Are smartphones and tablets ready for prime time (in the DC)?
Their low price point has some companies considering adopting consumer mobile devices for use in the DC. But it's not clear these devices are quite up to the task yet.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
With the explosion in the use of smartphones and tablets, it was probably only a matter of time before these devices found their way into the distribution center. For workers who have eagerly embraced these technologies in their daily lives, bringing them into the workplace wouldn't seem like much of a stretch. "People are more connected today," says Jim Plas, vice president of Xplore Technologies, a manufacturer of rugged tablet computers. "We have a younger generation of workers who are used to being digitally connected."
But it's not just a matter of familiarity. Cost enters into it as well. While industrial-grade handhelds and tablets have been available for years, they're much more expensive than their mass-market counterparts. So it's not surprising that companies would be tempted to try using off-the-shelf technology—the kind of stuff that can be purchased at the local Best Buy or Walmart—in their distribution operations. But is that a smart strategy?
Well, it depends on how and where they're used.
For example, take a supervisor who works mainly in an office but occasionally carries a tablet out into the warehouse to deal with a problem on the spot. In that case, a consumer tablet would probably fill the bill nicely.
It's a different story for workers whose duties take them outdoors or who spend much of their day on the dock or in the aisles of a DC. If the devices they use will routinely be exposed to heat, cold, rain, vibration, dust, drops, or in the case of cold storage facilities, condensation, companies should steer clear of consumer-grade electronics. They simply won't stand up to the punishment, experts say.
RUGGED FOR A REASON
Consider, for example, the tablet computers used by forklift operators. Although mass-market tablets might be able to provide the necessary computing power and functionality, it's doubtful they could survive the day-to-day rigors of the distribution environment. For one thing, the vibration caused by travel over uneven concrete surfaces—or the jarring that occurs when lift trucks are driven from docks into trailers—would likely damage their delicate electronics. For another, if the trucks encounter wide variations in temperature—say, when moving in and out of coolers or air-conditioned buildings on a hot summer day—the resulting condensation is liable to cause the unit to fog up or stop working entirely.
That's why in applications like these, an industrial unit would be a more suitable choice. There are forklift-mounted "ruggedized" tablet on the market that are designed specifically to work where they'll be exposed to potentially damaging conditions. Most can withstand not just vibration but also drops from at least six feet. They are also sealed against humidity and moisture, eliminating the risk of condensation.
These industrial units have other advantages as well. Many tablets are built to be hot-dockable, meaning that the worker can remove the device from the truck and carry it over to the product for scanning or data entry. The tablet can then be snapped back into place on the lift truck.
Most also feature large touchscreens, which give drivers an easier way to enter data than tapping on a small keyboard, says Xplore's Plas. They're designed to be more readable, too. "The screens are very bright and sunlight viewable, so they are easier on the eyes," he adds.
The screens themselves differ from those found on most consumer tablets. The industrial versions use a resistive screen, meaning they're designed to respond to the pressure of a finger. Consumer products typically use a "capacitive" touchscreen that responds to the heat of the user's finger. The problem with heat-based touch is that it's not very effective in cold work environments, such as a freezer, or in applications where workers wear gloves.
CALL ME MAYBE
So what about smartphones? Like tablet devices, today's smartphones boast a large amount of computing capability. Most consumer smartphones compare in form factor with established handheld warehouse devices like bar-code readers, and they can even be outfitted with add-on scanners. But when it comes to their suitability for use in DCs, it's pretty much the same story as with tablets. That is to say, while these devices have their supporters—mostly for their convenience and low initial cost—many observers dismiss them as being too fragile to handle the vibration, falls, and other impacts that are part and parcel of warehouse operations.
Physical conditions aren't the only factor to come into play. There's also performance. Generally speaking, the scanners that are available as add-ons to smartphones are rudimentary in design and are better suited for the occasional swipe than for high-volume scanning operations. On top of that, most of these add-on scanners have a limited read range, so a user must be positioned right next to a bar code to read it. Consumer devices also have a limited life cycle of support and function, while most industrial devices offer a life of five to 10 years.
"Smaller companies may take the risk of using a consumer device, but the cost of a failure can be significant," warns Mark Wheeler, director of industry solutions at Motorola Solutions. "If you have to do scanning on a regular basis, for instance, then it's better to have a device designed for scanning. Performance is really the factor."
GETTING BETTER ALL THE TIME
In the meantime, technologies continue to emerge that have the potential to completely alter the equation. Motorola, for instance, has introduced a new ruggedized handheld computer that offers the familiarity of a smartphone. The new device, the MC40 enterprise mobile computer, works on the Android 2.3 Gingerbread operating system.
Other companies, such as Honeywell, are trying to bridge the gap between industrial and consumer products. The company is introducing a skid, or protective package, for the iPad that will make up for some of its shortcomings in industrial use. The protective skid will include a case with a built-in bar-code reader.
In addition, Honeywell this summer will introduce a ruggedized smartphone that is waterproof and comes with a built-in scanner. It will be priced lower than industrial tablet devices and is designed to work on a Wi-Fi network, eliminating the need for costly cell service.
And the trend shows no sign of slowing. Doug Brown, vertical marketing manager for warehouse, supply chain, and healthcare at Honeywell, believes that users' familiarity with consumer devices will only push the market to design more similar devices for the industrial workplace. "There is a hunger for these devices at a lower price point in this industry," he says. "We will see more adoption—maybe 20 to 25 percent will be using this class of device within the next five years."
Tablets find a home in receiving
Chemical management company Haas Group is convinced the third time will be the charm, at least where its receiving technology is concerned. The West Chester, Pa.-based company, which specializes in the handling, storage, and delivery of hazardous and other chemicals on a just-in-time basis, has long struggled with the question of how best to collect data on incoming items at its DCs. The various chemicals have different handling and storage requirements, and receiving must "qualify" the products as they come in, making data collection a time-consuming process, explains Stephen Skidmore, business systems manager at Haas.
Over the years, Haas has experimented with different methods of data collection. Initially, workers recorded the necessary information with pen and paper, but that proved cumbersome and slow. Then, the company shifted to PCs on carts, but these got dirty and failed. Now, the company is about to go mobile. Next month, it will begin piloting the use of ruggedized tablet computers for critical receiving tasks.
The new units are enterprise-ready Motorola ET1 tablets that run on a souped-up Android platform. Unlike the PCs, the new tablets do not have a keyboard to get dirty and no carts are required. Their portability is an added plus, according to Skidmore. "Our workers will now be able to take the tablet to the work instead of leaving the work to go to a PC and back," he says.
In the first phase of the project, Hass will deploy 10 tablets to handle the receiving functions in its Boston-area DC. Phase two calls for the rollout of 100 tablets at seven large distribution facilities around the country.
Software is now being written to walk the worker though the receiving process. Basically, an associate will read the incoming item's bar code using the tablet's built-in scanner and then take a photo of the item using the tablet's camera. He or she will then carry out the remaining steps via the tablet's touchscreen.
Skidmore says one of the tablet's main selling points was its large screen and scanning capability. "That made it a winner for us," he says. It also helped that the devices are intuitive and user-friendly, he adds. "It is absolutely necessary for success that our users adopt them," he notes. "We imagine that eventually they'll be knocking down the door with ideas for applications where the tablets can be used to solve problems elsewhere."
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Freight transportation sector analysts with US Bank say they expect change on the horizon in that market for 2025, due to possible tariffs imposed by a new White House administration, the return of East and Gulf coast port strikes, and expanding freight fraud.
“All three of these merit scrutiny, and that is our promise as we roll into the new year,” the company said in a statement today.
First, US Bank said a new administration will occupy the White House and will control the House and Senate for the first time since 2016. With an announced mandate on tariffs, taxes and trade from his electoral victory, President-Elect Trump’s anticipated actions are almost certain to impact the supply chain, the bank said.
Second, a strike by longshoreman at East Coast and Gulf ports was suspended in October, but the can was only kicked until mid-January. Shipper alarm bells are already ringing, and with peak season in full swing, the West coast ports are roaring, having absorbed containers bound for the East. However, that status may not be sustainable in the event of a prolonged strike in January, US Bank said.
And third, analyst are tracking the proliferation of freight fraud, and its reverberations across the supply chain. No longer the realm of petty criminals, freight fraudsters have become increasingly sophisticated, and the financial toll of their activities in the loss of goods, and data, is expected to be in the billions, the bank estimates.
The move delivers on its August announcement of a fleet renewal plan that will allow the company to proceed on its path to decarbonization, according to a statement from Anda Cristescu, Head of Chartering & Newbuilding at Maersk.
The first vessels will be delivered in 2028, and the last delivery will take place in 2030, enabling a total capacity to haul 300,000 twenty foot equivalent units (TEU) using lower emissions fuel. The new vessels will be built in sizes from 9,000 to 17,000 TEU each, allowing them to fill various roles and functions within the company’s future network.
In the meantime, the company will also proceed with its plan to charter a range of methanol and liquified gas dual-fuel vessels totaling 500,000 TEU capacity, replacing existing capacity. Maersk has now finalized these charter contracts across several tonnage providers, the company said.
The shipyards now contracted to build the vessels are: Yangzijiang Shipbuilding and New Times Shipbuilding—both in China—and Hanwha Ocean in South Korea.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”