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.
If you've ever had the dubious pleasure of taking a cab ride in Boston, you know what a harrowing experience it can be. If you're lucky, the air conditioning will be working while the taxi idles in one of the city's infamous traffic jams. And if you're really lucky, the shocks will be in working order too, since your driver is likely to hit at least one pothole the size of the Big Dig.
That may be about to change. Since the beginning of the year, 30 taxi cabs in the city have been outfitted with RFID tags. Combined with sensor technology, the tags are expected to help cabbies avoid traffic jams and provide information for a database on the city's worst potholes and ways to avoid them.
It's all part of a project called CarTel, backed by professors and students from the Massachusetts Institute of Technology (MIT). By the end of the year, the group hopes to have RFID tags and sensors on about 400 private cars as well, in an effort to build a more extensive database on potential bottlenecks as well as roads in disrepair. In an ideal world, information could be relayed to highway officials, who would then send a crew out to fix the road. The CarTel project will likely expand to include cab companies in San Francisco and Los Angeles later this year.
The goal of CarTel is to make personalized route recommendations to drivers, based on the driver's personal commute history as well as commute histories of other drivers who are willing to share their information. In addition, the system could help monitor the vehicle's performance by collecting data on emissions and gas mileage. These reports could be combined with historical data, thus highlighting long-term changes in a car's performance. Such a system would be able to provide the driver with early warnings of potential trouble.
It's just one example of how RFID technology, coupled with other technologies like sensors and GPS, is expected to make life on the road a lot easier to handle—and possibly less expensive—in the coming years. In fact, the technology is making its way onto the nation's roadways in a big way. From Boston to Alaska, RFID is showing its potential to provide visibility for cargo and ease congestion due to poor road conditions and isolated events like accidents or a ball game that affect traffic flow.
Early warning
MIT isn't the only university that's investigating ways to use technology to improve traffic patterns and safety. In June, researchers at Rensselaer Polytechnic Institute (RPI) and the New York State Department of Transportation finished installing six solar-powered mobile RFID readers that will monitor traffic flow by reading EXPass tags attached to passing cars. (Motorists use the tags to pay for highway tolls.) RPI began testing last fall with a single RFID reader in Troy, N.Y., and added six more readers this spring, enabling them to collect data for an eightmile stretch of highway in Rochester, N.Y.
Researchers at RPI received a $3.9 million grant from the Federal Highway Administration to fund the program, which could be used in the future to calculate how long it takes traffic to move from one stationary RFID reader to another. Someday, data collected from the system might help to reroute traffic when congestion occurs, or to alert motorists to slow-moving traffic by sending a message to their cell phones or GPS systems.
"We really hope to see if, in fact, the technology can be used to get a better handle on traffic and travel times," says Al Wallace, director of the Center for Infrastructure and Transportation Studies at RPI and a professor of decision sciences and engineering systems at the school. "I happen to think there will be a variety of technologies that will be used [to improve] traffic management. We're not just talking about congestion, but incident management. The better idea we have about traffic behavior, the better job we can do routing for commerce. It's not just the individual driver who benefits, but in the short and long term, commerce could benefit by saving energy."
Indeed, the federal Department of Energy's Clean Cities Program says that U.S. trucks burn about 800 million gallons of diesel fuel each year while idling. Although much of that idling occurs in parking lots while waiting to load and unload, a typical long-haul tractor idles approximately 1,830 hours per year, in part due to congested roadways. Aside from releasing damaging pollutants into the air, with diesel prices hovering near $3 a gallon, idling results in a waste of close to $2.5 billion a year.
Filling the black hole
As much as individual drivers may benefit from RFID-equipped autos and roadways, industry stands to gain even more. Some industries are already benefiting from the use of RFID tags—both active and passive— along U.S. highways. Since January, Horizon Lines, a domestic ocean container shipping and logistics company, has utilized RFID along its shipping lane in Alaska to track the movement of goods for customers like supermarket chain Safeway. Many of the RFID readers are deployed alongside the highway weather stations used by the Alaska Department of Transportation.
The advantage of using RFID—as opposed to GPS technology—is the cost. Although Horizon uses satellite GPSbased solutions to track refrigerated containers containing high-value goods like pharmaceuticals, the cost of deploying GPS technology across its entire container fleet would be prohibitive, says Greg Skinner, applications group manager for Horizon Services Group, a Horizon Lines subsidiary that provides transportation technology and consulting services. "The active RFID solution that we have deployed has a lower cost of ownership in regard to both the tags and the fixed-reader equipment," he says.
Skinner notes that his company has historically had little difficulty tracking cargo while it's at sea, at marine terminals, and on the rails. But when containers hit the highway, they often vanish from sight. To solve that problem, Horizon has outfitted many of its trailers with RFID technology, and new units manufactured overseas are being delivered with built-in active RFID tags.
The tags have been installed on the rear door of Horizon's containers. During the installation process, tags are scanned via a handheld reader, which reads the tag ID (each tag carries a unique serial number) and allows the user to enter the container number. This information is then uploaded into a computer system that marries the container number to the tag number for tracking purposes.
The tag on the container continuously broadcasts its unique serial number. As the tag-equipped container passes a reader, the reader receives and stores the tag's serial number along with the date and time it was read. Horizon's system polls the reader network every five minutes to process captured tag data. As the tag data is processed, the tag ID is transformed to the appropriate container number and a RFID sighting event is created with the container information, shipment information, reader location, and date and time.
The reader network includes the Horizon port facilities, key customer distribution centers, and store fronts, as well as locations along the highway in Alaska.
Safeway and Horizon Lines can both use the data collected by the RFID network to plan labor and operations at their facilities. An RFID reader on the highway about an hour away from a Safeway facility in North Pole, Alaska, helps the retailer track shipments to the store on a regular basis. When a truck carrying tagged cargo passes the location, the reader records the event and automatically notifies Safeway so it can have employees ready to unload the shipment.
Horizon, which hopes to have all of its 23,000 pieces of equipment outfitted with RFID tags by the end of next year, plans to extend the program to its shipping lanes in Puerto Rico and Guam. It is also looking into the possibility of working with state and federal transportation officials to test the feasibility of using the RFID reader infrastructure already in place on highways to create a national network for end-to-end, real-time intermodal container tracking, therefore filling the black hole that now exists.
"Our ultimate goal is to have our entire fleet tagged sometime in 2008," says Skinner. "The other piece we're looking at now is how to get better visibility in the lower 48, and we're talking to the federal government and state Department of Transportation to see what infrastructure is available, like cell towers or container yards."
Horizon sees this as an integral step in solving the missing piece in intermodal visibility. By having better visibility, Horizon could track assets in real time, reduce unnecessary repositioning of containers, address congestion issues, and increase supply chain security.
By gaining better visibility into its containers, especially as they enter and exit container yards, Horizon could also likely reduce the overall size of its fleet, resulting in increased asset utilization.
"We might not have to blanket the entire highway system," says Skinner. "If we target key trouble spots, like certain container yards where we don't get visibility for our equipment, or a certain corridor through Florida that gets lots of truck traffic, we might be able to accomplish the same thing.We have equipment that tends to sit longer at certain locations, and that will fit into how we start to deploy our future [RFID] infrastructure."
Horizon Lines also believes that in the post 9/11 world, much of what it is doing in its Alaska trade lanes will eventually be mandated by the federal government. "We want to be on the leading edge because we believe down the road a lot of what we're doing now operationally will become more of a requirement from a security standpoint, especially for hazardous containers or suspect cargo," says Skinner.
Warehouse automation orders declined by 3% in 2024, according to a February report from market research firm Interact Analysis. The company said the decline was due to economic, political, and market-specific challenges, including persistently high interest rates in many regions and the residual effects of an oversupply of warehouses built during the Covid-19 pandemic.
The research also found that increasing competition from Chinese vendors is expected to drive down prices and slow revenue growth over the report’s forecast period to 2030.
Global macro-economic factors such as high interest rates, political uncertainty around elections, and the Chinese real estate crisis have “significantly impacted sales cycles, slowing the pace of orders,” according to the report.
Despite the decline, analysts said growth is expected to pick up from 2025, which they said they anticipate will mark a year of slow recovery for the sector. Pre-pandemic growth levels are expected to return in 2026, with long-term expansion projected at a compound annual growth rate (CAGR) of 8% between 2024 and 2030.
The analysis also found two market segments that are bucking the trend: durable manufacturing and food & beverage industries continued to spend on automation during the downturn. Warehouse automation revenues in food & beverage, in particular, were bolstered by cold-chain automation, as well as by large-scale projects from consumer-packaged goods (CPG) manufacturers. The sectors registered the highest growth in warehouse automation revenues between 2022 and 2024, with increases of 11% (durable manufacturing) and 10% (food & beverage), according to the research.
The logistics tech provider Körber Supply Chain Software continues to position itself in a fast-changing business landscape, aligning itself today with the digital transformation consulting firm Zero100.
Körber Supply Chain Software—to be formally known as Infios beginning in March—has plenty of funding to make those strategic changes, since the company is a joint venture between its parent company, the German business technology powerhouse Körber AG and KKR, the California-based merger and acquisition specialist.
London-based Zero100 calls itself a membership-based intelligence company connecting, informing, and inspiring the world’s supply chain leaders to accelerate progress on digital supply chain transformation. In January the company gained new financial backing through a “growth investment” from the private equity firm Levine Leichtman Capital Partners. According to Zero100, that new financing will accelerate its tech, data, research, and talent capabilities, further strengthen its team, and enable further product and service innovation on behalf of the company’s customers.
Infios says it is joining that community to access Zero100’s data-driven research insights and advisory, and to integrate innovative sustainability practices and digital tools into its adaptable solutions. Infios’s catalog of technology includes order management, warehousing and fulfillment, and transportation management.
By harnessing advanced technologies such as AI and data analytics and providing businesses with the right level of flexibility and control to evolve and adapt solutions to their needs, Infios says it can help its customers optimize their entire supply chain ecosystem and create a more optimistic outlook.
The Swedish supply chain software company Kodiak Hub is expanding into the U.S. market, backed by a $6 million venture capital boost for its supplier relationship management (SRM) platform.
The Stockholm-based company says its move could help U.S. companies build resilient, sustainable supply chains amid growing pressure from regulatory changes, emerging tariffs, and increasing demands for supply chain transparency.
According to the company, its platform gives procurement teams a 360-degree view of supplier risk, resiliency, and performance, helping them to make smarter decisions faster. Kodiak Hub says its artificial intelligence (AI) based tech has helped users to reduce supplier onboarding times by 80%, improve supplier engagement by 90%, achieve 7-10% cost savings on total spend, and save approximately 10 hours per week by automating certain SRM tasks.
The Swedish venture capital firm Oxx had a similar message when it announced in November that it would back Kodiak Hub with new funding. Oxx says that Kodiak Hub is a better tool for chief procurement officers (CPOs) and strategic sourcing managers than existing software platforms like Excel sheets, enterprise resource planning (ERP) systems, or Procure-to-Pay suites.
“As demand for transparency and fair-trade practices grows, organizations must strengthen their supply chains to protect their reputation, profitability, and long-term trust,” Malin Schmidt, founder & CEO of Kodiak Hub, said in a release. “By embedding AI-driven insights directly into procurement workflows, our platform helps procurement teams anticipate these risks and unlock major opportunities for growth.”
Here's our monthly roundup of some of the charitable works and donations by companies in the material handling and logistics space.
For the sixth consecutive year, dedicated contract carriage and freight management services provider Transervice Logistics Inc. collected books, CDs, DVDs, and magazines for Book Fairies, a nonprofit book donation organization in the New York Tri-State area. Transervice employees broke their own in-house record last year by donating 13 boxes of print and video assets to children in under-resourced communities on Long Island and the five boroughs of New York City.
Logistics real estate investment and development firm Dermody Properties has recognized eight community organizations in markets where it operates with its 2024 Annual Thanksgiving Capstone awards. The organizations, which included food banks and disaster relief agencies, received a combined $85,000 in awards ranging from $5,000 to $25,000.
Prime Inc. truck driver Dee Sova has donated $5,000 to Harmony House, an organization that provides shelter and support services to domestic violence survivors in Springfield, Missouri. The donation follows Sova's selection as the 2024 recipient of the Trucking Cares Foundation's John Lex Premier Achievement Award, which was accompanied by a $5,000 check to be given in her name to a charity of her choice.
Employees of dedicated contract carrier Lily Transportation donated dog food and supplies to a local animal shelter at a holiday event held at the company's Fort Worth, Texas, location. The event, which benefited City of Saginaw (Texas) Animal Services, was coordinated by "Lily Paws," a dedicated committee within Lily Transportation that focuses on improving the lives of shelter dogs nationwide.
Freight transportation conglomerate Averitt has continued its support of military service members by participating in the "10,000 for the Troops" card collection program organized by radio station New Country 96.3 KSCS in Dallas/Fort Worth. In 2024, Averitt associates collected and shipped more than 18,000 holiday cards to troops overseas. Contributions included cards from 17 different Averitt facilities, primarily in Texas, along with 4,000 cards from the company's corporate office in Cookeville, Tennessee.
Electric vehicle (EV) sales have seen slow and steady growth, as the vehicles continue to gain converts among consumers and delivery fleet operators alike. But a consistent frustration for drivers has been pulling up to a charging station only to find that the charger has been intentionally broken or disabled.
To address that threat, the EV charging solution provider ChargePoint has launched two products to combat charger vandalism.
The first is a cut-resistant charging cable that's designed to deter theft. The cable, which incorporates what the manufacturer calls "novel cut-resistant materials," is substantially more difficult for would-be vandals to cut but is still flexible enough for drivers to maneuver comfortably, the California firm said. ChargePoint intends to make its cut-resistant cables available for all of its commercial and fleet charging stations, and, starting in the middle of the year, will license the cable design to other charging station manufacturers as part of an industrywide effort to combat cable theft and vandalism.
The second product, ChargePoint Protect, is an alarm system that detects charging cable tampering in real time and literally sounds the alarm using the charger's existing speakers, screens, and lighting system. It also sends SMS or email messages to ChargePoint customers notifying them that the system's alarm has been triggered.
ChargePoint says it expects these two new solutions, when combined, will benefit charging station owners by reducing station repair costs associated with vandalism and EV drivers by ensuring they can trust charging stations to work when and where they need them.