If you want to put satellite tracking technology to the ultimate test, what better way than to monitor four really big cannons moving more than 1,000 miles, by land, by rail and by sea?
Anyone out hiking in the Appalachian foothills near the army depot in Anniston, Ala., on Oct. 21, 2003, would have been greeted by an ominous spectacle: Four enormous Paladin howitzers (tank-like self-propelled cannons) being rolled onto trucks. But this wasn't a typical wartime mobilization; these Paladins weren't shipping out to Iraq. They were embarking on a nine-day trek, during which they would travel 1,200 miles by land, by water (via 175-foot army landing craft) and finally by rail as part of a security demonstration.
That demonstration was being staged to showcase the security capabilities of the Regional Agile Port Intermodal Distribution System (RAPID), a Defense Department offshoot that develops advanced agile high-speed movement and logistics technologies for commercial and military shippers and transporters. Each of the 58,000-pound howitzers had been outfitted with high-tech satellite tracking devices. As the Paladins moved over land from Anniston, Ala., to Charleston, S.C.; then by sea to Philadelphia, and by rail to Letterkenny Army Depot in Chambersburg, Pa., observers located miles away would be tracking their movements.
By organizing the demonstration, its sponsors, the Delaware River Maritime Enterprise Council (DRMEC) and the U.S. Maritime Administration (MARAD), were looking to answer several questions: Was it even possible to keep an eye on cargo like this every step of the journey? Would the tracking technology—in this case, five different commercially available satellite- based tracking devices—work in practice? And in particular, would the technologies stand up to the "intermodal challenge"—surviving multiple handoffs to multiple modes? "When people talk about tracking goods in transit, they don't consider that it goes through these transitional points," says Jim Galley, chief technology officer at NaviTag, maker of one of the devices tested. "So the intermodal aspects and particularly the global intermodal aspects are often an afterthought for tracking devices."
The information transmitted by the tracking devices would be plugged into both the Intelligent Road/Rail Information Server (IRRIS) system used by the U.S. Military Surface Deployment and Distribution Command, and to the RAPID RISK Alert system, a knowledge "tool" that allows crews, cargo owners and others to share real-time information and alerts with law enforcement agencies. In fact, as part of the field test, data generated during the Pennsylvania rail leg of the journey would actually be shared interactively with local law enforcement officials. Participants would have access to information regarding every point of potential hazard along this leg, such as rail bridges and grade-crossing chokepoints, as well as jurisdictions and contacts for state and municipal law enforcement, bomb technicians, emergency responders, hazardous materials teams, terrorism task forces, rail dispatch, rail police, a county emergency management agency and dispatch center, the Environmental Protection Agency and probably Grandma Moses somewhere along the way.
The implications for commercial logistics are obvious: This could have been any kind of cargo, whether a hazardous material that is sensitive by its very nature or simply freight traveling through a region under a heightened security alert. The test results would tell the industry much about both the potential for door-to-door security and the difficulty of achieving it.
A failure to communicate?
The good news was that the tracking and data technology worked, more or less (see sidebar). But that's not to say that this experiment wasn't something of an ordeal. It took mountain-moving amounts of effort to get everyone comfortably in the loop and working together—probably no surprise given the array of players involved: DRMEC, MARAD, the Pennsylvania Department of Community and Economic Development, the Pennsylvania National Guard, the Philadelphia Regional Port Authority, the Military Traffic Management Command, the Letterkenny Army Depot, the Transportation Security Administration and a long, long list of federal, state and local law enforcement agencies.
"Technology [was] not the issue," says Susan Howland, president of the Howland Group, which has acted as project manager for a number of DRMEC systems and port security initiatives, including this one. "Policies to support greater information sharing—that's the key to all this. We need a greater degree of cooperation between the Defense Department, Homeland Security and local government. It's about the willingness to share. … It's not a technology problem, it's a cultural, institutional and people problem."
Certainly there was no lack of advance planning. Innumerable meetings were held, particularly between law enforcement forces and the major stakeholders in the demonstration. Furthermore, a DRMEC team traveled the whole land route by car beforehand, and spoke to those in charge at each point of interest along the way.
All the same, there were hiccups before the shipment even began. The commercial bills of lading were not produced by the transportation office at Anniston until the trucks were actually loaded, something the operations team hadn't anticipated, and which prevented them from entering this crucial information beforehand into an integrated data system hosted by Transentric, which communicated with everyone through the RAPID and IRRIS systems.
Furthermore, the trailer numbers on the paperwork— when it was produced—didn't match what was actually on the trucks used. In two cases, the bill of lading did not match the trailer numbers with the correct Paladin numbers. Then security at Anniston didn't check the paperwork on the cargo as the trucks departed, as this would have caused a delay.
Moving along the interstate highway system from Anniston to Charleston, the truck drivers were supposed to notify Transentric via phone of their actual departure time and their arrival time at Charleston, but none of those calls were made. (Luckily, the operations team was following them and reporting in every step of the way.)
At Charleston, the bar-coded shipping labels that should have been attached to each of the Paladins back at Anniston were attached. After a 650-mile sea journey in heavy rain to Philadelphia aboard the Landing Craft Utility Runnymede, it turned out that one of the Paladins' engines wouldn't start, and it had to be towed off, causing a two-hour delay. Then there was another two-hour delay on the Pennsylvania rail leg when the Norfolk Southern folks handed the train over to the CSX crew at Lurgan, Pa., six miles from the cargo's final destination.
Lessons learned
These setbacks notwithstanding, it seems the DRMEC and many other parties learned valuable lessons from this demonstration. "What we were interested in was this advanced information sharing, where not only did you have visibility over the equipment move but, simultaneously, improved information sharing, which is so critical for homeland security and homeland defense," says Howland. "The people who needed to be aware of sensitive cargo moving through the state were aware of it, and that leads to improved security."
Perhaps the most important lesson, Howland says, was that taking existing technologies and combining them intelligently adds more value than any one new system ever could. "We were not building any new technology or gizmos or satellite systems," she says. "We focused on processes and procedures and getting people to co-operate and share the information." One of the unique aspects of the demonstration, DRMEC says, was the RAPID system's ability to integrate state and municipal law enforcement and state emergency management activities to enhance force protection in support of military operations.
Howland says she was especially interested in what happened when you combined federal-level information with local-level data, or combined information from different government entities. A good example of this was the geographical information system (GIS) information from IRRIS that was fed into the Coast Guard's data system, which helped the Coast Guard enhance the "maritime domain awareness" called for under Homeland Security measures. Information also flowed from the Coast Guard into the IRRIS system. "That enhanced it and showed how states can add capability to the Defense Department systems," Howland says.
Most importantly, the demonstration indicated what steps must be taken if increased security requirements are going to be applied to commercial transportation.
"We need to take down the wall between federal and state enforcement agencies," Howland says. "I think everyone in the commercial sector fully appreciates that the world as we know it changed after 9/11. I think they want to respond, and the technology is out there. It's just a question of knocking down these walls within the government."
mobile solutions: the dish on satellite trackers
Though the October 2003 cargo visibility demonstration wasn't designed to be a worldwide satellite technology smackdown, it nonetheless provided an opportunity to compare performance among five satellite-based real-time tracking devices. And it seems those devices sent decidedly mixed signals.
Each of the Paladin howitzers was outfitted with off-theshelf trackers made by Corp Ten of Baltimore, Md.; SRA/NAL Inc./NAL Research Corp. (SRA/NAL) of Manassas, Va.; NaviTag of Hingham, Mass.; Pole Star Space Applications of London; and WGI/ZIA Systems of Arlington, Va. Technicians then monitored the ability of each tracker to provide information during all three legs of the journey—as the cargo moved via truck from the depot in Anniston, Ala., to the Naval Weapons Station in Charleston, S.C.; via ship from the Port in Charleston to the Port of Philadelphia; and via train from Philly to the depot in Chambersburg, Pa.
All of the technologies tested use active tags, bouncing their signals off satellites in order to locate the cargo. But they used the satellites differently. Some used geosynchronous satellites (ones that rotate with the earth, staying over the same spot), others used satellites that track an orbit independent of the earth's; some used satellites closer to the earth than others. Most required clear sight of the sky in order to triangulate position between two or more satellites, which became a problem when some of the Paladins on the ship to Pennsylvania were positioned in a way such that the satellite signals were blocked.
One—the NaviTag, which can lock onto one visible satellite and then use the Doppler effect (the physical effect that makes a train horn's sound shift when it changes from coming toward you to going away from you)—was able to compensate for that. But that technology had its own problems —the time interval at which the tag sent positioning information could not be varied remotely as requested, from every 15 minutes on land to every 60 minutes at sea. Furthermore, the location information had an accuracy range of only 150 meters; and there were other issues with positioning information being relayed out of order, although DRMEC admits an information processing system would have alleviated that last problem, if only it had had time to set it up before the trial.
The others all had problems as well. The magnetic feet on the Corp Ten devices weren't strong enough to use alone to attach them to the Paladins, and additional securing arrangements had to be cobbled together. The SRA/NAL device had no anti-tamper sensor (although that could have been added). The Pole Star unit doesn't come with a battery power supply and had to be plugged into a cigarette lighter. That device also experienced lengthy, unexplained gaps in data transmissions. The WGI device kept reporting an incorrect alarm, which ran the battery down, leaving it dead until someone could come in and swap it out for a new one. It also reported some ludicrous data points (e.g., 0 latitude and 0 longitude).
The official assessment? All of the devices performed reasonably well, but not perfectly, according to DRMEC's report. "The conclusion is that there isn't a silver bullet out there— no single technology capable of meeting real-time tracking technology requirements for sensitive cargo," says William Shepard, chief operating officer of The Howland Group, which acted as project manager for the demonstration.
But that may be a bit harsh. The bottom line is that the shipment was tracked, most of the time, and pretty accurately. That represents a huge improvement over the usual black hole into which cargo disappears when it leaves the loading bay or port dock.
Actually, one company's technology did work flawlessly. Omaha, Neb.-based Transentric was given the thankless task of tying everyone's data information systems together and making sure they all spoke the same electronic language. There were some startup hurdles, of course, but in the end, Transentric met the challenge of determining the data formats being transmitted by each of the vendors and putting the information into a common format that could be accepted by the Intelligent Road/Rail Information Server (IRRIS) system.
Jeremy Van Puffelen grew up in a family-owned contract warehousing business and is now president of that firm, Prism Logistics. As a third-party logistics service provider (3PL), Prism operates a network of more than 2 million square feet of warehouse space in Northern California, serving clients in the consumer packaged goods (CPG), food and beverage, retail, and manufacturing sectors.
During his 21 years working at the family firm, Van Puffelen has taken on many of the jobs that are part of running a warehousing business, including custodial functions, operations, facilities management, business development, customer service, executive leadership, and team building. Since 2021, he has also served on the board of directors of the International Warehouse Logistics Association (IWLA), a trade organization for contract warehousing and logistics service providers.
Q: How would you describe the current state of the contract warehouse industry?
A: I think the current state of the industry is strong. For those that have been focused on building good client relationships over the years, I think it’s a really exciting time. Coming out of all the challenges of the past few years, I think there’s a lot of opportunity for growth and deeper partnerships. It’s fun to see the automation and AI (artificial intelligence) integration starting to evolve [in a way that’s] similar to what we saw with WMS (warehouse management systems) in the early 2000s.
Q: You are now president of your family firm. Is it an advantage having grown up in the business as opposed to working elsewhere?
A: I definitely believe it was an advantage growing up in the business. Whether it’s working with family or someone else in the industry, there’s always an advantage when you have mentors[to guide] you. I’ve been blessed to have several mentors, some in the industry, others just in life, and I’m thankful that they were willing to mentor me and that I was willing to listen to them.
Q: What are the biggest challenges currently facing 3PLs, and how are you addressing them?
A: Labor and legislation are both tough right now. The two seem to have a lot to do with each other, and it can make it tough to find and retain people. So I think we’ll see more and more automation of processes industrywide.
Q: Third-party service providers often must handle a wide variety of products for a lot of different clients. Does this variety make it difficult to invest in automation and other new technologies?
A: It can make things more difficult when looking at certain automation, but it’s in the “difficult” that a lot of opportunities lie. It would be tough to find a single solution that fits every client’s needs, but there are always opportunities to improve in certain areas. It just takes a bit of vision and commitment, and a willingness to invest in your own long-term success.
Q: As a 3PL, what do you look for when selecting the clients you work with?
A: Quality relationships that will last a long time. When both parties are happy and working together in the same direction, everyone wins.
Q: You’ve been a board member of the International Warehouse Logistics Association since 2021. Why is your involvement with this organization important to you?
A: I think it’s important to understand what’s happening in the industry. IWLA is a great resource for staying up to date and getting a solid education when it comes to the latest logistics trends. I also think it’s important to give back and pass along what we’ve learned to those just getting started in the business. As important as it is to have a mentor, it’s just as important to mentor and help others.
“While there have been some signs of tightening in consumer spending, September’s numbers show consumers are willing to spend where they see value,” NRF Chief Economist Jack Kleinhenz said in a release. “September sales come amid the recent trend of payroll gains and other positive economic signs. Clearly, consumers continue to carry the economy, and conditions for the retail sector remain favorable as we move into the holiday season.”
The Census Bureau said overall retail sales in September were up 0.4% seasonally adjusted month over month and up 1.7% unadjusted year over year. That compared with increases of 0.1% month over month and 2.2% year over year in August.
Likewise, September’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.7% seasonally adjusted month over month and up 2.4% unadjusted year over year. NRF is now forecasting that 2024 holiday sales will increase between 2.5% and 3.5% over the same time last year.
Despite those upward trends, consumer resilience isn’t a free pass for retailers to underinvest in their stores by overlooking labor, customer experience tech, or digital transformation, several analysts warned.
"The 2024 holiday season offers more ‘normalcy’ for retailers with inflation cooling. Still, there is no doubt that consumers continue to seek value. Promotions in general will play a larger role in the 2024 holiday season. Retailers are dealing with shrinking shopper loyalties, a larger number of competitors across more channels – and, of course, a more dynamic landscape where prices are shifting more frequently to win over consumers who are looking for great deals,” Matt Pavich, senior director of strategy & innovation at pricing optimization solutions provider Revionics, said in an email.
Nikki Baird, VP of strategy & product at retail technology company Aptos, likewise said that retailers need to keep their focus on improving their value proposition and customer experience. “Retailers aren’t just competing with other retailers when it comes to consumers’ discretionary spending. If consumers feel like the shopping experience isn’t worth their time and effort, they are going to spend their money elsewhere. A trip to Italy, a dinner out, catching the latest Blake Lively and Ryan Reynolds films — there is no shortage of ways that consumers can spend their discretionary dollars,” she said.
Editor's note:This article was revised on October 18 to correct the attribution for a quote to Matt Pavich instead of Nikki Baird.
The market for environmentally friendly logistics services is expected to grow by nearly 8% between now and 2033, reaching a value of $2.8 billion, according to research from Custom Market Insights (CMI), released earlier this year.
The “green logistics services market” encompasses environmentally sustainable logistics practices aimed at reducing carbon emissions, minimizing waste, and improving energy efficiency throughout the supply chain, according to CMI. The market involves the use of eco-friendly transportation methods—such as electric and hybrid vehicles—as well as renewable energy-powered warehouses, and advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI) for optimizing logistics operations.
“Key components include transportation, warehousing, freight management, and supply chain solutions designed to meet regulatory standards and consumer demand for sustainability,” according to the report. “The market is driven by corporate social responsibility, technological advancements, and the increasing emphasis on achieving carbon neutrality in logistics operations.”
Major industry players include DHL Supply Chain, UPS, FedEx Corp., CEVA Logistics, XPO Logistics, Inc., and others focused on developing more sustainable logistics operations, according to the report.
The research measures the current market value of green logistics services at $1.4 billion, which is projected to rise at a compound annual growth rate (CAGR) of 7.8% through 2033.
The report highlights six underlying factors driving growth:
Regulatory Compliance: Governments worldwide are enforcing stricter environmental regulations, compelling companies to adopt green logistics practices to reduce carbon emissions and meet legal requirements.
Technological Advancements: Innovations in technology, such as IoT, AI, and blockchain, enhance the efficiency and sustainability of logistics operations. These technologies enable better tracking, optimization, and reduced energy consumption.
Consumer Demand for Sustainability: Increasing consumer awareness and preference for eco-friendly products drive companies to implement green logistics to align with market expectations and enhance their brand image.
Corporate Social Responsibility (CSR): Companies are prioritizing sustainability in their CSR strategies, leading to investments in green logistics solutions to reduce environmental impact and fulfill stakeholder expectations.
Expansion into Emerging Markets: There is significant potential for growth in emerging markets where the adoption of green logistics practices is still developing. Companies can capitalize on this by introducing sustainable solutions and technologies.
Development of Renewable Energy Solutions: Investing in renewable energy sources, such as solar-powered warehouses and electric vehicle fleets, presents an opportunity for companies to reduce operational costs and enhance sustainability, driving further market growth.
A real-time business is one that uses trusted, real-time data to enable people and systems to make real-time decisions, Peter Weill, the chairman of MIT’s Center for Information Systems Research (CISR), said at the “IFS Unleashed” show in Orlando.
By adopting that strategy, they gain three major capabilities, he said in a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI.” They are:
business model agility without needing a change management program to implement it
seamless digital customer journeys via self-service, automated, or assisted multi-product, multichannel experiences
thoughtful employee experiences enabled by technology empowered teams
And according to Weill, MIT’s studies show that adopting that real-time data stance is not restricted just to digital or tech-native businesses. Rather, it can produce successful results for companies in any sector that are able to apply the approach better than their immediate competitors.
“ExxonMobil is uniquely placed to understand the biggest opportunities in improving energy supply chains, from more accurate sales and operations planning, increased agility in field operations, effective management of enormous transportation networks and adapting quickly to complex regulatory environments,” John Sicard, Kinaxis CEO, said in a release.
Specifically, Kinaxis and ExxonMobil said they will focus on a supply and demand planning solution for the complicated fuel commodities market which has no industry-wide standard and which relies heavily on spreadsheets and other manual methods. The solution will enable integrated refinery-to-customer planning with timely data for the most accurate supply/demand planning, balancing and signaling.
The benefits of that approach could include automated data visibility, improved inventory management and terminal replenishment, and enhanced supply scenario planning that are expected to enable arbitrage opportunities and decrease supply costs.
And in the chemicals and lubricants space, the companies are developing an advanced planning solution that provides manufacturing and logistics constraints management coupled with scenario modelling and evaluation.
“Last year, we brought together all ExxonMobil supply chain activities and expertise into one centralized organization, creating one of the largest supply chain operations in the world, and through this identified critical solution gaps to enable our businesses to capture additional value,” said Staale Gjervik, supply chain president, ExxonMobil Global Services Company. “Collaborating with Kinaxis, a leading supply chain technology provider, is instrumental in providing solutions for a large and complex business like ours.”