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.
Imagine an NFL game brought to you via tiny scanners attached to a football helmet. As a player runs downfield, the scanner automatically captures data, including the location of digitally enhanced yard markers. No more "moving the chains" to measure first downs. No more delays so game officials can watch hooded TV replays to determine whether a player was in bounds or not. And no need to replace the scanners, even after absorbing repeated sacks. These scanners are built to take the punishment.
This scenario isn't really such a stretch. Scanners this rugged are in use in American industry right now. And even if the NFL takes a pass, they're gaining yardage in today's distribution centers as word spreads regarding their ability to stand up to abuse.
And they do take abuse. Last year, a delivery truck ran over a handheld scanner at Mockler Beverage, a large Anheuser-Busch distributor in Baton Rouge, La. "The handheld did not work afterwards," reports John Lewenthal, the company's information technology manager, "but the data card was still intact. We took the data card out and transferred the information in about 15 minutes. It was virtually transparent."
Going to extremes
Judging from the marketing materials for rugged-duty products, today's distribution center is one rough place, at least if you're a piece of electronic equipment. Vendors of rugged equipment (whether it's handheld scanners, computer screens and printers, two-way radios or vehiclemounted computers) go out of their way to enumerate the hardships their products can withstand—a list that includes not only temperature extremes but also chemical spills, shock and vibration.
But there's clearly a need for this tough stuff. A study just released by Venture Development Corp. (VDC) says sales of ruggedized (also referred to as "industrial") products were just under $3 billion in 2002. That report, released by VDC in February, forecasts that the market will grow to $4.8 billion by 2007, representing annual growth of just over 10 percent.
Users are finding that paying a premium for ruggedized versions, rather than commercial units, is money well spent, reports Tim Shea, a senior analyst with VDC. Much of that demand is for equipment that is both mobile and rugged—a combination that attracts companies seeking higher employee productivity and better customer service, he adds. "The increasing adoption of wireless communications as a means to enhance operational efficiency and improve profitability will also propel demand for rugged mobile computers."
Longer life expectancy isn't the only reason many companies are switching to products that can take a licking and keep on ticking—or scanning, or printing. A big part of the attraction is the protection they offer against the loss of data in the event that someone, say, drops the unit or spills chemicals on it.
"We know from research in the distribution center that devices get abused," says Daniel Arroyo, senior marketing communications manager at Intermec Technologies Corp. in Everett, Wash. "What's more important than just replacing the equipment is being able to retrieve the information. If the information on the device gets lost or the device suddenly isn't available, that failure could potentially shut down a line. That can eat away at the bottom line very quickly."
Big chill
Their ability to survive a multi-foot drop aside, heavy-duty industrial products are also quickly gaining traction in places where the temperatures go to extremes. Take the distribution center operated by SCS Refrigerated Services Inc. in Tacoma, Wash., where temperatures approach minus 31.7 degrees Celsius (minus 25 Fahrenheit). Because SCS is a public warehouse and ownership of some products may change two or three times while in storage, the company must keep accurate data on inventories at all times. "That's why a first-class data collection and warehouse management system is so important," says Michael Karami, information systems manager for SCS. "It's our life blood."
In addition to providing refrigerated storage, SCS offers its clients a variety of value-added services, including labeling, weighing, inspection, sorting and transportation. To help it meet these demands, SCS recently installed new cold-resistant data-collection equipment from Intermec along with new warehouse management software (WMS) at each of its three West Coast facilities. The software includes a Web-based billing and management system that gives customers access to information through the Web. The data fed into the system are captured in real time through RF terminals mounted on forklifts operated by warehouse workers.
But before the system could go live, the company had to install the RF access points and the requisite cabling in temperatures ranging from minus 28.9 to minus 34.4 degrees Celsius (minus 20 to minus 30 Fahrenheit). "Our biggest challenge was the rapidly condensing moisture, even beginning on the loading dock, where temperatures are a relatively mild 35 degrees Fahrenheit," says Michael Knappert, Intermec's district service manager. "We had to take extra precautions to prevent the equipment from getting cold-soaked or essentially freezing up."
To compensate, Intermec installed heated copper strips for the RF units and access points and supplied heated holsters for the scanning devices. The first electrically heated scanner holsters were purchased from PSC Equipment, although SCS has since created its own units.
True grit
Workers at Pittsburgh-based Copperweld may not work in the deep freeze, but no one would characterize their work environment as kind and gentle. Copperweld cuts, bends and welds large, multi-ton bands of steel into structural steel tubing used for agriculture, construction and industrial vehicles, as well as structural columns and beams.
Though Copperweld's need for rugged equipment isn't too hard to understand, the company also wanted equipment that was mobile. Already weighted down with wearable walkie talkies, crane controls, hardhats and heavy work gloves, Copperweld plant workers in the past had to walk over to the terminal every time they needed to scan a bar code, then go back to the workstation to enter the data at PCs in industrial enclosures. "We decided to look into portable terminals that they could carry with them to allow them to be more mobile and streamline the tracking process," says Jeff Pfeister, network administrator for Copperweld.
Among other things, the hardware had to tolerate that rugged, gritty environment and be able to scan bar codes covered by laminate or printed on metal, often in poor lighting. And the software had to be written for use by workers wearing heavy gloves that made working with a keyboard difficult.
Working with Symbol Technologies, Copperweld created its first radio-frequency application, one that would mana ge raw material inventory. By all accounts, the company is happy with the results. Users have found they can complete the tracking process in one-third the time it took with Copperweld's manual system and are able to perform raw materials inventory counts more often and with fewer people. As Pfeister puts it, "Now we know to a high degree of accuracy what's sitting out here."
ahead of the iPAQ?
It's cheaper than a bar-code scanner—costing somewhere between a quarter and half the price of a high-end reader. But is the handheld iPAQ Pocket PC device on track to replace scanning equipment in DCs across America?
The iPAQ, which is marketed by Hewlett-Packard, has several factors in its favor. Not only is it comparatively cheap, but the device also offers a high degree of data protection, allowing data to be downloaded many times a day through wireless networks. That means if the device is destroyed, the result would not be catastrophic because the data would be stored and readily available.
"iPAQs are obviously not as durable, but you pay a lot more for [rugged] handhelds because of the way they are built," says John Lewenthal, information technology manager at Mockler Beverage, an Anheuser-Busch distributor in Baton Rouge, La. "If you can capture data multiple times during the day, you minimize the amount of data that could be lost if [the iPAQ] is destroyed."
But others aren't convinced. Vinnie Luciano, vice president of product management for Symbol Technology's Mobile Computing Division, is quick to defend the traditional scanner. "I see a lot of wishful thinking out there," he says. "Wishful thinking on the part of Hewlett-Packard, and wishful thinking from the customer side. I've heard people say 'I can throw away two of these and still come out ahead [on cost].' We've seen people pilot them, but we've yet to see them deployed."
Luciano says the risk of losing data, as well as having DC employees left without a unit to work with, exceeds any potential benefit offered by iPAQs. He also notes that while iPAQ units may be less costly, by the time accessories like scanners, radio cards and protective sleeves are factored in, you are quickly approaching the $1,295 list price for a Symbol rugged scanner.
"Keeping track of the goods you are distributing is the single most mission-critical application in the DC," says Luciano. "Nothing you do is more important. Being able to manage and collect data is absolutely crucial. But the vast majority of DC workers don't operate when their handheld is broken. You can't afford to lose data, and you can't afford to have your people not working."
Hewlett-Packard did not return calls requesting information about the use of its iPAQ device in distribution center applications.
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."