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3PL Turns to Automation to Offset Workforce Shortages

Faced with a declining pool of warehouse workers and a rapidly expanding e-commerce business, third-party logistics provider ODW relies more on automated packing equipment.

ODW Logistics’ new Columbus, OH, facility features fully integrated conveyors for optimal e-commerce fulfillment solutions.
ODW Logistics’ new Columbus, OH, facility features fully integrated conveyors for optimal e-commerce fulfillment solutions.

[This story originally ran 8/22/2018]

Third-party logistics provider ODW Logistics’  200,000 sq-ft technology center near Columbus, OH, is ready for multiple e-commerce customers/shippers.

The location provides ODW with a strategic hub located within a 10-hr drive to nearly 50% of the U.S. population and one-third of Canada. The Columbus center is equipped with technologies such as barcode scanning, manifesting software, static and in-motion scales, box dimensioning equipment, print-and-apply labelers, and sortation capabilities.

The technology center is set up for zone pick and pass with high and low velocity zones and has Very Narrow Aisle (VNA) dense racking and storage. A Tier1 warehouse management system (WMS) is used throughout the building.

“We are focused on delivering innovative supply chain solutions to middle market and growth-focused customers,” says ODW Executive Vice President Jeff Clark. “This facility brings scalable, out-of-the-box e-commerce fulfillment to companies that serve key U.S. and Canadian markets.”

These technologies continue to gain significance given that e-commerce represents the fastest-growing aspect of ODW’s business, now accounting for about 30% of its volume.

Rising e-commerce demand has driven ODW’s adoption of more warehouse technology and automation. A recent Business News story estimated there are 6.6 million unfilled jobs in the nation, whose impact is felt across numerous business sectors, including the healthcare and logistics markets.

“Finding workers willing to work in the warehouse is becoming a problem. Logistics service providers are beginning to think that robots are the answer,” noted a late 2017 Forbes article. E-commerce, the story said, is creating an even greater need for workers. “When wages are high, or labor is difficult to attract, automation is a natural solution.”

Tapping into technologies

All of those factors come into play at ODW Logistics, which provides integrated logistics support, including warehousing and transportation services for Consumer Packaged Goods (CPG) companies across multiple industries, including health and beauty aids (HBA), food and beverage, nutraceutical and medical device applications.

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Annual Outlook Report: Workforce
Hiring remains a major challenge in packaging, with 78% struggling to fill unskilled roles and 84% lacking experienced workers. As automation grows, companies must rethink hiring and training. Download the full report for key insights.
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Annual Outlook Report: Workforce