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.
When contract logistics specialist DHL Supply Chain wanted to improve security at company warehouses in Mexico and Brazil, the Deutsche Post DHL Group unit deployed flying drones with surveillance cameras.
When transportation and logistics service provider XPO Logistics Inc. wanted to beef up security in its employee parking lots, the company rolled out mobile security robots outfitted with video cameras, heat sensors, two-way speakers, and alarm sirens.
Both companies are turning to new technologies to address the age-old problem of safety and security at distribution centers, parking lots, loading docks, and yards. Drones and sensors are taking on larger roles in facility and yard systems, providing capabilities like airborne reconnaissance and 24-hour surveillance that previous generations of systems could not offer.
"Robots offer exciting new capabilities in terms of productivity and security," XPO President Troy Cooper said in an e-mail. During a test beginning in October 2017 at XPO's Atlanta facility, the use of robots reduced the number of security incidents while cutting costs, Cooper said. XPO declined to share specific numbers on the extent of the reductions. In addition to cutting down on incidents like trespassing, car break-ins, and car damage, the robots ensure a workplace is free of intruders and that no suspicious vehicles are parked at a facility, Cooper said.
Drones are becoming an increasingly common sight in transportation applications, according to a March survey by the American Association of State Highway and Transportation Officials (AASHTO). The survey found that 35 out of 44 responding state departments of transportation—or 80 percent—are using drones for tasks including bridge inspections, surveying, photography of highway construction projects, emergency response, and daily traffic control and monitoring.
The ability of drones and other sensors to collect a wide range of data also makes them well suited for applications in busy warehouse yards and facilities, technology providers say.
SENSORS ENHANCE SECURITY
Yard management systems provider Pinc Solutions, a Union City, Calif.-based firm known for its drone deployments, said customers are typically concerned about four types of security in the yard: visitors, trailers, drivers, and containers. Yard management systems can address all of those concerns by using sensors to automatically monitor wide areas, Pinc said.
First, a yard system can track visitors, keeping an electronic log of all people who arrive at a facility, recording when they come, how long they stay, and when they leave, said Rafael Granato, the company's marketing director. Second, yard systems can use drones and cameras to track the location of trailers, allowing supervisors to quickly search for missing units and to determine if they have been misplaced or have already departed the grounds.
Third, a system can track individual drivers, allowing facility managers to monitor drivers who don't behave according to company policies. Lastly, video systems can verify the presence of container seals during gate check-in and checkout, Granato said. This allows a facility to verify its role in the chain of custody, he added.
Cargo theft is a common security concern in warehouse yards, said Walt Swietlik, director of customer relations and sales support for Milwaukee-based Rite-Hite, a provider of loading dock equipment and safety barriers. To help deter thieves from making off with loaded trailers, the Milwaukee-based company offers a trailer restraint that connects a truck trailer or intermodal container to the warehouse dock both with physical hooks and with an electronic connection to the building's security system.
"By far our number one concern is trailer theft and hijacking," Swietlik said. "Year in and year out, loading docks are one of the top locations [for trailer theft]."
Another common problem is unauthorized persons entering a yard to gain access to a building, Swietlik said. Even if these visitors don't intend to steal equipment or inventory, they can present a safety problem by wandering around dangerous loading zones and high-traffic lanes, he said. Because loading docks are often left open to allow for quick loading and unloading of cargo, they offer an easy target for thieves. In response, yard management providers are using sensor-based systems such as security doors, access controls, and motion sensors to prevent unwanted pedestrians from wandering around the yard and DC, he said.
STAYING A STEP AHEAD OF THE CROOKS
Another area where sensors can provide a big payoff is in the tracking and reporting of inventory—a task that's becoming increasingly critical for shippers across all industries, according to Maynard, Mass.-based logistics software vendor Kuebix, which specializes in transportation management systems (TMS). In a recent blog post on its website, the company warned that thieves are changing their tactics in ways that often catch shippers off guard. Rather than stealing entire loads or multiple pallets, they're "lifting" small amounts of product at a time, according to the blog post, "Cargo thieves' new strategy hitting shippers hard." This allows thieves to quickly escape, often leaving victims unaware anything was taken, Kuebix said.
To protect against that threat, companies can collect data from sensors, radio-frequency identification (RFID) tags, and global positioning system (GPS) tracking units, tying those inputs together with Internet of Things (IoT) platforms in the yard, Kuebix said. They can then analyze the data and use it for applications like locating trucks and drivers in real time, reviewing how long a truck stayed at a particular checkpoint, and tracking and tracing individual pallets as well as identifying any unusual patterns of activity.
Integrating RFID and GPS data into a yard management system is a crucial tool for improving security measures, according to Ed Moran, managing director and senior vice president for sales and marketing, Americas, at Transporeon Group, a German company that develops cloud-based logistics platforms. Whether that data is generated by a driver's smartphone app, an electronic logging device (ELD), or a hovering drone, users can use it to improve yard security and reduce the risk of lost shipments or trucks as well as cargo theft or damage, he said.
Collecting that data may be cumbersome at first, but users can streamline the process by coupling their dock scheduling and yard management solutions with tracking systems and sensor technology, Moran said. That approach can automate the process of performing security checks like locating lost trailers, ensuring that all the trucks in a yard are supposed to be there, and detecting when a certain truck has remained in the yard longer than expected.
Regardless of which types of tools it chooses, deploying monitoring technologies can improve a facility's ability to keep track of both inventory and personnel on site. And that capability will always be important at bustling docks and busy yards.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
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.”