Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
In DC operations across America, "guesstimates" may be going the way of the dodo. Over the last couple of years, operations managers have had to pay much closer attention to the size of their outgoing shipments.
The new emphasis on precision is a response to parcel carriers imposing and enforcing so-called "dimensional weight" rules. Under those rules, shipping charges, particularly for large, lowdensity packages, are more likely to be based on a parcel's "dimensional" weight—a computation that includes its length, width, and height—than on its actual weight. Rate a package incorrectly, and you're likely to be hit with charge-backs and penalties.
To avoid those fines, many shippers have turned to dimensioning, or "cubing," systems. As a result, these devices, which use sensors or lasers to automatically gather dimensional and weight data, are fast becoming fixtures on shipping docks nationwide.
That same equipment, it turns out, can contribute to efficiency on the receiving dock as well. In fact, dimensioning systems were initially developed for the back end of the warehouse. Here, the systems are used to record the dimensions of individual products or cartons, as opposed to entire shipments, for use in storage, or "slotting," assignments. Capturing accurate dimensions of all incoming products can help users make slotting decisions that lead to more efficient use of DC storage capacity, says Steve W. Trommer, vice president of Trommer & Associates, a consulting firm that specializes in facility design and material handling.
Of course, slotting decisions involve a lot more than determining the most efficient use of storage space. Factors such as how quickly SKUs turn and what products tend to ship together are all essential to good slotting decisions.
But accurate physical measures are nonetheless an important part of those decisions. And it's not a static issue. Products change, and so, too, does product packaging. If the facility fails to capture those changes, DC slotting efficiency will diminish over time. Trommer says that's something DC managers often overlook when considering possible causes for declining productivity. "When operations managers come to us, they may be looking at inventory quality, but they have never re-profiled their material handling system," he says. "They may be using a six-foot space for a product that now comes in a smaller volume or in less than pallet loads."
Quick returns
Trommer advocates that companies invest in dimensioning systems like the Cubiscan line of dimensioning systems from Quantronix or similar tools sold by Mettler Toledo, arguing that buyers can expect a quick return on their investment. That's largely a result of labor savings, he says. To illustrate his point, Trommer cites slotting projects his company completed for two customers with similar SKU profiles. One, using a cubing tool, captured the cube and weight of 721 SKUs in three days. The other, with employees using tape measures, needed three weeks to capture the dimensions of 750 SKUs.
"A cubing device can save an enormous amount of time measuring a large number of items," says Randy Nielsen, vice president of Quantronix. He says the company's Cubiscan 100 model, for example, can capture the dimensions of more than 100 items an hour.
Trommer further argues that dimensioning systems are much more accurate than workers measuring by hand. Tape measure readings are subject to interpretation, he explains, and even slight variations in readings can have a big effect on productive slotting. "If you are off by a half inch," he says, "that can have a large impact on the days of inventory in a flow module."
Current cubing systems offer accuracy of two-tenths of an inch or better, manufacturers say. Some of the systems aimed at the distribution and warehousing markets have even closer tolerances, with some small devices offering accuracy down to one one-hundredth of an inch for products like books and CDs. Nielsen says that for warehousing and distribution applications, accuracy to one-tenth of an inch or better is essential.
The best systems for slotting
For applications like capturing data for slotting, static systems, as opposed to inmotion systems mounted over conveyors, appear to be the tool of choice. Manufacturers offer a range of those products, from devices aimed at capturing data from items as small as CDs up to pallet dimensioners.
The systems also have the advantage of being user friendly, Nielsen says. "Our static systems are user installable and user maintainable," he says. "The customer can open the shipment, unpack the device, load software to its PC, plug it in, and away they go. You can be up and running within an hour."
As for the procedural side of the dimensioning process, Trommer says the easiest way to capture dimensional data is to measure carton sizes as they arrive. But that leaves the question of what to do about slower movers that may not arrive during the time period set for a re-slotting project— say, a month or so.
Trommer says in those cases, the easiest thing to do is go out and capture data at the items' current locations. Many of the cubing devices on the market today are designed to mount on portable carts for that reason. The mobile cubing systems run on battery power and can feed information as it is captured into a PC on the cart or, through a wireless connection, directly upload it to a warehouse management system or an enterprise resource planning system, he says.
Most modern WMS and ERP programs have built-in fields for capturing weight and dimensional data, he adds. "If you have a legacy system, you have more of an issue. You may have to go back to the programmers."
Nielsen expands on that point: "The whole goal is to eliminate or, in some cases, minimize the work the IT department has to do to adjust or tweak the WMS. We've taken a look at a lot of WMS, TMS, slotting, and manifesting software and come up with software systems that are virtually plug and play. There will always be some exceptions, but very few."
Standard equipment?
Right now, cubing systems are generally considered optional equipment for warehouses, but that might be about to change. The ability to capture and upload dimensional and weight data quickly may become an imperative for DC operations. "Industrial engineers are making it mandatory," says Jerry Stoll, marketing manager for Mettler Toledo, a Switzerland-based manufacturer of scales and cubing equipment. "Companies are more stressed to save pennies."
Stoll adds that precise dimensional information can prove useful for purposes other than slotting. For instance, accurate size and volume information also helps managers allocate operational costs to products based on the space they occupy in the DC.
But whatever the end use, one thing remains the same: The first step is taking the measure of the goods.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
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.