Did you know that within the glass industry, there are over 3 million racks circulating, yet a significant portion remains untracked, treated merely as an operational expense? Surprisingly, these essential assets spend a staggering 80% of their time outside the facility. With between 10% to 20% of these racks lost annually, the financial implications are substantial, with potential losses ranging from $35,000 to $75,000 for a plant utilizing 3,000 racks.

But the consequences extend beyond mere monetary losses. Lost racks directly impact shipping operations, which constitute 25% of a float plant’s total freight expenditure. Through conversations with over 50 plant managers, common scenarios emerged, shedding light on the real-world consequences of untracked racks:

  1. Inadequate Rack Size: Insufficient racks for a shipment can lead to delays and disruptions in fulfilling customer orders.
  2. Mismatched Racks for Production Runs: Without the right rack available, production processes can grind to a halt, causing costly downtime.
  3. Expensive Backhauls: The need to resort to expensive backhaul options due to misplaced or unavailable racks adds unnecessary financial strain.

In light of these challenges, the question arises: Can tracking racks facilitate quicker retrieval and reduce backhaul costs? The answer, according to industry insights and emerging trends, is a resounding yes.

Author – Kacey Weaver

Kacey Weaver

Chief Operations Officer

Diverse background in the healthcare services industry, across sales, finance, supply chain, procurement, and logistics. Most recently, VP of Logistics & Strategic Sourcing, at Universal Hospital Services. BS in Biological Engineering from the University of Missouri, and MBA from Washington University in St. Louis.

Andy Gustafson

General Counsel

Corporate law expertise in M&A Faegre Baker Daniels LLP in Minneapolis and Mayer Brown LLP in Chicago. Most recently served as In-House Counsel for General Mills’ external supply chain division. BS from Northwestern University and a JD from the University of Minnesota.

J. Andrew “Axe” Axel

Chief Financial Officer

20 years of experience in capital markets, including managing public stock offerings, private placements of equity and debt, and advising buyers and sellers in merger transactions. Career focused on investing in, and advising, companies pursuing disruptive technologies. Helped finance over $2B in transactions as an investment banker in Silicon Valley and served as SVP at Mitsubishi Finance. BA from Dartmouth College.