Distribution centers across the country are on the verge of replacing their fleets of mobile computers, as Microsoft backs out of the market. But experts say there's more to a refresh cycle than just swapping one brand of handheld for another.
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.
Managers today need wide-ranging technology expertise to keep up with the fast-changing demands of logistics and fulfillment operations. On any given day, their challenges could range from installing the robotic and automated systems required to keep up with Amazon.com Inc. to deploying the augmented reality (AR), gamification, and social media tools many DCs have introduced as a way to engage millennials.
There's another issue that demands a more timely response, however, and finding the right answer could be more complex than it seems.
That issue concerns the ubiquitous mobile devices—think bar-code scanners and tablets—that have become deeply entrenched in today's warehouse and fulfillment operations. Many—if not most—of those mobile devices run on the Windows 10 Mobile operating system (OS), which means they are about to become "unsupported" devices. In December, Redmond, Washington-based Microsoft Corp. will end its support for those units, meaning it will stop providing security patches and antivirus updates. After that point, the Windows-powered devices will still work, but they will be increasingly vulnerable to hacks and cyberattacks, putting both customer and corporate data at risk.
Interviews with vendors and customers indicate that many companies will migrate to Google Inc.'s Android operating system, while a smaller number may switch to Apple Inc.'s iOS platform. But whatever choice they make, experts warn that the replacement process is more complex than just making a straight trade.
HIGH-STAKES DECISION
As for what makes the process so complicated, a number of factors come into play. Part of the answer lies in the extent to which the devices have infiltrated today's warehouse operations, according to Marco Nielsen, vice president of managed mobility services at Stratix, a Peachtree Corners, Georgia-based managed mobile services provider. As companies scramble to keep up with demands for faster, more accurate shipments, they've become extremely reliant on automated devices, he noted in a paper titled Mobile Tech in the Supply Chain: How technology enables supply chain innovation. "It's not easy to find a warehouse today that doesn't depend heavily on the wearable computers, bar-code scanners, and forklift-mounted terminals used for most aspects of inventory control, shipping, and handling," he wrote.
Another part of the answer lies in the interconnectedness of today's DC operations. "The same device that enables a picker to select the right merchandise for a store or an individual customer can instantaneously contribute to another task such as inventory control," Nielsen noted in his paper. In this type of integrated environment, a change-out of something as simple as a handheld will also affect a broad range of connected technologies throughout the DC, according to a white paper from Barcoding Inc. and Samsung titled Manufacturing Modernization: How to Get There.
Still another complication for companies looking to upgrade their mobile devices concerns the wireless networks that keep them connected. A handheld computer is only as good as the data it can share, and networks are changing fast.
The second-generation (2G) and third-generation (3G) networks that have long supported our basic cellphones will soon be set aside in favor of far faster 4G and 5G networks, according to Robert Puric, senior director, field mobility - enterprise mobile computing, at data-capture specialist Zebra Technologies.
The major wireless carriers have already announced they will no longer support 3G devices on their networks by the end of 2020, so mobile computer vendors such as Lincolnshire, Illinois-based Zebra have started adding updated chipsets and radios to their latest product lines, Puric says.
The change will affect transportation and logistics companies as well as retail users, but it won't happen overnight. Some major cities now support 5G networks, but the system won't cover the entire U.S. for three or four more years, Puric says. In the meantime, 4G is expected to be the de facto wireless standard well into the late 2020s.
DON'T BE AN OSTRICH
With Microsoft's end-of-support date looming, many companies have yet to put a solid transition plan in place, according to Shane Snyder, president of Barcoding Inc., which is a Baltimore-based provider of data-capture and supply chain analytics solutions.
Some are behaving like an ostrich with its head in the sand, asking "If it still works, why do we need to replace it?" While continuing to use legacy devices might be the simplest solution, it's also a risky one given the threat of cyberattacks and security breaches, Snyder says.
Others plan to simply replace each of their Windows-based devices with an Android device, integrating them into their operations with no other changes. That might be quick and easy, but it's also a missed opportunity to make improvements to business and labor processes, Snyder says. By doing a simple one-to-one replacement, companies lose out on a chance to reassess how they're using those mobile devices, whether they're using too many, and if they could be using them in a more optimal way.
Instead, Barcoding recommends that companies conduct a complete inventory of their existing mobile devices and then check with their operations teams to make sure all of the units are actually being used. It's not unusual for businesses to discover that some of their devices are sitting idle and therefore won't have to be replaced, Snyder says.
Beyond that, Barcoding urges DC leaders to collaborate with the end-users in the selection and implementation process, including having them test the new devices before a full-blown rollout.
With processes, people, and the broader technology ecosystem to consider, swapping out the humble handheld isn't as simple as it might seem. But in today's interconnected environment, taking the time to do it right can bring payoffs in nearly every aspect of a DC's operations.
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.”
DAT Freight & Analytics has acquired Trucker Tools, calling the deal a strategic move designed to combine Trucker Tools' approach to load tracking and carrier sourcing with DAT’s experience providing freight solutions.
Beaverton, Oregon-based DAT operates what it calls the largest truckload freight marketplace and truckload freight data analytics service in North America. Terms of the deal were not disclosed, but DAT is a business unit of the publicly traded, Fortune 1000-company Roper Technologies.
Following the deal, DAT said that brokers will continue to get load visibility and capacity tools for every load they manage, but now with greater resources for an enhanced suite of broker tools. And in turn, carriers will get the same lifestyle features as before—like weigh scales and fuel optimizers—but will also gain access to one of the largest networks of loads, making it easier for carriers to find the loads they want.
Trucker Tools CEO Kary Jablonski praised the deal, saying the firms are aligned in their goals to simplify and enhance the lives of brokers and carriers. “Through our strategic partnership with DAT, we are amplifying this mission on a greater scale, delivering enhanced solutions and transformative insights to our customers. This collaboration unlocks opportunities for speed, efficiency, and innovation for the freight industry. We are thrilled to align with DAT to advance their vision of eliminating uncertainty in the freight industry,” Jablonski said.
Global trade will see a moderate rebound in 2025, likely growing by 3.6% in volume terms, helped by companies restocking and households renewing purchases of durable goods while reducing spending on services, according to a forecast from trade credit insurer Allianz Trade.
The end of the year for 2024 will also likely be supported by companies rushing to ship goods in anticipation of the higher tariffs likely to be imposed by the coming Trump administration, and other potential disruptions in the coming quarters, the report said.
However, that tailwind for global trade will likely shift to a headwind once the effects of a renewed but contained trade war are felt from the second half of 2025 and in full in 2026. As a result, Allianz Trade has throttled back its predictions, saying that global trade in volume will grow by 2.8% in 2025 (reduced by 0.2 percentage points vs. its previous forecast) and 2.3% in 2026 (reduced by 0.5 percentage points).
The same logic applies to Allianz Trade’s forecast for export prices in U.S. dollars, which the firm has now revised downward to predict growth reaching 2.3% in 2025 (reduced by 1.7 percentage points) and 4.1% in 2026 (reduced by 0.8 percentage points).
In the meantime, the rush to frontload imports into the U.S. is giving freight carriers an early Christmas present. According to Allianz Trade, data released last week showed Chinese exports rising by a robust 6.7% y/y in November. And imports of some consumer goods that have been threatened with a likely 25% tariff under the new Trump administration have outperformed even more, growing by nearly 20% y/y on average between July and September.
Declaring that it is furthering its mission to advance supply chain excellence across the globe, the Council of Supply Chain Management Professionals (CSCMP) today announced the launch of seven new International Roundtables.
The new groups have been established in Mexico City, Monterrey, Guadalajara, Toronto, Panama City, Lisbon, and Sao Paulo. They join CSCMP’s 40 existing roundtables across the U.S. and worldwide, with each one offering a way for members to grow their knowledge and practice professional networking within their state or region. Overall, CSCMP roundtables produce over 200 events per year—such as educational events, networking events, or facility tours—attracting over 6,000 attendees from 3,000 companies worldwide, the group says.
“The launch of these seven Roundtables is a testament to CSCMP’s commitment to advancing supply chain innovation and fostering professional growth globally,” Mark Baxa, President and CEO of CSCMP, said in a release. “By extending our reach into Latin America, Canada and enhancing our European Union presence, and beyond, we’re not just growing our community—we’re strengthening the global supply chain network. This is how we equip the next generation of leaders and continue shaping the future of our industry.”
The new roundtables in Mexico City and Monterrey will be inaugurated in early 2025, following the launch of the Guadalajara Roundtable in 2024, said Javier Zarazua, a leader in CSCMP’s Latin America initiatives.
“As part of our growth strategy, we have signed strategic agreements with The Logistics World, the largest logistics publishing company in Latin America; Tec Monterrey, one of the largest universities in Latin America; and Conalog, the association for Logistics Executives in Mexico,” Zarazua said. “Not only will supply chain and logistics professionals benefit from these strategic agreements, but CSCMP, with our wealth of content, research, and network, will contribute to enhancing the industry not only in Mexico but across Latin America.”
Likewse, the Lisbon Roundtable marks the first such group in Portugal and the 10th in Europe, noted Miguel Serracanta, a CSCMP global ambassador from that nation.