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."
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
The “series B” funding round was financed by an unnamed “strategic customer” as well as Teradyne Robotics Ventures, Toyota Ventures, Ranpak, Third Kind Venture Capital, One Madison Group, Hyperplane, Catapult Ventures, and others.
The fresh backing comes as Massachusetts-based Pickle reported a spate of third quarter orders, saying that six customers placed orders for over 30 production robots to deploy in the first half of 2025. The new orders include pilot conversions, existing customer expansions, and new customer adoption.
“Pickle is hitting its strides delivering innovation, development, commercial traction, and customer satisfaction. The company is building groundbreaking technology while executing on essential recurring parts of a successful business like field service and manufacturing management,” Omar Asali, Pickle board member and CEO of investor Ranpak, said in a release.
According to Pickle, its truck-unloading robot applies “Physical AI” technology to one of the most labor-intensive, physically demanding, and highest turnover work areas in logistics operations. The platform combines a powerful vision system with generative AI foundation models trained on millions of data points from real logistics and warehouse operations that enable Pickle’s robotic hardware platform to perform physical work at human-scale or better, the company says.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."