Makers of early wearable computers like the Gladiator limped away from the first battle for the auto ID market. Now they're getting ready to re-enter the arena. And this time, the battle's outcome promises to be different.
James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
Jerry Sacks' first encounter with wearable computers came back in 1996, when—in what was a radical move for the time—his systems integration firm, SAE, installed them in a client's DC. In those days, the decision to deploy wearables seemed a bit of a gamble. They were relatively new to the market. They were largely untested. And by today's standards, they were both primitive and unwieldy, with their tangle of belts, cables, keyboards, displays and scanners. But they also offered a revolutionary promise: hands-free operation.
SAE's big bet paid off. Its client, a major grocery chain, had been looking for a system to verify pick accuracy, and as Sacks had predicted, wearable computers filled the bill. Once SAE had deployed the first computers, Symbol's Gladiator units, the grocery chain saw huge gains in both productivity and pick accuracy, Sacks reports. After the test, the company ordered more than 600 additional Gladiator units.
But the technology's early promise was to go unfulfilled. Despite success stories like SAE's, the technology gained only limited traction over the next few years. It developed a small but loyal following among parcel carriers and customers in the food-service industry, which found wearable computers useful for picking and truck-loading applications. But as the novelty of wearable computers wore off and potential customers got sidetracked by newer, flashier devices, the technology languished.
"For the past couple of years, we would go to trade shows and customers [only wanted to talk about] voice technology," says Sacks, who is president of SAE. "They didn't want to deal with wearables 'cause it was old technology." But that's starting to change, Sacks reports. "In the last six months, we've had people come in to talk to us about voice, but by the time they leave they want to use the new wearables."
New and improved
What's causing all the stir is the arrival of a whole new generation of wearables—units that are far lighter, sleeker and more versatile than the ones they replaced. The models hitting the market today have evolved well beyond the bulky back-of-the-hand scanning devices sold in the '90s.
Take the Gladiator, for instance. Introduced by Symbol Technologies back in 1992, the Gladiator, which earned its nickname for its resemblance to the hand armor worn by Roman fighters, was anything but sleek. "You wore the Gladiator on a belt in a pouch on your back," Sacks recalls. "It had two cables coming out of the pouch. One went to the right arm, the other the left. The right arm had a [keyboard and] display, the left had a [bar code] scanner." The unit, officially known as the Application Productivity System (APS) 3395, ran on a 16-bit, DOS-based computer.
Symbol updated the technology in the mid '90s, introducing a miniature scanner that was worn as a ring. A worker using this system, called the WS 1000, could scan an item by simply pointing the ring scanner at the bar code.
This past fall, Symbol—which was acquired by Motorola last month—introduced the newest version of its wearable mobile computer, the WT4000. This system uses either a RS309 wearable scanner or a RS409 ring scanner. The RS309, worn on the back of the hand, is designed for use in both freezer and non-freezer warehouse environments. The RS409 scanner is a lightweight, rugged device that can be worn directly on the finger or over a glove.
Not only are the WT4000 units smaller, lighter and sleeker than their predecessors, but they're also designed to integrate with voice technology and come with a color display screen, says Jerry McNerney, the company's senior director of transportation, distribution and logistics solutions. McNerney adds that the new WT4000 units also feature an improved ergonomic design, with what he terms a "more arm-pleasing fit." The unit carries a list price of $2,790.
Slipping into something a little more compatible
Yet for all the WT4000's ergonomic improvements, perhaps the most significant breakthrough involves its operating system. The WT4000 runs on the Windows CE platform rather than the DOS operating system, which makes it easier to integrate into modern warehouse management systems (WMS) and IT networks. The Win CE system also accommodates a graphical user interface (GUI) with the facility's host warehousing system, which allows the familiar Windows icons to be displayed on the unit's screen.
"The company has migrated to Win CE because that's where the computer industry has gone," says Tom Singer, a principal at Tompkins Associates, a supply chain consulting firm based in Raleigh, N.C. "A lot of WMS systems now have a GUI interface for Windows CE."
Motorola (as Symbol is now known) isn't the only manufacturer that now offers Windows CE-compatible wearable computers. At the moment, it faces competition from LXE Inc. The Norcross, Ga.-based company plans to market its mobile computer, the HX2, this spring. Like Motorola's model, the HX2 runs on the Windows CE operating system and offers a color display. It's designed to be worn on the arm or waist and comes with a ring scanner. The HX2 unit, which uses an Intel Xscale processor, is also voice-technology enabled. LXE has priced its system just a dollar below Motorola's, at $2,789.
Motorola and LXE also face competition from Psion Teklogix Inc. of Mississauga, Ontario, which recently teamed up with Socket Communications of Newark, Calif., to offer a wearable unit. The two companies have bundled together Socket's Cordless Ring Scanner 9P with Psion's 7535 and Workabout Pro Mobile Computing devices, both of which feature color displays. The system runs on Win CE as well as the Windows XP and Windows Mobile platforms. A spokesman for Psion Teklogix says that the ring scanner is priced at around $1,220 ($1,438 Canadian) per unit, but that the cost of the complete system varies.
Still another player in the wearables market is Metrologic Instruments Inc. of Blackwood, N.J., which makes a glove scanner that fits over a worker's hand and wrist. The wearable laser scanner sits on top of the glove, allowing a worker to scan a bar code by pointing at it. The scanners are designed to be connected to a personal data terminal or desktop computer. Each glove scanner costs about $200. A spokesman for Metrologic says the cost of a system that includes the scanner varies based on the data terminal selected.
Look, Ma—no hands!
Operating systems aside, the primary selling point of the wearable, mobile computer remains its ability to boost productivity by freeing up workers' hands. With a traditional bar-code scanning gun, the worker has to take the unit out and point it at a bar code to scan it. "Taking a scan gun out of a holster creates wasted motion," says Sacks.
With a wearable computer, a worker can read a bar code by simply pointing a hand or ring scanner at it, which makes it ideal for use in picking applications. "It's a picking tool," explains Mark Dessommes of LXE. "You'll get picking efficiencies with an arm-wearable scanner because you don't have to pull a unit in and out of a holster." Wearable computers hold particular appeal for warehouses and DCs that require workers to pick large volumes of individual items. Wearables are also well suited to truck-loading applications in which workers have to stack boxes and scan their bar codes for verification. The technology has also found a place in warehouses that process returned items.
Despite the attraction of hands-free picking, the units do have some drawbacks. For starters, there's the question of weight. Some observers believe that in spite of the advances made in recent years, the units are still too heavy for workers to carry around comfortably for a full shift.
Another drawback is that in many centers, workers must share equipment. Singer reports that he's seen some worker resistance to sharing wearable units with workers on different shifts. But that doesn't have to be a deal breaker, he says. "You handle this issue by getting multiple bands for each individual worker to strap on the computer."
But perhaps the biggest drawback has been price. Wearable units are more expensive than the traditional handheld scanning guns, which means that a DC must have a fairly high-volume picking operation in order to justify the cost. "I've got clients who love them, and some who hate them," says Singer of Tompkins Associates. "It has to be … the right environment."
In tune with voice
Strange as it may seem, the renewed interest in wearables is also due in part to another technology that's sweeping through warehouses across the country: voice. True, wearable computers, which are somewhat less expensive than voice systems, compete with voice for business, especially in the hands-free picking market. But they can also complement voice technology when combined with it in dual-purpose systems.
That's particularly true of applications that require workers to verify their picks. In the typical voice-directed picking operation, workers are required to recite a series of check digits to verify that they've taken the right item from the right slot. But all too often, workers end up circumventing the tedious check process. As they become familiar with the coding system, they'll read back the check digits before they actually retrieve the item—a deviation from procedure that can lead to errors.
Systems that combine wearable computers with voice technology eliminate that problem. With dual-purpose systems, workers no longer have to stop and read a multi-digit check number into a headset; once they retrieve an item, they simply scan its bar code with a ring scanner. And the potential benefits don't end there. Along with the promise of enhanced accuracy, dual-purpose systems also offer the productivity benefits associated with a system that delivers picking instructions verbally, freeing the workers' eyes as well as their hands.
The dual technology is already here. "The next generation of wearables, both from LXE and Motorola, are voice enabled," says Singer. "So you can use them as dual-purpose units."
The potential benefits of the dual system haven't gone unnoticed by DCs. Richard Barnes, a project manager with the consulting firm Tom Zosel Associates of Long Grove, Ill., says that one of his clients is considering deploying the dual-purpose system in its high-volume DC. A large part of its appeal lies in the dual system's hands-free operation, he says. "They're looking at saving a few seconds between putting down the [scanning] gun and having to pick it up," Barnes explains. "Hands-free saves those seconds. Our labor standards group has confirmed [that the client can expect] productivity improvements with a hands-free option."
Steve Banker, an analyst with ARC Research in Dedham, Mass., agrees. This combination of voice and wearables creates a "broader set of capabilities" for a warehousing operation, says Banker. And DCs don't have to take it on faith. Banker reports that DCs can now use simulation software to test the concept before they buy the technology. "Without risk, you can pre-verify whether changes make sense," he says.
They've gotta have it
That's not to say that the wearable computers' market prospects depend on voice technology's success. Even if dual-purpose systems fail to catch on, many industry experts expect sales of the new wearables to surge over the next few years. Market research firm Venture Development Corp. (VDC) in Natick, Mass., which pegged the rugged wearables market at $110 million in 2005, predicts the market will reach $291.91 million by 2010.
Some of that growth is expected to come from upgrades. Existing customers will find the new, improved technology hard to resist, observers say. For some, the attraction will be the opportunity to replace their old DOS units with the new Win CE version. For others, it will be the chance to upgrade to the new color display screens, which are offered on the Motorola, LXE and Psion Teklogix/Socket units. "Color displays are easier to read," says Sacks. "Companies expect that by trading up from monochrome to color, they'll see productivity gains because it's faster for workers to read. The old DOS units [with monochrome screens] could be hard to read in warehouses that weren't well lit."
The new systems—with their dazzling features and promise of quantifiable business benefits—are expected to attract new customers as well. "Every warehouse will want this new stuff," predicts Sacks. "In part that's because it's a new toy, but it's also because they can expect productivity improvements."
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”
That result showed that driver wages across the industry continue to increase post-pandemic, despite a challenging freight market for motor carriers. The data comes from ATA’s “Driver Compensation Study,” which asked 120 fleets, more than 150,000 employee drivers, and 14,000 independent contractors about their wage and benefit information.
Drilling into specific categories, linehaul less-than-truckload (LTL) drivers earned a median annual amount of $94,525 in 2023, while local LTL drivers earned a median of $80,680. The median annual compensation for drivers at private carriers has risen 12% since 2021, reaching $95,114 in 2023. And leased-on independent contractors for truckload carriers were paid an annual median amount of $186,016 in 2023.
The results also showed how the demographics of the industry are changing, as carriers offered smaller referral and fewer sign-on bonuses for new drivers in 2023 compared to 2021 but more frequently offered tenure bonuses to their current drivers and with a greater median value.
"While our last study, conducted in 2021, illustrated how drivers benefitted from the strongest freight environment in a generation, this latest report shows professional drivers' earnings are still rising—even in a weaker freight economy," ATA Chief Economist Bob Costello said in a release. "By offering greater tenure bonuses to their current driver force, many fleets appear to be shifting their workforce priorities from recruitment to retention."