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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."