Warehouses are getting smarter. They have incorporated advanced technologies and digital tools into their operations—including tools that collect and exchange data with interrelated devices as part of the internet of things (IoT). Here’s a look at some building blocks of the IoT.
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.
The common barcode label has long been the foundation of the IoT network, serving as an inexpensive repository of product information like price, weight, and date of manufacture. Now that system is about to get a major upgrade as the industry transitions from the familiar zebra-striped, one-dimensional (1D) barcodes to two-dimensional (2D) versions like quick-response (QR) codes. Compared to 1D barcodes, 2D versions can encode far more data, providing managers with a more detailed view of their operations.
RFID tags
Megaretailers like Walmart are increasingly requiring suppliers to affix item-level radio-frequency identification (RFID) tags to products shipped to their DCs, which allows those items to be tracked as they’re received, distributed, and ultimately sold in stores. Retailers can use the data they collect to improve inventory accuracy, the shopper experience, and their own omnichannel capabilities.
Handheld and wearable computers
Scanning guns used to be heavy and awkward, but the modern versions are lighter and more powerful. They can be worn on a finger like a ring, strapped to the user’s forearm, or attached to the back of a hand with a glove. Today’s wearables boast longer read ranges than their predecessors and can read a dozen barcodes at once. Some models even support texting, talking, and voice picking.
Conveyors
The workhorse of the modern warehouse is the basic conveyor, which sorts and ferries thousands of packages to the right destination each day. In many operations, those conveyors are outfitted with sensors that measure their speed, vibration, or temperature—data that can be used to proactively identify maintenance needs before a breakdown occurs or save energy by shutting down the belts when not in use.
Scan tunnels
Scan tunnels are essentially frames built around conveyors or doorways that are outfitted with an array of readers that scan every item passing through—typically at superfast speeds. The data collected can be sent instantly to the cloud (see entry at right) for processing.
Autonomous mobile robots (AMRs)
The AMRs that cruise down warehouse aisles these days are increasingly equipped with sensors that weigh, count, and identify everything they carry. On top of that, those AMRs may be outfitted with sensors, cameras, and LiDAR (light detection and ranging) technology to detect obstacles and enable them to navigate safely through the facility.
Drones
The lifeblood of a warehouse is the constant flow of up-to-the-minute inventory data, but manually updating inventory records is a slow, laborious, and error-prone task. To reduce their reliance on manual labor, many DCs are using self-guided aerial drones to automate the cycle-counting process. Once they’ve completed their rounds, the drones transmit the data they’ve collected to the site’s warehouse management software to update its records.
Real-time location systems (RTLS)
The GPS signals used for fleet and asset tracking in the outside world are often blocked in indoor spaces like warehouses. So many warehouses rely on RTLS networks to track the items inside. These systems use short-range tags, beacons, and receivers to monitor and locate everything from bins and pallets to vehicles, forklifts, and even employees.
5G wireless network antennas
Today’s fifth-generation (5G) wireless networks offer far more bandwidth, handle greater numbers of wireless devices, and use less energy than previous technology—a perfect recipe for supporting the IoT. Whether they run through a commercial data plan or a private network, 5G systems rely on antennas placed throughout the building.
The cloud
Back in the day, the software used to manage warehouse operations—typically warehouse management systems or enterprise resource planning (ERP) systems—ran on computer servers located on the premises. But today, you’re more likely to find that software running off site, in a virtual “cloud” of connected computers. Although the actual servers are no longer in the same town, or even the same state, as the DC, as long as the facility is connected to the internet, there should be no effect on its daily operations.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
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.
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.