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.
Warehouse operators have turned material handling into an art form, developing intricately choreographed systems for whisking goods and materials through their DCs. But all that efficiency inside the building won't count for much if the trucks outside face delays navigating a bustling yard. That's led many to look at what they can do to make operations more efficient outside the four walls of the DC.
We talked to industry experts about the best ways to tackle the yard management challenges facing busy DC operations. What follows are their top five tips for easing the congestion.
Tip 1: Have drivers check in with a smartphone app when they arrive on site. One way to speed up the flow of trucks through a yard is to take advantage of the powerful computer most drivers now carry in their pockets—the smartphone. And these days—perhaps not surprisingly—there are apps for that. For example, as part of its software platform, Montreal-based yard management system (YMS) developer C3 Solutions offers a free smartphone app for drivers that lets them swiftly check in when they arrive for an appointment.
"When he shows up, he can just scan his smartphone, verify his load, and allow the facility to track him within the yard," said Greg Braun, senior vice president of sales and marketing and a partner at C3 Solutions. "Then the facility can say, 'Drop your trailer in this area and pick up another,' or 'We're not ready for you yet.' It's faster than in the old days, when gate guard would say, 'Tune your CB to channel 15, and we'll let you know when the door is ready.' Now, you can just send a message via the app saying, 'You're up next!'"
When drivers check in with their smartphones, they can also activate their global positioning systems so that yard personnel can track their whereabouts. That information gives warehouse managers the ability to plot the location of every truck on their lot, avoid the time-intensive process of searching for vehicles that may be parked in the wrong spots, and fit more drop-offs and pickups into each day.
"It's a visibility play; the problem is not so much the yard as the scheduling," Braun said. "If you could do more live unloads instead of drops, you wouldn't need a bigger yard or more doors. You just need better organization."
Tip 2: Encourage drivers to show up on time by tracking their performance. Many DCs rely on a carefully orchestrated schedule of truck arrivals and departures to keep goods moving smoothly through their facilities. When drivers show up late for appointments, it can throw a wrench into that machinery. Yet many warehouses lack the precise records they need to hold specific fleets or drivers accountable.
Once drivers realize there are no consequences for late arrivals, the problem can escalate. "When drivers are not held accountable, they know that even if they're late, [the receiver] would never do anything to deny the freight. So they show up at the end of the day and [the facility] still accepts the load because it's important inventory," Braun said.
Automating the check-in process changes all that. When drivers use smartphone apps to notify the yard of their arrival, the facility can capture the data and use it to track their performance over time and generate scorecards for drivers or companies, C3's Braun said. Armed with these records, a DC manager can go to a supplier and show it that Driver X habitually misses appointments or that the company's trucks arrive at unexpected times, whether it's too early or too late.
Often as not, that will bring an end to the behavior. "When you put this discipline in place and hold people accountable, they tend to fall in line," Braun said.
Tip 3: Prioritize deliveries to avoid backups and waiting lines at dock doors. To prevent peak period holdups, it helps to prioritize and "pre-assign" trucks to certain docks in advance of their arrival, said Eric Lamphier, senior director for product management at software developer Manhattan Associates Inc., which offers a YMS as part of its supply chain application suite.
Among other advantages, sorting out dock assignments ahead of time allows facilities to deal more efficiently with vehicles with special handling needs. For instance, a truck carrying temperature-sensitive goods may have to be sent to a "chilled" or "frozen" dock, instead of an ambient-temperature dock. Another might need to be directed to a dock door that's equipped to handle cargo in floor-loaded boxes instead of on pallets. A third truck may be doing a "live unload," dropping off just a portion of its cargo before heading to a different site. "These are unique scenarios that you need to route differently through the facility," Lamphier said.
Prioritizing trucks is particularly crucial for companies whose operations rely on just-in-time (JIT) deliveries. "Nobody wants a buildup of product, either in the building or in the yard," Lamphier said. "But neither does anyone want a large buildup of drivers outside, honking their horns and wondering when they can drop off a load."
Tip 4: Keep your robots busy. For a growing number of companies, setting priorities has become more than a matter of seeing that a truck carrying frozen foods is sent to the right dock or that a vehicle with raw materials urgently needed for production gets bumped to the head of the line. These days, they may also have to factor in the technology used at the dock itself.
For that, they have the robotics revolution to thank. "Robotics is coming online like a freight train," said Eric Breen, director of the 4Sight Systems logistics software suite at Assa Abloy Entrance Systems. One result is that a number of facilities have equipped certain of their warehouse docks with high-speed robotic material handling or loading equipment. To get the most from these expensive assets, the facilities will almost certainly prioritize deliveries to keep those docks as busy as possible, Breen said.
Tip 5: Augment human performance with computers in the yard. While automated equipment and robotics can go a long way toward streamlining yard operations, companies can realize even greater gains by augmenting human performance with technology tools, according to Matt Yearling, president and chief executive officer of Pinc Solutions.
These tools could be anything from wearable devices to the technology Pinc may be best known for—flying drones that allow users to identify distant assets as the sensor-equipped aerial vehicles hover above the yard.
Among other advantages, drones can help fill in a conspicuous visibility gap for companies that track the end-to-end movement of their freight: the time that trucks spend in the yard. Businesses have sophisticated systems in place to monitor the whereabouts of vehicles while they're on the road, "but [trucks spend] a vast amount of time idling at the source or destination, and people lose track of that," Yearling said.
As for other ways facilities are putting technology to use in the yard, some are installing automated kiosks at their front gates, replacing the guards once posted at the entrance to check drivers in with radio-frequency identification (RFID) scanners. Not only can these self-service kiosks make check-in faster and more accurate, but they can also eliminate language barriers that might otherwise exist between drivers and gate attendants.
Long dismissed as a simple expanse of pavement, the DC yard is now being seen as an untapped opportunity to gain operating efficiencies through the magic of automation. With the growing use of smartphone technology, robotic loading equipment, and automated kiosks, that vision is fast becoming a reality.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
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.
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.