They're not just for heavy lifting anymore. The next generation of forklifts will be RFID-enabled smart trucks that not only collect data but crunch it as well.
John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
For all its metallic paint and high-tech gadgetry, the "Forklift of the Future" will never match the style and flash of, say, the Nissan Urge concept car. But then, almost anything would look stodgy next to the Urge, with its sleek, motorcycle-inspired styling and built-in Xbox 360 gaming system. (Yes, gaming system—when the car's driving controls are deactivated, a monitor folds down from the rearview mirror, and the steering wheel and pedals become game controls.)
Yet there's much more to the Forklift of the Future than meets the eye. The truck—like the Urge, a concept vehicle intended to showcase design innovations—features built-in RFID and mobile computing capabilities. And though it's not wired to let operators play Madden or Chromehounds during shift breaks, the forklift does promise to lighten their workload. For one thing, it allows drivers to read and encode RFID tags without ever leaving the vehicle. For another, it can direct them right to the storage aisles where they need to deliver or retrieve items.
What's truly unusual about the Forklift of the Future, however, is that RFID has been designed into it from the ground up—not added as an afterthought. Its designers—engineers from auto ID specialist Intermec and forklift attachment maker Cascade—went into the project with the goal of integrating RFID technology into the unit's infrastructure, replacing the cumbersome and inefficient bolt-on approach to data collection. "When you throw out your preconceived ideas of what forklifts do today and think about how RFID capabilities could be built into the very structure of a complete forklift equipment system, you begin to realize the efficiencies this type of mobile data-collection system can deliver," says Brad Vandehey, a product manager at Cascade.
That this particular mobile system can deliver is real-time location data and RFID tracking capabilities throughout the DC. Intermec and Cascade integrated the forklift's RFID reader with real-time asset locator technology from Cisco and management software from RedPrairie to create a system that reads RFID tags, collects and wirelessly transmits tracking data, and provides operators with directions for delivering or retrieving items. It also allows managers to keep precise records on their forklifts: who is using them, how fast they drive them, when they bump into something, how often they're idle, and what their maintenance needs are.
Right now, the Forklift of the Future is only a prototype, not a production model. Unveiled at Intermec's Global Partner Conference in February and later exhibited at RFID World in Dallas and RFID World Asia, it is now making the rounds of industry trade shows. But that's not to suggest that trucks like this won't ever be produced. Intermec and its partners are currently talking to manufacturers about bringing something like this to market.
Early warning systems
Like Intermec and its partners, engineers at companies across the country are looking at ways to use RFID technology to transform what has traditionally been one of the most mundane pieces of equipment in the DC into a cutting-edge tool.
As the Forklift of the Future indicates, one area of focus is using RFID to help managers keep better tabs on their lift-truck fleets. Intermec and its partners, for example, are exploring ways to combine RFID technology with the "telemetric" technology that lets truckers remotely monitor their fleet vehicles, tracking each truck's average fuel mileage, run times at various speeds and hard brake conditions, for example.
"There are a ton of things that auto manufacturers capture about a vehicle by using telemetrics, and we're picking up on the fact that some of the forklift manufacturers are starting to do some work in this area," says Bob Eckles, director of industrial marketing at Intermec and a key player in the development of the Forklift of the Future. "There are a number of different things you may want to record about a forklift to give you information about the operational status of the unit. You could monitor shock vibration or hydraulic pressures, and if you deal with a fleet of forklifts, that could provide timely information to help avoid breakdowns."
Indeed, designers of the Forklift of the Future have already taken a step in that direction. The truck is outfitted with Cisco's Wireless Location Appliance, which works in conjunction with RedPrairie's Mobile Resource Management software to provide location tracking via an 802.11 wireless network. Working together, the two systems can provide the X, Y coordinates of an RFID-enabled forklift's location, report movements, monitor dwell time and collect other data useful for security, employee performance auditing, maintenance and asset management applications.
Better operations through RFID
The possibilities for using RFID to improve operations seem almost endless. For starters, there's the promise of RFID-enabled inventory tracking. Companies are beginning to realize that the forklift can become a powerful supsupply chain information tool, quite possibly the center of networking operations within the distribution center. The Forklift of the Future, for example, incorporates software that not only processes the data collected via RFID reads, but can also share it with other applications, including warehouse management, yard management, labor planning and asset management systems.
Another advantage of RFID-enabled "smart" trucks is that they allow forklift operators to dispense with the laborious check-in process at the start of each shift. Instead of manually reviewing a laminated checklist tied to the truck, the driver simply uses a keypad to punch in answers to a series of questions: Is the battery fully charged? Is there any debris on the truck? Is the seatbelt in working order? Aside from saving time, the system would automatically create an electronic record in case it might someday be needed for an OSHA inspection.
Not only that, it would instantly alert technicians if a problem developed with a particular truck. "If there is a piece of equipment that you are unable to drive because it's not safe, it could be days before a mechanic hears about it if you are using a paper-based system," says Pete Rector, senior vice president of strategic initiatives for third-party logistics service provider Genco.
RFID technology may even help DC managers take performance management to the next level. For example, it could be used to verify assumptions about how long a particular task should take—for example, 10 minutes to pick up a pallet and move it to the dock door. RFID allows supervisors to validate their metrics by monitoring the routes drivers take throughout the DC as well as the truck's idle time.
"The goal is to see if that 10-minute standard that you use to drive your entire distribution center operation is accurate," says Ken Ehrman, chief operating officer at I.D. Systems, a company that provides wireless fleet management systems. (I.D. Systems recently signed deals with forklift manufacturers Yale ands Hyster to include its RFID software system on their machines.) "While you might think that 10 minutes means you are operating at 100 percent efficiency, it may turn out that the job actually only takes six minutes," he says. "Our system helps you see the routes drivers are taking, as well as the idle time, in order to verify your metrics. There are opportunities to squeeze more productivity out of operators by looking at information like travel time with a load and without a load, and motion time on a vehicle. All these data points can add a whole new layer of visibility and a way to measure productivity of vehicle operators."
No tag left unread
Beyond that, the RFID forklift technology currently in development promises to cut down on errors and thus, improve accuracy. I.D. Systems, in conjunction with Yale and Hyster, is working on an advanced sensing application that prompts an RFID reader to turn itself on (or off) based on the presence of a load on the truck's forks or predetermined actions by the vehicle, like lifting its forks.
That monitoring capability is expected to lessen the likelihood of reading errors. "The system will be able to identify a situation where an RFID read didn't take place, and the display on the forklift will alert the operator that he picked up a pallet without getting a read," says Ehrman. "The problem can be fixed in real time, not later on when the supervisor realizes you only achieved a 70-percent read rate. We can program the machine to recognize that without a load, there is no reason to energize the reader. Being able to prompt the operator to help assure effective data-collection capability is extremely important to our customers."
In addition, wireless fleet management systems promise to reduce vehicle downtime by helping companies keep closer tabs on spare parts. RFID tags affixed to key parts and components would provide instant visibility as to their whereabouts. Technicians would no longer have to waste time tracking down the parts they need, which would expedite service calls.
"Many companies end up brokering parts amongst different facilities, so having the ability to know where you sent a part and when is critical," explains Eckles. "They probably won't track nuts and bolts, but companies put a lot of money into spare parts and if they are in a campus-type location, knowing where parts are by using RFID can get a truck up and running much faster."
Progress has its price
Of course, these RFID-enabled fleet management systems don't come cheap. Industry experts say it will cost somewhere around $1,000 to outfit a lift truck with RFID technology, and another $25 per truck for monthly software fees. Krista Rose, director of Yale Fleet Management, says her company is working with I.D. Systems to come up with a more costeffective solution. One possibility is a tiered system with graduated fees based on the level of service, so that a customer who only wants hour meter readings pays less than the customer who wants more sophisticated data-collection capabilities.
Another challenge concerns the age and the different types of lift truck units within a company's fleet.
"While RFID technology may work well on brand new units, it can be difficult to put that technology on a truck that is eight years old," says Rose. "If customers use this tool to track their fleet, then they want it on all the units, not just the new ones. Finding a tool that can be placed on all those units in a cost-effective manner without using eight hours of labor to get something hooked up can be a challenge."
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.
Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.
To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.
“Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins,” Chris Leone, executive vice president, Applications Development, Oracle, said in a release. “The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes.”
According to Oracle, specific upgrades feature changes to its:
Production Supervisor Workbench, which helps organizations improve manufacturing performance by providing real-time insight into work orders and generative AI-powered shift reporting.
Maintenance Supervisor Workbench, which helps organizations increase productivity and reduce asset downtime by resolving maintenance issues faster.
Order Management Enhancements, which help organizations increase operational performance by enabling users to quickly create and find orders, take actions, and engage customers.
Product Lifecycle Management (PLM) Enhancements, which help organizations accelerate product development and go-to-market by enabling users to quickly find items and configure critical objects and navigation paths to meet business-critical priorities.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
With the economy slowing but still growing, and inflation down as the Federal Reserve prepares to lower interest rates, the United States appears to have dodged a recession, according to the National Retail Federation (NRF).
“The U.S. economy is clearly not in a recession nor is it likely to head into a recession in the home stretch of 2024,” NRF Chief Economist Jack Kleinhenz said in a release. “Instead, it appears that the economy is on the cusp of nailing a long-awaited soft landing with a simultaneous cooling of growth and inflation.”
Despite an “eventful August” with initial reports of rising unemployment and a slowdown in manufacturing, more recent data has “calmed fears of a deteriorating U.S. economy,” Kleinhenz said. “Concerns are now focused on the direction of the labor market and the possibility of a job market slowdown, but a recession is far less likely.”
That analysis is based on data in the NRF’s Monthly Economic Review, which said annualized gross domestic product growth for the second quarter has been revised upward to 3% from the original report of 2.8%. And consumer spending, the largest component of GDP, was revised up to 2.9% growth for the quarter from 2.3%.
Compared to its recent high point of 9.1% in July of 2022, inflation is nearly back to normal. Year-over-year growth in the Personal Consumption Expenditures Price Index – the Fed’s preferred measure of inflation – was at 2.5% in July, unchanged from June and only half a percentage point above the Fed’s target of 2%.
The labor market “is not terribly weak” but “is showing signs of tottering,” Kleinhenz said. Only 114,000 jobs were added in July, lower than expected, and the unemployment rate rose to 4.3% from 4.1% in June. Despite the increase, the unemployment rate is still within the normal range, Kleinhenz said.
“Now the guessing game begins on the magnitude and frequency of rate cuts and how far the federal funds rate will be reduced,” Kleinhenz said. “While lowering interest rates would be good news, it takes time for rate reductions to work their way through the various credit channels and the economy as a whole. Consequently, a reduction is not expected to provide an immediate uplift to the economy but would stabilize current conditions.”
Going forward, Kleinhenz said lower rates should benefit households under pressure from loans used to meet daily needs. Lower rates will also make it more affordable to borrow through mortgages, home improvement loans, car loans, and credit cards, encouraging spending and increasing demand for goods and services. Small businesses would also benefit, since lower intertest rates could lower their financing costs on existing loans or allow them to take out new loans to invest in equipment and plants or to hire more workers.