Distribution centers across the country are on the verge of replacing their fleets of mobile computers, as Microsoft backs out of the market. But experts say there's more to a refresh cycle than just swapping one brand of handheld for another.
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.
Managers today need wide-ranging technology expertise to keep up with the fast-changing demands of logistics and fulfillment operations. On any given day, their challenges could range from installing the robotic and automated systems required to keep up with Amazon.com Inc. to deploying the augmented reality (AR), gamification, and social media tools many DCs have introduced as a way to engage millennials.
There's another issue that demands a more timely response, however, and finding the right answer could be more complex than it seems.
That issue concerns the ubiquitous mobile devices—think bar-code scanners and tablets—that have become deeply entrenched in today's warehouse and fulfillment operations. Many—if not most—of those mobile devices run on the Windows 10 Mobile operating system (OS), which means they are about to become "unsupported" devices. In December, Redmond, Washington-based Microsoft Corp. will end its support for those units, meaning it will stop providing security patches and antivirus updates. After that point, the Windows-powered devices will still work, but they will be increasingly vulnerable to hacks and cyberattacks, putting both customer and corporate data at risk.
Interviews with vendors and customers indicate that many companies will migrate to Google Inc.'s Android operating system, while a smaller number may switch to Apple Inc.'s iOS platform. But whatever choice they make, experts warn that the replacement process is more complex than just making a straight trade.
HIGH-STAKES DECISION
As for what makes the process so complicated, a number of factors come into play. Part of the answer lies in the extent to which the devices have infiltrated today's warehouse operations, according to Marco Nielsen, vice president of managed mobility services at Stratix, a Peachtree Corners, Georgia-based managed mobile services provider. As companies scramble to keep up with demands for faster, more accurate shipments, they've become extremely reliant on automated devices, he noted in a paper titled Mobile Tech in the Supply Chain: How technology enables supply chain innovation. "It's not easy to find a warehouse today that doesn't depend heavily on the wearable computers, bar-code scanners, and forklift-mounted terminals used for most aspects of inventory control, shipping, and handling," he wrote.
Another part of the answer lies in the interconnectedness of today's DC operations. "The same device that enables a picker to select the right merchandise for a store or an individual customer can instantaneously contribute to another task such as inventory control," Nielsen noted in his paper. In this type of integrated environment, a change-out of something as simple as a handheld will also affect a broad range of connected technologies throughout the DC, according to a white paper from Barcoding Inc. and Samsung titled Manufacturing Modernization: How to Get There.
Still another complication for companies looking to upgrade their mobile devices concerns the wireless networks that keep them connected. A handheld computer is only as good as the data it can share, and networks are changing fast.
The second-generation (2G) and third-generation (3G) networks that have long supported our basic cellphones will soon be set aside in favor of far faster 4G and 5G networks, according to Robert Puric, senior director, field mobility - enterprise mobile computing, at data-capture specialist Zebra Technologies.
The major wireless carriers have already announced they will no longer support 3G devices on their networks by the end of 2020, so mobile computer vendors such as Lincolnshire, Illinois-based Zebra have started adding updated chipsets and radios to their latest product lines, Puric says.
The change will affect transportation and logistics companies as well as retail users, but it won't happen overnight. Some major cities now support 5G networks, but the system won't cover the entire U.S. for three or four more years, Puric says. In the meantime, 4G is expected to be the de facto wireless standard well into the late 2020s.
DON'T BE AN OSTRICH
With Microsoft's end-of-support date looming, many companies have yet to put a solid transition plan in place, according to Shane Snyder, president of Barcoding Inc., which is a Baltimore-based provider of data-capture and supply chain analytics solutions.
Some are behaving like an ostrich with its head in the sand, asking "If it still works, why do we need to replace it?" While continuing to use legacy devices might be the simplest solution, it's also a risky one given the threat of cyberattacks and security breaches, Snyder says.
Others plan to simply replace each of their Windows-based devices with an Android device, integrating them into their operations with no other changes. That might be quick and easy, but it's also a missed opportunity to make improvements to business and labor processes, Snyder says. By doing a simple one-to-one replacement, companies lose out on a chance to reassess how they're using those mobile devices, whether they're using too many, and if they could be using them in a more optimal way.
Instead, Barcoding recommends that companies conduct a complete inventory of their existing mobile devices and then check with their operations teams to make sure all of the units are actually being used. It's not unusual for businesses to discover that some of their devices are sitting idle and therefore won't have to be replaced, Snyder says.
Beyond that, Barcoding urges DC leaders to collaborate with the end-users in the selection and implementation process, including having them test the new devices before a full-blown rollout.
With processes, people, and the broader technology ecosystem to consider, swapping out the humble handheld isn't as simple as it might seem. But in today's interconnected environment, taking the time to do it right can bring payoffs in nearly every aspect of a DC's operations.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
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.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.