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."
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."