Lots of vendors will tell you their material handling equipment is ready to "plug and play." But the reality is, there will still be a need for systems integrators for a long time to come.
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.
When you go to buy a printer or a camera these days, you don't have to worry about getting it to work with your PC. You can plug it into your computer and—bingo!— it's ready to go.
Unfortunately, the ease of integration that we've come to expect with our consumer electronics doesn't translate into the material handling world. Although a lot of vendors market their equipment as ready to "plug and play," DC managers can't assume that the new devices they're installing will automatically be able to "talk" to other components of their material handling systems.
Most of the time, DCs find they have to bring in a systems integrator, a specialist that creates interfaces between electronic devices so that they can communicate with each other. Although industry experts say it's much easier to connect material handling equipment to computer systems today than it was 10 years ago, right now, plug and play is still more an ideal than a reality.
Making a connection
That's not to say that all of the plug-and-play claims made by vendors are pure hype. Though the equipment's capabilities are often oversold, there are some cases in which customers can install a new piece of equipment without the need for integration. But those instances are limited to very basic setups. If a warehouse or distribution center simply needs to move a box from storage to the loading dock via conveyor, then it's possible to "plug and play." Indeed, a number of manufacturers make transport-type conveyors that can be set up fairly easily. "The closest thing to plug and play in materials handling is the DC volt [motor] conveyor," says Robert Reinhartsen, an account executive with W&H Systems, a systems integrator based in Carlstadt, N.J.
But few installations are so simple. The typical distribution center today uses an array of sophisticated material handling equipment to get product in and out the door. That equipment runs the gamut from conveyors to pick-to-light systems, from print-and-apply bar-code labeling machines to voice-recognition systems. All of those devices receive their directions from a warehouse management system (WMS), a software application that coordinates the flow of product putaway, storage, and retrieval. "When you get into systems that do complex things, "says Reinhartsen, "you have to design and integrate the equipment."
Still, integration is not the chore it was 10 years ago. Back then, a systems integrator would have to write special interfaces between the WMS and a piece of material handling equipment so that the software could transmit instructions to the device. "A decade ago, it took 14 weeks to get the WMS up and running and another 36 weeks to get all the components connected," says Jack Kuchta, a consultant with Gross and Associates in Woodbridge, N.J. "What's changed is that there's now off-the-shelf middleware to handle the equipment interfaces to a major WMS."
In part, it's easier to connect software systems to automated conveyor and sortation equipment today because of the existence of network communications standards for industrial automation—such as the EtherNet Industrial Protocol (IP), Profibus (for process field bus), and DeviceNet networks. Those protocols enable devices like bar-code scanners, motors, and sensors to exchange information with programmable logic controllers (PLCs). "Every manufacturer used to have its own method for talking to PLCs," says Mike Brinkman, a controls sales manager for Bastian Material Handling in Indianapolis. "We now use standard protocols so it doesn't matter if you have a Siemens or a Dematic conveyor."
Along with these protocols, the industry has seen the emergence of a software application called a warehouse control system (WCS), which sits between the WMS and the material handling equipment. The WCS takes general instructions from the WMS about what products need to be moved and translates that information into specific instructions for a particular piece of equipment. In essence, says consultant Sam Flanders, president of 2wmc.com, a material handling consulting firm in Portsmouth, N.H., the WCS serves as an integration platform on which to connect the different kinds of equipment.
Everybody's unique
Despite these technological advances, the industry is still a long way from plug and play. Why is that? Experts in the field say that given the enormous variation from one DC operation to another, it would be impossible to create a one-size-fits-all software package. Some customization will always be required. "The backbone of the system is software, and there's no product that comes in a box all wrapped up in cellophane," says Steve Martyn, chief executive officer of GRSI, a systems integrator located outside Philadelphia.
Nowadays, it typically takes between eight and 12 weeks to install a piece of material handling equipment in a distribution center, says Martyn. As part of the project, a company has to develop a "functional document," a spec sheet that spells out what has to be done in terms of integration. Once the specs are written, Martyn says, an integrator can use existing software templates, but it still has to write specific coding instructions for at least 40 percent of the integration.
It's essential that a company define the transaction format—the method of exchanging data between the computer application and the equipment. Flanders says that the format will specify the information required for the equipment to do a task—an item's order number and quantity, at a minimum— and then determine what information the equipment will send back to the computer when the job is completed. "It's not like installing software on your computer," Flanders notes. "You have to define the transaction format. You have to get data into a format that's understood."
No industry consensus
Before plug and play can become a reality in the material handling world, the industry would first have to agree on a set of standards for data exchange—standards that software and equipment makers would be required to follow. That's not an impossible task; after all, players in the computer and electronics industry were able to agree on the Universal Serial Bus (USB) as a standard for interfacing devices with computers. But it's one that would require leadership. "The only way to have true plug and play is if you have a body of industry leaders that define a standard," says Daniel Ahrens, a client support manager at Fortna Inc., a material handling consulting firm and systems integrator based in West Reading, Pa. "This is the standard for WMS and will consist of this message type. Anyone who wants to participate would have to adhere to this standard."
But unlike the consumer electronics sector, the material handling industry has yet to show much interest in promoting common interface standards. "The trouble with standards is you have to get hundreds of companies to agree," says Flanders. "You have to have a driving force to make this happen. And nobody thinks it will result in extra revenue."
Although there's no pressure on the material handling industry to develop common standards right now, that could change. The ranks of warehouse management software providers are dwindling in the face of competition from enterprise resource planning (ERP) system vendors like SAP and Oracle. If the large software houses come to dominate the supply chain software market, they might take it upon themselves to set de facto standards that material handling vendors would be forced to meet. "The big ERP guys probably will eventually set standards," says Martyn.
But as long as companies want their DCs to be unique, companies installing sophisticated material handling equipment will still need the services of systems integrators. "For plug and play to work, it would have to start at the top," says Pratap Chakravarthy, a project manager with Accu-Sort Systems Inc. in Philadelphia. "Every customer would have to have a standard ERP, a standard WMS, and a standard WCS, and each industry would have to have standard operation, which is almost impossible. A lot of customers pride themselves on differentiation, and [they view their DCs' unique capabilities] as a competitive advantage."
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.
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.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.