DJ Products, Inc.

U.S. logistics costs just topped 10% of the country’s gross domestic product (GDP) in 2007. The recently released 19th Annual State of Logistics Report revealed that logistics costs for 2007 were just under $1.4 trillion. The report is sponsored by the Council of Supply Chain Management Professionals.

GDP figures for 2007 were up from 9.9% in 2006 and matched 1998 figures. In the intervening years, only 2000 resulted in a GDP figure above 10%. With the exception of 10.3% in 2000, total spending as a percentage of GDP declined steadily from 1998 to a low of 8.6% in 2003 before beginning a slow rise. Financial experts predict a drop in GDP spending figures for 2008 citing the slow economy, high fuel costs, the mortgage crisis and the resulting credit crisis.

The report indicated significant increases in total business inventories. In 2007 inventories rose 8.7% and an additional 3.7% in the first quarter of 2008. At 5%, commercial interest rates were at 5-year highs. Commercial paper rates were just 1% in 2003 and 2004.

Not surprisingly, motor carriage led logistics spending at $671 billion or 79% of transport costs and 48% of total costs. Motor carriage costs rose 6.1% in 2007. With diesel prices edging past $5 per gallon, 2008 carriage costs are expected to be significantly higher. Logistics companies and shipping firms are feeling the pinch of rising fuel prices. With no relief in sight, shipping companies are hurting and many smaller firms are going under.

Increased fuel prices are expected to have a deleterious effect on 2008 GDP figures. Logistics industry gains realized in 2007 may well be lost. How desperately the overall economic picture will be affected remains to be seen, but experts don’t think it’s looking good. Losses are expected across the board.

If you have kids, you’ve probably seen trailers for the new Disney-Pixar animated film WALL-E. Robots like WALL-E and his cohorts represent the wave of the future in material handling, though let’s hope they get the kinks worked out before they start installation. Can you imagine the chaos if a bunch of inept robots was allowed to run amuck on your plant floor? Life, after all, is not a movie. The hero almost never arrives to save the day in the final seconds of a plant emergency!

Robot prototypes that allow us to glimpse and plan for the future of material handling are already on the market. British tech firm RTS Flexible Solutions has introduced a 3-D vision-based robot automation system that can grip complex shapes and profiles, pick at variable heights and even perform some inspection and defect rejection actions.

“Advances in technology mean we can deliver applications which have been difficult for conventional 2D technology,” commented RTS managing director David Bradford. While 2D vision-guided robotic automaton works on grayscale, color or line-scanning vision systems, the new 3D system can process on X, Y and Z coordinates. For the first time this allows a robotic application to accurately gauge height, depth and surface contours, opening new possibilities for material management. 

It will be a while before robotic applications can effectively perform many material handling functions, but that day can already be glimpsed on the horizon. Computer software and management skills are more apt to define material handling workers of the future. It’s going to be a whole new ball game!

In our last post we talked about the exorbitant cost of back injuries to industry. In both human and financial cost, back injuries take an expensive toll. Application of ergonomic principles to the work space and use of ergonomically designed equipment can reduce potential back injury significantly. But sometimes materials must be manually lifted and moved.

It’s important to train workers in proper lifting techniques. Musculoskeletal injuries, particularly to the lower back, can result when items are improperly lifted. The key to developing good lifting habits is to think about what you plan to do before picking up an object. Practice these safe lifting tips:

• Size up the load and check surrounding conditions. Get help with the lift if the object looks heavy or awkward. Make sure you have good footing and enough space to maneuver easily. If the object must be carried, may sure your path is free and clear of obstacles.
• Balance your body. Your feet should be shoulder width apart and beside each other. To provide maximum balance and leverage, your feet should be positioned somewhat behind the object to be lifted.
• When lifting, don’t stoop. Bend both knees and keep your back straight but not vertical. Tucking in your chin will help you keep your back straight.
• Use your hands and fingers to grip the load. Called a palm grip, this grip provides maximum security. Remember to tuck in your chin before you lift.
• Use your body weight to get the load moving. Lift by pushing up with your legs, your body’s strongest muscle group.
• Keep arms and elbows close to the body while lifting to provide better balance and maximize lift force.
• If you must carry an object, carry it close to your body and don’t twist. Shift your foot position and turn your whole body to change direction.
• Remember to watch where you’re going.
• Bend your knees when lowering an object. Avoid stooping which places unnecessary strain on your lower back. Place the object on the edge of a shelf, bench or other surface and slide it back into position. Keep your hands and feet clear as you let go of the object.

Even when lifting or moving light-weight objects, it pays to develop good lifing and carrying habits. Your back will thank you!