Are smartphones and tablets ready for prime time (in the DC)?
Their low price point has some companies considering adopting consumer mobile devices for use in the DC. But it's not clear these devices are quite up to the task yet.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
With the explosion in the use of smartphones and tablets, it was probably only a matter of time before these devices found their way into the distribution center. For workers who have eagerly embraced these technologies in their daily lives, bringing them into the workplace wouldn't seem like much of a stretch. "People are more connected today," says Jim Plas, vice president of Xplore Technologies, a manufacturer of rugged tablet computers. "We have a younger generation of workers who are used to being digitally connected."
But it's not just a matter of familiarity. Cost enters into it as well. While industrial-grade handhelds and tablets have been available for years, they're much more expensive than their mass-market counterparts. So it's not surprising that companies would be tempted to try using off-the-shelf technology—the kind of stuff that can be purchased at the local Best Buy or Walmart—in their distribution operations. But is that a smart strategy?
Well, it depends on how and where they're used.
For example, take a supervisor who works mainly in an office but occasionally carries a tablet out into the warehouse to deal with a problem on the spot. In that case, a consumer tablet would probably fill the bill nicely.
It's a different story for workers whose duties take them outdoors or who spend much of their day on the dock or in the aisles of a DC. If the devices they use will routinely be exposed to heat, cold, rain, vibration, dust, drops, or in the case of cold storage facilities, condensation, companies should steer clear of consumer-grade electronics. They simply won't stand up to the punishment, experts say.
RUGGED FOR A REASON
Consider, for example, the tablet computers used by forklift operators. Although mass-market tablets might be able to provide the necessary computing power and functionality, it's doubtful they could survive the day-to-day rigors of the distribution environment. For one thing, the vibration caused by travel over uneven concrete surfaces—or the jarring that occurs when lift trucks are driven from docks into trailers—would likely damage their delicate electronics. For another, if the trucks encounter wide variations in temperature—say, when moving in and out of coolers or air-conditioned buildings on a hot summer day—the resulting condensation is liable to cause the unit to fog up or stop working entirely.
That's why in applications like these, an industrial unit would be a more suitable choice. There are forklift-mounted "ruggedized" tablet on the market that are designed specifically to work where they'll be exposed to potentially damaging conditions. Most can withstand not just vibration but also drops from at least six feet. They are also sealed against humidity and moisture, eliminating the risk of condensation.
These industrial units have other advantages as well. Many tablets are built to be hot-dockable, meaning that the worker can remove the device from the truck and carry it over to the product for scanning or data entry. The tablet can then be snapped back into place on the lift truck.
Most also feature large touchscreens, which give drivers an easier way to enter data than tapping on a small keyboard, says Xplore's Plas. They're designed to be more readable, too. "The screens are very bright and sunlight viewable, so they are easier on the eyes," he adds.
The screens themselves differ from those found on most consumer tablets. The industrial versions use a resistive screen, meaning they're designed to respond to the pressure of a finger. Consumer products typically use a "capacitive" touchscreen that responds to the heat of the user's finger. The problem with heat-based touch is that it's not very effective in cold work environments, such as a freezer, or in applications where workers wear gloves.
CALL ME MAYBE
So what about smartphones? Like tablet devices, today's smartphones boast a large amount of computing capability. Most consumer smartphones compare in form factor with established handheld warehouse devices like bar-code readers, and they can even be outfitted with add-on scanners. But when it comes to their suitability for use in DCs, it's pretty much the same story as with tablets. That is to say, while these devices have their supporters—mostly for their convenience and low initial cost—many observers dismiss them as being too fragile to handle the vibration, falls, and other impacts that are part and parcel of warehouse operations.
Physical conditions aren't the only factor to come into play. There's also performance. Generally speaking, the scanners that are available as add-ons to smartphones are rudimentary in design and are better suited for the occasional swipe than for high-volume scanning operations. On top of that, most of these add-on scanners have a limited read range, so a user must be positioned right next to a bar code to read it. Consumer devices also have a limited life cycle of support and function, while most industrial devices offer a life of five to 10 years.
"Smaller companies may take the risk of using a consumer device, but the cost of a failure can be significant," warns Mark Wheeler, director of industry solutions at Motorola Solutions. "If you have to do scanning on a regular basis, for instance, then it's better to have a device designed for scanning. Performance is really the factor."
GETTING BETTER ALL THE TIME
In the meantime, technologies continue to emerge that have the potential to completely alter the equation. Motorola, for instance, has introduced a new ruggedized handheld computer that offers the familiarity of a smartphone. The new device, the MC40 enterprise mobile computer, works on the Android 2.3 Gingerbread operating system.
Other companies, such as Honeywell, are trying to bridge the gap between industrial and consumer products. The company is introducing a skid, or protective package, for the iPad that will make up for some of its shortcomings in industrial use. The protective skid will include a case with a built-in bar-code reader.
In addition, Honeywell this summer will introduce a ruggedized smartphone that is waterproof and comes with a built-in scanner. It will be priced lower than industrial tablet devices and is designed to work on a Wi-Fi network, eliminating the need for costly cell service.
And the trend shows no sign of slowing. Doug Brown, vertical marketing manager for warehouse, supply chain, and healthcare at Honeywell, believes that users' familiarity with consumer devices will only push the market to design more similar devices for the industrial workplace. "There is a hunger for these devices at a lower price point in this industry," he says. "We will see more adoption—maybe 20 to 25 percent will be using this class of device within the next five years."
Tablets find a home in receiving
Chemical management company Haas Group is convinced the third time will be the charm, at least where its receiving technology is concerned. The West Chester, Pa.-based company, which specializes in the handling, storage, and delivery of hazardous and other chemicals on a just-in-time basis, has long struggled with the question of how best to collect data on incoming items at its DCs. The various chemicals have different handling and storage requirements, and receiving must "qualify" the products as they come in, making data collection a time-consuming process, explains Stephen Skidmore, business systems manager at Haas.
Over the years, Haas has experimented with different methods of data collection. Initially, workers recorded the necessary information with pen and paper, but that proved cumbersome and slow. Then, the company shifted to PCs on carts, but these got dirty and failed. Now, the company is about to go mobile. Next month, it will begin piloting the use of ruggedized tablet computers for critical receiving tasks.
The new units are enterprise-ready Motorola ET1 tablets that run on a souped-up Android platform. Unlike the PCs, the new tablets do not have a keyboard to get dirty and no carts are required. Their portability is an added plus, according to Skidmore. "Our workers will now be able to take the tablet to the work instead of leaving the work to go to a PC and back," he says.
In the first phase of the project, Hass will deploy 10 tablets to handle the receiving functions in its Boston-area DC. Phase two calls for the rollout of 100 tablets at seven large distribution facilities around the country.
Software is now being written to walk the worker though the receiving process. Basically, an associate will read the incoming item's bar code using the tablet's built-in scanner and then take a photo of the item using the tablet's camera. He or she will then carry out the remaining steps via the tablet's touchscreen.
Skidmore says one of the tablet's main selling points was its large screen and scanning capability. "That made it a winner for us," he says. It also helped that the devices are intuitive and user-friendly, he adds. "It is absolutely necessary for success that our users adopt them," he notes. "We imagine that eventually they'll be knocking down the door with ideas for applications where the tablets can be used to solve problems elsewhere."
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."