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.
Watching one of UPS Inc.'s big brown vans (or "package cars" in company parlance) on its daily rounds, a casual observer is struck by the driver's relaxed demeanor. The cab doors are wide open, and the driver greets customers with a wave of the hand after navigating narrow driveways with the confidence that comes with doing this thousands of times before.
Behind the seemingly casual habits, however, is a long list of rules that dictate nearly every movement a driver makes, from morning calisthenics (stretch those legs) to the proper height for carrying a box (well above the belt) and the correct way to exit the truck (always put down that package before stepping down).
Newcomers may chafe at these restrictions, but leaders at the company's Atlanta headquarters hold every employee to the strict standard, from the youngest conveyor belt operator to the 30-year veteran driver.
In June, the delivery and logistics giant invited a DC Velocity editor to ride along with a UPS driver on his morning route in one of Boston's Southwest suburbs. We witnessed the nitty-gritty of a driver's day, the challenges he faces, and how technology has influenced every step of the process.
MORNING HAS BROKEN
Enter UPS's Norwood, Mass., distribution center at 8 a.m. and you quickly realize that you missed a lot of activity while you were downing that first cup of coffee.
The day's first tractor-trailers arrived around 2 a.m. and disgorged their stacks of packages onto webs of high-speed conveyors that crisscross the cavernous facility. The boxes fly past labeling stations, where adhesive stickers are applied to each one with a puff of pressurized air.
The pre-load function begins at 4 a.m., as workers prepare to begin loading the trucks. The company's proprietary load-planning software generates a three-dimensional floor plan for every truck, showing workers where to stack each parcel. Done correctly, the boxes will be positioned in the exact sequence they'll be delivered in, so the proper item is waiting at arm's length as the driver pulls up to the next stop.
About 42,000 parcels move through the Norwood center during this overnight shift on a slow Wednesday in June. But volume can easily reach double that during peak periods, such as the winter holiday season. This particular DC also sees spikes in the summer when suburban homeowners order barbeque grills and patio furniture, and in the fall when students take up residence at the Boston area's many colleges and universities.
UNLEASH THE ALGORITHMS
Even in the off-peak seasons, each driver delivers between 125 and 175 packages on his daily route, so experienced drivers will tell you that pre-load is critical. That's where logistics technology makes its biggest impact on the process.
An overnight supervisor uses proprietary software to calculate how many truck routes will be needed to accommodate the day's package count, to balance driver workloads, and to arrange for enough drivers. Big Brown keeps such a close eye on the bottom line that managers see a column on their computer screens that calculates the dollar impact every time they change a route or reassign a package to a different truck.
Once the loads are assigned, managers apply the routing software known as ORION. The acronym stands for "On-Road Integrated Optimization and Navigation," but Mark Wallace, UPS's senior vice president for global engineering and sustainability, calls it "MapQuest on steroids." This proprietary application shaves precious minutes off every driver's trip by calculating the shortest possible delivery route, even allowing for changes on the fly. The software is also what enables the carrier to offer enhanced services like flexible delivery times and, for those customers enrolled in its MyChoice program, the option to reroute their packages to a different delivery address or a "smart locker" location.
UPS' ORION software calculates the shortest route for each drive and can make changes on the fly.
UPS launched ORION in 2013 and plans to deploy it to all 55,000 of its North American routes by the end of 2016. Ideally, the result will be a reduction in driving time, mileage, gas, and emissions. As UPS brass is fond of saying, "The greenest mile is the one you never drive." In practice, some drivers complain that ORION fails to reflect real-time traffic and road conditions, with the result that they sometimes get stuck behind a school bus or funeral procession. UPS technology executives say the next release will address this by allowing real-time updates.
MAKE THE 10: 30 DEADLINE
Competing parcel carriers may designate different trucks for express service versus two-day delivery, but each UPS truck must accommodate parcels with an array of overlapping delivery deadlines. A single UPS truck might leave its DC at 8: 30 a.m., deliver all of its Next Day Air packages by 10: 30 a.m., make a second loop of its neighborhood to deliver UPS Ground parcels to businesses by 3 p.m., then make a third loop to deliver residential packages and make pickups.
To help sort out those overlapping deadlines, the driver's constant companion is the handheld computer he uses to display a list of addresses, scan every parcel to record the time it's delivered, exchange text messages with a manager, or make arrangements to meet another UPS driver to exchange a mislabeled box.
The next iteration of UPS' DIAD handheld will add smartphone-style features such as a color navigation screen and dynamic optimization, UPS says.
UPS calls the handheld computer DIAD, for "Delivery Information Acquisition Device." The mobile unit, which is now in its fifth version, was launched in 1990 to help drivers cope with the accelerated pace and complexity of modern-day parcel delivery. The sixth iteration DIAD will add familiar smartphone features like a color navigation screen and dynamic optimization, UPS CIO Juan Perez said at a recent company media day event.
REMEMBER THE HUMAN FACTOR
Equipped with the latest ORION and DIAD technology and trained in UPS techniques for everything from exiting the truck to deploying the two-wheeled dolly, a driver might seem like just a small cog in a big brown machine. But many UPS drivers stick with the same delivery route for decades, memorizing every street on their route and getting to know their clients by name.
In the space of a few hours along Norwood's bustling Route 1, we visited multiple car dealerships, a sporting goods store, a gym, a plumbing supply store, an electronics supplier, a law office, a computer programming school, a pharmaceutical firm, an automotive body shop, and a garage occupied by an elderly man running a mail-order business. A 15-year veteran of the route, the driver greeted most of his customers by their first names and a corny joke, or with some good-natured ribbing about their golf handicap.
Our day trip affirmed what many, especially those at UPS, already know: Its drivers are the face of the company. They do more than pick up and deliver packages. They interact, answer questions, and field complaints. They project the brand's image to the outside world. That is why for all of the company's whiz-bang technology and all the talk about autonomous vehicles, UPS will continue to rely on human drivers to manage its routes, and its customers, for years to come.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.
The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.
The latest infusion follows the firm’s $33 million Series B round in 2022, and its move earlier in 2024 to acquire the Vancouver, Canada-based company Orderbot, a provider of enterprise inventory and distributed order management (DOM) software.
Orlando-based OneRail says its omnichannel fulfillment solution pairs its OmniPoint cloud software with a logistics as a service platform and a real-time, connected network of 12 million drivers. The firm says that its OmniPointsoftware automates fulfillment orchestration and last mile logistics, intelligently selecting the right place to fulfill inventory from, the right shipping mode, and the right carrier to optimize every order.
“This new funding round enables us to deepen our decision logic upstream in the order process to help solve some of the acute challenges facing retailers and wholesalers, such as order sourcing logic defaulting to closest store to customer to fulfill inventory from, which leads to split orders, out-of-stocks, or worse, cancelled orders,” OneRail Founder and CEO Bill Catania said in a release. “OneRail has revolutionized that process with a dynamic fulfillment solution that quickly finds available inventory in full, from an array of stores or warehouses within a localized radius of the customer, to meet the delivery promise, which ultimately transforms the end-customer experience.”
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.