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.
Sure, you may have gotten a good price on that scan gun, with its blazing-fast read rates and rock-solid wireless connection. But how good is that mobile device at its most important job: keeping your DC workforce happy enough that they show up for their next shift? After all, a handheld computer is not much use unless there’s a hand to hold it.
Turnover remains high in logistics; the churn rate among employees in the transportation, warehousing, and utilities sectors in 2021 was 49.0%, compared to the national average of 47.2%,according to the Bureau of Labor Statistics’ latest "Job Openings and Labor Turnover Survey" report. That trend has been exacerbated by a post-pandemic shift to gig work and short-term contract jobs. And recruiting replacement staff hasn’t been easy, with unemployment rates running below 4% in recent months.
When labor is tight, workforce retention is the key to success in managing a warehousing and fulfillment operation. And providing cool technology is a powerful strategy for keeping workers happy on the job, according to Zebra Technology Corp.’s “Warehousing Vision Study.”
The Zebra survey found that technology can help attract workers—83% of associates claim they are more likely to sign on with an employer that provides them with updated tech tools versus one that provides older devices or none at all. And it can also help with retention—92% of warehouse associates agree on some level that technology advancements will make a warehouse environment more attractive to workers.
Determining what type of technology to invest in is one of the biggest issues facing businesses and IT decision-makers today. So what should you look for in the mobile devices you give your workers to help ensure they’ll keep showing up day after day?
STICKING WITH THE TRIED-AND-TRUE
Experts say that where mobile technology is concerned, the logistics sector is currently in a time of transition from an older generation of devices—ones featuring physical buttons and text-based interfaces—to newer touchscreen, app-based models. In that regard, the warehousing industry lags behind the world of consumer electronics, which long ago discarded Palm Pilot- and Blackberry-style devices in favor of Apple- and Android-based smartphones.
As for why the sector has been slow to catch up, part of the reason is that the old-fashioned warehouse devices simply work well, says Mark Wheeler, director of supply chain solutions at Zebra. “We are midstream in the transition because if it works in the warehouse, you need a good reason to change it. When you change devices, you have to deal with change management, testing, and process definition. So we’re still in a time of transition to mobile devices with more advanced features, like wearables and voice interfaces.”
But even as the market evolves, there will probably always be demand for some of the features found on the older-generation handhelds, such as physical buttons, Wheeler says. “Do we still need hard keys? Yes, because you can touch them without looking at the screen. You can do ‘blind keying,’” he explains. “If a job is highly repetitive, like picking, replenishment, or scan verification, then [users] know what the device is going to show before it does it. So you still see [text-] and character-based user experiences; they’re prevalent and effective.”
Though the latest models may not look all that different from their predecessors, their capabilities are typically light-years ahead of those found on the earlier devices. One reason is the rise of fifth-generation (5G) wireless networks, which offer far more bandwidth and lower latency than legacy systems, supporting sensor-based data collection, Wheeler says. Instead of scanning one item at a time, sensor-based devices can gather information from many inputs automatically—including radio-frequency identification (RFID) tags, machine vision images, and, of course, the classic bar code. For instance, some models can take a picture of a shelf full of boxes or totes and scan all of the bar codes visible in the image with a single click.
SCAN GUNS THAT SEE DOUBLE
It’s not hard to see the appeal of a device that both expedites the scanning process and offers ergonomic benefits. Those attributes are crucial at a time when companies are concerned about worker fatigue, according to Ilhan Kolko, chief product officer and president of North America for ProGlove, a company that makes wearable scanners. “The labor shortage makes retention the number-one priority. That shortage and its stress on supply chains—Covid and its aftermath being a major stress—is putting a spotlight on human wellbeing, which is long overdue.”
Mobile technology can help in that regard by enabling workers to complete their tasks—whether it’s picking orders, sorting parcels, or some other job—with a single device, Kolko says. He adds that to address that need, ProGlove offers multiscanning devices that allowworkers who are picking multiple orders to read six or eight bar codes at a time.
Mobile computer developer Scandit sells a similar device. The company says its MatrixScan model can read multiple bar codes at one time by taking a picture of a shelf or rack and scanning all of the codes captured in the shot.
While that capability represents a significant improvement over scanning individual items in sequence, it’s just the first step toward the ultimate goal of connecting warehouse workers to a much wider array of codes, tags, and other information sources, says Chris Annese, Scandit’s vice president sales for the Americas. He adds that as a move in that direction, the company has developed a sophisticated software platform that lets users capture data not just from bar codes, but also from text, ID tags, and other sources.
“This approach gives superpowers to transportation and logistics workers because it digitizes their workflow from end to end,” Annese says. “That increases efficiency and productivity by simplifying and automating tasks, whether it involves van loading, proof of delivery, pickup and dropoff, or whatever. Digitalization has become reality.”
Despite that promise, “smart data capture” has been slow to gain traction in the logistics sector. There are a couple of reasons for that, Annese says. One is that advances in battery technology have not kept up with other advancements in handheld computers, preventing many devices from functioning throughout a full eight-hour shift, he says. Another is the prevalence in the DC market of classic laser scanners, which Annese describes as purpose-built, dedicated devices that are designed to do one task only: scan bar codes. These obstacles notwithstanding, Annese believes the tide will turn as companies begin to realize that workers need devices like smartphones and tablets to transition to the era of smart data capture.
THE ALWAYS-CONNECTED WORKER
One factor that’s likely to accelerate the transition to multipurpose smart devices in the warehouse is the workers themselves—or to be precise, their expectations regarding the technology they use on the job. “Now our customers are asking for smart devices because those are also coming into their daily lives,” Kolko says. “We enjoy the apps in our daily lives, with all the user experience options. No one wants to step down from those when you use business devices.”
Market statistics back him up. The adoption of wearable technology such as fitness trackers and smart watches has risen quickly among American consumers in recent years,according to the National Telecommunications and Information Administration’s “Internet Use Survey.” That research showed that the percentage of people who use wearable technology had risen to 16.19% of the U.S. population in November 2021 from 8.17% in November 2017.
As mobile devices become smarter, faster, and easier to use, the logistics workforce is reaping the benefits. Armed with better technology, warehouse staffers can become more productive on every shift, “build” a better synchronization between the physical and digital worlds, and—crucially—enjoy their jobs more. These new tools are not yet commonplace, but change is coming.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”
Material handling automation provider Vecna Robotics today named Karl Iagnemma as its new CEO and announced $14.5 million in additional funding from existing investors, the Waltham, Massachusetts firm said.
The fresh funding is earmarked to accelerate technology and product enhancements to address the automation needs of operators in automotive, general manufacturing, and high-volume warehousing.
Iagnemma comes to the company after roles as an MIT researcher and inventor, and with leadership titles including co-founder and CEO of autonomous vehicle technology company nuTonomy. The tier 1 supplier Aptiv acquired Aptiv in 2017 for $450 million, and named Iagnemma as founding CEO of Motional, its $4 billion robotaxi joint venture with automaker Hyundai Motor Group.
“Automation in logistics today is similar to the current state of robotaxis, in that there is a massive market opportunity but little market penetration,” Iagnemma said in a release. “I join Vecna Robotics at an inflection point in the material handling market, where operators are poised to adopt automation at scale. Vecna is uniquely positioned to shape the market with state-of-the-art technology and products that are easy to purchase, deploy, and operate reliably across many different workflows.”
Third-party logistics (3PL) providers’ share of large real estate leases across the U.S. rose significantly through the third quarter of 2024 compared to the same time last year, as more retailers and wholesalers have been outsourcing their warehouse and distribution operations to 3PLs, according to a report from real estate firm CBRE.
Specifically, 3PLs’ share of bulk industrial leasing activity—covering leases of 100,000 square feet or more—rose to 34.1% through Q3 of this year from 30.6% through Q3 last year. By raw numbers, 3PLs have accounted for 498 bulk leases so far this year, up by 9% from the 457 at this time last year.
By category, 3PLs’ share of 34.1% ranked above other occupier types such as: general retail and wholesale (26.6), food and beverage (9.0), automobiles, tires, and parts (7.9), manufacturing (6.2), building materials and construction (5.6), e-commerce only (5.6), medical (2.7), and undisclosed (2.3).
On a quarterly basis, bulk leasing by 3PLs has steadily increased this year, reversing the steadily decreasing trend of 2023. CBRE pointed to three main reasons for that resurgence:
Import Flexibility. Labor disruptions, extreme weather patterns, and geopolitical uncertainty have led many companies to diversify their import locations. Using 3PLs allows for more inventory flexibility, a key component to retailer success in times of uncertainty.
Capital Allocation/Preservation. Warehousing and distribution of goods is expensive, draining capital resources for transportation costs, rent, or labor. But outsourcing to 3PLs provides companies with more flexibility to increase or decrease their inventories without any risk of signing their own lease commitments. And using a 3PL also allows companies to switch supply chain costs from capital to operational expenses.
Focus on Core Competency. Outsourcing their logistics operations to 3PLs allows companies to focus on core business competencies that drive revenue, such as product development, sales, and customer service.
Looking into the future, these same trends will continue to drive 3PL warehouse demand, CBRE said. Economic, geopolitical and supply chain uncertainty will remain prevalent in the coming quarters but will not diminish the need to effectively manage inventory levels.
In a push to automate manufacturing processes, businesses around the world have turned to robots—the latest figures from the Germany-based International Federation of Robotics (IFR) indicate that there are now 4,281,585 robot units operating in factories worldwide, a 10% jump over the previous year. And the pace of robotic adoption isn’t slowing: Annual installations in 2023 exceeded half a million units for the third consecutive year, the IFR said in its “World Robotics 2024 Report.”
As for where those robotic adoptions took place, the IFR says 70% of all newly deployed robots in 2023 were installed in Asia (with China alone accounting for over half of all global installations), 17% in Europe, and 10% in the Americas. Here’s a look at the numbers for several countries profiled in the report (along with the percentage change from 2022).
Sean Webb’s background is in finance, not package engineering, but he sees that as a plus—particularly when it comes to explaining the financial benefits of automated packaging to clients. Webb is currently vice president of national accounts at Sparck Technologies, a company that manufactures automated solutions that produce right-sized packaging, where he is responsible for the sales and operational teams. Prior to joining Sparck, he worked in the financial sector for PEAK6, E*Trade, and ATD, including experience as an equity trader.
Webb holds a bachelor’s degree from Michigan State and an MBA in finance from Western Michigan University.
Q: How would you describe the current state of the packaging industry?
A: The packaging and e-commerce industries are rapidly evolving, driven by shifting consumer preferences, technological advancements, and a heightened focus on sustainability. The packaging sector is increasingly prioritizing eco-friendly materials to reduce waste, while integrating smart technologies and customizable solutions to enhance brand engagement.
The e-commerce industry continues to expand, fueled by the convenience of online shopping and accelerated by the pandemic. Advances in artificial intelligence and augmented reality are enhancing the online shopping experience, while consumer expectations for fast delivery and seamless transactions are reshaping logistics and operations.
In addition, with the growth in environmental and sustainability regulatory initiatives—like Extended Producer Responsibility (EPR) laws and a New Jersey bill that would require retailers to use right-sized shipping boxes—right-sized packaging is playing a crucial role in reducing packaging waste and box volume.
Q: You came from the financial and equity markets. How has that been an advantage in your work as an executive at Sparck?
A: My background has allowed me to effectively communicate the incredible ROI [return on investment] and value that right-size automated packaging provides in a way that financial teams understand. Investment in this technology provides significant labor, transportation, and material savings that typically deliver a positive ROI in six to 18 months.
Q: What are the advantages to using automated right-sized packaging equipment?
A: By automating the packaging process to create right-sized boxes, facilities can boost productivity by streamlining operations and reducing manual handling. This leads to greater operational efficiency as automated systems handle tasks with precision and speed, minimizing downtime.
The use of right-sized packaging also results in substantial labor savings, as less labor is required for packaging tasks. In addition, these systems support scalability, allowing facilities to easily adapt to increased order volumes and evolving needs without compromising performance.
Q: How can automation help ease the labor problems associated with time-consuming pack-out operations?
A: Not only has the cost of labor increased dramatically, but finding a consistent labor force to keep up with the constant fluctuations around peak seasons is very challenging. Typically, one manual laborer can pack at a rate of 20 to 35 packages per hour. Our CVP automated packaging solution can pack up to 1,100 orders per hour utilizing a fully integrated system. This system not only creates a right-sized box, but also accurately weighs it, captures its dimensions, and adds the necessary carrier information.
Q: Beyond material savings, are there other advantages for transportation and warehouse functions in using right-sized packaging?
A: Yes. By creating smaller boxes, right-sizing enables more parcels to fit on a truck, leading to significant shipping and transportation savings. This also results in reduced CO2 emissions, as fewer truckloads are required. In addition, parcels with right-sized packaging are less prone to damage, and automation helps minimize errors.
In a warehouse setting, smaller packages are easier to convey and sort. Using a fully integrated system that combines multiple functions into a smaller footprint can also lead to operational space savings.
Q: Can you share any details on the typical ROI and the savings associated with packaging automation?
A: Three-dimensional right-sized packaging automation boosts productivity significantly, leading to increased overall revenue. Labor savings average 88%, and transportation savings accrue with each right-sized box. In addition, material savings from less wasteful use of corrugated packaging enhance the return on investment for companies. Together, these typically deliver returns in under 18 months, with some projects achieving ROI in as little as six months. These savings can total millions of dollars for businesses.
Q: How can facility managers convince corporate executives that automated packaging technology is a good investment for their operation?
A: We like to take a data-driven approach and utilize the actual data from the customer to understand the right fit. Using those results, we utilize our ROI tool to accurately project the savings, ROI, IRR (internal rate of return), and NPV (net present value) that facility managers can then use to [elicit] the support needed to make a good investment for their operation.
Q: Could you talk a little about the enhancements you’ve recently made to your automated solutions?
A: Sparck has introduced a number of enhancements to its packaging solutions, including fluting corrugate that supports packages of various weights and sizes, allowing the production of ultra-slim boxes with a minimum height of 28mm (1.1 inches). This innovation revolutionizes e-commerce packaging by enabling smaller parcels to fit through most European mailboxes, optimizing space in transit and increasing throughput rates for automated orders.
In addition, Sparck’s new real-time data monitoring tools provide detailed machine performance insights through various software solutions, allowing businesses to manage and optimize their packaging operations. These developments offer significant delivery performance improvements and cost savings globally.