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.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”