DCs apply sensors, wireless networks, and the Internet of Things to the warehouse yard, a traditionally low-tech node in the supply chain that’s getting new attention in a time of heightened operating restrictions.
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.
As the logistics industry adjusts to a new world marked by tight caps on drivers’ hours of service amid pandemic-fueled demand surges and operating restrictions, many companies are turning to technology that can help them cope with these challenges, leading to the rise of the “digital yard.”
With the hours-of-service (HOS) mandate restricting drivers’ road time, companies are looking for ways to boost efficiency in other parts of the supply chain, says Chris Wolfe, CEO of asset management solution provider PowerFleet Inc. With driving time at a premium, many businesses see the yard as a “chokepoint” where drivers can waste many of their allotted hours waiting in line for a DC dock door to open up, he adds.
But it doesn’t have to be that way, Wolfe says. DCs can gather data from the trucks in their yards by tapping into the sensors increasingly found on everything from truck cabs to trailers to drivers’ own smartphones as well as the increasingly sophisticated Internet of Things (IoT) networks that allow facilities to identify and track nearly every asset that rolls onto their property. They can then mine these rich veins of data to fine-tune dock and yard operations to avoid backups and delays.
DCs LOOK TO THE YARD TO CUT WASTE
The rise of the digital yard is accelerating as trading partners seek more-efficient operations. “This is the evolution of where things have to go based on … HOS. That’s where the next savings is in asset utilization,” Wolfe says.
In the new model of yard operations, companies can combine local sensor data with yard management system (YMS) and transportation management system (TMS) software platforms to squeeze inefficient practices out of the process—the kinds of practices that have led to the long lines of trucks waiting to load or unload that have become common in the coronavirus era. Instead, sensors monitoring variables like weight and motion can detect when a truck is ready to leave the DC and instantly alert warehouse managers.
Among other benefits, those precise metrics enable facilities to avoid backups by notifying suppliers to delay shipments or by warning incoming drivers that a dock door won’t be ready for a scheduled delivery. While the delay could still count against the drivers’ service hours, the advance notice might allow them to wait it out at a truck stop with amenities instead of sitting in a line of trucks outside a warehouse.
“How fast is a trailer getting loaded? If you find it’s not even half loaded, then you may as well slow a driver down and have him wait somewhere else. The worst thing you can do right now is have drivers waiting” in the yard, where they may be unable to maintain the recommended social distances, Wolfe says. “But if a driver knew when to arrive, he wouldn’t have to wait. Everything has to work like a well-oiled machine.”
That machine can be oiled by the vast streams of data that can be collected from a digital dock and yard management system, says Tim Kubly, business development manager for Rite-Hite Digital Solutions. “Customers want to know what’s happening with their equipment without standing there and looking at it the whole time. Now, with the Industrial Internet of Things, we can collect data and push it out to an intuitive dashboard,” Kubly said in a recent webinar, pointing to his firm’s Opti-Vu and Dok-Vu dashboards as examples.
“That means we can monitor detention time. A company might want to make sure it gets trailers off the dock within two hours. But the problem is that workers may not know how long a trailer has been there,” Kubly said. “Now, when a trailer backs up to the dock and the trailer lock is engaged, a timer starts.”
Depending on the type of dock equipment, the system could track sensor signals that detail every step in the inbound and outbound freight process. For example, Rite-Hite’s platform can track variables like trailer presence, door open, leveler down, forklift activity in trailer, leveler up, door closed, and trailer departure. DC managers can use those statistics to schedule the activities of drivers, warehouse workers, shipping and receiving staff, and yard jockeys, he said.
Another factor driving demand for digitized operations is the push for touchless operations during the Covid-19 pandemic, according to dock and yard management solution provider C3 Solutions. The company says its software products can reduce or eliminate paper transactions by using electronic documents instead of paper records on carrier/supplier web portals and for gate processes.
Yard management technology developer Pinc Solutions is taking a similar tack. Pinc says its Digital Yard solution is designed to automate gate activities, trailer movements, dock scheduling, yard operations, and more. The company’s Pinc Kiosk even supports a touchscreen multilanguage interface with a temporary radio-frequency identification (RFID)-tag dispenser that allows drivers to perform self-check-in and self-check-out.
YARD DATA FILLS IN VISIBILITY GAP
Supply chain visibility provider FourKites likewise had digital yard operations in mind when it announced in March that it had acquired three yard solution software platforms—Yard Management, Dock Management, and Gate Control—from TrackX Holdings Inc. All three of the newly acquired platforms collect data by building connections with enterprise resource planning (ERP) and warehouse management system (WMS) software as well as with RFID and IoT sensors. By tapping into that data flow, FourKites says it can now extend real-time freight visibility into the warehouse yard.
“I think we’ve really nailed where freight is during transit, but that is only one piece of the puzzle,” FourKites Founder and CEO Matt Elenjickal says. “Goods are being held in the yard for some time, whether it’s at pickup or dropoff. What people really want to know is, ‘Where are my products?’—regardless of whether they’re in transit, in the yard, or in the warehouse.”
But achieving that kind of universal traceability may not be so easy. FourKites acknowledges that some trading partners like third-party logistics service providers (3PLs), suppliers, and retailers have been hesitant to share shipping data with each other, although he says that’s starting to change. “We have a lot of customers who ship to retailers or who manufacture consumer packaged goods. We facilitate the sharing of data, but some people weren’t buying in because of data privacy concerns,” Elenjickal says. “One manufacturer said, ‘We’d be happy to share our data if you can mask our purchase orders and carrier lanes.’ And we said ‘OK, we can do that!’ The industry wants to collaborate more.”
Given the current pressure to deliver swift, smooth performance amid tightening restrictions, Elenjickal and others believe warehouse operators have a lot to gain from opening up access to their supply chain data. And one of the payoffs could be a big jump in efficiency at the dock and yard interface, where freight moves from truck to DC and back again.
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.