As Microsoft prepares to end support for its Windows Mobile operating system, DCs look to the Android OS for a new generation of rugged handheld devices.
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.
Mobile computing devices are a staple in the modern warehouse, allowing workers to perform picking, packing, and putaway tasks far faster than they could with clipboards and paper checklists. From bar-code scanners to touchscreen tablets and voice-directed picking headsets, mobile devices provide the speed and accuracy that DCs need to meet the demands of rising e-commerce orders and expectations for overnight shipping.
Change is in the works for all these devices, however, since nearly all of the computers in this sector run on the Windows operating system (OS), and Microsoft Corp. is planning to end its support for the versions of that software that are used on handheld devices. The Redmond, Wash.-based technology giant will stop issuing security patches and software updates for its Windows CE and Windows Mobile operating systems in a series of rolling deadlines occurring between 2018 and 2021, industry sources say.
After Microsoft "sunsets" its support for those popular products, any company still running that Windows software on its devices will be left to fend for itself in the constant battle to ward off viruses, fix software bugs, or add new apps. A few of the largest user companies may have sophisticated enough information technology (IT) departments to manage on their own for a while, but the change will leave most companies with a stark choice—continue to use mobile devices that will soon become obsolete or upgrade to a new OS.
For most DCs, the transition will require several steps. First, unless they've purchased new hardware recently, warehouses will need to buy new handheld devices that pack enough memory and computing power to run the next-generation OS. Then they can upgrade their applications and build new links to related software like warehouse management systems (WMS).
Fortunately, that big investment can also generate big returns. "Choosing a new OS, finding the right devices, and modernizing your apps before the 2020 end of extended support will have huge productivity and cost advantages," according to an e-book from Zebra Technologies titled "A smart guide to upgrading your enterprise OS and apps: Extended support for Windows Embedded is ending very soon." Despite the cost of upgrading to a modernized operating system, the transition will leave warehouses with smarter, faster handhelds that can both improve security and enable a more connected work force.
THREE OPTIONS FOR UPGRADING
For operations that elect to upgrade to a new OS, the obvious question is which one to go with. In this regard, warehouses have three main options.
One possibility is to stick with Microsoft, which has developed a new OS called Windows 10 IoT to meet demand for next-generation devices. However, while Windows 10 has been well received for use on laptops and other personal computers, its adoption in the rugged handheld sector is very slow, according to Zebra.
"We do have tablets and small handhelds available now on Windows 10 IoT for field mobility applications," said Mark Wheeler, director of supply chain solutions at Zebra Technologies. "But inside the four walls [of the warehouse], we're not seeing customer demand for Windows."
Microsoft itself is offering very little guidance on the issue, with no clear message on its website and no public marketing position. Asked about its strategy for supporting users of enterprise mobile devices after it ends support for the two legacy operating systems, a Microsoft spokesman said the company was unable to provide further information.
A second choice is to switch over to Apple's iOS platform, but that option is also attracting very few users in enterprise applications, Zebra said. As for why Cupertino, Calif.-based Apple has failed to capture a significant slice of the rugged mobile handheld market, it's partly because of the company's exclusive focus on non-ruggedized consumer electronics—such as its popular iPhone and iPad devices—and partly because of Apple's insistence on acting as the sole supplier of hardware devices for its own operating system.
That leaves option number three—Google Inc.'s Android operating system. By all accounts, this is emerging as the leading option for warehouses looking for the next platform for their handheld devices. "Momentum has definitely shifted toward Android as a clear favorite to replace devices running legacy Windows operating systems," Zebra's book said.
Google, a division of Mountain View, Calif.-based Alphabet Inc., appears to be up to the challenge, riding a rising swell of interest among users who have adopted Android in various sectors. The Android OS was used in 80 percent of all smartphones worldwide and in 37 percent of rugged devices in 2016, the latter up from 24 percent the year before, according to a report from VDC Research.
DRIVE FOR EFFICIENCY, SECURITY
Another factor pushing warehouses to consider upgrading their mobile devices is the relentless drive for greater efficiency in the DC, said Steve Bemis, vice president of mobile productivity at Ivanti Software Inc., a South Jordan, Utah-based IT management services provider.
Warehouse operators are increasingly looking to upgrade their mobile devices as a way to satisfy demands to rev up productivity while reining in costs, Bemis said. And because current mobile operating systems will be out of service soon, managers must minimize disruption while making that change.
In a recent survey on the market for mobile warehouse devices conducted with VDC, Ivanti found that the number one pressure driving investment in mobile solutions was customer demand for faster orders (55.7 percent), followed by replacing older systems that were incapable of keeping up with these orders (42.1 percent), and the high cost of labor (37.5 percent). The survey polled 107 high-ranking professionals across North America and Europe who are responsible for selecting mobile solutions for use in warehouses and distribution centers.
As for what they're looking for when choosing a new OS, the survey indicated that security was top of mind for many. When respondents were asked about their selection criteria, IT security emerged as the number one consideration (55.1 percent), followed by the ability to customize (34.8 percent) and a modern user interface (30.3 percent).
In fact, one of the benefits of upgrading mobile warehouse devices is that it typically helps strengthen a company's defenses against hackers and viruses. Computer security in the supply chain is a hot issue, highlighted by recent events like the "Petya" bug that triggered a global IT meltdown in June and froze operations at shipping giant Maersk, and the "WannaCry" virus that hit 150 countries in May, locking up thousands of computers and shutting down a Honda car manufacturing plant for a day. Even though mobile computers inside a DC are typically disconnected from the Internet in order to minimize distractions for workers, clever hackers have shown a knack for disrupting enterprise systems.
"I'm shocked that more people aren't talking about [security], especially with the WannaCry virus a few months ago. Being on old systems that do not have security updates is a risky thing," said Ron Kubera, senior vice president and chief marketing officer at mobile technology specialist Lucas Systems. "I want people to start planning, because it's two and a half years away. That's not a long time; if you don't do it this year, you're going to be down to the wire."
TECH EXPLOSION IN THE DC
Upgrading to a new OS can also pay dividends by opening the door to a new array of technological capabilities, Kubera said. Virtually all of the next-generation wearable devices such as smartglasses and smartwatches are based on the Android operating system, so they are incompatible with Windows-based applications, he said.
"The advancement of technology in the DC is going to really accelerate, and people aren't ready for it. Android makes it possible to use these new devices," said Kubera. "The level of innovation in the Android universe is unprecedented compared with the Windows ecosystem, and we're already seeing innovation coming from the consumer side into the industry side."
The explosion of consumer-grade interfaces and tools enabled by a next-generation OS could give a shot in the arm to labor productivity in the DC, agrees Joe Vernon at consulting firm Capgemini. The change will happen as warehouses discard their old keyboard-based handheld devices and upgrade to models with larger screens, touchscreen interfaces, and other features typically found on the smartphones employees use in their private lives.
Bringing consumer-grade computing features into the warehouse is another area where Android has the edge over Windows or Apple, Vernon said. "The market has been hungering for screens and programs beyond the restrictions of Windows CE, and Android is more customizable, more nimble," he said. "Android has more shops, local vendors, and lower prices because Android has a larger consumer ecosystem."
Despite the looming deadline of Microsoft's end of support for its legacy mobile OS platforms, businesses don't have to scrap their entire array of handheld devices in a single wave of upgrading, Vernon said. "This is not a Y2K scenario, where you're going to jump off a bridge if you haven't made this change by a deadline," he said, referring to the 1990s-era IT scare that had users worried their computers would malfunction at the turn of the millennium. "You can always start a partial replacement; just pick one or two areas and install Android. For example, use it for [quality assurance] at the inbound dock to do sampling of loads and take pictures."
Whether a warehouse is looking to increase security, boost efficiency, or deploy the latest peripherals, change is in the wind for handheld computers in the DC. With Microsoft planning to withdraw its support for the mobile operating systems that companies have used for decades, players throughout the supply chain will face decisions about choosing a new OS, finding a handheld device to support it, and migrating their apps over to the upgraded platform.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”
Material handling automation provider Vecna Robotics today named Karl Iagnemma as its new CEO and announced $14.5 million in additional funding from existing investors, the Waltham, Massachusetts firm said.
The fresh funding is earmarked to accelerate technology and product enhancements to address the automation needs of operators in automotive, general manufacturing, and high-volume warehousing.
Iagnemma comes to the company after roles as an MIT researcher and inventor, and with leadership titles including co-founder and CEO of autonomous vehicle technology company nuTonomy. The tier 1 supplier Aptiv acquired Aptiv in 2017 for $450 million, and named Iagnemma as founding CEO of Motional, its $4 billion robotaxi joint venture with automaker Hyundai Motor Group.
“Automation in logistics today is similar to the current state of robotaxis, in that there is a massive market opportunity but little market penetration,” Iagnemma said in a release. “I join Vecna Robotics at an inflection point in the material handling market, where operators are poised to adopt automation at scale. Vecna is uniquely positioned to shape the market with state-of-the-art technology and products that are easy to purchase, deploy, and operate reliably across many different workflows.”
Third-party logistics (3PL) providers’ share of large real estate leases across the U.S. rose significantly through the third quarter of 2024 compared to the same time last year, as more retailers and wholesalers have been outsourcing their warehouse and distribution operations to 3PLs, according to a report from real estate firm CBRE.
Specifically, 3PLs’ share of bulk industrial leasing activity—covering leases of 100,000 square feet or more—rose to 34.1% through Q3 of this year from 30.6% through Q3 last year. By raw numbers, 3PLs have accounted for 498 bulk leases so far this year, up by 9% from the 457 at this time last year.
By category, 3PLs’ share of 34.1% ranked above other occupier types such as: general retail and wholesale (26.6), food and beverage (9.0), automobiles, tires, and parts (7.9), manufacturing (6.2), building materials and construction (5.6), e-commerce only (5.6), medical (2.7), and undisclosed (2.3).
On a quarterly basis, bulk leasing by 3PLs has steadily increased this year, reversing the steadily decreasing trend of 2023. CBRE pointed to three main reasons for that resurgence:
Import Flexibility. Labor disruptions, extreme weather patterns, and geopolitical uncertainty have led many companies to diversify their import locations. Using 3PLs allows for more inventory flexibility, a key component to retailer success in times of uncertainty.
Capital Allocation/Preservation. Warehousing and distribution of goods is expensive, draining capital resources for transportation costs, rent, or labor. But outsourcing to 3PLs provides companies with more flexibility to increase or decrease their inventories without any risk of signing their own lease commitments. And using a 3PL also allows companies to switch supply chain costs from capital to operational expenses.
Focus on Core Competency. Outsourcing their logistics operations to 3PLs allows companies to focus on core business competencies that drive revenue, such as product development, sales, and customer service.
Looking into the future, these same trends will continue to drive 3PL warehouse demand, CBRE said. Economic, geopolitical and supply chain uncertainty will remain prevalent in the coming quarters but will not diminish the need to effectively manage inventory levels.
In a push to automate manufacturing processes, businesses around the world have turned to robots—the latest figures from the Germany-based International Federation of Robotics (IFR) indicate that there are now 4,281,585 robot units operating in factories worldwide, a 10% jump over the previous year. And the pace of robotic adoption isn’t slowing: Annual installations in 2023 exceeded half a million units for the third consecutive year, the IFR said in its “World Robotics 2024 Report.”
As for where those robotic adoptions took place, the IFR says 70% of all newly deployed robots in 2023 were installed in Asia (with China alone accounting for over half of all global installations), 17% in Europe, and 10% in the Americas. Here’s a look at the numbers for several countries profiled in the report (along with the percentage change from 2022).
Sean Webb’s background is in finance, not package engineering, but he sees that as a plus—particularly when it comes to explaining the financial benefits of automated packaging to clients. Webb is currently vice president of national accounts at Sparck Technologies, a company that manufactures automated solutions that produce right-sized packaging, where he is responsible for the sales and operational teams. Prior to joining Sparck, he worked in the financial sector for PEAK6, E*Trade, and ATD, including experience as an equity trader.
Webb holds a bachelor’s degree from Michigan State and an MBA in finance from Western Michigan University.
Q: How would you describe the current state of the packaging industry?
A: The packaging and e-commerce industries are rapidly evolving, driven by shifting consumer preferences, technological advancements, and a heightened focus on sustainability. The packaging sector is increasingly prioritizing eco-friendly materials to reduce waste, while integrating smart technologies and customizable solutions to enhance brand engagement.
The e-commerce industry continues to expand, fueled by the convenience of online shopping and accelerated by the pandemic. Advances in artificial intelligence and augmented reality are enhancing the online shopping experience, while consumer expectations for fast delivery and seamless transactions are reshaping logistics and operations.
In addition, with the growth in environmental and sustainability regulatory initiatives—like Extended Producer Responsibility (EPR) laws and a New Jersey bill that would require retailers to use right-sized shipping boxes—right-sized packaging is playing a crucial role in reducing packaging waste and box volume.
Q: You came from the financial and equity markets. How has that been an advantage in your work as an executive at Sparck?
A: My background has allowed me to effectively communicate the incredible ROI [return on investment] and value that right-size automated packaging provides in a way that financial teams understand. Investment in this technology provides significant labor, transportation, and material savings that typically deliver a positive ROI in six to 18 months.
Q: What are the advantages to using automated right-sized packaging equipment?
A: By automating the packaging process to create right-sized boxes, facilities can boost productivity by streamlining operations and reducing manual handling. This leads to greater operational efficiency as automated systems handle tasks with precision and speed, minimizing downtime.
The use of right-sized packaging also results in substantial labor savings, as less labor is required for packaging tasks. In addition, these systems support scalability, allowing facilities to easily adapt to increased order volumes and evolving needs without compromising performance.
Q: How can automation help ease the labor problems associated with time-consuming pack-out operations?
A: Not only has the cost of labor increased dramatically, but finding a consistent labor force to keep up with the constant fluctuations around peak seasons is very challenging. Typically, one manual laborer can pack at a rate of 20 to 35 packages per hour. Our CVP automated packaging solution can pack up to 1,100 orders per hour utilizing a fully integrated system. This system not only creates a right-sized box, but also accurately weighs it, captures its dimensions, and adds the necessary carrier information.
Q: Beyond material savings, are there other advantages for transportation and warehouse functions in using right-sized packaging?
A: Yes. By creating smaller boxes, right-sizing enables more parcels to fit on a truck, leading to significant shipping and transportation savings. This also results in reduced CO2 emissions, as fewer truckloads are required. In addition, parcels with right-sized packaging are less prone to damage, and automation helps minimize errors.
In a warehouse setting, smaller packages are easier to convey and sort. Using a fully integrated system that combines multiple functions into a smaller footprint can also lead to operational space savings.
Q: Can you share any details on the typical ROI and the savings associated with packaging automation?
A: Three-dimensional right-sized packaging automation boosts productivity significantly, leading to increased overall revenue. Labor savings average 88%, and transportation savings accrue with each right-sized box. In addition, material savings from less wasteful use of corrugated packaging enhance the return on investment for companies. Together, these typically deliver returns in under 18 months, with some projects achieving ROI in as little as six months. These savings can total millions of dollars for businesses.
Q: How can facility managers convince corporate executives that automated packaging technology is a good investment for their operation?
A: We like to take a data-driven approach and utilize the actual data from the customer to understand the right fit. Using those results, we utilize our ROI tool to accurately project the savings, ROI, IRR (internal rate of return), and NPV (net present value) that facility managers can then use to [elicit] the support needed to make a good investment for their operation.
Q: Could you talk a little about the enhancements you’ve recently made to your automated solutions?
A: Sparck has introduced a number of enhancements to its packaging solutions, including fluting corrugate that supports packages of various weights and sizes, allowing the production of ultra-slim boxes with a minimum height of 28mm (1.1 inches). This innovation revolutionizes e-commerce packaging by enabling smaller parcels to fit through most European mailboxes, optimizing space in transit and increasing throughput rates for automated orders.
In addition, Sparck’s new real-time data monitoring tools provide detailed machine performance insights through various software solutions, allowing businesses to manage and optimize their packaging operations. These developments offer significant delivery performance improvements and cost savings globally.