Data bits swirl through the air in DCs across the country, moving vital information without a cable or cord in sight. So why have companies been so slow to take wireless on the road?
If the wireless future is here, swept in on a wave of technology that allows information to be zapped from point A to point B without the copper wires, why aren't more logistics operations using it? Right now, the majority of wireless devices are largely housebound—or more precisely, warehouse-bound—rarely venturing outside the distribution center or terminal yard. But that could change soon. If industry can get this show on the road, companies could someday be able to tap into those bit streams up and down the supply chain.
In many ways, wireless transmission of data, whether it involves the laser reading of bar codes,tags that employ radio waves or cellphone microwaves, is a technology looking for a home in the logistics world. "We're still trying to figure out where it fits to make the most value," says Dave Adams, vice president of global services at GT Nexus, a logistics and transportation management software firm based in Alameda, Calif.
Even the vendors concede that wireless has been a bit slow out of the gate. Matt Armanino, vice president of business development at Santa Clara , Calif.-based WhereNet, which uses wireless radio technology to pinpoint the location of truck chassis and forklifts, says his company 's products are sti ll mostly used in concentrated areas of cargo activity, such as warehouses, port terminals and truck yards.
"Our typical user is a person who's operating the yard," Armanino says."People who manage distribution centers tend to have a black hole [somewhere in their operations] where they lose their assets," he explains. "They've tended to manage assets with warehouse management, yard management, transportation management and plant floor production software systems, but the Achilles' heel is that they're physically disconnected to the assets they're supposed to be managing. Often the data about those physical assets is still gathered manually … and often, that information is out of date or incorrect."Wireless could change all that.
Making a connection
Though wireless providers and logistics users have yet to establish what might be termed a high-speed connection, some of the industry's heavyweights have taken steps in that direction. For example, Portland, Ore.-based Con-Way has embraced wireless technology based on both bar-code and satellite communication,says Jackie Barretta, vice president of information services. Con-Way, which is both a carrier and a third-party logistics service provider, sees wireless as an economically viable way of tracking cargo as it moves through the warehouse as well as on the road.
Bits swirl through the airwaves today at Con-Way's warehouses with nary a cable in sight. Con-Way uses forkliftmounted automatic bar-code readers from Intermec to register when goods are received and handheld units to manage picking and packing at its six warehouses across the United States. Deploying the readers has made these operations paperless, Barretta says. It's also made them reliable. "[Scanning] gives us an order fill accuracy rate of 99-plus percent," she reports. "It also gives us a rather rapid order fill that allows those six warehouses to offer next-day services to around 90 percent of the U.S. population. That benefits the customer," she adds.
Yet in all too many companies, that intricate data-transmission infrastructure crumbles once the cargo leaves the warehouse—just when it could be most useful. People need data to make real-time decisions about freight on the spot, when there's no time to go to a PC, says Adams, who believes wireless technology's real potential lies in the dynamic management of freight while it's in transit. "Today that's often done via cellphone —you communicate with somebody running the numbers in the office and if they decide to change and drop off load B instead of load A first, you call and ask the driver to change the route. In a wireless world, the route plan would be popping up and would be updated, telling the driver to go somewhere else."
In fact , truckers have begun joining the wireless world, albeit slowly. Barretta reports that Con-Way's express delivery service, Con-Way NOW, has fitted global positioning satellite (GPS) technology to all trucks in the fleet, which means a driver doesn't even have to enter information about location—it's done automatically. Many trucks that belong to oth er companies but are used by Con-Way as part of its third-party service also feature this technology. "We're integrating with a lot of carriers and getting information from them when they're moving the freight,"Barretta says."We're finding that more and more carriers have a wireless connection."
Barretta herself has a handheld Siemens T-Mobile device that functions as a cellphone and more—it receives e-mails and Blackberry messages and even allows her to open e-mail attachments while she's out on the road. Though she uses it to keep track of IT projects, the same sort of device could help managers in logistics and other departments who have to be away from their desks regularly.
Cutting the cord
Meanwhile, adoption of wireless technology in the logistics space remains relatively slow, limited mainly to the lessthan-truckload and expedited parts of the business, says Kevin Moore, Intermec's logistics business development manager. "Transportation and logistics companies tend to be technology skeptics," he says."But I think the early adoption [phase] is over, and the missionary work's been done. Now those skeptics who've been on the sidelines are saying: 'It's real, it's here. So how do we make the best use of the technology and tools?'"
Wireless equipment providers like Intermec, PsionTeklogix and Symbol Technologies are working hard to develop products that will help a wider range of customers do a wider range of things. Moore says Intermec is "on the cusp" of releasing multi-functional wireless devices that a logistics manager can use either in a warehouse or off the premises, able to connect either with a local-area computer network or a wide-area network, depending on where he is. Vendors are also developing equipment that uses Bluetooth technology, which allows a device to hook into the network without being near a transmitter. Bluetooth devices form a sort of tag-team signal through any other Bluetooth devices nearby, carrying on until the signal hits the nearest bit of communications infrastructure. This removes the need to be close to a transmitter / receiver—a problem familiar to everyone who's had trouble getting a cellphone signal.
Andrew Zolli, founder of Z Plus Partners, a consulting group in Brooklyn, N.Y., sees this communications bucket brigade—where one wireless device uses another to send and receive signals—as the future of wireless technology. In 10 years,he predicts,individual products will have "dynamic packaging," which will be capable, via RFID and other technologies, of transmitting signals via other, nearby wired products. A quart of milk will be able to actively transmit information about what it is, where it is and how fresh the contents are.
WhereNet's Armanino predicts at the very least a huge adoption of proactive wireless tracking technology across the supply chain. "Ten years from now it will be hard to imagine assets that don't identify themselves and give information about their status," he says."People will look at barcode scanning and the way they had to throw labor at that and wonder how they did it."
The way that shippers and carriers classify loads of less than truckload (LTL) freight to determine delivery rates is set to change in 2025 for the first time in decades, introducing a new approach that is designed to support more standardized practices.
But the transition may take some time. Businesses throughout the logistics sector will be affected by the transition, since the NMFC is a critical tool for setting prices that is used daily by transportation providers, trucking fleets, third party logistics providers (3PLs), and freight brokers.
For example, the current system creates 18 classes of freight that are identified by numbers from 50 to 500, according to a blog post by Nolan Transportation Group (NTG). Lower classed freight costs less to ship, ranging from basic goods that fit on a standard shrink-wrapped 4X4 pallet (class 50) up to highly valuable or delicate items such as bags of gold dust or boxes of ping pong balls (class 500).
In the future, that system will be streamlined by four new features, NMFTA said:
standardized density scale for LTL freight with no handling, stowability, and liability issues,
unique identifiers for freight with special handling, stowability, or liability needs,
condensed and modernized commodity listings, and
improved usability of the ClassIT classification tool.
The new changes look to simplify the classification by grouping similar articles together and assigning most classes based solely on density – the most measurable of the four characteristics, he said. Exceptions will be handled separately, adding one or more of the three remaining characteristics in cases where density alone is not adequate to determine an accurate class.
When the updates roll out in 2025, many shippers will see shifts in the LTL prices they pay to move loads, because the way their freight is classified – and subsequently billed – might change. To cope with those changes, he said it’s important for shippers to review their pricing agreements and be prepared for these adjustments, while carriers should prepare to manage customer relationships through the transition.
“This shift is a big deal for the LTL industry, and it’s going to require a lot of work upfront,” Davis said. “But ultimately, simplifying the classification system should help reduce friction between shippers and carriers. We want to make the process as straightforward as possible, eliminate unnecessary disputes, and make the system more intuitive for everyone. It’s a change that’s long overdue, and while there might be challenges in the short term, I believe it will benefit the industry in the long run.
Business leaders in the manufacturing and transportation sectors will increasingly turn to technology in 2025 to adapt to developments in a tricky economic environment, according to a report from Forrester.
That approach is needed because companies in asset-intensive industries like manufacturing and transportation quickly feel the pain when energy prices rise, raw materials are harder to access, or borrowing money for capital projects becomes more expensive, according to researcher Paul Miller, vice president and principal analyst at Forrester.
And all of those conditions arose in 2024, forcing leaders to focus even more than usual on managing costs and improving efficiency. Forrester’s latest forecast doesn’t anticipate any dramatic improvement in the global macroeconomic situation in 2025, but it does anticipate several ways that companies will adapt.
For 2025, Forrester predicts that:
over 25% of big last-mile service and delivery fleets in Europe will be electric. Across the continent, parcel delivery firms, utility companies, and local governments operating large fleets of small vans over relatively short distances see electrification as an opportunity to manage costs while lowering carbon emissions.
less than 5% of the robots entering factories and warehouses will walk. While industry coverage often focuses on two-legged robots, Forrester says the compelling use cases for those legs are less common — or obvious — than supporters suggest. The report says that those robots have a wow factor, but they may not have the best form factor for addressing industry’s dull, dirty, and dangerous tasks.
carmakers will make significant cuts to their digital divisions, admitting defeat after the industry invested billions of dollars in recent years to build the capability to design the connected and digital features installed in modern vehicles. Instead, the future of mobility will be underpinned by ecosystems of various technology providers, not necessarily reliant on the same large automaker that made the car itself.
Regular online readers of DC Velocity and Supply Chain Xchange have probably noticed something new during the past few weeks. Our team has been working for months to produce shiny new websites that allow you to find the supply chain news and stories you need more easily.
It is always good for a media brand to undergo a refresh every once in a while. We certainly are not alone in retooling our websites; most of you likely go through that rather complex process every few years. But this was more than just your average refresh. We did it to take advantage of the most recent developments in artificial intelligence (AI).
Most of the AI work will take place behind the scenes. We will not, for instance, use AI to generate our stories. Those will still be written by our award-winning editorial team (I realize I’m biased, but I believe them to be the best in the business). Instead, we will be applying AI to things like graphics, search functions, and prioritizing relevant stories to make it easier for you to find the information you need along with related content.
We have also redesigned the websites’ layouts to make it quick and easy to find articles on specific topics. For example, content on DC Velocity’s new site is divided into five categories: material handling, robotics, transportation, technology, and supply chain services. We also offer a robust video section, including case histories, webcasts, and executive interviews, plus our weekly podcasts.
Over on the Supply Chain Xchange site, we have organized articles into categories that align with the traditional five phases of supply chain management: plan, procure, produce, move, and store. Plus, we added a “tech” category just to round it off. You can also find links to our videos, newsletters, podcasts, webcasts, blogs, and much more on the site.
Our mobile-app users will also notice some enhancements. An increasing number of you are receiving your daily supply chain news on your phones and tablets, so we have revamped our sites for optimal performance on those devices. For instance, you’ll find that related stories will appear right after the article you’re reading in case you want to delve further into the topic.
However you view us, you will find snappier headlines, more graphics and illustrations, and sites that are easier to navigate.
I would personally like to thank our management, IT department, and editors for their work in making this transition a reality. In our more than 20 years as a media company, this is our largest expansion into digital yet.
We hope you enjoy the experience.
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In this chart, the red and green bars represent Trucking Conditions Index for 2024. The blue line represents the Trucking Conditions Index for 2023. The index shows that while business conditions for trucking companies improved in August of 2024 versus July of 2024, they are still overall negative.
FTR’s Trucking Conditions Index improved in August to -1.39 from the reading of -5.59 in July. The Bloomington, Indiana-based firm forecasts that its TCI readings will remain mostly negative-to-neutral through the beginning of 2025.
“Trucking is en route to more favorable conditions next year, but the road remains bumpy as both freight volume and capacity utilization are still soft, keeping rates weak. Our forecasts continue to show the truck freight market starting to favor carriers modestly before the second quarter of next year,” Avery Vise, FTR’s vice president of trucking, said in a release.
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, a positive score represents good, optimistic conditions, and a negative score shows the opposite.
A coalition of truckers is applauding the latest round of $30 million in federal funding to address what they call a “national truck parking crisis,” created when drivers face an imperative to pull over and stop when they cap out their hours of service, yet can seldom find a safe spot for their vehicle.
According to the White House, a total of 44 projects were selected in this round of funding, including projects that improve safety, mobility, and economic competitiveness, constructing major bridges, expanding port capacity, and redesigning interchanges. The money is the latest in a series of large infrastructure investments that have included nearly $12.8 billion in funding through the INFRA and Mega programs for 140 projects across 42 states, Washington D.C., and Puerto Rico. The money funds: 35 bridge projects, 18 port projects, 20 rail projects, and 85 highway improvement projects.
In a statement, the Owner-Operator Independent Drivers Association (OOIDA) said the federal funds would make a big difference in driver safety and transportation networks.
"Lack of safe truck parking has been a top concern of truckers for decades and as a truck driver, I can tell you firsthand that when truckers don’t have a safe place to park, we are put in a no-win situation. We must either continue to drive while fatigued or out of legal driving time, or park in an undesignated and unsafe location like the side of the road or abandoned lot,” OOIDA President Todd Spencer said in a release. “It forces truck drivers to make a choice between safety and following federal Hours-of-Service rules. OOIDA and the 150,000 small business truckers we represent thank Secretary Buttigieg and the Department for their increased focus on resolving an issue that has plagued our industry for decades.”