Diagnose lift-truck performance from afar? It might sound like science fiction, but it's now possible—and it has the potential to change the way you manage your fleet.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
People who design, manufacture, and sell lift trucks tend to be practical types who take a pragmatic approach to business. But a relatively new technology has even this down-to-earth crowd excited. They are so enthusiastic about it that some are calling it the biggest advance in lift trucks since the equipment was first invented.
What they're all fired up about are fleet optimization systems that automatically collect, transmit, and analyze data about vehicle performance and productivity—remotely and wirelessly, without requiring the fleet manager to be anywhere near the vehicles. Only a handful of truck manufacturers—Crown Equipment Corp., Hyster Co., Raymond Corp., and Yale Materials Handling—offer comprehensive systems right now, but others reportedly are developing them. Several software companies (see sidebar) also offer these systems; some of the truck makers, in fact, have partnered with those vendors.
Why develop automated data collection for a traditionally hands-on environment like the warehouse or distribution center? "We saw an opportunity to use technological advancements to raise the bar on customer satisfaction," explains John Russian, manager of fleet marketing at Hyster. A bit of whiz-bang technology is sure to impress customers, but Russian and others who offer fleet optimization systems emphasize that the technology is not just for show. These futuristic systems, they say, are designed to help fleet managers and lift-truck dealers solve specific fleet management problems while reducing maintenance and operating costs.
Built-in flexibility
As the companies that offer fleet optimization systems are quick to point out, capabilities vary with the system and the developer. Typically, though, they capture performance data from individual vehicles, wirelessly transmit that information to a central server, and make it possible for a remote user—potentially located anywhere in the world—to analyze data through a Web-based database in order to manage fleet operations, costs, and maintenance. Examples of the kinds of data-tracking and performance-monitoring capabilities that these types of systems provide include the following:
Maintenance and repair—recording and notifying management of hours of use for various motors, battery charge level, parts failures, engine temperature, and more; scheduling preventive maintenance based on actual usage and notifying the fleet manager and dealer.
Impact detection and reporting—recording time and location of impact, identifying driver and vehicle, and sending out an alert. Some systems will shut off the engine when a certain degree of impact has been detected.
Safety compliance—verifying OSHA checklist completion and notifying managers of problems.
Performance and operational metrics—measuring travel and lift time and distance, deadhead travel, asset utilization, and more. Some offer "geotracking," which monitors trucks' location and limits their access to specific areas.
Operator supervision—controlling drivers' access to trucks based on training and other considerations, remotely adjusting vehicle settings, and tracking driver productivity.
Most of the systems employ a harness with sensors attached to various parts of the lift truck to collect data. An exception is Raymond's iWarehouse system, which acquires data through a single connector called the iPort that plugs into the CAN bus—the truck's electronic "brain." (CAN stands for "controller area network.") Both types gather a wealth of accurate and up-to-date information, but plugging into the control center provides access to more types of data than a harness, with its limited number of entry points, can provide, says David Furman, Raymond's vice president of marketing. (Other lift-truck makers reportedly are developing similar data collection systems.)
When it comes to data transmission, there's a lot of flexibility built into these systems. Users can specify whether they want constant transmission in real time or transmission at specified intervals. The systems are designed to transmit data using types of wireless infrastructure that are commonly installed in warehouses and DCs to communicate with warehouse management systems. Among the technologies in use now for data transmission are digital paging, 802.11 WiFi, cellular service, and 900 MHz radio waves. Buyers that already have one or more of those capabilities in place usually can transmit data over their existing wireless systems with little or no additional infrastructure required. For some customers, Yale also uses "beacons" to triangulate the location of a piece of equipment. In its Asia Pacific operations, the company uses RFID capsules embedded in the floor to track vehicle locations. Crown, meanwhile, employs "access points" attached to the ceiling to collect and forward data.
Each transmission method has its pros and cons, and some are more reliable than others. Availability of bandwidth for carrying large amounts of data, potential for interference from other electronic equipment, reliable penetration throughout the facility, and cost are considerations. Users often need to use different types of communication for different services, notes Scot Aitcheson, director of Yale's fleet management group. For example, "geofencing" (which limits where individual trucks can operate and controls their speed in specific areas) requires 900 MHz or the use of RFID tags; the less expensive 802.11 WiFi transmission can't accommodate that function yet, he says.
Most of the forklift manufacturers offering the systems have teamed up with software vendors that specialize in remote equipment tracking and data transmission. Hyster and Yale (both part of NACCO Materials Handling Group) work with On-Board Communications for their remote hour-meter reader, and they have partnered with I.D. Systems for more complex asset management functions. Raymond, meanwhile, has partnered with industry veteran ShockWatch. Only Crown is going it alone with its InfoLink system. "We feel the system is going to be more robust …and up to date if we control everything," says Matt Ranly, senior marketing product manager. "By not working with a third-party provider, we are getting customer feedback through our own system in a closed loop."
The power of software
Fleet optimization systems pour data into central servers, and proprietary software then makes the information available in Web-based databases so users can review it and produce reports on individual trucks, drivers, and facilities. It's not just a "here and now" type of application, though: Users can aggregate data to gain a higher-level view, conduct comparisons among equipment and facilities, and spot longer-term trends.
The reports—more than 100 different options, although users typically focus on a dozen or two—make it possible to collect accurate information and use it to precisely measure costs, productivity, and asset utilization. For managers who have always relied on manual data collection and estimates based on experience, this reveals several layers of information they could not get before. "Do not underestimate the power of reporting software," says Hyster's Russian. "This is untraveled territory for many customers."
Because data management is Web-based, users can view it from practically anywhere, in real time. "If you're the guy in corporate who's in charge of warehousing and you want to check on various fleets across the United States and even beyond, you can do it from your desk," says Ranly of Crown. Even local operators may benefit from multiple views. "You might be one person in charge of all the lift-truck fleets at five warehouses in Chicago. The system gives you that power at your fingertips."
Downtime costs big money, so the ability to remotely diagnose and report a problem can save plenty. When, for example, there's a breakdown or a part begins to fail, the fleet management system automatically notifies the supervisor and the dealer of the details, including fault codes, says Aitcheson. Instead of getting a call, coming out to examine the truck, and perhaps returning to the dealership to pick up a part before actually getting down to work, the technician can diagnose the problem off site and arrive with the correct part in hand, he explains. That type of report can also be analyzed over time, allowing users to spot trends and identify vehicles that are getting too costly to operate.
The time spent just on manually gathering meter readings is nearly eliminated. "We no longer need to send Joe out to a customer's location to track down 75 forklifts to get the hour-meter readings," Russian observes. Furthermore, the data reporting software can answer other questions managers might not know they need to ask, he adds, "like why are these six trucks on the loading docks only getting 22-percent utilization, but six trucks that are the same model inside the warehouse get 87-percent utilization?" That kind of information lets managers optimize utilization and operator staffing as well as determine whether they have the right number and type of trucks.
At the same time, these systems' twoway communication helps fleet managers exercise better control over day-to-day operations. Furman cites Raymond's iControl module, which allows a supervisor to change an operator's driving profile. "Suppose you have newer operators and want to limit truck performance, including lift and travel speed, until those operators improve their skills through training and experience," he posits. "Historically, you would have had to make those changes to individual equipment truckside. Now you can do it once, and their profile follows them with their key or swipe card, regardless of which vehicle they use."
Technology for all, big and small
The potential for all of these systems to improve cost, efficiency, productivity, and safety is undeniable. Still, there are some potential drawbacks. For example, drivers and maintenance technicians may be resistant to electronic oversight. The vendors have an answer for that: They say managers can address these concerns by emphasizing that the systems improve safety, make everyone more efficient, and ensure that they get paid for the work they actually do.
Another concern is whether users will be overwhelmed by too much data. Yale's Aitcheson says that's one reason why his company customizes each system to provide customers with the specific combination of features they need. Regardless of the system provider, he suggests starting out with one area where users have the greatest need for information, and then adding more data collection and reporting capabilities over time.
What about lift-truck fleets that include equipment from more than one manufacturer? The fleet optimization systems can perform basic tasks on other makers' trucks—they can even work on other types of electric-powered equipment, such as sweepers and AGVs—but their functions are much more limited. (Raymond, for example, offers only a harness-and-sensor setup for other manufacturers' equipment as well as for older Raymond equipment that is not iPort ready.)
And, of course, there is the cost. Vendors would provide only broad estimates, which ranged from a few dollars per truck per month for "power by the hour" agreements to about $3,000 per vehicle for the most feature-laden systems. That may seem high compared to the $20,000 initial cost of a forklift, but payback time is 12 to 18 months, they say.
Although you might think that these sophisticated systems are intended for only the largest operators, even fleets as small as 10 trucks are using them. "If you have only 10 trucks and one of them has an accident or downtime for maintenance," Crown's Ranly points out, "that's a serious concern compared to one truck out of hundreds being out of service."
All of the vendors interviewed for this article said they are excited about the technology's potential, not just from a sales standpoint but also because it offers the opportunity to develop applications that have never been feasible before. As Ranly puts it, "We've never had a tool like this that customers can use to change the way they operate their fleets. It offers a very tangible benefit, and they know this tool can help them."
the pioneers
Forklift manufacturers that offer comprehensive wireless fleet optimization systems are Johnnys-come-lately to the game. Independent software companies were the first to develop these systems, and some of the lift-truck makers have partnered with them to gain access to their Web-based reporting software and ability to communicate wirelessly with vehicles.
One of the pioneers in this area was Access Control Group (ACG), which was launched in 2000 to help customers improve safety by remotely controlling drivers' access to forklifts. Over the years, the company has added functionality that addressed problems engineers have observed at customers' warehouses, says CEO Arun Patel. According to Patel, ACG (www.assetor.net) was the first to offer Web-based management of vehicle data, which helped customers like Walgreens monitor data when managers were traveling to multiple facilities. ACG's Vigilant G2 system, which he says is priced below those of his competitors, manages operators' access and safety compliance, reports impacts, monitors vehicle utilization, and more. Patel says the company will introduce an RFID-based system for measuring operator productivity early next year.
Some of the other vendors of wireless lift-truck monitoring and management systems include:
On-Board Communications (www.on-boardcommunications.com), whose LiftTraks GPS-based system tracks vehicles, monitors engine usage, schedules preventive maintenance, and monitors labor activity, among other functions;
ShockWatch (www.shockwatch.com), which offers Webbased remote data management and monitors for impacts, vehicle usage, safety compliance, maintenance, equipment utilization, and more;
I.D. Systems (www.id-systems.com), which offers Webbased remote data management, monitors equipment utilization and operator productivity, controls vehicle usage based on maintenance and repair needs, and monitors all types of batteries, to name just a few of its functions; and
Sky-Trax (www.sky-trax.com), which automates data collection for lift-truck drivers, and says its Real Time Location System for warehouse materials and vehicles is accurate within inches.
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.
However, that trend is counterbalanced by economic uncertainty driven by geopolitics, which is prompting many companies to diversity their supply chains, Dun & Bradstreet said in its “Q4 2024 Global Business Optimism Insights” report, which was based on research conducted during the third quarter.
“While overall global business optimism has increased and inflation has abated, it’s important to recognize that geopolitics contribute to economic uncertainty,” Neeraj Sahai, president of Dun & Bradstreet International, said in a release. “Industry-specific regulatory risks and more stringent data requirements have emerged as the top concerns among a third of respondents. To mitigate these risks, businesses are considering diversifying their supply chains and markets to manage regulatory risk.”
According to the report, nearly four in five businesses are expressing increased optimism in domestic and export orders, capital expenditures, and financial risk due to a combination of easing financial pressures, shifts in monetary policies, robust regulatory frameworks, and higher participation in sustainability initiatives.
U.S. businesses recorded a nearly 9% rise in optimism, aided by falling inflation and expectations of further rate cuts. Similarly, business optimism in the U.K. and Spain showed notable recoveries as their respective central banks initiated monetary easing, rising by 13% and 9%, respectively. Emerging economies, such as Argentina and India, saw jumps in optimism levels due to declining inflation and increased domestic demand respectively.
"Businesses are increasingly confident as borrowing costs decline, boosting optimism for higher sales, stronger exports, and reduced financial risks," Arun Singh, Global Chief Economist at Dun & Bradstreet, said. "This confidence is driving capital investments, with easing supply chain pressures supporting growth in the year's final quarter."