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."
Occupiers signed leases for 49 such mega distribution centers last year, up from 43 in 2023. However, the 2023 total had marked the first decline in the number of mega distribution center leases, which grew sharply during the pandemic and peaked at 61 in 2022.
Despite the 2024 increase in mega distribution center leases, the average size of the largest 100 industrial leases fell slightly to 968,000 sq. ft. from 987,000 sq. ft. in 2023.
Another wrinkle in the numbers was the fact that 40 of the largest 100 leases were renewals, up from 30 in 2023. According to CBRE, the increase in renewals reflected economic uncertainty, prompting many major occupiers to take a wait-and-see approach to their leasing strategies.
“The rise in lease renewals underscores a strategic shift in the market,” John Morris, president of Americas Industrial & Logistics at CBRE, said in a release. “Companies are more frequently prioritizing stability and efficiency by extending their current leases in established logistics hubs.”
Broken out into sectors, traditional retailers and wholesalers increased their share of the top 100 leases to 38% from 30%. Conversely, the food & beverage, automotive, and building materials sectors accounted for fewer of this year's top 100 leases than they did in 2023. Notably, building materials suppliers and electric vehicle manufacturers were also significantly less active than in 2023, allowing retailers and wholesalers to claim a larger share.
Activity from third-party logistics operators (3PLs) also dipped slightly, accounting for one fewer lease among the top 100 (28 in total) than it did in 2023. Nevertheless, the 2024 total was well above the 15 leases in 2020 and 18 in 2022, underscoring the increasing reliance of big industrial users on 3PLs to manage their logistics, CBRE said.
Oh, you work in logistics, too? Then you’ve probably met my friends Truedi, Lumi, and Roger.
No, you haven’t swapped business cards with those guys or eaten appetizers together at a trade-show social hour. But the chances are good that you’ve had conversations with them. That’s because they’re the online chatbots “employed” by three companies operating in the supply chain arena—TrueCommerce,Blue Yonder, and Truckstop. And there’s more where they came from. A number of other logistics-focused companies—like ChargePoint,Packsize,FedEx, and Inspectorio—have also jumped in the game.
While chatbots are actually highly technical applications, most of us know them as the small text boxes that pop up whenever you visit a company’s home page, eagerly asking questions like:
“I’m Truedi, the virtual assistant for TrueCommerce. Can I help you find what you need?”
“Hey! Want to connect with a rep from our team now?”
“Hi there. Can I ask you a quick question?”
Chatbots have proved particularly popular among retailers—an October survey by artificial intelligence (AI) specialist NLX found that a full 92% of U.S. merchants planned to have generative AI (GenAI) chatbots in place for the holiday shopping season. The companies said they planned to use those bots for both consumer-facing applications—like conversation-based product recommendations and customer service automation—and for employee-facing applications like automating business processes in buying and merchandising.
But how smart are these chatbots really? It varies. At the high end of the scale, there’s “Rufus,” Amazon’s GenAI-powered shopping assistant. Amazon says millions of consumers have used Rufus over the past year, asking it questions either by typing or speaking. The tool then searches Amazon’s product listings, customer reviews, and community Q&A forums to come up with answers. The bot can also compare different products, make product recommendations based on the weather where a consumer lives, and provide info on the latest fashion trends, according to the retailer.
Another top-shelf chatbot is “Manhattan Active Maven,” a GenAI-powered tool from supply chain software developer Manhattan Associates that was recently adopted by the Army and Air Force Exchange Service. The Exchange Service, which is the 54th-largest retailer in the U.S., is using Maven to answer inquiries from customers—largely U.S. soldiers, airmen, and their families—including requests for information related to order status, order changes, shipping, and returns.
However, not all chatbots are that sophisticated, and not all are equipped with AI, according to IBM. The earliest generation—known as “FAQ chatbots”—are only clever enough to recognize certain keywords in a list of known questions and then respond with preprogrammed answers. In contrast, modern chatbots increasingly use conversational AI techniques such as natural language processing to “understand” users’ questions, IBM said. It added that the next generation of chatbots with GenAI capabilities will be able to grasp and respond to increasingly complex queries and even adapt to a user’s style of conversation.
Given their wide range of capabilities, it’s not always easy to know just how “smart” the chatbot you’re talking to is. But come to think of it, maybe that’s also true of the live workers we come in contact with each day. Depending on who picks up the phone, you might find yourself speaking with an intern who’s still learning the ropes or a seasoned professional who can handle most any challenge. Either way, the best way to interact with our new chatbot colleagues is probably to take the same approach you would with their human counterparts: Start out simple, and be respectful; you never know what you’ll learn.
With the hourglass dwindling before steep tariffs threatened by the new Trump Administration will impose new taxes on U.S. companies importing goods from abroad, organizations need to deploy strategies to handle those spiraling costs.
American companies with far-flung supply chains have been hanging for weeks in a “wait-and-see” situation to learn if they will have to pay increased fees to U.S. Customs and Border Enforcement agents for every container they import from certain nations. After paying those levies, companies face the stark choice of either cutting their own profit margins or passing the increased cost on to U.S. consumers in the form of higher prices.
The impact could be particularly harsh for American manufacturers, according to Kerrie Jordan, Group Vice President, Product Management at supply chain software vendor Epicor. “If higher tariffs go into effect, imported goods will cost more,” Jordan said in a statement. “Companies must assess the impact of higher prices and create resilient strategies to absorb, offset, or reduce the impact of higher costs. For companies that import foreign goods, they will have to find alternatives or pay the tariffs and somehow offset the cost to the business. This can take the form of building up inventory before tariffs go into effect or finding an equivalent domestic alternative if they don’t want to pay the tariff.”
Tariffs could be particularly painful for U.S. manufacturers that import raw materials—such as steel, aluminum, or rare earth minerals—since the impact would have a domino effect throughout their operations, according to a statement from Matt Lekstutis, Director at consulting firm Efficio. “Based on the industry, there could be a large detrimental impact on a company's operations. If there is an increase in raw materials or a delay in those shipments, as being the first step in materials / supply chain process, there is the possibility of a ripple down effect into the rest of the supply chain operations,” Lekstutis said.
New tariffs could also hurt consumer packaged goods (CPG) retailers, which are already being hit by the mere threat of tariffs in the form of inventory fluctuations seen as companies have rushed many imports into the country before the new administration began, according to a report from Iowa-based third party logistics provider (3PL) JT Logistics. That jump in imported goods has quickly led to escalating demands for expanded warehousing, since CPG companies need a place to store all that material, Jamie Cord, president and CEO of JT Logistics, said in a release
Immediate strategies to cope with that disruption include adopting strategies that prioritize agility, including capacity planning and risk diversification by leveraging multiple fulfillment partners, and strategic inventory positioning across regional warehouses to bypass bottlenecks caused by trade restrictions, JT Logistics said. And long-term resilience recommendations include scenario-based planning, expanded supplier networks, inventory buffering, multimodal transportation solutions, and investment in automation and AI for insights and smarter operations, the firm said.
“Navigating the complexities of tariff-driven disruptions requires forward-thinking strategies,” Cord said. “By leveraging predictive modeling, diversifying warehouse networks, and strategically positioning inventory, JT Logistics is empowering CPG brands to remain adaptive, minimize risks, and remain competitive in the current dynamic market."
With so many variables at play, no company can predict the final impact of the potential Trump tariffs, so American companies should start planning for all potential outcomes at once, according to a statement from Nari Viswanathan, senior director of supply chain strategy at Coupa Software. Faced with layers of disruption—with the possible tariffs coming on top of pre-existing geopolitical conflicts and security risks—logistics hubs and businesses must prepare for any what-if scenario. In fact, the strongest companies will have scenarios planned as far out as the next three to five years, Viswanathan said.
Grocery shoppers at select IGA, Price Less, and Food Giant stores will soon be able to use an upgraded in-store digital commerce experience, since store chain operator Houchens Food Group said it would deploy technology from eGrowcery, provider of a retail food industry white-label digital commerce platform.
Kentucky-based Houchens Food Group, which owns and operates more than 400 grocery, convenience, hardware/DIY, and foodservice locations in 15 states, said the move would empower retailers to rethink how and when to engage their shoppers best.
“At HFG we are focused on technology vendors that allow for highly targeted and personalized customer experiences, data-driven decision making, and e-commerce capabilities that do not interrupt day to day customer service at store level. We are thrilled to partner with eGrowcery to assist us in targeting the right audience with the right message at the right time,” Craig Knies, Chief Marketing Officer of Houchens Food Group, said in a release.
Michigan-based eGrowcery, which operates both in the United States and abroad, says it gives retail groups like Houchens Food Group the ability to provide a white-label e-commerce platform to the retailers it supplies, and integrate the program into the company’s overall technology offering. “Houchens Food Group is a great example of an organization that is working hard to simultaneously enhance its technology offering, engage shoppers through more channels and alleviate some of the administrative burden for its staff,” Patrick Hughes, CEO of eGrowcery, said.
The 40-acre solar facility in Gentry, Arkansas, includes nearly 18,000 solar panels and 10,000-plus bi-facial solar modules to capture sunlight, which is then converted to electricity and transmitted to a nearby electric grid for Carroll County Electric. The facility will produce approximately 9.3M kWh annually and utilize net metering, which helps transfer surplus power onto the power grid.
Construction of the facility began in 2024. The project was managed by NextEra Energy and completed by Verogy. Both Trio (formerly Edison Energy) and Carroll Electric Cooperative Corporation provided ongoing consultation throughout planning and development.
“By commissioning this solar facility, J.B. Hunt is demonstrating our commitment to enhancing the communities we serve and to investing in economically viable practices aimed at creating a more sustainable supply chain,” Greer Woodruff, executive vice president of safety, sustainability and maintenance at J.B. Hunt, said in a release. “The annual amount of clean energy generated by the J.B. Hunt Solar Facility will be equivalent to that used by nearly 1,200 homes. And, by drawing power from the sun and not a carbon-based source, the carbon dioxide kept from entering the atmosphere will be equivalent to eliminating 1,400 passenger vehicles from the road each year.”