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.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.