“Eye” in the sky: IoT powers vaccine delivery blitz
Charged with transporting rush shipments of Covid-19 vaccines around the globe, logistics service providers turned to the latest internet of things (IoT) tools to monitor and safeguard their lifesaving cargo.
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.
When logistics service providers were first charged with delivering the new Covid-19 vaccines in late 2020, they may have wished for a magic wand to solve the extraordinary challenges their mission would present. While some already had specialized pharmaceutical divisions and cold chain warehouses to serve the typical trade in medicines and biological products, those networks were designed for a lighter flow of goods to predetermined destinations like hospitals, not an all-out blitz to reach every corner of the globe as quickly as possible.
The vials of the precious vaccine had to be moved in huge quantities, kept at ultra-low temperatures, and shipped and delivered at top speed … all at a time when commercial aircraft—whose belly space has long been the main means of expedited international cargo transport—were largely grounded due to pandemic-related restrictions on passenger travel. At the same time, the service providers’ employees had to work in conditions where they faced exposure to the very virus they were fighting. To cap it off, the contractors were under colossal pressure to distribute the vaccines before the deadly disease could spread among vulnerable populations.
Citing severe capacity constraints in the aircargo market, the International Air Transport Association (IATA) dubbed the effort “the mission of the century” for the sector.
Yet despite those and other challenges, logistics service companies—and parcel carriers, in particular—have been successful in their efforts to swiftly distribute Covid-19 vaccines. One of the key tools players have brought to bear is the internet of things (IoT), a vast network of connected sensors that allowed shippers and carriers to monitor and track this critical cargo as it passed through multiple hands, transportation modes, and countries.
MOVE IT QUICKLY, KEEP IT COLD
To help them track shipments and manage the complexities of time-sensitive vaccine distribution, the major parcel carriers—DHL, FedEx Corp., and UPS Inc.—all turned to variations of IoT technology.
For DHL, IoT tools were critical for monitoring cargo that had to be maintained at subzero temperatures (-70 degrees Fahrenheit for the Pfizer vaccine and -20 degrees for the Moderna version) and for reassuring trading partners who were pushing for urgent delivery. Those partners stretched across the globe: Through May of 2021, the company had transported more than 200 million doses of the various Covid-19 vaccines on about 9,000 flights to more than 120 countries.
While DHL has a well-established network for transporting vaccines and other pharmaceuticals, it looked to the IoT part of its existing system to meet the specific demands of Covid vaccine distribution, said Claudia Roa, the company’s president, Life Sciences and Healthcare.
“The three main differences or unique features with the Covid-19 vaccine were its extremely low temperature requirement; the lack of data available to know the risks and the effects of changes in temperature, time, etc.; and its global urgency—which is probably the most sensitive aspect of this distribution effort,” Roa said. Thanks to its IoT network, DHL had the resources in place to manage the first two challenges, thereby freeing company leaders to concentrate on the third one. “Using sensors, we have been able to monitor the temperature and location of every vaccine shipment to guarantee that the temperature stays within the required range,” she said.
For FedEx, IoT networks were crucial for tracking a steady stream of vaccine shipments to all 50 states as well as destinations around the world. Through the use of connected sensors, every shipment of vaccines has generated a cloud of detailed tracking data, the company said. As of mid-June, FedEx had delivered Covid-19 vaccines and related ingredients and supplies to 40 countries, including a shipment of 1.35 million Johnson & Johnson vaccine doses from Memphis, Tennessee, to Toluca, Mexico, in coordination with the nonprofit aid agency Direct Relief and the U.S. and Mexican governments.
In a statement about its role in the vaccine delivery effort, FedEx cited its standard dictum about tracking packages, saying “The information about the package is as important as the package itself as it moves through the network.” The Memphis-based company has invoked that motto for years, but it added something new when it tackled the vaccine delivery challenge: its “FedEx SenseAware ID” tracking technology, which it unveiled in May 2020, about six months before the first public vaccine shipments began.
That new tracking system incorporates sensors designed with the Bluetooth low-energy (BLE) communications standard, which uses less power and costs less than previous versions. That makes the IoT devices affordable enough that users can attach a sensor to each vaccine shipment, not just to pallets or containers. The sensors allow FedEx to track the location of vaccine shipments in near real time. The company then analyzes the data it collects with a platform that leverages artificial intelligence and predictive tools to monitor conditions surrounding the packages; this allows customer-support agents to intervene if weather or traffic delays threaten to impede deliveries, the company said.
And for UPS, IoT devices are enabling the company and its customers to actively monitor temperature-controlled cargo, including pinpointing the location of any Covid-19 vaccine shipment within its worldwide network. Using its “UPS Premier” service, the Atlanta-based company attaches a small mesh sensor, about the size of a credit card, to every vaccine shipment. The technology provides visibility into the location of every package, to within 10 feet, anywhere in the network. Like FedEx, UPS analyzes the data it collects using software that can detect network disruptions before they occur and then recommend countermeasures in real time.
NEW TECH SOLVES OLD PROBLEMS
The successful application of IoT technology in vaccine distribution can be attributed to two main factors, according to companies that manufacture the sensors and networks that make the system work. The first is the industry’s deep experience with the technology: Vendors have been deploying simpler versions of IoT devices to solve similar logistics challenges for years, which meant that when the call for more-sophisticated versions came, they had a solid foundation to build on. The second is a spate of technological advances that occurred just before the pandemic began, solving several longstanding problems with the technology and greatly expanding its capabilities.
For example, California-based IoT technology vendor Identiv has long been providing systems that use radio-frequency identification (RFID) tags to monitor the temperature of wine shipments in transit. These systems help shippers determine whether their products have been exposed to out-of-range temperatures while en route—a concern that vaccine shippers share. So when the need arose, the company was able to use the same approach to develop a monitoring system for ultra-cold shipments.
“‘Smart’ packaging with temperature control, anti-tampering [features], and location tracking is critical in efficient vaccine delivery,” Identiv CEO Steve Humphreys said, adding that Covid-19 has forced “exponential growth” in this technology.
That “exponential growth” came just in time to solve several key challenges with Covid-19 vaccine distribution. Thanks to a “technology convergence” of recent advances in sensors, readers, and other devices, IoT systems were able to overcome past shortcomings, according to Chris Jones, executive vice president, marketing and services for Descartes Systems Group, a provider of IoT devices and logistics technology.
Until recently, most tracking tags suffered from short battery life, but modern units using Bluetooth low-energy technology can run for seven years on one of the coin-shaped batteries commonly used to power wristwatches, Jones said. Earlier sensors were also too expensive to use on anything but the highest-value shipments, but their cost today is just one-tenth or one-twentieth of what it was half a dozen years ago, he said. Thanks to those price drops, users can now toss a tag into each carton of goods being shipped or attach it to the outside of the parcel, the pallet it’s stacked on, or the unit load device (ULD) that airlines use to roll cargo into the bellies of planes.
Yet another recent technology advance has helped the industry overcome some longstanding problems with collecting data from those sensors. Older systems that relied on cellular data networks had limited capacity to collect and then share the information they recorded, since airports limit cellphone connectivity to protect planes’ communications channels, and because shipments sitting in cold storage are insulated by thick metal walls. But in recent months, Descartes has provided some of its customers with readers that are tuned to Bluetooth low-energy signals, creating networks of local antennas that operate on a different bandwidth than airplane wireless signals and can therefore be placed close to cargo. Airfreight carriers, including Delta, Air New Zealand, and Cathay Pacific, are installing the solar-powered units on light poles and other sites around an airport; the resulting coverage is far more effective than anything cellular networks can offer, Jones said.
For example, Cathay Pacific Cargo said in June that it was launching Descartes’ BLE-based network, tags, and readers at dozens of airports across the globe. This investment will allow customers to monitor vaccine and other shipments in near real time through the airport-to-airport leg of each shipment’s journey, the airline said. With the new system, Cathay Pacific’s data loggers can now record and transmit data to Bluetooth readers in the cargo terminal and the airside ramp area, providing such information as the GPS location, temperature, humidity level, and vibration.
HISTORIC ACHIEVEMENTS
By collecting and sharing crucial data about shipments in transit, IoT technology has played a critical role in logistics companies’ historic effort to deliver Covid-19 vaccines. Thanks to engineering upgrades, modern IoT sensors and networks have allowed users to overcome extraordinary challenges in this global race to save lives.
The benefits of improved IoT technology will extend far into the future, Identiv’s Humphreys believes. “Manufacturers, distributors, government leaders, NGOs, and the health-care community have an opportunity right now to troubleshoot methodologies and identify best practices to better prepare for a future pandemic,” he said.
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]."