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many logistics companies, this often means saying goodbye to time-consuming, error-prone manual processes or ditching outdated technology.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 Company leaders worked with mobile computing firm Zebra Technologies, a longtime business partner, to replace outdated scanning devices with some of Zebra’s newest mobile and wearable technology solutions—tech that would enable more accurate data capture in the field and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.”
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."