Buoyed by cloud-based technology, yard management software (YMS) is gaining a reputation as a problem-solver, helping DCs avoid bottlenecks and delays in their bustling yards.
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.
Long seen as a specialty logistics tool needed by only the largest companies, yard management software (YMS) is taking its turn in the spotlight as a way to bring digital clarity to often-chaotic DC yards.
The reason is simple, experts say: Warehouse fulfillment operations are beset by the same market challenges that have hobbled supply chains from coast to coast this year, including worker shortages, pandemic uncertainty, and a trucking capacity crunch. By using YMS tools to manage the movement of trucks and trailers to dock doors, companies can tighten up operations in an area that’s often plagued by hours-long delays and missing equipment.
Despite those pain points, the yard has traditionally been overlooked when it comes to tech investment. “While there’s been billions of dollars of investment in the warehouse, the yard is operating much as it has for the past several decades,” says Andrew Smith, CEO of Outrider, a Colorado-based startup that’s developing technology for autonomous yard operations and self-driving trucks.
To illustrate the extent of the neglect, one software vendor notes that most of his company’s YMS clients are not replacing a competing YMS product but rather, automating tasks previously handled by workers with clipboards and printouts. “I can count on one hand when we get a new [yard management software] customer and we’re replacing another system,” says Greg Braun, chief revenue officer with C3 Solutions, a Montreal-based provider of yard management and dock-scheduling software for companies in the retail, grocery, distribution, manufacturing, and parcel post industries. “Instead, they’re using pen and paper and the walkie-talkie. And with dock scheduling, it’s almost as bad; they’re using voicemail and email.”
That stands in stark contrast to the millions of dollars many of those same companies have invested in enterprise resource planning (ERP) and warehouse management (WMS) systems, Braun says. And by failing to link those platforms to their yard operations, users are missing an opportunity to create a single stream of data that could reveal ways to save time and money.
Creating that single stream has become much easier in recent years, thanks to the rise of cloud-based software applications, says Adam Kline, senior director of product management with Manhattan Associates, an Atlanta-based developer of supply chain, omnichannel, and inventory software. When a user’s YMS, WMS, and TMS (transportation management system) are all running on the same platform, they can share a single pool of data and react to real-time changes on the ground, instead of generating discrete reports and “throwing [them] over the fence” to another application, he says.
“Companies that want to unify applications need to look at the yard itself; that’s where WMS and TMS collide,” Kline says. “How do you execute within the fulfillment center most efficiently with regard to transportation? That’s where the yard comes in; it’s the glue that’s binding these things together.”
BETTER SCHEDULING THROUGH SOFTWARE
Empowered by that growing ability to share data across platforms, users are deploying YMS technology to solve a wider range of problems than they could in the past. “For years, the rule of thumb was that if you walk out of your DC and you can see all your trailers, you don’t need a YMS. Now, that probably doesn’t apply,” Kline says.
That’s because business patterns have changed over time and aging warehouses are struggling to keep up, he explains. For example, thanks to the pandemic-fueled e-commerce explosion, DCs have started dedicating some of their dock doors to small-parcel pickup. While that might expedite the process of getting small packages out the door, it also means those facilities lose some of their freight-handling capacity, Kline says. And with today’s rising real estate costs, expanding the DC’s physical footprint to compensate for that loss would be an expensive proposition.
In response, companies have been turning to yard management systems to help them do a better job of scheduling. “The importance of YMS has increased, because they need to turn over their dock doors faster,” Kline says. “They have to get quicker and more efficient at getting each trailer to a door and determining which truck comes to what door. They also have to tie all that to the operations inside the fulfillment center.”
KEEPING THE TRUCKS ROLLING
At the same time that companies are trying to make the most of their real estate, they have also been struggling with a warehouse labor shortage. According to C3’s Braun, yard management systems can also help in that regard—namely by allowing users to automate tasks like tracking trailers that were previously handled by humans.
Although the digitalization of yard operations has been going on for years, the pandemic has accelerated the transition, he adds. “Even before Covid, [interest in] automating the gate process was rising, as people asked, ‘From an efficiency point of view, can we avoid human contact?’” While pandemic-era health concerns have hastened the adoption of contactless systems, the Covid-induced labor crunch has played into it as well, Braun says. “Before, the reason was ‘I don’t want to spend money to hire someone for my gatehouse,’ and now it’s ‘I can’t find anyone.’”
And the advantages of YMS technology don’t stop there, according to Braun. In addition to easing their labor woes, yard management systems can help companies stay in their trucking partners’ good graces—an important consideration in times when shippers face stiff competition for freight capacity. As for how a YMS can help in that regard, it has to do with the software’s ability to smooth out traffic flows and keep operations on schedule, thereby ensuring drivers can get in and out as quickly as possible. No driver wants to be delayed while dropping off or picking up cargo at a DC, says Braun, who points out that holdups can throw off their schedules and cost them money.
Taking steps to keep drivers happy can have a big payoff, he adds, noting that it could mean the difference between securing needed truck capacity and having freight languish on the dock. “If a trucker shows up and has to wait four hours to unload, then it won’t be long before he tells his dispatcher ‘I don’t care where you send me, just not there,’” Braun says. “And you don’t want to be on that list.”
AFTERTHOUGHT NO MORE
Warehouses are increasingly turning to YMS software to streamline operations with an eye toward ensuring quick turnarounds and keeping trucks moving swiftly in and out of the DC yard. The software enables more precise operations at all stages of the journey, from the entrance gate to the parking lot to the dock door and back out onto the highway, experts say.
Thanks to those capabilities, the technology is turning the yard from an afterthought into a competitive weapon as companies emerge from the pandemic and learn to navigate a new normal.
The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.
The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.
One of the top priorities for the new group is developing an early warning pilot focused on the telecommunications supply chain, which is essential for the three countries’ global, digitized economies, they said. By identifying and monitoring disruption risks to the telecommunications supply chain, this pilot will enhance all three countries’ knowledge of relevant vulnerabilities, criticality, and residual risks. It will also develop procedures for sharing this information and responding cooperatively to disruptions.
According to the U.S. Department of Homeland Security (DHS), the group chose that sector because telecommunications infrastructure is vital to the distribution of public safety information, emergency services, and the day to day lives of many citizens. For example, undersea fiberoptic cables carry over 95% of transoceanic data traffic without which smartphones, financial networks, and communications systems would cease to function reliably.
“The resilience of our critical supply chains is a homeland security and economic security imperative,” Secretary of Homeland Security Alejandro N. Mayorkas said in a release. “Collaboration with international partners allows us to anticipate and mitigate disruptions before they occur. Our new U.S.-U.K.-Australia Supply Chain Resilience Cooperation Group will help ensure that our communities continue to have the essential goods and services they need, when they need them.”
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.
Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.
To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.
“Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins,” Chris Leone, executive vice president, Applications Development, Oracle, said in a release. “The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes.”
According to Oracle, specific upgrades feature changes to its:
Production Supervisor Workbench, which helps organizations improve manufacturing performance by providing real-time insight into work orders and generative AI-powered shift reporting.
Maintenance Supervisor Workbench, which helps organizations increase productivity and reduce asset downtime by resolving maintenance issues faster.
Order Management Enhancements, which help organizations increase operational performance by enabling users to quickly create and find orders, take actions, and engage customers.
Product Lifecycle Management (PLM) Enhancements, which help organizations accelerate product development and go-to-market by enabling users to quickly find items and configure critical objects and navigation paths to meet business-critical priorities.
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.