Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Supply chain software has historically been split into discrete chunks, which meant users had to turn to a transportation management system (TMS) to solve one problem, a warehouse management system (WMS) for another, and an enterprise resource planning (ERP) program for an overview of it all.
These distinctions worked fine for years as the tradition-bound trucking, warehousing, and material handling industries caught up to the technology wave sweeping corporate America. But as the digital marketplace re-orders supply chain operations, it's evident that the siloed model is no longer up to the task.
TMS vendors have responded by tearing down the fences that used to separate trucking software from other logistics solutions. Today's TMS programs share overlapping databases with ERP, WMS, and warehouse execution systems as well as with fulfillment planning, order management, business intelligence, data analytics, and other specialized applications. Linking these isolated data fields can trim waste and create new profit, whether the user is a shipper, third-party logistics service provider (3PL), broker, truckload carrier, or other supply chain player.
The merger between TMS and its software siblings has been made possible by recent advances in two particular fields—cloud-based computing that allows for shared interoperable databases, and mobile application development that supports native apps built to take advantage of the unique capabilities of devices like tablets and smartphones.
OMNICHANNEL DISTRIBUTION CHANGES THE GAME
One of the main forces driving the change in transportation management systems is omnichannel retailing, which is pushing users to demand higher performance from their transportation management systems and increasing the execution pressure on fulfillment operations, said Fab Brasca, vice president for global solution strategy and intelligent fulfillment at Scottsdale, Ariz.-based developer JDA Software Group Inc.
In response, developers are moving away from treating those diverse software applications as independent silos of information because the isolated data can lead to bottlenecks and latency in decision-making—an unforgiveable sin at a time when companies need to be able to respond swiftly to any disruption in the supply chain.
"A customer could say, 'I've already got WMS, TMS, and order management software. Isn't my supply chain efficient enough?' And we answer that it may have been efficient enough when all you were doing was pushing inventory to your stores. But with this change to omnichannel, it's not just about store fulfillment and online fulfillment, but about overall consumer fulfillment," Brasca said.
Companies increasingly operate in a marketplace where complex global problems affect not just transportation but also omnichannel distribution, retail, and manufacturing operations. To tackle those challenges, software must feature interoperability between transportation and warehousing, both in sharing transactional flows and in merging the two worlds with optimization logic.
A "warehouse-aware" TMS application can help users to eliminate common bottlenecks—for instance, by allowing them to revise dock schedules to better coordinate inbound and outbound traffic, said Brasca.
Another advantage a networked TMS offers over standard transportation management systems is the ability to host a link to mobile computing platforms, giving users more visibility into shipments in transit than is allowed by current technology, such as daily updates generated through electronic data interchange (EDI). In comparison, a TMS linked to a location-enabled smartphone could use signals from a global positioning system (GPS) receiver to provide real-time updates that give users better connectivity with carriers and let them find quick solutions to capacity constraints.
GOING MOBILE
Adding mobile capabilities to a TMS can do much more than simply allow users to do a better job of tracking deliveries and monitoring schedules. For example, it is easier to track a load if the TMS can accommodate "geofences," which, when incorporated into software programs, enable users to receive alerts when a truck crosses predefined geographic boundaries as measured by an app on the driver's smartphone.
"With an automated location-enabled device, you could be notified if the truck is ahead of schedule or behind," said Bill Ashburn, chief marketing officer at HighJump Software Inc. "You would know he's arrived, because he broke the geofence and he's no longer moving. So now you know he's at the DC."
That location-enabled TMS extension could also allow a company to automatically track information relating to fuel taxes, driving logs, and hours of service, sparing drivers the task of keeping detailed records and reporting them to the dispatcher once a day.
The transition from daily updates to real-time connectivity will produce big results, but it may take time to reach all levels of the shipping industry.
"Transportation is a very generational business," Ashburn said. "The millennials come in and they're more savvy with technology. The generation (before) them is wowed by real-time data."
Mobile TMS apps can do far more than generate truck schedules, Ashburn said. A driver with a TMS app on his smartphone could take photos of damaged cargo, record vehicle inspections at checkpoints, or scan images of documents such as a bill of lading. In some cases, a mobile-enabled TMS could even generate additional profit for users.
"Now, you can see if there's a vehicle here and a load available over there. Let's connect the dots and reduce deadhead miles," Ashburn said. "If you don't have it, you're at an extreme competitive disadvantage."
GREAT EXPECTATIONS
Shippers and their customers are raising their expectations for real-time TMS performance as they become aware of these abilities, said Chris Parker, chief operating officer of InMotion Global Inc., a TMS provider in Brandon, Fla.
"Today's logistics professionals are much more sophisticated than they were 10 years ago," Parker said in a press release. "They are used to one-stop online services, with access from any location and on any device."
TMS use has more than tripled since 2005, according to a July 2015 survey conducted for the company. The same survey showed 54 percent of logistics professionals use some sort of TMS software today, compared with just 15 percent 10 years ago.
Logistics companies are flocking to transportation management systems to address the issues that keep fleets from operating at maximum efficiency, particularly those related to drivers' schedules and delays that all-too-commonly occur at the junction between the warehouse and the truck.
Those pain points are among the top causes of wasted driving hours and lost freight-carrying capacity, according to a recent white paper from J.B. Hunt Transport Inc., a multimodal transportation logistics company based in Lowell, Ark.
Delays in transportation can cost freight carriers dearly because of the Department of Transportation's strict limits on truck drivers' hours of service, the report says.
Current regulations limit commercial motor vehicle drivers to an "on duty" day of 840 consecutive minutes (or 14 hours), which quickly shrinks to 660 minutes (or 11 hours) after subtracting mandated safety inspections and a required 30-minute break within the first eight hours.
Because the hours-of-service countdown logs all minutes consecutively, drivers can't simply stop the clock during traffic jams or warehouse delays. J.B. Hunt goes on to list a range of additional time-wasters, such as waiting around for freight to be loaded or unloaded, detention and dwell time caused by inflexible pickup and delivery times, and unscheduled variation in shipment schedules.
The common thread to most of these time-wasters is that they occur at the point where the truck meets the distribution center. That means a TMS app with access to warehouse data could help users avoid logjams by identifying time-consuming activities and devising a more efficient route.
By smoothing out those bumps in the road, a connected TMS application could add valuable minutes to every driver's day and boost the number of shipments passing through each warehouse.
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.