John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
Steve Sellentin has little sympathy for consumer goods manufacturers chafing under RFID mandates from giant retailers like Wal-Mart. For them, compliance is a snap, he says. You just tag a dozen or so items and the customer goes away happy. Sellentin's customers aren't so easily satisfied. He fully expects that his company will be required to tag as many as 50,000 products by the end of the year.
Sellentin is vice president of sales at Government Scientific Source (GSS), the largest dedicated distributor of scientific equipment and supplies to federal, state and municipal laboratories as well as the Department of Defense (DOD). Like all DOD suppliers, GSS has been required to affix RFID tags to all DOD-bound shipments since Jan. 1 (although the government is still not ready to receive tagged shipments). That requirement is likely to expand before long. GSS expects to receive notices from the Defense Logistics Agency (DLA) and the Navy any day now requesting that he begin sending them RFID-tagged shipments. (For now, only cases and pallets will require tags, although the government is examining item-level tagging as well.)
When the government does pull the trigger, GSS will be ready. "We're just waiting for them to push the button," says Sellentin, who is using Gen 2 equipment and tags purchased from Symbol Technologies for 35 cents apiece. Sellentin estimates that up to 25 percent of GSS's shipping volume could be affected in the beginning. Eventually, up to 80 percent of its products—everything from cloth ing to food and medicine to lab equip ment and supplies—may fall under the requirement if the practice spreads to agencies like the Department of Energy, which is examining how it can best use RFID.
Anything goes
It's probably safe to say that GSS's RFID compliance program is unprecedented in its scope. In fact, some consider it to be the largest tagging venture by a single company to date. GSS carries 1.2 million different products—items ranging from commodity supplies like latex gloves to million-dollar pieces of robotic equipment. Sooner or later, all of them will require RFID smart tags. "We're tagging everything from 50-cent test tubes and vials to plate readers and weapons of mass destruction," says integrity and the product [would Delayed gratification Sellentin.
What has made the job particularly challenging is the nature of some of the products GSS ships. For example, the company ships large volumes of temperature-controlled liquid chemicals to the DLA. In the RFID world, those shipments, which combine liquids and metals (the chemical containers are packaged in boxes wrapped with insulating foil), represent what amounts to a double whammy.Metal reflects RF signals, and liquids absorb them, compromising the accuracy of tag reads.
"I wasn't worried about tagging a case of test tubes," says Sellentin. "My concern was tagging a case of temperature-controlled life sciences chemicals. If that tag doesn't read, the carton will be diverted for manual processing. While it's sitting there, it could lose its temperature integrity and the product [would be] ruined."
Anxious to avoid that scenario, Sellentin called in experts from systems integrator epcSolutions and Zebra Technologies. The team solved the problem by applying the RFID smart label to a rubber plate placed on the foil-wrapped boxes, which provided enough of a buffer to shield the smart label's tag from the interference inside.
While that resolved the metal and liquid problems, there was still the temperature-controlled aspect to consider. Many of the products that GSS ships are frozen, often stored at -40 degrees Celsius. No one knew how the tags would be affected by extreme temperatures. To find out, Sellentin's team froze a batch of RFID tags to see how they would react. "We didn't know what to expect," he says, "but they passed with flying colors."
Delayed gratification
Right now, GSS is still awaiting word from the DOD as to when it should begin shipping products with the smart tags. Sellentin expects that word will come sometime this month. Although it's continuing to prepare for a full-scale implementation, GSS will initially apply smart tags only to the shipments it's required to tag. To identify those shipments, epcSolutions software will check the shipto address for all products arriving at GSS's distribution centers. If the address is for a DOD facility that requires RFID, the software will direct the shipment labeling system to produce a smart label, which will be manually applied to the carton and immediately verified using a handheld interrogator. RFID-tagged shipments will be verified a second time through an RFID pOréal reader immediately before leaving the GSS distribution center.
To date, GSS has handled RFID labeling as a stand-alone operation. However, the system ultimately will be upgraded so that GSS can integrate its smart labeling operations with its inventory control and warehouse management systems. At that point, GSS will also be able to produce advance ship notices automatically.
For all its investment in training and RFID equipment, GSS doesn't expect to see immediate benefits. (The government, however, stands to gain by automating and simplifying an archaic and inefficient receiving system.) Right now, the best GSS can hope for is a faster turnaround on payments from the government.
Nonetheless, Sellentin believes the effort will pay off down the road. "Having the capability to do this will only help to make us a value-added player with our suppliers and with the U.S. government," he says. "That's why we're doing this."
As it gains more experience with RFID, GSS hopes to incorporate the technology into its internal DC processes. GSS itself deals with more than 250 major suppliers and manufacturers, and processes millions of separate line items. "[W]e face many of the same challenges as the U.S. government," Sellentin points out. "We also have to figure out how to receive materials from all these folks and have it done right."
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.