Thursday 29 September 2016

Does Global Trade Need A Global Currency?


A virtual currency like Bitcoin could open up an array of new markets, while speeding the worldwide exchange of goods.

Our world is getting smaller, flatter and more connected every day. The rise of e-commerce has empowered consumers and changed the landscape for buying and selling goods, while transforming the worldwide economy.

This omnipresent demand for goods, regardless of the market, will soon get even more intense.

However, the current payment, clearing and settlement systems are major bottlenecks to the flow of global trade. They are inefficient, have long settlement times and high-cost fees and exchange rates.

Today’s technologies have enhanced the global exchange of information about goods and bolstered transportation networks moving items across borders. People around the globe have access to virtual marketplaces that feel borderless.

But consumers are still stuck in the credit card age of payments for those transactions. Sure, credit cards have been around for 65-plus years. But they are ripe for a technological leap.


Breaking down barriers

A unified, global currency is the ideal solution, as it would simplify cross-border transactions.

If you’ve ever traveled abroad, you know that converting cash or using your credit card is often a hassle. Calculating fair exchange rates and the fees involved is like trying to solve a math problem without knowing the variables.

In the world of global e-commerce, it’s the same problem. Rules and regulations, as well as currency, vary by country. Unfortunately, not all merchants are capable of managing that level of complexity online.

If someone living outside the United States doesn’t have an American bank account and credit card, it’s nearly impossible to complete an online purchase from a U.S. retailer.

Put simply, a number of barriers can get in the way of buying what you want once you cross borders, even online.

A unified, global currency is the ideal solution, as it would simplify cross-border transactions.

But as recent events have proven, even regional currencies like the Euro struggle to keep national economies in order and are far from perfect in handling the complexities of a global economy.


A virtual hope

Technologies are advancing, even if governments struggle to keep pace. These platforms are fostering a globally accepted exchange mechanism, which would not require a unified monetary system.

This is where virtual currency could come into play. Digital money can be sent across borders without going through multiple intermediaries and currency swaps.

If recognized, its value is the same regardless of where you do business, eliminating friction points and facilitating the faster flow of goods.

How we handle, store and exchange currency will continue to evolve.

In 2008, Satoshi Nakamoto published a paper, Bitcoin: A Peer-to-Peer Electronic Cash System, outlining the details of a payment system that would allow individuals to send and receive payments without intermediary financial institutions. This was the birth of Bitcoin.
It was not the first virtual currency but the first application of a new block-chain encryption technology.

While Bitcoin has suffered from a fair share of controversy and volatility in its nascent stages, the block-chain technology has created numerous possibilities for improving money transfers and simplifying payment processes – and revolutionizing many other industries.

More than 100,000 businesses already accept Bitcoin, including large companies like Microsoft, Home Depot, Dell, CVS, Expedia and Amazon.

Startup companies are tapping into hundreds of millions of dollars in venture capital investments.

Leading financial institutions and technology leaders like Barclays, Citigroup, the New York Stock Exchange and IBM are also making investments in the technology.

Many of your transactions today are already virtual and happening online.

It is no surprise, then, that currency will become easier, cheaper and more secure. Our whole concept of money and how it gets exchanged is going to change as we become increasingly digitized.

How we handle, store and exchange currency will continue to evolve – it’s just a matter of at what speed and where we will see it next.


Opening up trade

For global e-commerce to thrive, the movement of goods, funds and information must be both secure and seamless. Digital currency would allow consumers and businesses of all sizes and in all places to participate.

Virtual currency seems like a logical next step that could bring markets closer together and facilitate faster trade. The fastest growth globally will likely be in the emerging markets of Africa, the Middle East and other areas of the world that have been traditionally less developed.
Vast populations in these communities are getting better access to technology and to capital, allowing them to easily exchange money, goods and services.

Mobile payment companies like M-Pesa are giving millions of people access to the formal financial system, stimulating business and reducing crime in otherwise largely cash-based societies.

From our vantage point, the driving force globally is that all companies and consumers can easily do business with one another.

In other words, it doesn’t matter where those goods are coming from – UPS can provide the transportation solutions to ensure speedy delivery.

We just need the technical and regulatory advances that will allow global financial transactions to happen.

Virtual currency seems like a logical next step, one that could bring markets closer together and facilitate faster trade.

Source: Logitudes - UPS

Monday 26 September 2016

END OF MEGA SHIP BUILDING ! MAERSK STOPS ORDERING MEGA SHIPS - FOCUS ON TAKEOVERS

Maersk ships under construction at Daewoo

Shipping is often viewed as an antiquated method of transport, the reality couldn’t be more different, with shipping as prevalent today than it has ever been as the primary facilitator of world trade. Here are 5 surprising facts about the industry:

1. When ships are out at sea, only one in ten crews have available internet, often leaving crews lampooned from friends and family, as well as entertainment, for weeks on end. However, the revolutionary quantum internet which uses ships as transmitters of the World Wide Web could change all this.

2. The largest ships cost over US$200 million to construct. Watch a video on how CMA CGM mega-ship being constructed.VIDEO ON CMA CGM MEGA SHIP BUILDING

3. At present, there are currently around 55,000 active merchant ships.

4. At present, there are around 1.5 million sailors employed globally, with the Philippines producing the highest number of seafarers.


5. Despite being relative to the sixth-highest polluting country, shipping is still the greenest method of transport.



BUT ARE MEGA SHIPS THE ANSWER?
View post on DIS-ECONOMIES OF SCALE IN CONTAINER SHIPPING

The owner of the world’s largest container shipping line will stop ordering newly built vessels and instead pursue takeovers in an industry that has been plagued by overcapacity for almost a decade.
A.P. Moeller-Maersk A/S, whose Maersk Line unit has repeatedly broken the world records it has regularly set in mega container ships developed with Asian ship yards, “is done with ordering new steel,” Michael Pram Rasmussen told Bloomberg at the the company’s Copenhagen headquarters.
Big ships!
“If Maersk Line needs to grow, it doesn’t make sense to order new ships as there are already too many ships in the market,” Rasmussen said. “So if we want to grow, we need to do it through acquisitions so that we don’t flood the market with more ships.”
Maersk Line still has 27 ships in its order book, corresponding to about 12 percent of its current fleet. The container industry’s combined order book represents about 17 percent of the global fleet.
Meanwhile, the shipping industry is suffering from falling freight rates caused by a combination of overcapacity and a slowdown in global trade growth. Hanjin Shipping Co., South Korea’s biggest container company with 97 ships, recently filed for bankruptcy protection in Seoul.
As recently as 2015, Maersk Line placed orders with ship yards Daewoo Shipbuilding & Marine Engineering Co., with Hyundai Heavy Industries Co. and with Cosco Shipyard Co. The ships are due for delivery in 2017 and 2018.
Ships for Maersk are under construction in South Korea,
The 11 vessels from Daewoo will carry a record 19,630 standard-sized containers and cost $1.8 billion each. They are the second-generation version of the so-called Triple-E class vessels that Maersk developed with Daewoo. The Danish company in 2011 ordered 20 Triple-Es, which carry about 18,000 containers each.
“It has previously made a lot of sense when we went out and ordered specific vessels,” Rasmussen said. But “there’s already a large order book in the market and at the same time, world trade isn’t growing a great deal.”
Maersk on Thursday revealed a new strategy that includes splitting the conglomerate into a transport and an energy company. Rasmussen said Maersk Line is “well-equipped and ready,” for acquisitions.
While he declined to comment on specific targets, he says options include shipping lines that operate mostly on trade routes overlapping with Maersk’s, which will “give us a lot of synergies.” It’s also looking at rivals who are strong “in an area where we aren’t present,” so they “fill a hole” in Maersk Line’s network, he said


WILL 2016 BE AN YEAR OF TAKEOVERS

With local sources suggesting that a 37.13% stake in K Line is backed by Maersk Line, speculation has been mounting with regards to Maersk Line taking over the Japanese shipping line, according to TradeWinds.

An unnamed K Line executive said: “This rumour is groundless. There was a Japanese article on this last month but the magazine did not verify the information with K Line. There is no reason why Maersk wants to take over our company.”

An unnamed Maersk spokesperson said: “Our aim is to grow organically. As always, if there is an interesting opportunity, we will look at it. We welcome consolidation. Our industry is very fragmented and consolidation can help transform our business to the benefit of the customers.”

It was previously reported that channels had been opened for Hyundai Merchant Marine (HMM) to join Maersk and MSC’s 2M alliance.

This idea was proposed in a bid to help HMM overcome financial difficulties and to help the carrier survive in a market riddled by low freight rates, overcapacity and weak demand.

Maersk had also recently stated that it was looking into several options ahead of the review, and is considering a two-way split that will transform the business into a transport and energy company.

This news came on the back of news that it is still unclear as to whether its terminal operating unit APM Terminals and logistics unit Damco will be sold off.


As it stands, Maersk Line owns a 15.2% share of the global shipping fleet with a total operating capacity of more than 3.15 million TEU, with K Line holding a 1.7% share (more than 359,000 TEU of fleet capacity).

Thursday 22 September 2016

DISECONOMIES OF SCALE IN CONTAINER SHIPPING



Economic theory and practice tells us that economies of scale have the potential to increase welfare of both consumer and manufacturer. However, there are limits to the advantages that they can bring.

It is important to be aware of some of these. Changes in market demand, linked to large units of capital equipment have the potential to produce high levels of output – but if demand is at a low level, capital will be under-utilised leading to excess capacity and rising average total costs.
Some large units of capital may not be transferable to other uses if there is a switch in consumer demand due either to sufficient lack of demand in other areas or operational restrictions. This is clearly applicable to the container shipping market and the potential for  shifting fortunes in the market.

Diseconomies of scale may appear when the units of production, the very large containerships, grow beyond the scale of production that minimises long-run average cost. The rise in the long run average cost is caused by diseconomies of scale. It is often difficult to pinpoint exactly the causes of diseconomies of scale, however management theorists often point to issues related to control of the productive units and the coordination along a large supply chain that needs to fill a ship of 12,000 teu every week.

Let us consider an example of the 10,000 teu-12,000 teu ships, all coming on stream during a period of unprecedented trade growth, we need to consider the above economic theories. Let’s consider the Europe-Asia trade where the demand and volumes are sufficiently large to sustain these ships.
A string of eight ships sailing at around 24.5 knots with a minimal number of port calls, however the same string travelling at  21.5 knots would require around 40%- 50% less bunkers. Alternatively, more ports of call would need an additional vessel, at a cost of $165m, around $50,000 per day,plus the extra fuel costs.

The question is, at what point does the equilibrium between additional fuel costs and asset cost break, causing a shift in the slope of economies of scale. Have we reached this point of diminishing returns?


Let us look at the bigger picture – a more holistic view
Like other forms of transportation, container shipping benefits from economies of scale in maritime shipping, transshipment and inland transportation. The rationale of maritime container shipping companies to have larger ships becomes obvious when the benefits, in terms of lower costs per TEU, increase with the capacity of ships. There is thus a powerful trend to increase the size of ships, but this may lead to diseconomies to other components of container shipping.


For port terminals the growth in ship capacity comes with increasing problems to cope with large amounts of containers to be transshipped over short periods of time as shipping companies want to reduce their port time as much as possible (improved ship asset utilization and keeping up with schedule integrity). Larger cranes and larger quantities of land for container operations, namely temporary warehousing on container yards, may become prohibitive, triggering diseconomies of scale to be assumed by port authorities and terminal operators.

For inland transportation congestion growing capacity, such as more trucks converging towards terminal gates, leads to diseconomies. Because of technical innovations and functional changes in inland transportation, such as using rail instead of trucking to move containers from or to terminals, it is unclear what is the effective capacity beyond which diseconomies of scale are achieved.
The fundamental point is that diseconomies are a challenge that impacts several segments of the transport chain.


Source: Hostra Edu

Top Trends in Intra-city logistics - Will new startups uberise intra city logistics in India


Intra-city logistics is gradually gaining significance in the market with reportedly more than 18 lakh vehicles involved in the nationwide ecosystem. It has been reported that transportation currently accounts for 5.5% of the GDP, and intra-city logistics is a significant part of it in terms of value. 
Quick growth is being seen in the emergence of numerous start-ups like Instavans, Moovo, Shipsy, Turant Delivery, TheKarrier, Shippr, SmartShift entering this space for providing logistics services. 
Mahindra & Mahindra' s Smartshift - a new startup in the INTRA-CITY LOGISTICS SPACE 

Will the new startups bring in uberisation in Intra-City Logistics

On demand consumer logistics space are burgeoning with several startups which are coming up with innovative technologies and approaches to revolutionise logistics solutions. In fact, this space has been emerging as one of the VC favourite avenues. Be it picking up any item from your doorstep and delivering it to some other place, or bringing daily essentials and food on demand, delivery with in minutes has become an essential business.



Intra-city logistics have evolved over time and it is gradually progressing to provide all-inclusive shipment services. 
We will look at the top 10 trends in intra-city logistics:
  1. Integrated service – At an age where everyone is running on a busy schedule, it is expected of service providers to offer integrated facilities. This expectation is witnessed in the case of logistics providers too. Hence, being able to provide integrated service has become one of the main lookouts for intra-city logistics companies. Customers are more likely to opt for a company that packs, picks and delivers from their doorstep.
  2. Real-time services – Use of technology by logistics companies increases reliability, credibility, and transparency of shipments. The introduction of apps and GPS fastens booking for service, provides vehicle tracking and enables real-time update of the shipment. These facilities give customers the confidence that their shipment is in safe hands.
  3. Urban and last mile logistics – Traffic density, booming e-commerce and home delivery business become key pointers in an urban environment. At the same time, last mile logistics is also gaining grounds in an urban setting due to growing doorstep service.
  4. Meet on-demand requirement – For uninterrupted services, intra-city logistic companies need to have a support fleet to cater to the on-demand requirement of customers.
  5. Convenience logistics – Present day customers have gotten habituated to online shopping. Right from groceries to apparel, it is all available online. This shopping trend saves time, cost, and physical effort of shopping. For this purpose, intra-city logistics gear up to provide 24/7 service, and also cater to special logistics like a cold chain and direct delivery network.
  6. Robotics and automation – As the name suggests, the introduction of robotics and automation reduces manual handling of logistics processes. It results in higher productivity with improved performance and enhanced sensing abilities.
  7. Multi-channel logistics – The next generation logistics should be equipped to cater to the customised shipping needs of multiple channels and businesses. This indicates forming a high-quality logistics service that makes intelligent use of standard and existing networks and resources.
  8. Delivery forecasting – If a logistic company can foretell you the delivery date of your shipment, it will certainly raise the bar of credibility and reliability. Hence, the use of a predictive algorithm based on big data can enable logistic providers to boost process efficiency, service quality, and optimise supply-chain network.
  9. Staff verification – As a measure of safety and security of shipment, customer satisfaction, and a step to enhance the credibility of the company, it has become a mandatory process to verify details of staff especially vehicle drivers and assistants.
  10. Internet – The power of the internet is not unknown anymore. Logistics industry must use it in an effective manner to track the end-to-end shipment by the intelligent merger of information.
Some of the mentioned trends have already gained firm ground in the sector of intra-city logistics and few others are in the fruiting stage. However, with these trends, we can only be hopeful of a well-integrated and organised logistics business.

Top Trends in Intra-city logistics - Will new startups uberise intra city logistics in India


Intra-city logistics is gradually gaining significance in the market with reportedly more than 18 lakh vehicles involved in the nationwide ecosystem. It has been reported that transportation currently accounts for 5.5% of the GDP, and intra-city logistics is a significant part of it in terms of value. 
Quick growth is being seen in the emergence of numerous start-ups like Instavans, Moovo, Shipsy, Turant Delivery, TheKarrier, Shippr, SmartShift entering this space for providing logistics services. 
Mahindra & Mahindra' s Smartshift - a new startup in the INTRA-CITY LOGISTICS SPACE 

Will the new startups bring in uberisation in Intra-City Logistics

On demand consumer logistics space are burgeoning with several startups which are coming up with innovative technologies and approaches to revolutionise logistics solutions. In fact, this space has been emerging as one of the VC favourite avenues. Be it picking up any item from your doorstep and delivering it to some other place, or bringing daily essentials and food on demand, delivery with in minutes has become an essential business.


Intra-city logistics have evolved over time and it is gradually progressing to provide all-inclusive shipment services. 
We will look at the top 10 trends in intra-city logistics:
  1. Integrated service – At an age where everyone is running on a busy schedule, it is expected of service providers to offer integrated facilities. This expectation is witnessed in the case of logistics providers too. Hence, being able to provide integrated service has become one of the main lookouts for intra-city logistics companies. Customers are more likely to opt for a company that packs, picks and delivers from their doorstep.
  2. Real-time services – Use of technology by logistics companies increases reliability, credibility, and transparency of shipments. The introduction of apps and GPS fastens booking for service, provides vehicle tracking and enables real-time update of the shipment. These facilities give customers the confidence that their shipment is in safe hands.
  3. Urban and last mile logistics – Traffic density, booming e-commerce and home delivery business become key pointers in an urban environment. At the same time, last mile logistics is also gaining grounds in an urban setting due to growing doorstep service.
  4. Meet on-demand requirement – For uninterrupted services, intra-city logistic companies need to have a support fleet to cater to the on-demand requirement of customers.
  5. Convenience logistics – Present day customers have gotten habituated to online shopping. Right from groceries to apparel, it is all available online. This shopping trend saves time, cost, and physical effort of shopping. For this purpose, intra-city logistics gear up to provide 24/7 service, and also cater to special logistics like a cold chain and direct delivery network.
  6. Robotics and automation – As the name suggests, the introduction of robotics and automation reduces manual handling of logistics processes. It results in higher productivity with improved performance and enhanced sensing abilities.
  7. Multi-channel logistics – The next generation logistics should be equipped to cater to the customised shipping needs of multiple channels and businesses. This indicates forming a high-quality logistics service that makes intelligent use of standard and existing networks and resources.
  8. Delivery forecasting – If a logistic company can foretell you the delivery date of your shipment, it will certainly raise the bar of credibility and reliability. Hence, the use of a predictive algorithm based on big data can enable logistic providers to boost process efficiency, service quality, and optimise supply-chain network.
  9. Staff verification – As a measure of safety and security of shipment, customer satisfaction, and a step to enhance the credibility of the company, it has become a mandatory process to verify details of staff especially vehicle drivers and assistants.
  10. Internet – The power of the internet is not unknown anymore. Logistics industry must use it in an effective manner to track the end-to-end shipment by the intelligent merger of information.
Some of the mentioned trends have already gained firm ground in the sector of intra-city logistics and few others are in the fruiting stage. However, with these trends, we can only be hopeful of a well-integrated and organised logistics business.

Tuesday 20 September 2016

Wearable Technology & Augmented Reality in Supply Chain & Warehousing

Wearables on Your Wrist

The global logistics has probably never taken any cues from Silicon Valley. However, the next wave of innovation in SCM, Warehousing and Logistics will come from the Internet of Things. Indeed, connected networks of factory hardware are already enhancing process transparency and enabling previously untapped analytics in several plants.

The next big advance in logistics technology could be augmented reality: wearable digital systems that promise to reinvent the costly and cumbersome picking process in warehouses. Many warehouses today still use a paper-based approach to stock picking, which is slow and error-prone.


Augmented reality systems currently being offered by companies such as Knapp, SAP and Ubimax consist of a smart-glasses display, a camera, a wearable PC and a battery pack. By using the augmented-reality system, workers can see the digital picking list in their field of vision through smart glasses.


With the help of indoor navigation capabilities, they can discern the best route to specific items, significantly reducing travel time by more efficient path planning. So-called “vision picking” software offers real-time object recognition, barcode reading, and data integration with the warehouse management system to ensure the correct items are being picked.



DHL recently concluded a pilot project that tested smart glasses and augmented reality systems in a warehouse in the Netherlands; the result was a 25 percent efficiency increase during the picking process. Please view Video on Vision Picking in Logistics & Warehousing
https://www.youtube.com/watch?v=I8vYrAUb0BQ&feature=youtu.be



Wearable technologies have the opportunity to further improve operational efficiency. Also known as wearables, the term refers to devices, often connected to the Internet or to other devices that are worn on the body and can be used to enhance communication to and from the users. Wearables are likely to be adopted quickly, given the potential benefits in communication, productivity, and safety - and depending on the type of technology that’s employed.
For example, communication can be improved through smart glasses or voice command devices. Step-by-step manufacturing instructions can be transmitted visually through smart glasses, while two-way audio headsets can give users real-time notifications pertinent to their activities on the floor. Productivity increases from wearable voice command tools can increase factory warehouse efficiencies up to 30 percent, according to vendors of the technology. Other wearables can monitor health and stress levels of employees through fitness trackers, while GPS and beacon technology can easily locate employees and prevent them from entering a dangerous zone, such as machine cages and boilers.

Work Metaphors in the Post-PC Era Optimized by Device
If you stretch your imagination and go back a few decades, mainframe computers were the dominant form of enterprise computing and occupied the physical space of a room.

During the next stage of the computer evolution, mainframes evolved into a client-server architecture, with clients running as desktops and servers running as towers or domes. Following Moore’s Law, computers have become smaller while providing the same or greater computational and memory capability.
Today’s tablets and smartphones can fit inside a purse or pocket while providing greater capability than the desktop computers of yesteryear. This process is comparable to the evolution of timekeeping devices, which advanced from community-wide clock towers to pendulum clocks to pocket watches to wrist watches to a point where many carry no watch at all, but rely on mobile technologies.

The success of each version was judged by how well each device helped users tell time. Just as clocks shrank from giant towers to smaller devices on our wrist or phone, computers have evolved from colossal size to a wearable design. This unrelenting march towards miniaturization provides us with a new platform aiming to provide us with the most pleasing and intuitive design to make our interaction with the computer seamless.

This is the advent of wearable computing.
We will take a look at some of the wearable technologies that are likely to change the way you operate on the factory floor in the future.

Wearables On Your Head…
While smart glasses largely remain a niche in the consumer market, many of their capabilities can be put to good use in industrial settings. Smart glasses decouple operators from stationary terminals and paper documentation. For example, pick-by-vision provides benefits in operator safety and ergonomics by allowing operators to be hands free. It also increases efficiency by eliminating paper or stationary terminals, and increases accuracy by visually confirming via scanning. 
Another smart glasses application is remote video conferencing, which is emerging in field service industries because it increases asset uptime and reduces support cost by remotely supporting operators using cameras, instead of having them wait on a technician to arrive. Smart glasses can also decrease training lead times, improve quality rates, and reduce cycle times in assembly operations.
Voice control headsets are one of the oldest wearable technologies and have been in use in industrial settings for more than a decade. Today, this technology is used almost exclusively in warehousing applications such as piece picking; verbal commands direct operators to a picking location, tell them what quantity to pick, and where to place the picked items. Often, the device software links with existing ERP software, allowing real-time inventory updates and progress.

So it’s not a big leap for these warehouse applications to make their way into a manufacturing environment such as an automotive plant. Where older devices rely on radio frequency (RF), newer generations of voice control headsets can use WiFi so that, combined with location detection, they can provide for much more flexible applications (for example, materials handling in plants).

Because WiFi modules are now inexpensive, allow for easy setup of applications, and integrate easily with existing network security, they will most likely be the better option for manufacturers looking to “get their feet wet.”

Wearables on Your Wrist
The recent explosion of fitness bands and smart watches lets users better monitor their health and fitness levels and communicate with the world around them. The fitness bands on the market today use biometrics that detect and monitor a user’s heart rate, determine how many calories the user burns, or how well the user sleeps.
Smart watches share many of the capabilities of fitness bands, but with more communication functionality because they’re typically integrated with a smartphone and can display text messages, e-mails, and calls without needing to access the phone. They also operate many of the same applications as smartphones.

Both of these devices present interesting opportunities for the factory floor. For example, the pedometer technology in the fitness bands can measure efficiency and ergonomics by tracking the steps required to execute particular operations.

This data can then be used in simulation software to further optimize the storage locations of tools and parts in order to minimize movement, similar to how you once videotaped changeovers to reduce setup times. The GPS functionality in these devices may prove increasingly useful from a safety point of view as location-based applications can automatically shut down robots or machines when employees are in danger, including stopping a forklift that is rounding a blind corner.
In addition, employee biometrics could be monitored to identify which operations or situations cause excessive exertion on an operator that could result in future injury. QR codes on parts, ingredients, or along process steps may provide traceability and help maintain inventories. Or, instead of using clunky barcode scanners, employees could use their smart watch to easily update locations and quantities of inventories.
Finally, transactional operations that typically require computer terminals or barcode scanners may now be performed in-line.



HOW WEARABLE COMPUTING TECHNOLOGY IS CHANGING WAREHOUSING
Wearable computing technology is changing the way work gets done in fulfillment centers and distribution centers and transforming traditional approaches to warehouse automation. It’s a technology that has the potential to increase the efficiency of your workforce, enhance the productivity of your warehouse, and lower the costs associated with fulfillment and distribution center operations. And what’s more, it’s not one of those technologies that’s looming out there on the horizon somewhere just out of reach. It’s here now.
In a nutshell, what it does is to enable your workforce to interact with various forms of wireless wearable computer devices while performing a wide array of physical tasks requiring the use of both hands.
Instead of having to hold a tablet, laptop, radio, or smartphone, workers are now able to gain access to, and interact with, rich data, graphic visual displays, audio, video, and, depending on the device, even live remote expertise — all while going about their normal operational activities. Wearable computing technology enables workers to interact with body-borne devices through the use of vision, voice, gesture, and/or minimal touch, depending on the task and application.

The wearable computing headset fits beneath a hard hat, is outfitted with a micro screen, and runs on voice and gesture commands. That means workers are being empowered with greater accessibility to information and knowledge without the burdens of traditional computing technology.  As a result, wearable technology is enabling workers to:

  • Accomplish tasks with greater efficiency.
  • Achieve higher levels of accuracy in executing tasks.
  • Use greater flexibility and mobility in completing tasks.
  • More easily acquire the information needed to accomplish a task correctly.
  • Complete tasks in less time than traditional methods allowed.
Wearable technology is also enabling management to better:
  • Visualize and monitor operations without having to be on the floor.
  • Anticipate and tackle problems that might affect productivity.
  • Communicate and collaborate with workers in the process of completing tasks.
  • Adapt to continuing improvements in technology.


Wearable Warehouse Management Systems (WMS) Solutions
To understand how wearable technology is affecting the world of intralogistics, think about how warehouse operations have improved through the years with the addition of visual and voice directed technologies. Pick-to-light, put-to-light, voice, and RF have all improved worker efficiency and accuracy. Receiving, stocking, sorting, and shipping have benefited from visual and voice directed solutions as well. Now, ponder the kind of improvements that can be made when you replace or complement existing warehouse automation technology with wearable technology. There is a potential for efficiency and accuracy improvements in all of the following areas:


  • Incoming receiving, item identification, and PO reconciliation
  • Sorting, staging, palletizing, and transportation to storage
  • Directed and non-directed inventory put away Inventory management, lot control, and serialization
  • Forward replenishment and pick line slotting
  • Order management and pick line optimization
  • Order selection either by order or by batch
  • Outbound consolidation, unit sortation — either automated or manual
  • Packing, void fill, and collateral materials insertion
  • Transportation management, shipping labeling and manifesting
  • Sortation, shipping, staging, and carrier loading
  • Inventory management including cycle counting
  • Quality control

 As a result, workforce could utilize wearable computing devices to aid in warehouse automation activities and expedite tasks associated with fulfillment and distribution center operations. In the process, we have to adapt the task directed functionality of Warehouse Execution Software to be delivered via apps to be used in conjunction with wearable technology for best results.



Security Concerns
As wearables gain a foothold in manufacturing, security concerns will have to be addressed. The same security concerns inherent in other digital applications apply, including phishing, malware attacks, and network overloads. Wearables collect specific data for manufacturing use, but they never turn off, collecting extraneousdata that could be harmful if used incorrectly. Privacy is also a concern because wearables can be used to collect data on personal habits, behaviors, and the health of employees.
Making this data secure, and abiding by government standards, is of paramount concern if wearables are to become widespread. Addressing these includes a variety of tactics, starting with secure software and hardware development, and by creating proprietary tools that cannot easily be infiltrated. The judicious deployment of devices (including role-based access and specific user privileges) is another way to improve security.

Opportunities – Are you Ready or Not ?
There is an opportunity for manufacturers to achieve both tangible and intangible benefits from leveraging wearable technology. However, there are several considerations before implementing a wearable solution in your factory.
Wearable devices are still relatively new. The consumer applications in this space have only emerged in the past three to four years, and the limited products that are available still have some shortcomings that need to be addressed to make them suitable for industrial applications.
First of all, consumer products are not designed or tested to endure the everyday wear and tear of industrial operations, so wearables need to be adapted to ensure structural integrity. Battery life is also a concern as some of these devices, particularly smart glasses, do not currently have enough battery life to last a full manufacturing shift.
Finally, many factories do not have full Wi-Fi coverage on the factory floor, or may not have the bandwidth to handle full-scale wearables deployment, so manufacturers should ensure their network infrastructure is prepared to accommodate new devices.
Wearables suppliers also need to address cost. Because most of today’s devices are designed to accommodate consumer preferences and needs, their functionality is probably exaggerated for the shop floor and developers should “de-scope” functionality to reduce the price. But, with the proliferation of the Internet of Things, most manufacturers will already have the systems, resources, and knowledge in place to accommodate at least some wearable technologies.



Future is Wearable technology - Unlock the Benefits !
Wearable technology will become as popular and common as smart phones. The adoption of wearable technology on the shop floor has the potential to tap new areas of improvement across industries. Smart glasses, voice control headsets, fitness bands, and smart watches are only the beginning of this next phase of industrial modernization.
To realize the full benefits, manufacturers need to look at wearables not just as a gimmick to modestly improve upon activities that are already done with other tools and technologies. Instead, they should be seen as a tool to capture a combination of connected data (for example, location info, biometrics, and product data) that is otherwise hard to come by.


Analyzing this data for trends and improvement opportunities has the potential to unlock otherwise hard-to-identify benefits, both for employees and employers.