It has yet to fill its promise where inventory tracking is concerned, but RFID is proving to be a heavy hitter in the growing area of warehouse asset management.
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.
Distribution center managers have long had a conflicted relationship with radio-frequency identification (RFID) technology. Like a hotshot high school player drafted by the big leagues only to fade into relative obscurity, the technology has never quite lived up to its glittering promise.
RFID burst onto the scene in 2003, swaggering into the stadium when Wal-Mart named the technology its starting pitcher in a bold effort to track items throughout its distribution network. But the technology failed to live up to its promise, largely because the high cost of RFID tags and readers put it out of reach of all but the biggest corporations.
Demoted to the minors, RFID has been clawing its way back into the supply chain big leagues ever since, finding success in specialty applications such as tracking high-priced fashion apparel, electronics, and pharmaceuticals. Despite those wins, RFID continues to be dogged by the perception that tags and readers will remain too expensive for widespread use until they reach mass production.
"That was the challenge when we first got into the industry almost 25 years ago, and it still exists today," said Ken Ehrman, CEO of I.D. Systems, a supplier of asset tracking solutions. "Tags are very expensive compared to bar codes, so there's a 'chicken and egg' problem; if the costs were lower, the volume would be there, but without the volume, you can't drive down the cost."
Some say a solution to this existential dilemma has been under users' noses the whole time. Instead of waiting around for prices to drop to the point where the technology is cheap enough for item-level inventory tagging—a task at which bar codes already excel—warehouse and DC managers could use RFID to track much more valuable stuff—the supply chain assets (think lift trucks, tractor chassis, and handheld computers) that make a distribution center tick.
TRACKING CRITICAL ASSETS
In asset management, RFID may have finally found its niche where supply chain operations are concerned. Rather than simply tracking inventory, it can be put to higher uses, like serving as the enabling technology for sophisticated data collection initiatives.
As for what types of assets DCs are tagging, that varies all over the map. While some operations tag assets like returnable containers that are routinely sent off site, others track items that are intended to remain inside a facility, like manufacturing tools or IT equipment. "One of the biggest problems is [warehouse workers] losing handhelds; they put it on a pallet and lose it when the pallet gets loaded and moves," said Tom O'Boyle, director of RFID at Barcoding Inc., a Baltimore-based company that specializes in software and hardware for bar coding, RFID, and wireless systems.
As a case in point, O'Boyle cites the example of a customer that was losing 20 percent of its handheld bar-code scanners every year, running up a hefty replacement tab for the units, which cost $1,500 to $2,000 apiece. "And more important than the replacement cost is the ability to outfit the next shift," said O'Boyle. "They need the handhelds for picking, packing, and putaway." Balanced against those two costs, the customer easily justified its investment in RFID tags to track its assets.
Another of Barcoding's customers turned to RFID to help it keep tabs on the tractors used to move heavy rolls of paper around a facility. "These are big pieces of equipment, but [the client] often couldn't find them in the 3 million-square-foot facility because certain workers would hide the vehicle by parking it behind other equipment," O'Boyle said. "That way, when [the driver] came back for his next shift, no one would have adjusted his seat, moved his mirrors, or changed his radio station."
NEXT-GEN RFID
Until recently, companies looking to track supply chain assets had just two choices when it came to RFID tags. The first option was the passive RFID tag, which is a relatively inexpensive item costing a dollar or two. The tag cost is only part of the story, however, since users also need an infrastructure of readers and software to gather the information encoded in the tags. That's because passive tags lack an internal power source and cannot transmit a signal. In order to collect the tags' data, users must scan them with a handheld reader within a 10-foot range or pass them through a fixed-read zone like a tollbooth pOréal.
This Bluetooth Low Energy (BLE) beacon is part of Barcoding Inc.'s Active Asset Tracker Solution, which tracks items using the Internet of Things.
Option two was the active RFID tag, which costs anywhere from $25 to $150. Active tags, which contain their own power supply, are capable of transmitting signals that can be read from as far as 50 to 100 feet away. Those signals can be detected by stationary readers with overlapping coverage areas, then triangulated to pin down the tag's location.
Now, a third option is emerging that combines some of the best features of active and passive tags. Known as Bluetooth Low Energy (BLE), the technology was originally developed for smartphones, so the signal can be read by consumer devices that run on the iOS and Android operating systems.
The standard was first deployed for "location-aware services," such as retail applications in which tags affixed to store shelves beam discount offers to the smartphones of passing shoppers. But BLE tags have since been ruggedized to meet industrial standards for shock, temperature, vibration, and battery life. And since they communicate on the common wireless standard used in consumer mobile devices, they require far less infrastructure investment than other tracking technologies do.
BLE tags can communicate limited information, but their falling price will soon open up new opportunities in supply chain asset tracking, such as keeping track of specialized tools or even keys to equipment. "We're at the leading edge of that technology now, so they cost $15 or $20 or $25 each, but they are at the highest point," O'Boyle said. "My guess is that in three to five years, they will be under $10."
E-COMMERCE DRIVES NEED FOR ASSET TRACKING
Interest in RFID and BLE is particularly strong among retail industry distribution operations that are struggling to fill e-commerce orders within ever-tighter time windows. "Fulfillment centers were designed with an order turnaround time of X, and now they want to drive that to half of X," said Mark Wheeler, director of supply chain services at Zebra Technologies Corp., a supplier of tracking technology.
Nickel-sized RFID tags made by Zebra Technologies Corp. are used to track NFL football players during games.
For these types of facilities, asset tracking is mainly a matter of ensuring that workers can lay their hands on the warehouse tools and equipment they need in their daily operations—items that can be easily misplaced when a DC is running at full steam. A shortage of even the most basic totes, carts, or pallets can throw a wrench in the works of a fast-paced e-commerce fulfillment operation. With its low tag costs, passive RFID offers users a way to improve the tracking of those basic assets.
"Asset management is one of the key applications," said Wheeler. "Users want to control their assets, keep track of where they are, and reduce shrink of assets and the inventory they're associated with."
In contrast, active RFID is a better match for a facility that's looking to track moving assets both inside the facility and out in the yard. "This is great for classic warehouse applications where real-time location is a step up from the level of visibility you have with warehouse management systems (WMS), which only know the last location you scanned," Wheeler said. "When we really know the location of lift trucks and people, it can lead to improved safety, productivity, and workflow."
SENSORS MAKE TAGS SMARTER
In response to the growing interest in RFID-enabled asset tracking, some vendors are shifting their focus from ways of making tags cheaper to ways of making tags smarter. That is, they're manufacturing tags that are capable of determining much more about each asset than just its location. As part of that effort, RFID suppliers have begun outfitting their tags with sensors, software, microprocessors, and batteries.
Loaded with extras, such an RFID tag could be the size of a TV remote and cost anywhere from $250 to more than $1,000, said I.D. Systems' Ehrman. But the tag's enhanced capabilities would more than offset the extra cost, he argues. "If a Wal-Mart truck is sitting there with a loaded trailer and the door is opened, we will notice," Ehrman said. "Or if it's been sitting at the DC for more than two hours, we could send a message to the manager that it is outside its operating parameters."
Typically deployed on large assets like lift trucks, intermodal containers, trailers, chassis, and rental cars, these tags can bypass handheld readers, beaming data directly back to a central network via Wi-Fi, cellular network, or satellite signal. In line with the growing popularity of the Internet of Things, this method tracks asset data through a tag-to-system model instead of the standard tag-to-reader approach.
Among other data, these long-range tags can collect information on odometer mileage, fleet usage, dwell time, and transit time for moving assets such as forklifts and chassis. By graphing the results and comparing the statistics with industry benchmarks, users can analyze the data with an eye toward eliminating extraneous vehicles, scheduling needed maintenance, and identifying savings opportunities.
"The bottom line is, these [trucks and other assets] are carrying the inventory," Ehrman said. "And ultimately, the cost of tracking these assets will continue to go down, so we will go from tracking the highest of the high-value assets to lower- and lower-value assets."
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”