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."
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
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.
National nonprofit Wreaths Across America (WAA) kicked off its 2024 season this week with a call for volunteers. The group, which honors U.S. military veterans through a range of civic outreach programs, is seeking trucking companies and professional drivers to help deliver wreaths to cemeteries across the country for its annual wreath-laying ceremony, December 14.
“Wreaths Across America relies on the transportation industry to move the mission. The Honor Fleet, composed of dedicated carriers, professional drivers, and other transportation partners, guarantees the delivery of millions of sponsored veterans’ wreaths to their destination each year,” Courtney George, WAA’s director of trucking and industry relations, said in a statement Tuesday. “Transportation partners benefit from driver retention and recruitment, employee engagement, positive brand exposure, and the opportunity to give back to their community’s veterans and military families.”
WAA delivers wreaths to more than 4,500 locations nationwide, and as of this week had added more than 20 loads to be delivered this season. The wreaths are donated by sponsors from across the country, delivered by truckers, and laid at the graves of veterans by WAA volunteers.
Wreaths Across America
Transportation companies interested in joining the Honor Fleet can visit the WAA website to find an open lane or contact the WAA transportation team at trucking@wreathsacrossamerica.org for more information.
Krish Nathan is the Americas CEO for SDI Element Logic, a provider of turnkey automation solutions and sortation systems. Nathan joined SDI Industries in 2000 and honed his project management and engineering expertise in developing and delivering complex material handling solutions. In 2014, he was appointed CEO, and in 2022, he led the search for a strategic partner that could expand SDI’s capabilities. This culminated in the acquisition of SDI by Element Logic, with SDI becoming the Americas branch of the company.
A native of the U.K., Nathan received his bachelor’s degree in manufacturing engineering from Coventry University and has studied executive leadership at Cranfield University.
Q: How would you describe the current state of the supply chain industry?
A: We see the supply chain industry as very dynamic and exciting, both from a growth perspective and from an innovation perspective. The pandemic hangover is still impacting decisions to nearshore, and that has resulted in a spike in business for us in both the USA and Mexico. Adding new technology to our portfolio has been a significant contributor to our continued expansion.
Q: Distributors were making huge tech investments during the pandemic simply to keep up with soaring consumer demand. How have things changed since then?
A: The consumer demand for e-commerce certainly appears to have cooled since the pandemic high, but our clients continue to see steady growth. Growth, combined with low unemployment and high labor costs, continues to make automation a good investment for many companies.
Q: Robotics are still in high demand for material handling applications. What are some of the benefits of these systems?
A: As an organization, we are investing heavily in software that will allow Element Logic to offer solutions for robotic picking that are hardware-agnostic. We have had success deploying unit picking for order fulfillment solutions and unit placing of items onto tray-based sorters.
From a benefit point of view, we’ve seen the consistency of a given operation improve. For example, the placement accuracy of a product onto a tray is far higher from a robotic arm than from a person. In order fulfillment applications, two of the biggest benefits are reliability and hours of operation. The robots don't call in sick, and they are happy to work 22 hours a day!
Q: SDI Element Logic offers a wide range of automated solutions, including automated storage and sortation equipment. What criteria should distributors use to determine what type of system is right for them?
A: There are a significant number of factors to consider when thinking about automation. In my experience, automation pays for itself in three key ways: It saves space, it increases the efficiency of labor, and it improves accuracy. So evaluating which of these will be [most] beneficial and quantifying the associated savings will lead to a “right sized” investment in technology.
Another important factor to consider is product mix. With a small SKU (stock-keeping unit) base, often automation doesn’t make sense. And with a huge SKU base, there will be products that don’t lend themselves to automation.
With any significant investment, you need to partner with an organization that has deep experience with the technologies that are being considered and … in-depth knowledge of the process that is being automated.
Q: How can a goods-to-person system reduce the amount of labor needed to fill orders?
A: In most order picking operations, there is a considerable amount of walking between pick faces to find the SKUs associated with a given order or set of orders. Goods-to-person eliminates the walking and allows the operator to just pick. I have seen studies that [show] that 75% of the time [required] to assemble an order in a manual picking environment is walking or “non-picking” time. So eliminating walking will reduce the amount of labor needed.
The goods-to-person approach also fits perfectly with robotic picking, so even the actual picking aspect of order assembly can be automated in some instances. For these reasons, [automation offers] a significant opportunity to reduce the labor needed to fulfill a customer order.
Q: If you could pick one thing a company should do to improve its distribution center operations, what would it be?
A: Evaluate. Evaluate the opportunities for improving by considering automation. In my experience, the challenge most companies have is recognizing that automation is an alternative. The barrier to entry is far lower than most people think!
Toyota Material Handling and its nationwide network of dealers showcased their commitment to improving their local communities during the company’s annual “Lift the Community Day.” Since 2021, Toyota associates have participated in an annual day-long philanthropic event held near Toyota’s Columbus, Indiana, headquarters. This year, the initiative expanded to include participation from Toyota’s dealers, increasing the impact on communities throughout the U.S. A total of 324 Toyota associates completed 2,300 hours of community service during this year’s event.
The PMMI Foundation, the charitable arm of PMMI, The Association for Packaging and Processing Technologies, awarded nearly $200,000 in scholarships to students pursuing careers in the packaging and processing industry. Each year, the PMMI Foundation provides academic scholarships to students studying packaging, food processing, and engineering to underscore its commitment to the future of the packaging and processing industry.
Truck leasing and fleet management services provider Fleet Advantage hosted its “Kids Around the Corner Foundation” back-to-school backpack drive in July. During the event, company associates assembled 200 backpacks filled with essential school supplies for high school-age students. The backpacks were then delivered to Henderson Behavioral Health’s Youth & Family Services location in Tamarac, Florida.
For the past seven years, third-party logistics service specialist ODW Logistics has provided logistics support for the Pelotonia Ride Weekend, a campaign to raise funds for cancer research at The Ohio State University’s Comprehensive Cancer Center–Arthur G. James Cancer Hospital and Richard J. Solove Research Institute. As in the past, ODW provided inventory management services and transportation for the riders’ bicycles at this year’s event. In all, some 7,000 riders and 3,000 volunteers participated in the ride weekend.