Making Dock Operations Smarter and More Connected
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WHITE PAPER MAKING DOCK OPERATIONS SMARTER AND MORE CONNECTED Making Dock Operations Smarter and More Connected As the volume of global shipments continues to rise, logistics companies are facing increasing pressure to get more goods loaded faster, more efficiently and at a lower cost. But achieving this is a challenge. Dock managers manually supervise dozens of dock doors at once, manage inexperienced loaders and have aggressive time schedules. Line haul managers can only estimate time until close, leaving yard managers to work very reactively to plan their next move. Overall, access to pertinent accurate data is not always available early enough or at the right time. Together, this results in loading inefficiencies and mistakes that can lead to costly shipping damage, wasted trailer space and injured workers. To overcome these challenges, logistics companies are automating their operations and leveraging new technologies such as the Internet of Things (IoT), mobility and cloud computing to heighten visibility and ultimately revolutionise business processes.
WHITE PAPER
MAKING DOCK OPERATIONS SMARTER AND MORE CONNECTED
By the Numbers:
Increasing Parcel Volume
The global parcel delivery grew 11% in 2016,
$300 reaching nearly $300 billion.1
BILLION
Rising Expectations
89% of shoppers define “fast shipping” as within 2 days.
In just 1 year, consumers redefined expectations for what
qualifies as “fast shipping” from 3 to 4 days to within 2 days.
They also want to pay less for same-day, next-day and
2-day shipping.2
Mounting Costs
Transportation and labour account for 70% of total
supply chain costs.3
Escalating Demand for Supply Chain
and Logistics Employees
U.S. India UK
Demand will 17 million 1.2 million
exceed supply additional workers additional workers
by a ratio of 6 to needed by 2022.5 needed by 2022.6
1 within the next
few years.4
1
Apex Insight; 2Deloitte University Press; 3The Wall Street Journal; 4Randstad Sourceright;
5
Price Waterhouse Coopers; 6UK Commission for Employment and Skills
2 zebra technologies
WHITE PAPER
MAKING DOCK OPERATIONS SMARTER AND MORE CONNECTED
Logistics is Big Business,
with Big Challenges
The global logistics industry continues to grow by leaps and bounds, with revenues expected to reach US$15.5
trillion by 2023 – up from US$8.1 trillion in 2015.7 A major driver of this growth is e-commerce, where sales
are increasing at a rate of 10% each year.8 The number of corresponding packages shipped each day is also
accelerating and placing tremendous strains on carriers’ assets, labour and resources.
To keep pace with the seemingly insatiable global appetite for the purchase of goods online,
logistics companies are looking for new and innovative ways to increase speed, efficiency and
service while reducing costs. So it’s no surprise that the industry continues to turn to automation
and data-driven decision making to solve many of these complex challenges. According to
Capgemini Consulting’s 2017 Third-Party Logistics Study, logistics providers see data as vital in
optimising the supply chain, increasing end-to-end visibility and offering new capabilities to
their customers.
Transportation carriers are pushing the boundaries of automation by taking technology to the
98%
edge of their operations. It’s no wonder, considering a recent Wall Street Journal article
attributed 70% of supply chain costs to transportation and labour.9
Walk through any distribution centre and you’ll see technologies that give companies more
of logistics visibility into their operations by automatically identifying and capturing data on packages, pallets
providers say and containers. You’ll see sensors that help monitor cargo integrity and improve operational
data‑driven performance. You’ll see real-time location technology that enables better asset tracking and asset
decision‑making utilisation. And that’s just a brief glimpse of the technology already in use today.
is essential to the
future success of The Emergence of the Smart Dock
supply chain
activities and While the industry has enthusiastically embraced innovation across many areas of their
processes.10 operations, there remains an important, but frequently overlooked area: the loading dock.
Dock operations have seen little change over the last decade and still rely on mostly manual
processes to get packages and other goods loaded and on their way to their ultimate destination.
Package loaders, often temporary or seasonal workers with very little experience or training,
use “best guess” manual loading techniques to stack parcels onto trailers or containers.
Dock managers spend their time moving from one loading dock to another to visually check that
trucks are loaded efficiently and ensure on-time departure. And if the wrong parcel goes on the
wrong lorry or key freight is missing, chances are no one will know until the trailer is unloaded
at the final destination.
Many logistics companies are starting to take full advantage of technology to create a “smart
dock” where operations are optimised to improve efficiencies and reduce costs By building
smarter and more connected environments, companies will get the visibility they need to
make informed decisions and improve business outcomes.
7
Transparency Market Research; 8Forrester Research; 9The Wall Street Journal; 102017 Third-Party Logistics Study
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MAKING DOCK OPERATIONS SMARTER AND MORE CONNECTED
Putting Technology to Work
The smart dock gives logistics providers the real-time data they need to keep their dock operations running
smoothly. By knowing where their assets are, companies can quickly identify gaps, inefficiencies and
underutilisation of their resources. They can also discover errors in loading that could result in lost or damaged
goods. Real-time access to this data allows them to fix problems proactively rather than reactively, saving both
time and money.
By integrating data captured via scanners, sensors, locationing beacons and other technology with the
Warehouse Management System (WMS), Yard Management System (YMS), Transportation Management System
(TMS) and other software systems, companies are gaining new visibility into their dock and loading operations
and using it to optimise critical processes. Here’s a look at how technology is transforming operations.
Automatic Identification
and Data Capture (AIDC)
Automatic identification technologies such as barcodes and RFID
have become indispensable tools to carriers because of their unique
ability to simultaneously reduce costs and increase profits.
In use for decades, barcodes are a digital representation of data that
Protecting Sensitive Goods can be scanned and translated into readable information.
A case of vaccines that must remain at a Each barcode has a unique identification code that is used to track
certain temperature is waiting to be loaded and trace packages through every step of the journey – from the
into a refrigerated car. As it sits on the time that it is picked-up to final delivery at a business or residence.
dock, RTLS sensors scan the RFID label Available in 1D and 2D, barcodes and scanning provide an easy
and note that the location of the vaccine way to accurately capture and access recorded information about a
case has not changed. The dock manager package such as location, size and weight.
receives an alert on his mobile device that
RFID takes identification to a new level by allowing the data that’s
tells him the vaccines have not yet been
stored on “smart labels” to be wirelessly transmitted and instantly
loaded. He contacts the line haul manager
and automatically identified and tracked from a distance, without
to arrange for a refrigerated lorry to be
requiring a manual scan. Many firms using RFID today are reaching
loaded next. By tapping into the WMS
nearly 100% shipping and receiving accuracy, 99.5% inventory
software, he ensures that other refrigerated
accuracy, 30% faster order processing and a 30% reduction in
items going to the same location are
labour costs.11
quickly sent to the dock for loading.
Technology innovators are also finding new and innovative ways to
use automatic identification technology to optimise both loading and
58% of companies shipping efficiency at the dock. For instance, they are using scan
rates to track the number of packages loaded per minute with the
surveyed expect to invest in new
goal of loading goods faster. Dimensioning information is gathered
mobile and data capture load on each package as it travels through the scan tunnel and correlated
optimisation technology solutions with its respective barcode or RFID tag to improve efficiency and
in the next few years.12 maximise the number of packages loaded on each trailer.
11
Supply Chain 24/7; 12Zebra Warehouse Vision Study
4 zebra technologies
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MAKING DOCK OPERATIONS SMARTER AND MORE CONNECTED
Wearables
In an intelligent loading environment, wearable technology enables
truly hands-free, multi-modal workflows that result in greater
efficiency and increased productivity. Today, workers use wearable
technology to keep their hands free – using finger-mounted ring
scanners to capture data and wrist-mounted mobile computers
Meeting Cut Times
to process and wirelessly connect that data to back-end systems.
Dock number 15 has a seasonal loader that In the loading environment, this “heads-up” computing allows
just completed her training. To ensure no workers to be presented with the right information at the right time
time is lost, she is wearing a hands-free to complete tasks that require accuracy, such as getting the right
ring scanner connected to her augmented parcel or freight in the correct trailer or container. In fact, the market
reality device that directs her to the exact for enterprise wearable devices is expected to skyrocket with
area of the trailer where each parcel needs projected growth of 75% by 2021.13
to be placed. In addition, she sees in her
heads-up display how to orient the parcel
so space is optimised. The team at dock
number 15 completed their load ahead of Augmented Reality
schedule and the line haul manager has
called in a new trailer from the yard to load.
In augmented reality (AR), a live view of the physical, real world is
merged with context-sensitive, computer-generated images to create
a mixed reality. Through the augmented vision, users can digitally
84% of carriers interact with – and adjust information about – their surrounding
said detention is 1 of the environment in real-time.14 For logistics, this opens new opportunities
top 5 problems affecting for loading operations and takes wearable technology and “heads-
up” computing to even higher levels of interaction and performance.
their business.15
In the not too distant future, workers will be presented with detailed
instructions or images via smart heads-up displays, such as stacking
plans that guide them to the exact location boxes should be placed
in a trailer. Workers will also be able to see digital pick lists, get visual
guidance on the best route to reach an item and instructions on the
right dock to take the package for loading onto a lorry.
Dimensioning
Dimensioning is an important metric in loading operations.
Obviously, the size of a parcel or skid determines where it is
placed in the trailer, how it is positioned and how many can fit.
The sooner logistics planners have visibility to dimensioning data
in the WMS and TMS, the more proactively they can plan schedules
and resources.
Capturing accurate dimensions electronically and transmitting them
back to the TMS upon pick-up, rather than during the sorting or
receiving process, allows carriers to plan ahead for the number of
trailers required and parcel or skid placement.
13
Fung Global Retail & Tech; 14Springer; 15DAT
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MAKING DOCK OPERATIONS SMARTER AND MORE CONNECTED
Accurate dimensioning of palleted goods early in the process aids
in the track and trace process. Each change in the chain of custody
at dock locations can act as a checkpoint for the integrity of the
pallet dimensions. By having an accurate benchmark at time of
pick-up, any change in the pallet’s dimensions during the journey
will indicate that part of the skid may have been lost in transit and
precisely when the event occurred.
Avoiding Damaged Parcels
As workers rush to load parcels onto a
trailer, they inadvertently begin stacking 3D Sensors
items chaotically in the shape of a chimney
rather than a wall. The load is becoming
Innovative 3D sensing technology gives real-time insight into
unstable and susceptible to falling over
trailer density and fullness. Not bound by environmental lighting or
which, left unchecked, could lead to
human perception of fullness, 3D sensors capture time-lapse data
damaged packages. The dock manager
of the loading process and enable logistics companies to more
remotely monitoring the loading process –
accurately assess the true distance to a completed package wall.
via time-lapsed images – recognises the
This is essential to ensure that trailers and containers are packed
problem and intercedes by directing the
efficiently, maximising space for transporting more goods while
loaders on proper stacking procedures.
minimising the wasted space occupied by air rather than cargo.
By optimising trailer fullness, carriers can transport more goods with
fewer trucks and drivers which ultimately translates into significant
Leading Cause of Loss or savings in fuel, drivers and maintenance costs.
Damage to Goods in Transit17
• Collision, Upset, Overturn
• Theft Cameras
• Cargo Handling
• Spoilage Cameras have long been employed by logistics providers to
monitor general loading dock areas to deter criminal activity and
cargo theft, which costs the global logistics industry an estimated
$50 billion annually.16 In order to take action on the data the
cameras are collecting, logistics carriers should have the data
from individual dock door assignments captured and stored in an
accessible and meaningful way, rather than as bulk data on a DVD
or hard drive. Time-lapse images, stored by individual loading or
unloading job, help dock managers audit operations incrementally
for worker safety, load quality, parcel damage and trailer fullness.
All this provides vital insights for improving training processes and
curriculum and allows loaders to view real-life images of proper and
improper loading techniques for their specific setting.
16
National Cargo Security Council; 17The Hartford
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MAKING DOCK OPERATIONS SMARTER AND MORE CONNECTED
Location Technologies
In the distribution centre, there is a need is for more accurate,
real-time locationing of assets – whether they are parcels, pallets,
forklifts or people. By implementing RFID, Real-Time Location
Technology (RTLS) and Bluetooth Low Energy (BLE) solutions,
logistics companies can better manage resources saving both time
Improving Loading Efficiency
and money.
A dock manager receives an alert
telling him that a trailer is not on pace During cross-docking operations, for example, location technologies
to meet its pre-set 75% load density can speed loading and increase productivity by enabling
threshold. He immediately communicates supervisors to direct forklift drivers to the nearest trailer to pick
with the loading crew and has them up a load and move it to the outgoing trailer. These technologies
make the necessary adjustments to can also identify when packages are loaded onto the wrong lorry,
improve space utilisation in the trailer. triggering a corrective action so that the package can be moved
to the right lorry before ever leaving the dock.
Smart Dock Capabilities Data Analytics
7 8
A key component to building an intelligent dock is a good analytics
engine. Using descriptive, predictive or prescriptive analytics,
organisations can turn the data they are collecting – via AIDC,
augmented reality, locationing, sensors, cameras, dimensioning
•R
emotely monitor dozens of dock doors and more – into actionable insights that can positively impact key
in real time, via computer terminals or performance indicators (KPIs) for productivity, profitability and safety.
mobile devices. The type of analytics varies in the amount of human interaction
required to decide on a course of action:
• Monitor load quality, scan rate and load
density on multiple docks via a Descriptive analytics: The what happened analytics. The dock
user-friendly dashboard interface. manager monitors his dashboard and notices that the load efficiency
of the trailer at dock door 12 has a density score of 75%. He checks
• Identify and correct improper loading the time lapse images and data in real-time on the dashboard to
practices that might lead to space confirm the quality of the load from the open time to present. Load
inefficiencies or damaged parcels. quality is good, density is solid. Trailer is approved to leave the dock.
• Detect changes in the shape or Predictive analytics: The what will happen analytics. A pre-set
dimension of packages and skids and algorithm analyses the data and sends an automatic alert to the dock
identify when package integrity may be and line haul managers that the trailer at dock number 12 will be
compromised. ready to close in 30 minutes. Each manager then proactively decides
on the best course of action.
•A
nalyse the number of packages
scanned at certain times of the day or Prescriptive analytics: The what should happen analytics.
days of the week to identify peak periods Captured data is analysed and an automated action is executed.
to better appropriate resources. The next driver in line in the yard is sent an automated message to
advance to dock number 12.
Data analytics provide important insights into dock operations.
To maximise their effectiveness, it is important to evaluate parcel or
freight volume as well as available resources to effectively execute
the type of analytics needed.
zebra technologies 7WHITE PAPER
MAKING DOCK OPERATIONS SMARTER AND MORE CONNECTED
Extending Enterprise
Asset Intelligence
to the Smart Dock
As the volume of shipments continues to grow, logistics companies need technology that helps them move packages and
cargo safely, efficiently and cost-effectively. As smart companies know, it is not enough to just sense what happens during
their operations by collecting data. They then must analyse that data in real-time to find ways to make their operations more
efficient. Armed with this information, they can act on that analysis and ultimately improve their business operations –
both in real-time and by analysing data trends.
With better visibility into personnel, equipment, assets, and transactions, enterprises can optimise their operations in
real-time, improving both efficiency and performance while reducing costs.
With decades of industry experience, Zebra is uniquely qualified to help companies automate and optimise a whole new
area of their operations: the loading dock. Zebra’s hardware, software and services are already helping firms around the
world save millions by optimising dock operations through better load efficiency, load accuracy and worker performance.
Zebra provides companies with the real-time intelligence and visibility they need to revolutionise their dock operations
– and their operations throughout the entire supply chain.
Learn how Zebra can help you build an intelligent enterprise at
www.zebra.com/transportationandlogistics
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