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Warehouses are the heart of the supply chain, ensuring that goods and materials are stored and handled correctly before being shipped to their next destination. As technology advances and customer demands change, warehouse operators must look for ways to stay ahead. Here&rsquo;s a look at five warehousing trends to watch this year and beyond.
<h4>Leaning into AI-driven data</h4>
Artificial intelligence (AI) is set to transform many aspects of warehousing. AI-powered systems can analyze large volumes of data collected from warehouses to enable better decision-making across their operations, from inventory management and demand forecasting to supply chain optimization. For example, insights can help to reduce stockouts, predict bottlenecks and optimize warehouse layouts, which can bring operational efficiencies and cost savings.1,2
AI can also help operators use labour and equipment as efficiently as possible. On the labour front, AI provides insights that lead to more efficient allocation of workers. The technology can also prevent equipment problems or failures by predicting when maintenance is needed.3
<h4>More robots, more efficiencies</h4>
While using robotics to automate warehouse tasks is nothing new, it&rsquo;s set for significant growth. Globally, the warehouse robotics market is to reach US$10.5 billion by 2028, growing at an annual rate of 11.4%.4 Among the factors driving growth are the e-commerce boom, rising labour costs, labour shortages and technological advances.5
While robots are traditionally used for tasks like sorting, picking, and packaging items, the latest models can plan their own optimal routes and picking sequences.6 More types of robotics are being introduced too, such as automated guided vehicles (AGVs), which help transport materials and supplies within a warehouse, and collaborative robots (or &ldquo;cobots&rdquo;) that work alongside employees.7
Although bringing robots on board has its challenges &ndash; high upfront costs and integration with legacy systems, for instance &ndash; the benefits are many.8 By automating tasks with greater precision, robotics help improve accuracy in order fulfillment. The technology also reduces time and resources spent on retrieving and transporting items around the warehouse.9
<h4>Worker health and safety levels up</h4>
By implementing more automation &ndash; thus relying less on humans to do strenuous or risky tasks &ndash; warehouse operators can reduce the risk of workplace accidents and injuries.10 At the same time, operators are turning to advanced technologies to keep workers on the floor safe.
One example is wearable technology such as smartwatches, safety vests, and helmets that monitor for health and safety issues. Some devices monitor workers&rsquo; heart rate and body temperature, triggering emergency alerts if fatigue or another health concern is detected. Additionally, some wearables have sensors that alert workers if they&rsquo;re in the danger zone of a moving vehicle. 10
Drones are another example. These aerial devices can be used to perform safety inspections rather than requiring workers to climb ladders and scaffolding, reducing the risk of falls and injury. Drones can also be equipped with sensors to detect gas leaks, fires, and structural damage. They can also use thermal cameras to locate workers in danger and quickly notify emergency services.11
<h4>The future is green and clean</h4>
The warehousing sector is primed for a green revolution. With large physical footprints, warehouses use vast amounts of energy for lighting, heating, cooling, and powering machinery, resulting in substantial carbon emissions. In addition, most warehouses use gas-powered forklifts, contributing to air pollution, while the large amounts of packaging used in warehouses often end up in landfills.12
To reduce their environmental impact, warehouse operators will increasingly look for green solutions. On the energy front, warehouses can switch to renewable energy sources such as solar, wind or geothermal power. They can also invest in energy-efficiency measures like LED lighting, which consumes less electricity and lasts longer than conventional lights. Automated control systems for lighting and temperature can be used to cut back on wasted energy, as they adjust based on real-time needs. When it comes to machinery, more eco-friendly options include electric or hybrid forklifts. To cut back on packaging waste, warehouses can move to recyclable, reusable or decomposable material.13
<h4>Supply chains go local</h4>
Manufacturers are increasingly realizing the importance of localized supply chains, especially given some of the challenges of globalization.
See: <a href="https://www.sovereigninsurance.ca/advice-and-tools/hot-topics/is-deglobalization-the-answer-to-supply-chain-woes">Is deglobalization the answer to supply chain woes?</a>
As part of supply chain localization, companies place inventory in warehouses in the same country as their customers, allowing for faster delivery times, greater efficiencies, and cost savings. For example, a U.S. e-commerce company might place inventory in Canadian warehouses for customers in this market.14 There is also a growing trend toward nearshoring, a strategy in which a company moves all or part of its production closer to its main consumer market. Nearshoring can help companies save money and avoid some of the logistical challenges that can come with overseas supply chains.15
While it may not be realistic to embrace every trend today, staying on top of the shifts will help warehouse operators identify future opportunities and see where the competition might be headed. Expect to see more changes and opportunities in this exciting and fast-changing sector this year and beyond. Ensure your risk protection keeps pace with the advancements and changes being made.
&nbsp;
<h4>Sources</h4>
1 Warehousing Express Logistics Pvt. Ltd., <a href="https://www.warehousingexpress.com/blogs/warehouse-trends-in-2023-a-brief-guide">Warehousing Trends In 2023: A Brief Guide</a>
2 Warehousing Express Logistics Pvt. Ltd., <a href="https://www.warehousingexpress.com/blogs/warehouse-automation-trends-and-technologies-in-2024">Top Warehouse Automation Trends and Technologies in 2024</a>
3 ITS Logistics, &ldquo;<a href="https://www.its4logistics.com/blog/innovative-applications-of-ai-in-warehouse-management">Innovative Applications of AI in Warehouse Management</a>,&rdquo; Dec. 19, 2023
4 Markets and Markets, &ldquo;<a href="https://www.marketsandmarkets.com/Market-Reports/warehouse-robotic-market-128876258.html">Warehouse Robotics Market</a>&rdquo;
5 Bricz, &ldquo;<a href="https://bricz.com/robots-revolutionizing-warehouses-exploring-the-explosive-growth-of-warehouse-robotics/">Robots Revolutionizing Warehouses: Exploring the Explosive Growth of Warehouse Robotics</a>,&rdquo; Oct. 11, 2023
6 McKinsey &amp; Company, &ldquo;<a href="https://www.mckinsey.com/capabilities/operations/our-insights/getting-warehouse-automation-right">Getting warehouse automation right</a>,&rdquo; Dec. 1, 2023
7,9 6 River Systems, &ldquo;<a href="https://6river.com/what-is-warehouse-robotics/">What is warehouse robotics?</a>&rdquo; Jan. 18. 2023
8 Prime Robotics, &ldquo;<a href="https://www.primerobotics.com/the-top-4-challenges-every-warehouse-automation-project-must-overcome/">The Top 4 Challenges Every Warehouse Automation Project Must Overcome</a>,&rdquo; Sept. 11, 2023
10,11&nbsp; Optima Warehouse Solutions, &ldquo;<a href="https://www.optima-ws.co.uk/using-technology-to-improve-warehouse-safety">Using technology to improve warehouse safety</a>&rdquo;
12,13 GEP, &ldquo;<a href="https://www.gep.com/blog/strategy/green-warehousing-warehouse-sustainability-strategies">Rethinking warehousing: How green is your warehouse?</a>&rdquo;
14 SCI, &ldquo;<a href="https://www.sci.ca/insights/e-commerce/how-localized-and-cross-border-e-commerce-fulfillment-can-help-businesses-expand-into-new-markets/">How Localized and Cross-Border E-Commerce Fulfillment Can Help Businesses Expand in New Markets</a>,&rdquo; Aug. 16, 2023
15 Deloitte, &ldquo;<a href="https://www2.deloitte.com/us/en/insights/economy/issues-by-the-numbers/advantages-of-nearshoring-mexico.html">Nearshoring in Mexico</a>,&rdquo; July 13, 2023

Five warehouse trends to watch in 2024 

Hot Topics

Managing Risk

Employee referral programs (ERPs) have long been considered an effective way to recruit new employees. Research shows that referred candidates are more likely to accept offers and less likely to quit.1 This, in turn, results in lower recruiting costs and less turnover, which is a win-win for recruiters and employees alike.
Increasingly, though, employers are looking for referrals to help increase diversity and inclusion (D&amp;I). But how worthwhile are referrals for D&amp;I? The evidence is mixed, but the answer seems to be yes―if they&rsquo;re structured properly.
<h3 style="text-align: left;">Why traditional ERPs are flawed</h3>
In a traditional employee referral program, existing employees are asked to recommend potential candidates in return for an incentive, such as a bonus or time off. But this approach doesn&rsquo;t necessarily help increase diversity&mdash;and may even harm it.
Often, traditional ERPs suffer from nepotism (favouring family and friends), affinity bias (favouring people with similar interests, backgrounds, and experiences) or the halo effect (a cognitive bias in which one quality influences your impression of other qualities, for better or worse).2
In other words, they favour family, friends and those with similar backgrounds and experiences&mdash;and may be influenced by biased impressions of suitability based on traits such as ethnicity or gender. So, if an organization isn&rsquo;t already diverse, it won&rsquo;t become more diverse.
According to a 2017 survey of 53,000 U.S. workers by PayScale, a compensation software and data company, about 40 per cent of all referrals are white men.3 White women are 12 per cent less likely to receive a referral, men of colour are 26 per cent less likely and women of colour are 35 per cent less likely, according to the survey.
<h3 style="text-align: left;">Taking a data-driven approach to D&amp;I</h3>
While ERPs are flawed, they can still work if they&rsquo;re structured properly. The belief that an ERP will negatively impact diversity is flawed, according to HR expert Dr. John Sullivan.4 He argues that data-driven corporate referral programs allow organizations to identify the drivers of negative impacts on diversity&mdash;and to neutralize them.
Compared to even 10 years ago, Sullivan says today&rsquo;s workforces are more diverse and employees are much more connected because of social media. He suggests that organizations should &ldquo;rely 100% on data&rdquo; for their ERP approach to increase diversity. That means using data collected from recruitment efforts to identify what&rsquo;s working and what&rsquo;s not, and then adjusting accordingly.
Organizations also need to make diversity the &ldquo;primary focus and target&rdquo; of referrals, he says, while &ldquo;helping the team&rdquo; should be the primary motivator (as opposed to money). Developing an inclusive corporate culture and targeting diverse referrals starts by educating employees on how diversity improves team performance&mdash;and that this improved performance is an essential reason for increasing diversity.
<h3 style="text-align: left;">Making it work</h3>
This point is reiterated by Candice Morgan, head of diversity and inclusion at Pinterest, in an article for Harvard Business Review, who says that &ldquo;setting diversity goals isn&rsquo;t enough&rdquo; and that you need to repeatedly explain why they matter.5
In 2015, the company set a public goal to hire more women and candidates from underrepresented groups. By continually working to build a culture of inclusion, the company has seen significant increases in referrals in these areas&mdash;despite not offering monetary rewards for referrals.
Chipmaker Intel has also had success in increasing diversity through referrals. The company uses data to determine what is and isn&rsquo;t working and posts the results publicly. In 2015, they committed $300 million to support full workforce representation of women and underrepresented minorities by 2020.6 They achieved this in part by explicitly targeting certain referrals and then offering double the referral bonus for women, minorities and veterans.7
<h3 style="text-align: left;">Improving D&amp;I in the insurance industry</h3>
Each organization is different, and each will require a different approach to increasing D&amp;I. But by making diversity a &lsquo;target&rsquo; and taking a data-driven approach, ERP elements that have worked for other organizations can be adapted successfully in your own organization&mdash;making referrals a worthwhile way to increase diversity and inclusion.


Sources:
[1] Stephen V. Burks, Bo Cowgill, Mitchell Hoffman and Michael Housman; &ldquo;The Value of Hiring through Employee Referrals&rdquo; (The Quarterly Journal of Economics, May 2015, Vol. 130, Issue 2, Pages 805-839).&nbsp;<a href="https://academic.oup.com/qje/article-abstract/130/2/805/2331590?login=false">https://academic.oup.com/qje/article-abstract/130/2/805/2331590?login=false</a>
2 Janice Gassam Asare; &ldquo;5 Anti-Racist Hiring Practices Every Workplace Should Adopt&rdquo; (Forbes, Aug 11, 2022). <a href="https://www.forbes.com/sites/janicegassam/2022/08/11/5-anti-racist-hiring-practices-every-workplace-should-adopt/?sh=7f2270d2187a">https://www.forbes.com/sites/janicegassam/2022/08/11/5-anti-racist-hiring-practices-every-workplace-should-adopt/?sh=7f2270d2187a</a>
3 &ldquo;The Impact of Job Referrals: Effects on Pay, Engagement, Diversity&rdquo; report (Payscale, 2017). <a href="https://v2-wp-staging.payscale.com/data/job-referrals">https://v2-wp-staging.payscale.com/data/job-referrals</a>
4 Dr. John Sullivan; &ldquo;A Referral Program That Actually Increases Diversity&hellip; Requires These Design Features&rdquo; (DJS Talent Management Thought Leadership, Dec. 6, 2021). <a href="https://drjohnsullivan.com/articles/referral-program-increases-diversity-design-features/">https://drjohnsullivan.com/articles/referral-program-increases-diversity-design-features/</a>
5 Candice Morgan; &ldquo;What We Learned from Improving Diversity Rates at Pinterest&rdquo; (Harvard Business Review, July 11, 2017). <a href="https://hbr.org/2017/07/what-we-learned-from-improving-diversity-rates-at-pinterest">https://hbr.org/2017/07/what-we-learned-from-improving-diversity-rates-at-pinterest</a>
6 &ldquo;Intel Diversity and Inclusion Annual Report 2015&rdquo; (Intel, 2015). <a href="https://www.intel.com/content/www/us/en/diversity/diversity-2015-annual-progress-report.html">https://www.intel.com/content/www/us/en/diversity/diversity-2015-annual-progress-report.html</a>
7 Cat Zakrzewski; &ldquo;Intel Doubles Up on Hiring Women and Minorities&rdquo; (The Wall Street Journal, Aug. 3, 2015) <a href="https://www.wsj.com/articles/BL-DGB-42906">https://www.wsj.com/articles/BL-DGB-42906</a>

Are referral programs a worthwhile recruiting tactic for D&I in the insurance industry?

Purpose And Impact

Everyone&rsquo;s experience navigating the workplace as a member of the 2SLGBTQI+ community is unique, so fostering an inclusive culture is very important. That&rsquo;s why Sovereign supports the &lsquo;Proud of You&rsquo; ERG (Employee Resource Group). In June, the ERG hosted a 2024 PRIDE panel, themed: &ldquo;United in Diversity: Celebrated Our Community with PRIDE.&rdquo;
The panel explored the 2SLGBTQI+ experience in the workplace and in greater society. The ERG hosted in-person gatherings at several locations across Canada and livestreamed the event for those who chose to participate online. The in-person gatherings included celebrations and networking opportunities before and after the panel discussion.
<img src="https://files.sovereigninsurance.ca/advice-and-tools/purpose-and-impact/2024/United in Diversity Aurelie Kamayah panel photo.png" alt="A group of people wearing blue shirts holding pride flags" />
&nbsp;Aurelie Kamayah (she/her), Senior Underwriter, Technology and Cyber, at Sovereign Insurance, a member of the ERG and a panelist on the 2024 PRIDE panel, shares her experience of being 2SLGBTQI+ in the workplace, how she got involved with the ERG, and how workplaces can support diverse communities.
<h4>Looking back on your journey, what are some key life lessons you&rsquo;ve learned so far?</h4>
I didn&rsquo;t start enjoying life to the fullest until I was comfortable with who I was&mdash;and when I understood that the Canadian Charter of Rights and Freedoms was put in place to protect me. But I know I&rsquo;m lucky that my family accepts and loves me for who I am. Not everyone was brought up the same way I was. That&rsquo;s why it&rsquo;s important for me to keep advocating for equality and inclusivity so that everyone can feel free to be who they are.
<h4>Did you experience any challenges showing up as your authentic self at work?</h4>
At the beginning, when I was exploring my sexual orientation, I wasn&rsquo;t sure how to answer personal questions at work like, &ldquo;Do you have a boyfriend? Do you want to get married? Do you want to have kids?&rdquo; We&rsquo;ve become so accustomed to answers that relate to the status quo: a nuclear heterosexual family with kids. It didn&rsquo;t feel normal to say, &ldquo;I&rsquo;m a lesbian, I have a partner,&rdquo; until I became more comfortable with my own sexuality.
<h4>Why did you get involved in the &lsquo;Proud of You&rsquo; ERG?</h4>
With my educational background in social sciences and political science, I felt I could contribute my experiences and views&mdash;and hopefully inspire or help educate others. It&rsquo;s given me an opportunity to connect with other members who are openly gay and who have overcome challenges in life and work to be open and honest about their sexuality. I&rsquo;ve made new friends, I&rsquo;ve been given the opportunity to share my views on an internal national platform, and I&rsquo;ve learned quite a bit myself on issues relating to our community.
<h4>How can workplaces better support people who identify as part of the 2SLGBTQI+ community?</h4>
It&rsquo;s important to create safe spaces and plan events geared towards the community, such as supporting activities during PRIDE. It&rsquo;s also important to keep the lines of communication open with all employees and incentivize leaders and employees to use non-oppressive language in the workplace. For those who want to be an ally, educate yourself. When you educate yourself, you end up educating others. When you show up for one marginalized person, you show up for many marginalized people and groups.
<h4>What does PRIDE mean to you?</h4>
It means to love in peace.
You may also like: <a href="https://www.sovereigninsurance.ca/advice-and-tools/purpose-and-impact/a-story-of-resilience-carol-saad-on-why-accessibility-matters">A story of resilience: Carol Saad on why accessibility matters.</a>
<a href="https://www.sovereigninsurance.ca/diversityinclusionjourney">Learn more</a> about how Sovereign is championing DEI initiatives and how you can join the diversity and inclusion journey.

United in diversity: Aurelie Kamayah on celebrating her community with PRIDE

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tools-dynamic

This checklist provides a list of critical items for a driver to check on the vehicle prior to the start of the shift or workday. Completing this checklist not only helps ensure the vehicle is safe to drive, it may also help prevent costly on-road breakdowns.
To use a digital version of this tool, click the "Download Tool" button above. Once the PDF file is downloaded and opened in Adobe Acrobat Reader, click the "Fill &amp; Sign" button in the right column to start digitally filling the PDF file.

Non-commercial Vehicle Pre-trip Inspection Checklist

This checklist tracks the periodical mechanical inspections required for your commercial power units and trailers, to help you ensure that critical safety functions have been inspected and managed appropriately. It also keeps a log of the maintenance history of your inspected equipment, so that you can track maintenance/repair trends. To use a digital version of this tool, click the "Download Tool" button above. Once the PDF file is downloaded and opened in Adobe Acrobat Reader, click the "Fill &amp; Sign" button in the right column to start digitally filling the PDF file.

Fleet Preventative Maintenance Checklist

ontario-equipment-breakdown-boiler-and-pressure-vessel-checklist