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.
In the decades since they were introduced into warehouse operations, mobile computing devices have virtually transformed the business of data collection, making pencils and clipboards a thing of the past. But it's not just the warehouses that have experienced a transformation; the devices themselves have undergone a wholesale evolutionary change over that period, morphing from the clunky scanners of yesteryear to today's smart, sleek multifunctional devices.
And there's more change ahead. This time, the catalyst isn't so much technological advances as a business decision by the market's dominant player. In February 2017, Microsoft Corp. announced that it planned to "sunset" its support of its popular Windows CE and Embedded Handheld operating systems (OS), the versions of its Windows OS used in nearly all brands of handheld devices. The move is widely expected to trigger a rush among warehouse users to replace what will soon be obsolete devices.
So what does all this mean for the market? Will users make wholesale technology replacements? Or will they take a wait-and-see approach? And if they decide to swap out their equipment, what will they look for in their next-generation devices?
To get a better understanding of mobile computing in the warehouse—both where it stands today and users' plans for the future—DC Velocity teamed up with ARC Advisory Group, a Dedham, Mass., management consulting firm, to conduct a study. The research, which was conducted among 34 logistics professionals, looked at topics such as respondents' current use and future plans for use of various mobile operating systems (OS), the relative importance of mobile OS capabilities, the value of various scanning capabilities, and their use of consumer-grade versus ruggedized equipment. What follows is a look at some of the key findings.
MICROSOFT STILL IN THE PICTURE
To get a read on what operating systems warehouses are using right now, the survey asked respondents which OS they used for the majority (more than 60 percent) of their warehouse mobile devices. As expected, the study confirmed that for now, at least, Microsoft is king. A full 60 percent of respondents said the majority of their units ran on the Windows platform. (See Exhibit 1 for the full rundown.)
That could change in the very near future, however. Although Microsoft released a new mobile operating platform (Windows 10 IoT) earlier this year, indications are that the market is moving in an altogether different direction. Rather than defaulting to the latest Microsoft offering, users are widely expected to defect to a rival operating system: Google Inc.'s Android OS. Among other benefits, Android, the operating system used in an estimated 86 percent of the world's smartphones as well as other consumer electronics, has the advantage of familiarity to users and programmers alike. A number of major hardware vendors, including Honeywell Inc. and Zebra Technologies, have already introduced Android-based handhelds for DC applications.
Indeed, when asked how they expected their OS usage patterns to change over the next three years, 56 percent of respondents indicated they planned to increase their use of Android. While that aligns with the current industry thinking, Microsoft nonetheless had an unexpectedly strong showing in our poll. Nearly a third of respondents—29 percent—said they expected to increase their use of Windows in that period. (See Exhibit 2.)
This finding suggests that Microsoft may play a more enduring role in warehouse mobile computing than expected. The survey results didn't reveal the reasons for that, but Clint Reiser, ARC's director of supply chain research and the study's leader, offered a possible explanation. Reiser speculated that the finding reflects the warehouse community's tendency to move cautiously when it comes to adopting new technologies.
As an example of that, Reiser pointed to another of the study's findings: the revelation that more than a third (35 percent) of warehouses are still using devices with alphanumeric keypads, as opposed to the touchscreen interfaces found on today's consumer smartphones. "These results, like the still-widespread use of Windows OS, suggest that warehouses are adopting modern mobile technologies at a more measured pace than some customer-facing areas of businesses," Reiser said.
That's not to say all warehouses are watching from the sidelines. Of those respondents that plan to migrate from Windows to Android, a sizeable share—40 percent—have already begun the changeover. To learn what they expect to gain from the move, the survey asked those respondents that are migrating to Android what impact they expected the transition to have on their operations. The most frequent responses were improvements in user interface/usability, support for complementary devices, mobile application development, and handheld hardware performance. By comparison, fewer users foresaw improvements in areas such as wireless communications options, application software performance, wireless data security, and preventing misuse of devices.
HANDHELDS AND TABLETS
The question of operating systems aside, the survey looked at other factors that influence users' choice of mobile equipment. For instance, the questionnaire asked respondents what capabilities they consider most important in a handheld device. Far and away the top response was "data capture/scanning accuracy." The next most popular responses were data capture/scanning speed and visual information display. (See Exhibit 3.)
A question that often comes up with respect to handhelds in the warehouse concerns the grade of equipment used. Today's DCs have choices: They can buy purpose-built ruggedized industrial devices or opt for consumer-grade smartphones with built-in scanners—which are generally lower-cost, but lower-scan-performance, units. Our survey indicated that despite the price advantage, consumer devices were not a particularly popular choice. The results showed that only 3 percent of respondents make widespread use of consumer-grade handhelds, while 35 percent do it only selectively and 62 percent don't use them at all.
Digging into the subject a little further, the survey included a similar question about the devices provided to temp workers brought in during peak periods. Although logic might dictate that DCs would opt for lower-cost (and familiar-to-users) consumer-grade devices in this situation, that wasn't the case. Among the DCs that bought or leased mobile devices for temp workers' use, respondents showed a clear preference for ruggedized industrial devices. (See Exhibit 4.)
Of course, when it comes to mobile devices, handhelds aren't the only units found in today's DCs. Some facilities also make use of tablets. Our research indicated that these devices have yet to take hold throughout the DC, however. Respondents reported that the most widespread tablet use was found among workers driving vehicles like forklifts, who used vehicle-mounted devices (35 percent). Next on the list were warehouse supervisors (32 percent), employees at pack stations (21 percent), and order pickers (18 percent).
A MATTER OF TIME
With the mobile computing market at a crossroads, the results of our industry study make one thing quite clear: Logistics managers are fully aware of the potential held by the next generation of handheld computers. Although they may not be ready to give up their legacy devices just yet, it's likely only a matter of time. The allure of user-friendly interfaces, more accurate scanning, and faster processing will eventually win out, ushering in a new era of mobile computing in the workplace.
ABOUT THE STUDY
The "Mobile Computing in the Modern Warehouse" study was conducted by ARC Advisory Group in conjunction with DC Velocity. ARC analyst Clint Reiser oversaw the research and compiled the results.
The 24-question survey explored the current use of mobile devices in the warehouse as well as users' plans for the future. The findings reported here are based on 34 responses. Respondents included logistics professionals from a variety of industries, who completed an online questionnaire in July 2018. As for the demographic breakdown, the respondents included manufacturers (47 percent), wholesalers (21 percent), third-party logistics service providers (15 percent), retailers (6 percent), and "other" (12 percent).
A report containing a more detailed examination of the mobile device survey results is available from ARC. To find out how to obtain a copy, visit ARC's website.
“The past year has been unprecedented, with extreme weather events, heightened geopolitical tension and cybercrime destabilizing supply chains throughout the world. Navigating this year’s looming risks to build a secure supply network has never been more critical,” Corey Rhodes, CEO of Everstream Analytics, said in the firm’s “2025 Annual Risk Report.”
“While some risks are unavoidable, early notice and swift action through a combination of planning, deep monitoring, and mitigation can save inventory and lives in 2025,” Rhodes said.
In its report, Everstream ranked the five categories by a “risk score metric” to help global supply chain leaders prioritize planning and mitigation efforts for coping with them. They include:
Drowning in Climate Change – 90% Risk Score. Driven by shifting climate patterns and record-high temperatures, extreme weather events are a dominant risk to the supply chain due to concerns such as flooding and elevated ocean temperatures.
Geopolitical Instability with Increased Tariff Risk – 80% Risk Score. These threats could disrupt trade networks and impact economies worldwide, including logistics, transportation, and manufacturing industries. The following major geopolitical events are likely to impact global trade: Red Sea disruptions, Russia-Ukraine conflict, Taiwan trade risks, Middle East tensions, South China Sea disputes, and proposed tariff increases.
More Backdoors for Cybercrime – 75% Risk Score. Supply chain leaders face escalating cybersecurity risks in 2025, driven by the growing reliance on AI and cloud computing within supply chains, the proliferation of IoT-connected devices, vulnerabilities in sub-tier supply chains, and a disproportionate impact on third-party logistics providers (3PLs) and the electronics industry.
Rare Metals and Minerals on Lockdown – 65% Risk Score. Between rising regulations, new tariffs, and long-term or exclusive contracts, rare minerals and metals will be harder than ever, and more expensive, to obtain.
Crackdown on Forced Labor – 60% Risk Score. A growing crackdown on forced labor across industries will increase pressure on companies who are facing scrutiny to manage and eliminate suppliers violating human rights. Anticipated risks in 2025 include a push for alternative suppliers, a cascade of legislation to address lax forced labor issues, challenges for agri-food products such as palm oil and vanilla.
That number is low compared to widespread unemployment in the transportation sector which reached its highest level during the COVID-19 pandemic at 15.7% in both May 2020 and July 2020. But it is slightly above the most recent pre-pandemic rate for the sector, which was 2.8% in December 2019, the BTS said.
For broader context, the nation’s overall unemployment rate for all sectors rose slightly in December, increasing 0.3 percentage points from December 2023 to 3.8%.
On a seasonally adjusted basis, employment in the transportation and warehousing sector rose to 6,630,200 people in December 2024 — up 0.1% from the previous month and up 1.7% from December 2023. Employment in transportation and warehousing grew 15.1% in December 2024 from the pre-pandemic December 2019 level of 5,760,300 people.
The largest portion of those workers was in warehousing and storage, followed by truck transportation, according to a breakout of the total figures into separate modes (seasonally adjusted):
Warehousing and storage rose to 1,770,300 in December 2024 — up 0.1% from the previous month and up 0.2% from December 2023.
Truck transportation fell to 1,545,900 in December 2024 — down 0.1% from the previous month and down 0.4% from December 2023.
Air transportation rose to 578,000 in December 2024 — up 0.4% from the previous month and up 1.4% from December 2023.
Transit and ground passenger transportation rose to 456,000 in December 2024 — up 0.3% from the previous month and up 5.7% from December 2023.
Rail transportation remained virtually unchanged in December 2024 at 150,300 from the previous month but down 1.8% from December 2023.
Water transportation rose to 74,300 in December 2024 — up 0.1% from the previous month and up 4.8% from December 2023.
Pipeline transportation rose to 55,000 in December 2024 — up 0.5% from the previous month and up 6.2% from December 2023.
Parcel carrier and logistics provider UPS Inc. has acquired the German company Frigo-Trans and its sister company BPL, which provide complex healthcare logistics solutions across Europe, the Atlanta-based firm said this week.
According to UPS, the move extends its UPS Healthcare division’s ability to offer end-to-end capabilities for its customers, who increasingly need temperature-controlled and time-critical logistics solutions globally.
UPS Healthcare has 17 million square feet of cGMP and GDP-compliant healthcare distribution space globally, supporting services such as inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics.
More specifically, UPS Healthcare said that the acquisitions align with its broader mission to provide end-to-end logistics for temperature-sensitive healthcare products, including biologics, specialty pharmaceuticals, and personalized medicine. With 80% of pharmaceutical products in Europe requiring temperature-controlled transportation, investments like these ensure UPS Healthcare remains at the forefront of innovation in the $82 billion complex healthcare logistics market, the company said.
Additionally, Frigo-Trans' presence in Germany—the world's fourth-largest healthcare manufacturing market—strengthens UPS's foothold and enhances its support for critical intra-Germany operations. Frigo-Trans’ network includes temperature-controlled warehousing ranging from cryopreservation (-196°C) to ambient (+15° to +25°C) as well as Pan-European cold chain transportation. And BPL provides logistics solutions including time-critical freight forwarding capabilities.
Terms of the deal were not disclosed. But it fits into UPS' long term strategy to double its healthcare revenue from $10 billion in 2023 to $20 billion by 2026. To get there, it has also made previous acquisitions of companies like Bomi and MNX. And UPS recently expanded its temperature-controlled fleet in France, Italy, the Netherlands, and Hungary.
"Healthcare customers increasingly demand precision, reliability, and adaptability—qualities that are critical for the future of biologics and personalized medicine. The Frigo-Trans and BPL acquisitions allow us to offer unmatched service across Europe, making logistics a competitive advantage for our pharma partners," says John Bolla, President, UPS Healthcare.
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.