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.
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.