Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Having an effective data-capture strategy is vital to success in today’s logistics world, where fast and accurate deliveries can make or break a business. Using advanced barcode scanning solutions—today’s lighter, faster, more accurate scanning guns, for example, and software that is compatible with a wide range of devices—can be a game-changer for companies that are struggling to keep up with accelerating demand and ever-higher service expectations. For many logistics companies, this often means saying goodbye to time-consuming, error-prone manual processes or ditching outdated technology.
Business leaders at courier service provider Blue Dart Express Ltd. and home delivery service company Rappi can attest to the benefits of upgrading your data-capture solutions to keep pace with changing business needs. Both have overhauled their logistics strategies in the wake of the Covid-19 pandemic and explosive growth in e-commerce by giving employees better equipment and software that is improving operations in house and in the field.
Here’s how they did it.
ELIMINATING MANUAL DATA ENTRY
Blue Dart provides express package delivery service throughout India and is a subsidiary of global logistics and delivery company DHL Group. Faced with steadily rising demand for its services, company leaders decided in 2022 to automate Blue Dart’s in-house business operations as well as its pickup services and logistics management tasks. Essentially, the company needed to replace old equipment and manual data-entry processes with an automated approach that would better meet customer needs and help the firm maintain a competitive edge in the South Asia marketplace. Company leaders worked with mobile computing firm Zebra Technologies, a longtime business partner, to replace outdated scanning devices with some of Zebra’s newest mobile and wearable technology solutions—tech that would enable more accurate data capture in the field and seamless integration of that information into Blue Dart’s back-end system and customer portals.
Following a two-phase implementation—in July 2022 and September 2023—the business partners documented the project in a case history published late last year. The solution included a combination of mobile computers, ring scanners, and handheld scanning devices, along with a suite of managed services that include technical support, analytics, and status updates. Android-based mobile computers are used for field deliveries, in-house operations, and pickups. Workers use Bluetooth-enabled “ring scanners”—so called because they can wear them on their fingers, typically the middle or index finger—and handheld barcode scanners for package loading and unloading at Blue Dart hubs.
Automating those tasks led to immediate efficiency improvements and faster turnaround times, in large part because workers could focus on core activities rather than data entry both in house and in the field. Real-time status updates allow for better decision-making across the organization, especially when it comes to delivery and route planning.
On top of that, the system provides better visibility into parcel tracking, which has led to improved customer satisfaction levels, according to Blue Dart and Zebra.
“By utilizing Zebra’s solutions, Blue Dart was able to provide enhanced efficiency and accurate tracking information to its customers,” according to the case history. “The real-time tracking feature empowered Blue Dart’s customers to closely monitor the progress of their shipments, thus fostering improved transparency and trust in the company’s services.”
OPTIMIZING ORDER PICKING
Leaders at Colombian home delivery service provider Rappi realized in 2020 that they would need to quickly scale operations to meet burgeoning demand for its services, driven by the Covid-19 pandemic. That meant hiring more “shoppers” and drivers to pick and deliver orders for prepared foods, groceries, clothing, and other items from restaurants, supermarkets, and retailers across nine Latin American countries. But Rappi’s bring-your-own-device (BYOD) policy was creating problems that could only be solved with a better software solution. Rappi had been using open-source scanning software that shoppers would download to their devices to pick orders for millions of products per week. The problem was, not every shopper’s device was compatible with the solution, leading to order and delivery problems.
“We realized that our app’s open-source scanning solution did not work properly on several of our shoppers’ and drivers’ smartphones, as they could not scan product barcodes correctly, which resulted in delays and incorrect deliveries to customers,” Firas Al-Ashram, a product leader at Rappi, said in a statement describing the project. “[Of] the several hundred different device models that our shoppers used, ranging from low-end to high-end models, many [were] older versions of the Android or iOS operating systems. While we wanted to maintain superior service to our users, we realized that we were expecting high-quality order fulfillment from our shoppers without providing them with a reliable tool to find the right products fast.”
In 2021, Rappi turned to data-capture technology provider Scandit to solve the problem, implementing the tech firm’s barcode scanning software, which is compatible with more than 20,000 smartphone models, according to Scandit. The partners deployed the software companywide in just two weeks and saw immediate improvements, including a 30% increase in worker productivity and double-digit gains in scanning accuracy. In its supermarket business alone, error complaints fell by 20%, according to the two companies.
Rappi has since expanded its use of the Scandit solution, and as of early 2024 was using it across three different applications within its business.
“Looking ahead, we want to keep growing, but more importantly, continue making life easier for our shoppers and customers … whether it is scanning barcodes to get the weight of products, for pricing, or to read ID cards, and several other activities for which scanning is not traditionally used in supermarkets,” Al-Ashram said in the statement. “We have an entire … team dedicated solely to initiatives related to Scandit, which offers us the flexibility to test quickly and adopt the best route.”
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.