The advent of 5G wireless networks could pave the way for a supercharged internet of things (IoT), transforming the way logistics operations monitor equipment, track inventory, and even train employees.
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.
The IoT (internet of things) is a fairly new item in the logistics toolbox, but technology experts across the industry say it’s about to get a major upgrade, thanks to the national rollout of fifth-generation (5G) wireless networks.
Supply chains have relied on IoT technology for several years, using its collection of distributed sensors to monitor variables like open dock doors at a DC, the speed of conveyor belts in a fulfillment center, and the location of trailers in a yard. Those applications have proved the technology’s business case, demonstrating the IoT’s value in connecting physical supply chain assets to the digital web.
Now, that standard is about to change, thanks to the advent of a new generation of 5G technology that can support an expanded array of sensors and other devices. Taken together, those advances are set to enable a variety of innovative IoT applications, opening the door to the remote monitoring of conveyors and forklifts for maintenance purposes, inventory tracking via door sensors and security cameras, and real-time feedback for coaching employees.
The 5G era is already upon us. Network providers like AT&T and Verizon now support 5G coverage in major U.S. cities, and electronics companies like Apple Inc. are incorporating 5G chips into their latest mobile devices. Providers of machines, assets, vehicles, and sensors can now build on that foundation.
GET READY FOR A NEW GENERATION
Most of the current generation of wireless IoT devices rely on the same fourth-generation (4G) networks that people use for their legacy smartphones. Also referred to as the “long-term evolution (LTE) mobile communications standard,” 4G wireless broadband technology was designed to support consumers’ relentless demands for increased data, more bandwidth, and lower latency (lag times), according to Luke McLeroy, senior vice president for business development with Avanci, a Dallas-based wireless technology licensing firm.
However, when engineers began planning for an improved 5G network, they quickly realized that their vision of expanding IoT capabilities to literally millions of devices—also known as Industry 4.0 or the “industrial internet of things” (IIoT)—carried with it very different demands, McLeroy says. For instance, in order to support the IIoT, 5G would have to offer more than just, say, blazing fast download speeds; it would also have to offer such enhancements as extended range from base stations and low power requirements, according to McLeroy.
Those enhancements will likely lead to an explosion of IoT devices that can soon be attached to a wide array of platforms. The industry goal is to have each IoT device run off its own battery for 10 years and stay connected via a constant barrage of tiny pings of data—such as a check-ins, location updates, and alerts.
“Where maybe you used RFID (radio-frequency identification) before and pallets would pass signal collectors spaced every so far apart, now you’ll use the cellular network,” McLeroy says. “So instead of saying ‘A device has passed this RFID gate but not that one, so it must be somewhere in between,’ now you can say, ‘That pallet or that trailer is exactly here on the map.’”
PINPOINT COVERAGE, COAST TO COAST
That coverage will not stop at the factory door, loading dock, or delivery site, but rather extend to every U.S. interstate highway and distribution center that a truck would typically visit, McLeroy says. In most cases, the signals will travel over the same AT&T or Verizon wireless networks used by consumers, but large companies could choose to build private 5G networks within their own manufacturing or logistics facilities to provide better data security. “Once the logistics industry learns … how this network works, they’ll think of many new ways to use it,” McLeroy predicts.
That vision of broad IoT coverage will be supported by 5G networks using LPWA (low power, wide area) technology, based on the LTE-M and NB-IoT wireless standards, which combine to prioritize battery longevity over sheer speed, according to the French information technology (IT) provider Thales Group. A related standard is the LoRaWAN specification, which is designed to support large IoT networks through requirements like bidirectional communication, end-to-end security, mobility, and localization services, according to Senet, a New Hampshire-based IoT connectivity provider.
In addition to their low cost, long life, and reliable connectivity, the next wave of IoT devices will also be smart, according to Ashish Chona, senior vice president of IoT business for Orbcomm, a New Jersey-based provider of IIoT systems. Instead of simply collecting data and passing it off to a cloud site for processing, “smart” IoT devices can analyze some of their own data—also known as edge computing.
Along with saving the time and energy that would be needed to communicate with a cloud-based “data lake,” edge computing can also help IoT users handle the torrents of data collected by sensors enabled with 5G designs, Chona says. As IoT sensors become ubiquitous, the data generated will expand exponentially. If an IoT network can’t process the data promptly, it will be only part of a full solution, he explains.
“The edge is important because it adds smarts,” Chona says. “That’s what the market is demanding: You need to know where your asset is so you can predict with ease when it will arrive.”
Applied to the commercial transportation sector, smart IoT sensors and edge computing combined with 5G technology can also improve truck drivers’ efficiency, regulatory compliance, and safety, according to Chona. With near real-time processing, those sensors can improve the performance of devices like in-cab cameras, enable “speed by street” monitoring of hyper-local speed limits for driver-training purposes, or monitor variables like tire pressure to enhance vehicle safety, he says. Many of these features can drop out of connectivity with 4G networks but would be far more reliable with 5G.
WARNING: DISRUPTION AHEAD
From warehouse docks to interstate highways to local drop-off points, logistics operations are on the verge of being disrupted by a sudden jump in the capability of the IoT. Supercharged by high-speed, low-energy 5G wireless networks, future IoT sensors could provide unprecedented levels of freight visibility, inventory-tracking precision, and cargo-monitoring capabilities.
With their low cost and long battery life, remote sensors promise to bring life—and smarts—to assets throughout fulfillment and transportation networks, ultimately bringing logistics and supply chain operations closer to the vision of Industry 4.0.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."