With the right adjustments to DC design and strategy, wearable computers can deliver the accuracy and efficiency needed to keep up with the rising demands of e-commerce fulfillment.
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.
Stop by your local Best Buy or Staples, and you'll see that wearable computers are among the most popular consumer electronics on retail shelves, from the Fitbit and Apple Watch to a host of other devices that track our heartbeats, footsteps, and more.
Wearable technology is good for more than just checking texts and shedding pounds, however. The portable devices can also help warehouse workers boost their efficiency by 10 to 20 percent.
When DC employees don a voice-command headset, finger-trigger glove, belt-mounted scanner, or Google Glass goggles, they gain a two-way communication channel with crucial software platforms such as the warehouse management system (WMS) or labor management system (LMS).
With both hands freed up for picking and a direct line feeding them instructions for the next task, workers with wearable computers can get their work done faster and more accurately than their colleagues who have to walk back to the lift truck or the end of the aisle for new instructions after every pick.
E-COMMERCE DRIVES DEMAND FOR WEARABLES
Another factor driving the adoption of wearable computers is the struggle to meet the demands of fulfilling online orders placed by individual consumers.
"Warehouses are seeing a change in material handling demands as they deal with smaller, more frequent picks because of e-commerce and direct-to-consumer orders," says Mark Wheeler, director of supply chain solutions at Zebra Technologies. "With this changing order profile, the case for hands-free computing remains solid."
Ironically, logistics managers tend to look at wearable computing devices only after they've tweaked everything else in the DC, such as the layout or the fulfillment process, Wheeler says. When they finally look at ergonomics, they quickly discover that arm-mounted or voice-directed devices that free up workers' hands can go a long way toward helping them pick faster.
The use of wearable computers can also pay off in preventing mispicks and mistakes—a crucial attribute in an e-commerce environment, where online retailers are rushing to deliver individual items to buyers' homes overnight.
"The value of wearable tech is as much about accuracy as productivity. In e-commerce, it has to be 100 percent right; there's a premium put on order accuracy," Wheeler says. "So you have to be sure that technology is not getting in the way of (accuracy) because a user is distracted by handling the device."
JUST ONE PART OF THE PICTURE
That's not to say that managers can automatically boost productivity simply by dropping wearables into a DC operation. As with any technology, wearable tech has to be judiciously incorporated into the process, experts warn.
"There are process changes the customer has to accept to make the improvements come to life," says Jim Gaskell, director of global technology business development at Crown Equipment Corp. "Everybody on the consumer side buys wearables because they're cool. But it takes a little more than that to use them effectively in the warehouse."
For example, a warehouse manager may distribute voice headsets to workers on the floor, but the system won't boost a team's picking speed if the WMS is running on a slow or buggy computer.
"I've seen people hit the button after making a pick and then stand around waiting for the next command. You have to make sure there's no latency in how the WMS spits out the next order. Otherwise, there goes your improvement," Gaskell says.
Even if everything is working properly, DCs may find they have to make tweaks to their operations to get the most from their investment in wearables. For example, in order to capitalize on the speed made possible by wearable devices, some facilities may have to re-slot fast-moving goods with an eye toward cutting down on order pickers' travel distances.
Similarly, facilities that handle case-picking may find they have to re-slot inventory items to facilitate the building of optimal pallet loads. Just as baggers at a grocery store place the heaviest items on the bottom so a water jug doesn't smash a loaf of bread, warehouse pickers have to stack cases on pallets so that the lightest goods are on top. To get the biggest return on its investment in high-speed wearable computing devices, a DC may have to rearrange its goods in a pattern that allows workers to follow this principle.
In addition to that, DCs may find that once they begin using wearables for order picking, they have to update the time standards in their labor management systems. Wearable devices usually enable users to get tasks done faster, but unless the LMS is updated to reflect higher performance targets, employees may simply use the technology to reach their quota faster and then slack off.
And finally, though it may sound obvious, implementing wearable computers works best when customers think about why they're buying the tools before choosing a new "toy." Finger-trigger controls for semi-autonomous lift trucks are neat gadgets, but sometimes a simple headset is a better fit for the job.
NEW AND IMPROVED
Just as happens in the world of consumer electronics, users of wearable computers in the workplace are never quite satisfied. As soon as they become accustomed to using the devices, they start looking for upgrades. As for what they want, vendors say the requests include calls for lighter, more comfortable designs as well as longer-lasting batteries.
However, many of these upgrades are harder to make in devices used in the warehouse than for consumer electronics, Zebra's Wheeler says. For instance, when wearables are used constantly throughout the day and through successive work shifts, their batteries run down much faster than a basic smartphone's would. The drag on the battery is even greater when users operate the mobile device in a cooler or freezer, or when they use a voice-directed function.
And the user demands don't stop there. Vendors of wearable computers also report that they're fielding requests for enhanced wireless performance that can keep up with order pickers who are constantly on the move, as well as keys designed to allow users to operate the devices without stopping to look at them.
And it almost goes without saying, users want all this in a device that's rugged enough to survive a tough double shift. "If a computer is wearable on the hip or arm, it probably won't be dropped," Wheeler says, "but on the warehouse floor, it is certainly in harm's way. It will get smacked around quite a bit, so it should still be able to break away for safety."
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."