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.
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."