dressing in the form of a wrap, so you can eat the salad on the go (salad isn’t served on a plate) Salad dressing in the form of an edible skewer (salad isn’t eaten with a fork) As you can see, the nature of the ideas that arise after crushing the imbedded assumptions is dramatically different from the ideas that came before. That’s because your brain is no longer limiting your creativity with artificial guardrails that may not actually exist and that you weren’t even consciously aware of. Interestingly, the more expertise you have in an area, the more of these limiting assumptions you have subconsciously imbedded in your thinking. So, as an expert in your field, you likely have MANY imbedded assumptions that you’re not aware of, but that are likely impeding your creative thinking in a significant way. The Cure: Assumption Crushing™ process: Fortunately, there is an antidote to the curse of knowledge. Assumption Crushing™ is a technique that involves consciously surfacing and challenging our hidden assumptions. Assumption Crushing™ Step 1: Surface your subconscious assumptions by generating a long list of statements that start with things like: Well, in our business everyone knows… We have to… Our product is/does/has… Well, of course … We could never… Be sure to list some really obvious, superficial, or seemingly trivial “facts,” observations, processes, etc. Sometimes breaking the obvious ones can lead to the most innovative ideas. For example, the fact that salad dressing is liquid seems fairly trivial. But breaking that assumption led to some truly breakthrough ideas. Assumption Crushing™ Step 2: Once you’ve come up with a long list, pick one that may not have to be true, and start to think of new ideas based on breaking that one. Then pick another and do it again. And again. You’ll amaze yourself with the innovative ideas you come up with. Remember that the Curse of Knowledge is based on experience and expertise. Many people often assume that the best way to get new thinking, new ideas, and new solutions is to bring together a bunch of experts on the topic. But the reality is that all those experts will have a very similar set of subconscious mental frameworks. (They’ll all have essentially the same Curse of Knowledge.). A better way to generate new ideas is to invite a few experts, and then several other people with different experiences, knowledge, and perspectives. Those non-experts will help force the experts to confront and overcome their curse of knowledge. The Curse of Knowledge is a formidable adversary that exists in our brains all the time and hinders our visionary potential. By embracing Assumption Crushing™, we can shatter the chains that confine our thinking and unlock the path to visionary breakthroughs. About the Author: Susan Robertson empowers individuals, teams, and organizations to adapt more nimbly to change, by transforming thinking from “why we can’t” to “how
AAR reports Weekly Rail Traffic for the week ending July 8, 2023
The Association of American Railroads (AAR) has reported U.S. rail traffic for the week ending July 8, 2023. For this week, total U.S. weekly rail traffic was 407,843 carloads and intermodal units, down 5.1 percent compared with the same week last year. Total carloads for the week ending July 8 were 197,086 carloads, down 2.3 percent compared with the same week in 2022, while U.S. weekly intermodal volume was 210,757 containers and trailers, down 7.6 percent compared to 2022. Five of the 10 carload commodity groups posted an increase compared with the same week in 2022. They included metallic ores and metals, up 1,243 carloads, to 18,031; nonmetallic minerals, up 759 carloads, to 30,033; and petroleum and petroleum products, up 445 carloads, to 8,843. Commodity groups that posted decreases compared with the same week in 2022 included grain, down 3,685 carloads, to 12,629; coal, down 1,745 carloads, to 58,369; and forest products, down 1,373 carloads, to 7,140. For the first 27 weeks of 2023, U.S. railroads reported cumulative volume of 6,040,821 carloads, up 0.5 percent from the same point last year; and 6,324,352 intermodal units, down 10.2 percent from last year. Total combined U.S. traffic for the first 27 weeks of 2023 was 12,365,173 carloads and intermodal units, a decrease of 5.3 percent compared to last year. North American rail volume for the week ending July 8, 2023, on 12 reporting U.S., Canadian and Mexican railroads totaled 296,283 carloads, down 2.7 percent compared with the same week last year, and 260,069 intermodal units, down 16.8 percent compared with last year. Total combined weekly rail traffic in North America was 556,352 carloads and intermodal units, down 9.8 percent. North American rail volume for the first 27 weeks of 2023 was 17,384,731 carloads and intermodal units, down 4.2 percent compared with 2022. Canadian railroads reported 83,374 carloads for the week, down 2.7 percent, and 38,849 intermodal units, down 46.2 percent compared with the same week in 2022. For the first 27 weeks of 2023, Canadian railroads reported cumulative rail traffic volume of 4,271,926 carloads, containers and trailers, down 2.2 percent. Mexican railroads reported 15,823 carloads for the week, down 7.5 percent compared with the same week last year, and 10,463 intermodal units, down 15.6 percent. Cumulative volume on Mexican railroads for the first 27 weeks of 2023 was 747,632 carloads and intermodal containers and trailers, up 4.1 percent from the same point last year. To view the weekly rail traffic charts, click here.
Episode 401: Unlocking the potential of digital twins and AI in warehousing with Synkrato
In this episode of The New Warehouse Podcast, Amin Sikander, the President and Co-Founder of Synkrato, joins Kevin to discuss the role of digital twins and AI in the warehousing industry. Synkrato is a company that focuses on digital twin technology and its application in logistics and supply chain management. Their approach to creating living digital twins opens up new possibilities for warehouses of all sizes to embrace Warehouse 5.0 and unlock their full potential. Listen to the full podcast episode to learn more about this exciting topic. The Power of Digital Twins in Warehousing Digital twins are virtual representations of physical objects or systems, such as warehouses or machinery. Amin explained that Synkrato’s approach is to create a “living” digital twin that ingests real-time data from various sources, including IoT sensors and RFID, to provide an accurate and dynamic picture of the warehouse. Amin adds, “A living digital twin enables augmented reality picking and provides a real-time view of inventory and resources. It allows us to interact with technology better and optimize picking costs, which is crucial in reducing warehouse labor expenses.” This living digital twin enables improved planning, simulations, and optimization of warehouse operations. Leveraging AI for Optimization and Resource Management By combining the power of digital twins with AI, Synkrato aims to revolutionize warehouse operations. Amin highlighted the importance of optimizing processes such as slotting, which involves determining the most efficient placement of products in the warehouse. AI algorithms can analyze data from the digital twin and recommend better slotting strategies, resulting in reduced travel time and improved picking productivity. Amin adds, “Our AI engine takes inputs from the digital twin and generates a baseline slotting plan. It continuously adapts and self-corrects based on real-time data from the warehouse, allowing for dynamic optimization of resources and tasks.” Overcoming Challenges and Embracing Warehouse 5.0 Amin discussed the challenges of adopting new technologies and addressed concerns about job displacement. He emphasized that Warehouse 5.0 is not about introducing entirely new technologies “Warehouse 5.0 is about embracing existing technology and making it more human-centric. It’s about leveraging digital twins, AI, and AR to enhance productivity, reduce costs, and optimize warehouse processes.” Synkrato’s platform enables scalability and flexibility, allowing warehouses of all sizes to leverage digital twins, AI, and AR to improve operations without extensive investments or disruptions. Key Takeaways from Synkrato Digital twins provide real-time visibility and enable augmented reality picking, leading to improved warehouse operations. AI-powered optimization based on digital twin data enhances slotting strategies, reducing travel time and increasing picking productivity. Warehouse 5.0 leverages existing technologies to make them more human-centric, enabling scalable and flexible solutions for improved operations. The New Warehouse Podcast EP 401: Unlocking the Potential of Digital Twins and AI in Warehousing with Synkrato