Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
When contract logistics specialist DHL Supply Chain wanted to improve security at company warehouses in Mexico and Brazil, the Deutsche Post DHL Group unit deployed flying drones with surveillance cameras.
When transportation and logistics service provider XPO Logistics Inc. wanted to beef up security in its employee parking lots, the company rolled out mobile security robots outfitted with video cameras, heat sensors, two-way speakers, and alarm sirens.
Both companies are turning to new technologies to address the age-old problem of safety and security at distribution centers, parking lots, loading docks, and yards. Drones and sensors are taking on larger roles in facility and yard systems, providing capabilities like airborne reconnaissance and 24-hour surveillance that previous generations of systems could not offer.
"Robots offer exciting new capabilities in terms of productivity and security," XPO President Troy Cooper said in an e-mail. During a test beginning in October 2017 at XPO's Atlanta facility, the use of robots reduced the number of security incidents while cutting costs, Cooper said. XPO declined to share specific numbers on the extent of the reductions. In addition to cutting down on incidents like trespassing, car break-ins, and car damage, the robots ensure a workplace is free of intruders and that no suspicious vehicles are parked at a facility, Cooper said.
Drones are becoming an increasingly common sight in transportation applications, according to a March survey by the American Association of State Highway and Transportation Officials (AASHTO). The survey found that 35 out of 44 responding state departments of transportation—or 80 percent—are using drones for tasks including bridge inspections, surveying, photography of highway construction projects, emergency response, and daily traffic control and monitoring.
The ability of drones and other sensors to collect a wide range of data also makes them well suited for applications in busy warehouse yards and facilities, technology providers say.
SENSORS ENHANCE SECURITY
Yard management systems provider Pinc Solutions, a Union City, Calif.-based firm known for its drone deployments, said customers are typically concerned about four types of security in the yard: visitors, trailers, drivers, and containers. Yard management systems can address all of those concerns by using sensors to automatically monitor wide areas, Pinc said.
First, a yard system can track visitors, keeping an electronic log of all people who arrive at a facility, recording when they come, how long they stay, and when they leave, said Rafael Granato, the company's marketing director. Second, yard systems can use drones and cameras to track the location of trailers, allowing supervisors to quickly search for missing units and to determine if they have been misplaced or have already departed the grounds.
Third, a system can track individual drivers, allowing facility managers to monitor drivers who don't behave according to company policies. Lastly, video systems can verify the presence of container seals during gate check-in and checkout, Granato said. This allows a facility to verify its role in the chain of custody, he added.
Cargo theft is a common security concern in warehouse yards, said Walt Swietlik, director of customer relations and sales support for Milwaukee-based Rite-Hite, a provider of loading dock equipment and safety barriers. To help deter thieves from making off with loaded trailers, the Milwaukee-based company offers a trailer restraint that connects a truck trailer or intermodal container to the warehouse dock both with physical hooks and with an electronic connection to the building's security system.
"By far our number one concern is trailer theft and hijacking," Swietlik said. "Year in and year out, loading docks are one of the top locations [for trailer theft]."
Another common problem is unauthorized persons entering a yard to gain access to a building, Swietlik said. Even if these visitors don't intend to steal equipment or inventory, they can present a safety problem by wandering around dangerous loading zones and high-traffic lanes, he said. Because loading docks are often left open to allow for quick loading and unloading of cargo, they offer an easy target for thieves. In response, yard management providers are using sensor-based systems such as security doors, access controls, and motion sensors to prevent unwanted pedestrians from wandering around the yard and DC, he said.
STAYING A STEP AHEAD OF THE CROOKS
Another area where sensors can provide a big payoff is in the tracking and reporting of inventory—a task that's becoming increasingly critical for shippers across all industries, according to Maynard, Mass.-based logistics software vendor Kuebix, which specializes in transportation management systems (TMS). In a recent blog post on its website, the company warned that thieves are changing their tactics in ways that often catch shippers off guard. Rather than stealing entire loads or multiple pallets, they're "lifting" small amounts of product at a time, according to the blog post, "Cargo thieves' new strategy hitting shippers hard." This allows thieves to quickly escape, often leaving victims unaware anything was taken, Kuebix said.
To protect against that threat, companies can collect data from sensors, radio-frequency identification (RFID) tags, and global positioning system (GPS) tracking units, tying those inputs together with Internet of Things (IoT) platforms in the yard, Kuebix said. They can then analyze the data and use it for applications like locating trucks and drivers in real time, reviewing how long a truck stayed at a particular checkpoint, and tracking and tracing individual pallets as well as identifying any unusual patterns of activity.
Integrating RFID and GPS data into a yard management system is a crucial tool for improving security measures, according to Ed Moran, managing director and senior vice president for sales and marketing, Americas, at Transporeon Group, a German company that develops cloud-based logistics platforms. Whether that data is generated by a driver's smartphone app, an electronic logging device (ELD), or a hovering drone, users can use it to improve yard security and reduce the risk of lost shipments or trucks as well as cargo theft or damage, he said.
Collecting that data may be cumbersome at first, but users can streamline the process by coupling their dock scheduling and yard management solutions with tracking systems and sensor technology, Moran said. That approach can automate the process of performing security checks like locating lost trailers, ensuring that all the trucks in a yard are supposed to be there, and detecting when a certain truck has remained in the yard longer than expected.
Regardless of which types of tools it chooses, deploying monitoring technologies can improve a facility's ability to keep track of both inventory and personnel on site. And that capability will always be important at bustling docks and busy yards.
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.
The clean energy transition continuing to sweep the globe will give companies in every sector the choice to either be disrupted or to capitalize on new opportunities, a sustainability expert from Deloitte said in a session today at a conference in Orlando held by the enterprise resource planning (ERP) firm IFS.
While corporate chief sustainability officers (CSOs) are likely already tracking those impacts, the truth is that they will actually affect every aspect of operations regardless of people’s role in a business, said John O’Brien, managing director of Deloitte’s sustainability and climate practice.
For example, regulatory requirements on carbon emissions are expanding in every region, which means that even if a specific company doesn’t have to change its own practices, it will almost definitely need to flex to accommodate its partners and suppliers as they track scope 3 emissions or supply chain practices.
Likewise, companies are starting to challenge the classic concept of “force majeure” events than can cancel service providers’ contractual duties due to unforeseeable weather events. As the new argument goes, extreme weather patterns increasingly occur in accordance with climate scientists’ forecasts, so those hurricanes and wildfires are in fact foreseeable after all.
But one strategy for coping with the cost of those changes is to mine the power of the data that most companies will soon need to collect as part of their evolution. Instead of simply tracking its trucks to trim their routes and emissions, a transportation company could use the same data to manage their maintenance and fuel consumption.
“The climate management transition is going to be a massive disruption, but with that comes massive opportunity,” O’Brien said from the keynote stage at the “IFS Unleashed” show. “Don’t waste compliance efforts just on compliance, use it to create new value. You’re collecting all that new data, so use it!”
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.