Protecting trucks out on the open road may seem like the impossible dream. But high-tech tools designed to safeguard hazardous materials from terrorists could cut down on more commonplace thefts as well.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
When you think of weapons of mass destruction, the truck may not be the first thing that comes to mind. But if you recall the first time terrorists attacked the World Trade Center in New York, they used not hijacked airplanes, but a rental truck packed with explosives. A truck was also the weapon of choice for the terrorists who destroyed the federal building in Oklahoma City. Then shortly after 9/11, the Justice Department announced that it had indicted 22 people for obtaining fraudulent commercial drivers licenses to transport hazardous materials. The prospect of terrorists' commandeering trucks loaded with radioactive or biohazardous cargo has kept security professionals awake at night ever since.
It took 9/11 to jolt both the government and the trucking industry into action. Since that date, trucking executives and federal officials have sought to answer the vexing questions of how best to protect truck cargo, how to prevent hijackings, and how to verify the identity of the person behind the wheel. In the meantime, technology companies have sprung into action, devising new security devices, modifying older ones to raise the level of security or integrating them into sophisticated high-tech systems.
What's often overlooked, however, is the technology's versatility. Advanced security systems designed to thwart terrorists can also deter more common thieves, halt and track down the perpetrators if a truck is stolen, and even improve fleet performance. Whether it's a biometric smart card that verifies the driver's identity, a remote disabling system that lets a dispatcher shut down a hijacked vehicle by satellite, or a smart seal that monitors a container's status in real time, fleet managers are learning that their investments can also pay off in better visibility and control over their rolling assets.
It's that promise of greater efficiency, productivity and control that may, in the end, sell these tools to senior management. Asset control remains a big worry for truckers. "Right now, losses due to theft in interstate commerce run from $10 billion to $20 billion annually—and that's just the price of the goods," says Norm Ellis, vice president and general manager for Qualcomm Wireless Business Solutions, a company that provides mobile communications and satellite tracking services. "It's a huge problem—much bigger than hazmat, but because of 9/11, that's gotten the attention."
Security technology will actually save truckers money in the long run, adds Lani Fritts, vice president of business development for Savi Technologies. "I think historically, security has been viewed as a cost, but I think with the new technology being employed, [companies will find] there is a net benefit over time."
Lockdown!
In the meantime, the Federal Motor Carrier Safety Administration (FMCSA) has gotten into the game. The agency has been conducting a year-long study of various security devices coupled with wireless and terrestrial communications to see how well they can protect hazardous materials shipments.
The study, known as the Hazardous Materials Safety & Security Operational Test, involved both fleet operators and technology providers and concentrated particularly on shipments of bulk fuel, high hazard materials, bulk dry chemicals and explosives. The agency said it planned to quantify the costs and benefits of various types of technology to help truckers make more informed choices.
DOT officials declined to comment on the test results until the report was released (the findings had yet to be issued at press time). But representatives of several of the participant companies were willing to talk about some of the technologies tested and their applications to daily fleet operations.
Ellis of Qualcomm, for example, reports that testers were able to demonstrate remote vehicle disabling technology's effectiveness to the FMCSA's satisfaction. Remote disabling, he explains, allows a dispatcher to put a truck into a "limp mode," by sending commands over the air telling the vehicle to downshift and limit the throttle capability. The idea is to let the truck slow down gradually— rather than halt abruptly—but still prevent normal operation.
Remote disabling technology can also be integrated into a remote panic and emergency notification system. In an emergency, a driver can press a panic button on the dashboard or use a key-fob panic button if the driver is within a few hundred feet of the truck. The system then remotely alerts a dispatcher, who can shut down the vehicle.
In fact, the FMCSA pilot program took the testing to another level, says Ellis. The agency ran trials in which signals activated by the panic alarm were broadcast to participating emergency response teams (like police and fire fighters) from New York, California, Texas and Illinois. "We actually built in the ability to pass information not only to the dispatcher and our network center, but also to the appropriate first responder in the event of, say, a hazmat spill," says Ellis. "The test showed clearly we can definitely allow that flow as appropriate."
Is that really you?
Other field tests evaluated various types of driver authentication technology—systems designed to ensure that only an authorized person takes the wheel. Making sure the right person is driving a particular truck is more than just a security issue, Ellis says. "It also has productivity benefits and ensures regulatory compliance as well."
One of the technologies tested required a global log-in that is authenticated remotely. "If you were to try to move a vehicle without signing in appropriately or tried too many times, alerts would go off, and you could take action," Ellis explains.
A more sophisticated version of driver authentication—a system that uses biometrics—was also included in the testing. "You might have a smart card that has a fingerprinting ID," Ellis explains. "You put your finger in, the card goes in, the information goes over the air, and the system does the authentication. We know it's the right employee with the right tractor and the right trailer.You start to build some nice cross benefits. That's how we can make it cost justifiable."
When linked to a satellite communication system, biometric technology lets managers verify that authorized personnel are handling shipments at every step from manifest to final delivery, says Christina Jin, project manager for Saflink, a Bellevue, Wash.-based provider of biometric identification tools. Saflink's Physical Access Group, formerly known as the Biometric Solutions Group Inc., has developed a tracking system that makes use of smart cards and biometrics to time- and date-stamp each event in a hazmat shipment's journey, in effect, creating an audit trail for the entire process. Once the system is activated, the company says, only an authorized driver with an active smart card can transport a particular hazmat shipment.
Do fence me in
Another technology developed to provide early warning if something goes awry is what's known as geo-fencing. Ellis explains that geo-fencing systems alert fleet managers in real time should a truck "break out of the fence"—that is, depart from a pre-preprogrammed route.
Though developed to deter terrorists, the technology has potential benefits for daily operations, he claims. "If you're paying for fuel and a truck goes off route, not only do you have a potential security risk, but the driver is burning your fuel. We're trying to blend those things together. It's not just about security; it's security and productivity based."
Dispatchers can use geo-fencing capabilities not only to keep a truck from wandering off course but also to alert authorities if it enters a proscribed area—say, the area surrounding the White House. "We tested both of those capabilities," Ellis reports, "and the tests were very successful."
The field tests also evaluated the potential for systems that remotely monitor electronic seals. Savi Technologies, which develops sealing systems that use RFID technology to transmit information about freight containers, is one of the companies that participated in these trials. "What we were working on was integration of the sealing systems with incab and satellite systems," says Savi's Fritts. "You always have communication with the device, but you can keep the cost relatively low."
Fritts says that when used together, smart seals and satellite communication allow the continuous monitoring of high-risk cargo that might be targeted by terrorists. With hazardous loads, it's not enough to know that something didn't show up at the next checkpoint, he says. "If something changes, you need to know right away."
But again the applications aren't confined to hazmats. Fritts says the technology would be equally useful for monitoring rigs that haul high-value goods as well as items sensitive to environmental conditions, like food or electronic products that can be damaged by excessive g-forces. Knowing if and where product damage occurred lets the shipper assign liability and ensure that damaged goods aren't delivered to customers.
Will all this technology be coming to a dealer near you anytime soon? Don't count on it. Ellis says he believes the various systems offer great commercial promise, but he acknowledges that it's not quite ready for prime time. "Some of the integration still has to be stepped up," he says. "We want that to be more robust if we want to make it commercially available."
making America's highways safer
Conventional wisdom holds that accidents will happen, but Tom Rule refuses to accept that. When it comes to safety, he says his goal is nothing less than perfection. "We'd like to achieve zero/zero performance," says Rule. Zero/zero performance? That's no accidents, he explains. And no injuries.
It's not just talk. Rule, who is vice president of operations for Logex, a contract carrier that hauls industrial gases, is doing what he can to bring the nation's trucking industry closer to that goal. How does he expect to get there? "Technology will play an important part in that," he told attendees at the National Private Truck Council's second annual National Safety Conference last month.
One area in which he believes technology is making particular headway is the prevention of deadly rollovers. "It's an issue for the entire trucking industry, especially tankers," Rule says. Rollovers present a particular hazard to tractor-trailers because a driver can't always tell when a trailer's about to tip. By the time the driver realizes he's in trouble, it's usually too late. One remedy is a roll stability advisor that sets off a series of alarms if the system detects speed or other factors that put the truck at risk. In the works is a second generation of the system that will apply the truck's Jake brake and cut off the fuel supply should the driver fail to take corrective action.
Another common cause of highway accidents is what safety experts call an unintended lane departure, which occurs when a drowsy or inattentive driver lets the truck drift out of its highway lane. More than 18,000 highway deaths a year are related to unintended lane departures, according to Iteris, a maker of lane departure warning systems and other technology.
To deliver a wakeup call, Iteris and others market systems that use a miniature camera mounted in the truck's windshield. Should the truck drift out of its highway lane, the camera detects the drift and sends a signal to the system, which alerts the driver with an alarm that sounds like a vehicle driving over a rumble strip. The system is deactivated when the driver turns on a directional signal to indicate he's deliberately changing lanes.
Technology also can help address the visibility challenge: truck drivers' inability to see the vehicles around them. To minimize the dangers posed by blind spots, managers like Rule are investing in radar systems that can sense vehicles in front of or beside them (Rule makes them standard equipment on the tractors he buys). One such system is Eaton VORAD, an acronym for Vehicle Onboard Radar. Eaton, which manufactures components for medium- and heavy-duty trucks, says the system warns the driver of potential hazards such as stopped or slow-moving vehicles. Among the options available with the system is one dubbed BlindSpotter, which alerts a driver to obstacles off to the side.
Rule says he's found VORAD useful not only as a safety system, but as a training tool as well. "It allows you to measure drivers' effectiveness regarding … following' distances," he says. "You can monitor their performance and speak to the driver at the end of his tour of duty."
Despite their dazzling capabilities, Rule warns that taken together, all these whiz-bang gadgets could prove to be too much of a good thing. The more safety devices installed in the cab, he explains, the greater the risk that they'll end up distracting the driver. Rule believes the answer lies in industry standardization. "As more and more technologies emerge," he says, "there have to be more efforts to develop standards for inside the tractor. All [the suppliers] have their own bells and whistles. The manufacturers have to get together; they have to have a common interface or a common plug."
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."