Despite demonstrated benefits, yard management systems haven't seen widespread adoption—particularly among smaller companies. A recent DCV survey offers some clues as to why.
James Cooke is a principal analyst with Nucleus Research in Boston, covering supply chain planning software. He was previously the editor of CSCMP?s Supply Chain Quarterly and a staff writer for DC Velocity.
With their ability to track the location of trucks and trailers, yard management systems (YMS) can alleviate the chaos in a busy distribution center (DC) yard. For instance, they can help ease a logjam at the gate by automating vehicle check-in and check-out, or help users pinpoint which trailer contains goods that need to be unloaded right away to fill an order.
Although this type of software has been around for a number of years, it hasn't exactly caught fire among logistics professionals. A recent DCV survey offers some clues as to why this is the case.
The survey itself was conducted via an online poll earlier this fall. Of the 115 logistics managers who participated in our survey, only 33 percent said they were using yard management software in their operations. As for which industries these YMS users worked in, 38 percent said they were in the wholesale/distribution business, 25 percent in retailing, and another 25 percent in transportation/logistics. Manufacturers accounted for just 12 percent of the YMS users.
Asked how long they've been using the software, the largest share of YMS users—47 percent—said they had been using their yard management system for one to five years. Another 30 percent said they'd been using it for six to 10 years, while 20 percent had used the software for more than 10 years. Only 3 percent said they had been using the software for less than one year. Given the small percentage of new users, the survey results suggest that the YMS market is seeing only nominal growth.
In addition, the research indicates that it's mainly large companies that have deployed a YMS. In fact, 42 percent of the YMS users in our survey worked for companies with revenues in excess of $1 billion. Thirty-one percent of users were from companies with between $10 million and $99 million in revenue, and 24 percent worked for companies with revenues between $100 million and $999 million. Only 3 percent of YMS users worked at companies with less than $10 million in revenue.
When asked about the type of YMS software they were using, the majority of users—57 percent—said they used a standalone application. Another 40 percent said the YMS they used was a module in their warehouse management system (WMS), and 3 percent said it was a module in their transportation management system (TMS). Among other findings, the survey revealed that the yard management systems used by smaller companies are typically standalone applications, while those used by big corporations (those with $1 billion or more in revenue) tend to be a component of their WMS systems.
When asked to name the number one benefit of using the software, 61 percent of the YMS users cited improved yard visibility. Another 14 percent said the software had brought about improvements in their daily DC operations. Other benefits cited included a reduction in DC labor costs and enhanced inventory efficiency (each mentioned by 11 percent).
However, the fact remains that the majority of survey takers reported that they had not deployed a yard management system at their facilities. When asked about their reasons, a third of the non-users—33 percent—said they saw no value in the application. Another 18 percent said the software was too expensive, while 11 percent did not send or receive freight by truck, making usage a moot point.
What was particularly interesting were the explanations given by the other 38 percent, the folks who checked "other" when asked about their reason for not using a YMS. Many said their current traffic volumes weren't high enough to warrant use of software. Still, one comment from a reader was particularly telling: "When we looked at it, the offerings required more effort than the payback [would justify]."
Although a YMS seems warranted in operations that deal with swarms of arriving and departing trucks, the software's use appears limited for now to large companies with extremely busy yards. Clearly, many small and medium-sized companies don't feel they have the volume of traffic to justify the time, money, and effort.
Motion Industries Inc., a Birmingham, Alabama, distributor of maintenance, repair and operation (MRO) replacement parts and industrial technology solutions, has agreed to acquire International Conveyor and Rubber (ICR) for its seventh acquisition of the year, the firms said today.
ICR is a Blairsville, Pennsylvania-based company with 150 employees that offers sales, installation, repair, and maintenance of conveyor belts, as well as engineering and design services for custom solutions.
From its seven locations, ICR serves customers in the sectors of mining and aggregates, power generation, oil and gas, construction, steel, building materials manufacturing, package handling and distribution, wood/pulp/paper, cement and asphalt, recycling and marine terminals. In a statement, Kory Krinock, one of ICR’s owner-operators, said the deal would enhance the company’s services and customer value proposition while also contributing to Motion’s growth.
“ICR is highly complementary to Motion, adding seven strategic locations that expand our reach,” James Howe, president of Motion Industries, said in a release. “ICR introduces new customers and end markets, allowing us to broaden our offerings. We are thrilled to welcome the highly talented ICR employees to the Motion team, including Kory and the other owner-operators, who will continue to play an integral role in the business.”
Terms of the agreement were not disclosed. But the deal marks the latest expansion by Motion Industries, which has been on an acquisition roll during 2024, buying up: hydraulic provider Stoney Creek Hydraulics, industrial products distributor LSI Supply Inc., electrical and automation firm Allied Circuits, automotive supplier Motor Parts & Equipment Corporation (MPEC), and both Perfetto Manufacturing and SER Hydraulics.
The move delivers on its August announcement of a fleet renewal plan that will allow the company to proceed on its path to decarbonization, according to a statement from Anda Cristescu, Head of Chartering & Newbuilding at Maersk.
The first vessels will be delivered in 2028, and the last delivery will take place in 2030, enabling a total capacity to haul 300,000 twenty foot equivalent units (TEU) using lower emissions fuel. The new vessels will be built in sizes from 9,000 to 17,000 TEU each, allowing them to fill various roles and functions within the company’s future network.
In the meantime, the company will also proceed with its plan to charter a range of methanol and liquified gas dual-fuel vessels totaling 500,000 TEU capacity, replacing existing capacity. Maersk has now finalized these charter contracts across several tonnage providers, the company said.
The shipyards now contracted to build the vessels are: Yangzijiang Shipbuilding and New Times Shipbuilding—both in China—and Hanwha Ocean in South Korea.
Asia Pacific origin markets are continuing to contribute an outsize share of worldwide air cargo growth this year, generating more than half (56%) of the global +12% year-on-year (YoY) increase in tonnages in the first 10 months of 2024, according to an analysis by WorldACD Market Data.
The region’s strong contribution this year means Asia Pacific’s share of worldwide outbound tonnages overall has risen two percentage points to 41% from 39% last year, well ahead of Europe on 24%, Central & South America on 14%, Middle East & South Asia (MESA) with 9% of global volumes, North America’s 8%, and Africa’s 4%.
Not only does the Asia Pacific region have the largest market share, but it also has the fastest growth, Netherlands-based WorldACD said. After origin Asia Pacific with its 56% share of global tonnage growth this year, Europe came in as the second origin region accounting for a much lower 17% of global tonnage growth. That was followed closely by the MESA region, which contributed 14% of outbound tonnage growth this year despite its small size, bolstered by traffic shifting to air this year due to continuing disruptions to the region’s ocean freight markets caused by violence in the vital Red Sea corridor to the Suez Canal.
The types of freight that are driving Asia Pacific dominance in air freight exports begin with “general cargo” contributing almost two thirds (64%) of this year’s growth, boosted by large volumes of e-commerce traffic flying consolidated as general cargo. After that, “special cargo” generated 36%, with 80% of that portion consisting of the vulnerables/high-tech product category.
Among the top 5 individual airport or city origin growth markets, the world’s busiest air cargo gateway Hong Kong also remained the biggest single generator of YoY outbound growth in October, as it has for much of this year. Hong Kong’s +15% YoY tonnage increase generated around twice the growth in absolute chargeable weight of second-placed Miami, even though the latter had recorded +31% YoY growth compared with its tonnages in October last year. Dubai was the third-biggest outbound growth market, thanks to its +45% YoY increase in October, closely followed by Shanghai and Tokyo.
And on the inverse side of the that trendline, the top 5 YoY decreases in inbound tonnages were recorded in Teheran, Beirut, Beijing, Dhaka, and Zaragoza. Notably, Teheran’s and Beirut’s inbound tonnages almost completely wiped out as most commercial flights to and from Iran and Lebanon were suspended last month amid Middle East violence; tonnages at both airports were down by -96%, YoY, in October. Other location that saw steep declines included Dhaka, Beirut and Zaragoza – affected by political unrest, conflict, and flooding, respectively –followed by China’s Qingdao and Mexico’s Guadalajara.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Cowan is a dedicated contract carrier that also provides brokerage, drayage, and warehousing services. The company operates approximately 1,800 trucks and 7,500 trailers across more than 40 locations throughout the Eastern and Mid-Atlantic regions, serving the retail and consumer goods, food and beverage products, industrials, and building materials sectors.
After the deal, Schneider will operate over 8,400 tractors in its dedicated arm – approximately 70% of its total Truckload fleet – cementing its place as one of the largest dedicated providers in the transportation industry, Green Bay, Wisconsin-based Schneider said.
The latest move follows earlier acquisitions by Schneider of the dedicated contract carriers Midwest Logistics Systems and M&M Transport Services LLC in 2023.