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.
Worried that you don't have the staff needed to implement a radio-frequency identification (RFID) pilot program? Here's some good news. Contrary to popular perception, it doesn't take a village—or even a small army—to get a company RFID-ready. If the talent is at hand, all it takes is a few good men or women.
Take the case of Wal-Mart's much vaunted RFID implementation, which was officially launched in January. For all the decisions to be made and questions to be answered (where do we put the tags? what technology do we use?), Wal-Mart used only five people, all from its information systems group, to get its pilot up and running. Even now as it rolls out its RFID program to 100 more suppliers and to additional locations, Wal-Mart has only increased the RFID team's headcount to nine.
Linda Dillman, chief information officer at Wal-Mart, urges others to start small. "Our team in the first year had five associates [who] made this happen at Wal-Mart," she says. "Today we have nine. If you have a small group that understands the business, you can make it happen. Recognize it's a journey. It's not a single step."
Of course, it can't be just any five people. They need to be knowledgeable about RFID. And people with RFID expertise are getting tougher to find. In fact, eight out of 10 respondents to a recent survey conducted by the Computing Technology Industry Association (CompTIA) said a lack of people qualified to implement, service and support the technology could hinder the successful widescale adoption of RFID. Another two-thirds cited training and educating employees in RFID technology as one of the biggest challenges they faced.
"We believe the market needs hundreds of systems integration companies with RFID capabilities; and hundreds of thousands of individuals knowledgeable in this technology to meet current and future demand," David Sommer, vice president of electronic commerce at CompTIA, said during a presentation at RFID World in March.
To address the skills shortage, CompTIA is working with major players in the RFID market. Product manufacturers, distributors, systems integrators, education and training providers, and end-user customers are collaborating to develop a vendor-neutral professional certification of RFID skills for individuals working with the technology.
Slow start
Though it's hard to know how much a shortage of experts has hindered its adoption, it appears that RFID has been somewhat slow to take hold. The survey of CompTIA members (mostly computer service companies and computer manufacturers) found that customer adoption of RFID solutions remains relatively modest. More than two-thirds of the respondents—71 percent—reported that their customers had not yet implemented RFID solutions. And even among respondents whose customers had begun using RFID, it appeared that only a fraction—20 percent— of their customers had gotten involved. (Survey respondents said their customers came from government and a variety of industries, including manufacturing, retail, health care, services, communications, and financial services and real estate.)
Not that the respondents themselves were all that experienced with RFID. A full 80 percent of the responding companies said they either had yet to go past the investigation stage of RFID implementation or had done no investigation at all. Just 16 percent have implemented one or more RFID pilot projects for themselves or their customers. When asked if they saw their company offering RFID products and services in the next three years, 37 percent of the organizations said they definitely would, while 39 percent said they would consider it if there were interest from their customers.
The majority of respondents to the CompTIA survey were value-added resellers and solutions providers (33 percent); consultants and systems integrators (21 percent); and manufacturers (19 percent). Two-thirds of the companies have annual revenues of up to $25 million; while 22 percent are companies with annual revenues of $100 million or more.
what's holding them back?
RFID's early adopters get all the headlines, making it easy to forget that plenty of companies have yet to get started. So why haven't they taken the plunge?
Costs are too high
18%
Technology is still emerging
51%
Confusion in the marketplace
6%
Not enough resources in the industry
2%
Not sure
23%
Source: DC VELOCITY, Warehousing Education & Research Council
this show rocked!
Though undoubtedly footsore and weary after a day packed with seminars, speeches and demonstrations, those hardy souls still standing on the show floor at the end of RFID World's first day got their reward. They were treated to a special performance at an after-hours networking reception. Continuing a tradition begun at the first RFID World show in 2003, the "RFID Jam Band," a group of about a dozen industry professionals who share a fondness for rhythm and blues, took the stage to rock their (RFID) world.
Led by Bill Allen, singer/guitarist/keyboardist and harmonica player (as well as a conference speaker and professional whose day job is director of strategic alliances and programs at Texas Instruments), the group's alternating cast of rock wanna-bes performed a hard-hitting set for just over two hours on the show floor.
Although Gregg Temple, president of Meyers Label Group, stole the show with his rousing rendition of "Mustang Sally," Allen's raspy vocals and harmonica riffs electrified the crowd. Other band members included Rick Morgan of SCAN, the Data Capture Report (bass); Stephen Garth, Oracle (keyboards); Karl Ludwig, Hightech Knowledge Inc. (guitar, vocals); Doug Bourque, Texas Instruments (drums); Robert Stone, Texas Instruments (guitar); Dan Schell, Business Solutions magazine (bass, vocals), Chris Zimmardi, Texas Instruments (bass), and DC VELOCITY's own Emma Shin (vocals).
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.