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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."