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.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
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.