Reducing logistic costs is often the number one priority for a businesses’ bottom line. There are many methods that can help improve supply chain processes and in turn save a business money. Methods of reducing logistic costs can range from optimizing inventory levels, to recharting better shipping networks, to creating better processes, to improving supplier/third party relationships and so on.

To help you find even more ideas, we asked 19 logistics experts the following question:

“What’s your #1 tip for how companies can reduce logistics costs (transportation costs or carry costs or warehousing costs etc)?”

See what our experts had to say:

Meet Our Panel of Logistics Experts:

David Martinelli

David Martinelli David is an independent Principal with Blossom Growth and specializes in: Manufacturing and operational efficiency, Supply chain effectiveness, ERP and software implementation and improvement, Transactional due diligence and merger integration. Not only does David support Blossom Growth, he is also an entrepreneur and is in a development with his second start-up, Hydrate Technologies, where he serves as both the founder and president. Prior to his time with Blossom and Hydrate, David has worked as a software executive with NEWSCYCLE Solutions & Vista Equity Partners and as a Manager with Alvarez & Marsal. David holds an MBA from the University of Chicago, Booth School of Business and a B.S. in Chemical Engineering from the University of Illinois in Champaign, IL. He has also attained certifications as a Six Sigma Black-Belt, in Lean Manufacturing, and as a trained medical first responder.

The #1 tip on how companies can reduce logistics costs is…

“Identify and eliminate open spaces in an organized and diligent manner. This simple statement, when executed, drives the following business outcomes:

1. Increases storage density in bins & racks by improving vertical space utilization or bin re-profile as a means to achieve it2. Decreases freight costs through better truck utilization in both full.

2. Decreases freight costs through better truck utilization in both full (FTL) and less than (LTL) truckload shipments.
3. Reduces damage to case picked pallets by eliminating movement in transit.
4. Better utilizes available floor-space to increase storage density.
5. Encourages organized operations, which is directly linked to labor.
efficiency, asset utilization, and inventory accuracy.

Brian Stutzman

Brian recently invested in franchise ownership with BlueGrace Logistics. With an operation location in Indianapolis, IN but with a worldwide reach, Brian and his team are focused on becoming a part of a new standard in the third party logistics industry. Through transparent communication, providing a variety of options, and first class technology, BlueGrace Logistics Indy is prepared to truly consult with their customers and provide real benefits to their service.

The #1 tip on how companies can cut logistics costs is…

There are several things that come to mind when thinking about how companies can save money on logistics costs. As a third party logistics provider, we hear a variety of reasons why prospects do not wish utilize real solutions to help save them money. But by far, the one response that actually cost companies money on a daily basis is we’ve always done it that way or we already have excellent pricing in place. In some cases, yes, their current operations and agreements are great deals but in many cases these statements are ill-informed and rehearsed. Yes, the market has a magnitude of companies that assist in logistics needs but what some do not realize is that there are more true savings than on the actual freight being moved or stored. Being able to implement more stream-line processes or reporting that saves your transportation and accounting teams time has been proven to save money. If on a monthly basis, while implementing these processes, companies might be able to save their teams time on operational duties, allowing them to spend more quality time handling other duties. That is just one example of how streamline processes save on overall costs rather than just freight or storing costs.”

Romy Taormina

Romy Taormina is the CEO/Nausea Relief Chief of Psi Bands. Psi Bands are sold at more than 10,000 US locations, including CVS, Target, Babies R Us, REI, etc. We import our product. With all the Port delays, planning for safety stock has become all that much more of a key component to reducing fulfillment costs, warehouse errors, and stress! Romy co-authors a blog with Vanessa Ting, a former Target buyer, called Both Sides of the Retail Table where we provide entrepreneurs tips and resources for how to get and keep their product on retail shelves. We recently highlighted the need for safety stock as a critical component of keeping costs down – and why!

The #1 tip on how companies can reduce logistics costs is…

“One could argue that carrying safety stock will increase ones warehouse costs. Yes. But, consider the alternative and how money, time and relationships can actually be saved:

* You are NOT spending hours per day trying to figure out which retailers are going to receive your limited goods and which ones are not. Thus, you are saving time by NOT having to contact your retailers to try and justify why you are not sending them their desired quantities and asking for them to re-issue POs with new delivery dates.

* You are NOT jeopardizing relationships with your buyers – and risking them terminating their business with you.

* You are NOT incurring retailers noncompliance fees for undeliverable POs.

* You are NOT having to expedite shipments to your warehouse from your manufacturer at costly air freight prices because you have the goods on hand.

* You are NOT having to expedite shipments from your warehouse to your retailers at costly 2- or 3-day shipment rates vs standard Ground rates. ”

Tom Wilkins

Tom Wilkins is the owner of Metano IBC Services, Inc. Metano supplies intermediate bulk containers (IBCs) to consumer product, chemical and other manufacturing companies who need to move bulk liquids in their production process.

The #1 tip on how to cut logistics costs is…

“For manufacturers who need to move bulk liquids, intermediate bulk containers (IBCs) are an economical and efficient transportation solution vs. standard drums. One IBC holds the equivalent of 6 drums, yet has a footprint that is 33% smaller. By choosing square IBCs over round drums, you can move more liquids in fewer containers and realize substantial savings in labor, warehousing and shipping costs. Stainless steel IBCs can also be rented for additional flexibility and savings.”

Bryan Mattimore

Bryan Mattimore is the Cofounder and Chief Idea Guy at Growth Engine, Innovation Agency. He’s the author of  “Idea Stormers, How to Lead and Inspire Creative Breakthroughs (Wiley Jossey-Bass).”

The #1 tip on how companies can reduce logistics costs is…

“Our best logistics/supply chain tip is this: Use suppliers to help reduce costs. Suppliers can sometimes absorb direct logistics costs, but can also be partners in cost reduction. One idea, for instance, is to create a consortium of buyers (our client and several of their suppliers) to buy needed logistics supplies (i.e. transportation fuel) at a reduced cost that comes with buying in greater quantities. ”

Lisa Henthorn

Lisa Henthorn is Lisa Henthorn; VP, MarketingCommunications at Eyefreight. Lisa Henthorn is a seasoned marketing and HR professional with more than 16 years of experience in sales, marketing and consulting. As vice president of marketing communications, Lisa guides corporate
communications at Eyefreight, where she is responsible for marketing strategy and planning. Prior to Eyefreight, Lisa was vice president, marketing and human resources at PartnerData. There, she executed the organization’s growth strategy through the marketing of PartnerData’s products and services as well as the design and implementation of all human resources strategies, policies and processes. Lisa currently lives in Evanston, IL with her three daughters. She’s an avid writer and blog contributor.

The #1 tip on how companies can reduce logistics costs is…

“For companies to reduce logistics costs, automation is key. Regulating, automating and optimizing manual processes can reduce staff requirements, centralize production operations to lower-cost areas and create a more proactive approach to ensuring customer satisfaction, all while providing scale and controlling costs. With an automated, cost-effective transportation and logistics system, a company can implement major strategic changes to provide visibility, reduce costs and increase customer service levels. Plus the emergence of cloud-based technologies have made this considerably easier/more affordable than ever before; so even small companies can take advantage.

Keeping the per order cost of logistics support low requires keeping customers happy (so companies keep them as customers). By maintaining customers’ satisfaction, companies can keep business up and therefore, spread out the cost of logistics support over a greater number of orders/customers. Because of this direct correlation between customer satisfaction and overall cost reduction, customer service should be factored into any measurement of changes in logistics costs accordingly.

When the appropriate tools to manage complexity and guarantee visibility are in place, organizations have greater opportunities to continuously create operational efficiencies, keep customers happy and improve the bottom line.”

Scott Stone

Scott Stone is the Director of Marketing for Cisco-Eagle, a provider of integrated material handling systems for industrial operations. Scott has over 23 years experience in industrial operations and marketing.

The #1 tip on how companies can lower logistics costs is…

“The very first thing any company should do is strive to truly understand
its costs—per pallet, per sku, per order shipped, etc. Assuming that is understood, answers to this question may come easier. In general, though, the cost of labor is always the top, or near the top for any warehousing operation. Every project should be seen through the prism of labor costs which can be addressed in multiple ways. Incentive programs for warehousing employees, if well structured, really work. So do projects that automate repetitive structured tasks—things like ligh or voice directed picking,
carousel storage, robotics, etc. A much less elaborate answer is to review product slotting to reduce the cost of picking and putaway. Anything that reduces returns can truly make an impact as well.”

Brian Sutter

Brian Sutter is the Director of marketing at Wasp Barcode Technologies.

The #1 tip on how companies can shrink logistics costs is…

“Inventory cost is defined as the cost of holding goods in stock. If you’re looking for a way to reduce your inventory cost, chances are you’re stocking too much inventory. Too much on-hand inventory increases your storage costs—thus your cost of goods sold—and ties up liquid cash.

Here are three ways to reclaim that cash and reduce your inventory cost:

Know Your Up-to-Date Inventory Levels:
Keeping track of your inventory levels is the most straightforward way to prevent overstocking inventory and, as a result, reduce inventory cost. Although a spreadsheet-based inventory management system might give you a general idea of how much inventory you have at a given point in time, solutions like Wasp’s Software and Inventory Management systems, help keep that information automatically up-to-date; allowing small businesses to make quick, strategic decisions about how much inventory to have on-hand.

Evaluate Your SKUs:
Simply put, SKU intensity is how many SKUs your business has per unit. If your business sells items like gifts, you might only have one SKU per item. However, if your business sells items like clothing, which can come in multiple colors and sizes, one item can have numerous SKUs, which can lead to a higher SKU intensity.Are you not selling any size two dresses because there is no demand for size two dresses or because you don’t stock size two dresses? Knowing the difference will help your business not only avoid
stock outs but also avoid overstocking items that aren’t selling. The information needed to understand your SKU intensity is available in your inventory system’s history file, but you also need to understand what your system is telling you. Tailor your SKU intensity by pulling together sales and inventory information to figure out exactly what’s going on with your inventory.

Track Inventory Movements to Automatically Re-Order:
How quickly can you get replacement merchandise when you run low? The longer it takes, the more items you must keep on hand and, as a result, the higher your costs. Implementing a perpetual inventory system will allow you to track sales and inventory movements in real-time—allowing you to automatically re-order stock when it makes the most sense for your business..

Olivier Larue

Olivier Larue has 20 years of experience in the hands-on implementation of Lean/TPS
(Toyota Production System). He joined the Toyota Supplier Support Center (TSSC, Inc.) following a successful consulting career in California’s Silicon Valley. Eventually, Olivier decided to fuse his unique style of shop floor-based teaching with his proficiency in TPS to create Ydatum Operations Management Engineering, Inc. Olivier is a guest lecturer at the University of California at Berkeley School of Engineering and has been a presenter for SME. His expertise also includes Six-Sigma, Hoshin Kanri, and a proven ability to help companies achieve sustainable, system-wide improvements and customer satisfaction that is measured in terms of improved quality, cost and lead time.

The #1 tip on how companies can reduce logistics costs is…

“The best thing companies can do to reduce warehouse inventory is to make a choice between fixing quantity or fixing time — not both. Let me explain: One purpose of the pull system is to act as a
countermeasure against the effects of processes that can’t be located near each other. Ideally, there is no need for inventory due to conveyance because processes are co-located and they work at the same pace. But in those instances when processes are actually far apart and conveyance is required, if the pace of
conveyance is equal to the pace of production, then all the material will in route and the quantity of material transported will be determined by the conveyance time divided by the rate of pull.
However, batch conveyance might be necessary to reduce the cost, and the rate of supply will not equal to the rate of pull. In this case, some inventory will be in the stock and in the store.
*Fix quantity, variable time*
There are two methods used to trigger the conveyance of parts from a process that is far away. One is to deliver a fixed quantity, but at variable intervals. The trigger is when the quantity left in the stock gets
down to a certain point, whether that’s tomorrow or next month. The timing depends on the rate of consumption of the following process. The ideal demand quantity is one part, with one kanban for every part.
*Fix time, variable quantity*
The other method is to deliver at a regular interval but in variable quantities. The choice depends on the situation, as supply chains involve too many variables — cost and size of parts, distance, shared processes, transportation method, and so on — to allow for a general solution. However, the closer we come to the ideal condition, the less difference there is between the two methods.
But even when one-by-one is not achieved, there are some basic rules to follow and basic errors to avoid.

For example, it is a mistake to fix both time and quantity. This is an error we often see with automated material replenishment process such as MRP and other IT-based solutions. Fixing time and quantity may be practical, but it falsely assumes that over time there are no changes in customer demand. This invites —actually, it begs for —both overproduction and shortages. These, in turn, will later necessitate large adjustments. Not only are large adjustments a pain, but they violate Toyota Production System thinking, which seeks to reduce fluctuations through frequent small adjustments.

Here’s a simple example that will illustrate the difference: If you live close to the grocery store, you are likely to choose a fixed quantity/variable time method of shopping, since it’s so easy to just go
get something when you need it. If you live far away from the grocery store, you are likely to choose a fixed time/variable quantity method, so you can combine your grocery shopping with other errands in town, saving on time and gas. Once you have chosen the correct method for your situation, you need to calculate the lead-time in order to have the correct inventory to support it.

Shel Horowitz

Shel Horowitz is a green business profitability consultant, copywriter, speaker, and author, currently introducing a new aspect to his work: showing businesses how they can profit while making a difference on such issues as turning hunger and poverty into sufficiency, war into peace, and catastrophic climate change into planetary balance–and going beyond sustainability to the world we all want.

The best way to lower an organization’s logistics costs is…

“As a green profitability consultant, I always look at how to cut costs by going greener. For logistics, I’d look at the overall area of fuel costs and examine reducing fuel consumption–by streamlining routes, making vehicles more aerodynamic, changing bad driver habits (like long idles), and perhaps fuel remixes that include vegetable oil.”

Andrea Stroud

Andrea Stroud is the Research Program Manager for APQC’s supply chain management, product development, and innovation research. She conducts research and publishes relevant, meaningful content for APQC members and other clients.

The #1 tip on how companies can cut logistics costs is…

“The #1 way to reduce warehouse inventory/carry costs is to improve inventory accuracy and visibility throughout the supply chain. Here are some of her findings and insights from her research (it’s a bit long but has great data points in it): This is an important part of supply chain management because organizations that allow their inventory accuracy to drop run several risks. Misleading inventory levels may make it seem that these organizations have more inventory than they actually do, which leads the organizations to sell stock that is not there and can result in dissatisfied customers. Inaccurate inventory data may also mask inventory that is actually there, which can lead to stock remaining in a warehouse until it becomes obsolete.

A related issue is increased inventory carrying cost. To get a better idea of how much additional cost can be related to carrying inventory, APQC reviewed data from its Open Standards Benchmarking(r) in logistics. The data shows a $101 difference between top-performing ($51.89) and bottom-performing ($153.33) organizations regarding inventory value per $1,000 in revenue. For an organization with $5 billion in revenue, this difference translates into $505 million worth of inventory stored in warehouses.

Aside from lower inventory value and more satisfied customers, higher inventory accuracy can lead to improved performance in other logistics processes.. APQC’s Open Standards Benchmarking(r) data indicates that an increase in inventory accuracy from 98 percent to 99 percent is associated with a decrease in the pick-to-ship cycle time for customer orders, a decrease in the percentage of orders expedited, and an increase in the amount of sales orders delivered on time. When the organization spends less time picking materials ordered by customers it needs to expedite fewer orders. Faster processing and delivery of products leads to more satisfied customers and lower inventory carrying cost.”

Dennis Maliani

Dennis Maliani is a Business/Technology Executive who is innovative and results-oriented leader with extensive experience defining business strategies and developing transformative solutions that deliver immediate results and improvements across enterprise-level environments. Proven track record of designing and executing new initiatives that optimize IT operations, elevate service and support delivery, and strengthen technology capabilities. He’s an exemplary leader with a tactical background in lean business processes, system infrastructure, and technical support. He holds MBA with dual emphasis in International Business and Information Technology from University of LaVerne.

The #1 tip on how companies can reduce logistics transportation  and carry costs is…

“The number one thing companies can do to reduce warehouse inventory errors (transportation costs or carry costs or warehousing costs etc.) organizations as a whole have to adopt and apply lean principles to their company’s business and workflow processes. The principles include:

1. Value: Solicit feedback from their clients or tap into their company’s’ knowledge base. Based on their past business demands and supply needs define what is of most value to their customers.

Ex: If its product quality issues based on their customers feedback then they have to work on their Quality assurance and quality control standards to ensure they produce a superior product. Customer loyalty is critical, on average it costs five times more to acquire a customer than to retain a customer.

2. Value Stream: Work with their teams to identify the company’s value and eliminate waste. Analyze their processes against the types of wastes below and remove them.

a. Transport – unnecessary movement of materials from one location to another.

b. Inventory – over production of goods which might require huge costs in storage, space consumption, packaging costs etc.

c. Motion – unnecessary movement if workers have to access equipment or tools in various locations of the company to do their job – time and money wasted. At times, it requires to redesign the warehouse floor plans and have everything thing at their disposal in one location.

d. Waiting – Due to un-synchronized or breakdown in interdependent processes, poor technical support etc. leads to loss of time and missed opportunities.

e. Over-Processing – Caused at times by lack of standard operating procedures every employee performing a task as they see fit or using wrong equipment for a task.

f. Overproduction – Too much inventory causing inventory costs due to lack of demand & supply data.

g. Defects – Due to poor quality control and quality assurance measures results in defective products, returns, law suites.
3. Flow: Create constant flow and strive to a attain balance between their supply and demand needs.

4. Pull: A company should produce based on demand. This in most cases requires having a supply chain management system that’s well integrated with their back-end warehouse, suppliers/vendors and their front eCommerce for their clients. With all those integration points in place when a customer places an order the entire works are just in time.

5. Perfection: Continuous mechanics or tools must be put in place like the PDCA (plan–do–check–act or plan–do–check–adjust) the Deming cycle.”

Richard McGirr

Richard McGirr is the marketing manager at floship, an e-commerce logistics company based in Hong Kong. I have worked in venture capital and venture backed start-ups for the past 4 years.

The #1 tip on how companies can reduce logistics costs is…

“In our experience one of the best things companies can do to reduce the cost, complexity, and logistics headaches in general is centralizing their distribution.

Oftentimes companies have products in an unnecessarily high number of warehouses. This makes inventory management much more complicated due to constantly having to manage and transfer stock between warehouses around the globe. It is better to have one distribution center in a major logistics hub, such as Hong Kong, that can service a very large area or possibly even the entire world from one location.

For example, a company that manufactures in China only has to send their goods to a Hong Kong warehouse and from there can effectively handle most if not all B2C and B2B shipments worldwide quickly and cost-effectively. This leads to a simpler supply chain and having inventory on the books for only a few days in transit compared to having their inventory in an ocean container for a month, and then waiting another 2 or 3 weeks to clear customs.”

Bob Shirilla

Bob Shirilla is the Owner / Manager – Simply Bags – Leading US distributor of personalized and custom tote bags.

The #1 tip on how companies can reduce logistics costs is…

Consider Supplier Location: Our marketing starts with an analysis of supplier locations and potential clients in the same region. For example, we are doing a marketing campaign targeting Beach Wedding Planners and have developed a business relationship with two manufactures in Florida. This gives us a competitive price advantage over other suppliers that have higher shipping cost.

Chuck Intrieri

@cmiconsulting93

Chuck is a management consultant at Charles M. Intrieri Consulting. A highly experienced supply chain professional, Chuck is recognized as a thought leader and innovator in supply chain optimization, 3PL, international purchasing and importing, requests for quotation (RFQ) generation, and inventory and management, among other areas of the field. Chuck focuses on cost reduction and continuous improvement in the supply chain and logistics, with an eye toward lean initiatives.

NOTE: The following information is excerpted from Logistics Cost Reduction: 6 Focuses to Create More Profit via Cerasis.

An essential ingredient to logistics is cost reduction: ‘Treat people well and profits will follow.’ Listen to your people. They have great ideas…

The best supply chain or logistics cost reduction tip is this: Collaborate and partner with Suppliers to help reduce costs. Suppliers can sometimes absorb direct logistics costs. Create a consortium of buyers (a client and several of their suppliers) to buy needed logistics supplies (i.e. transportation fuel) at a reduced cost that comes with buying in greater quantities.

Be bold and try the Supplier Day Conference: invite suppliers to your facility with a structured agenda. One topic is to Value Analyze your products and for all involved to submit logistics cost reduction ideas. The Supplier is the specialist in their area of expertise. They can help by working with you and being creative in a win-win cost reduction program. Retain the function of a part, but reduce the costs of components, never jeopardizing quality.

Martin Murray

@AboutLogistics

A senior supply chain management consultant and author of several books on supply chain using enterprise resource planning (ERP) software, Martin Murray has been the About.com expert for logistics and supply chain since 2008. Over the course of twenty years in supply chain, Martin has managed multi-national supply chain and ERP implementation projects in a number of industries, published eight books, and written articles that have appeared in several publications including SCM Expert and Maritime Gateway.

NOTE: The following information is excerpted from Reducing Supply Chain Transportation Logistics Costs via The Balance.

Transportation costs can be a significant part of a company’s overall logistics spend…

Some companies believe that the best negotiated prices can be achieved when they use a single source for all their transportation. This is fairly common for purchasing departments to use a single source for a range of products that a single vendor can provide.

The same can be achieved for transportation. By offering all transportation out to bid, via a RFQ (Request for Quotation), a company can provide carriers with a detailed explanation of what they require, which may fall outside of what is normally provided by a common carrier.

If they wanted to use a single source, a company would have to thoroughly evaluate a bidder’s ability to provide the service and whether the carrier has the stability not fall into bankruptcy within the timeline of the contract. If the winning bidder fulfills the needs of the company, and has been fully evaluated, a company could gain significant transportation savings using a single carrier.

To ensure you have an optimized supply chain, you want to make sure you’re delivering what your customers want, when they want it.  And you’re achieving that goal by spending as little money as possible.  Reducing your transportation costs can be a significant way to spend less money, without impacting customer service.

Suresh Iyer and Advait Rahalkar

@Genpact

Suresh Iyer is vice president and global practice leader for engineering and supply chain services at Genpact. He is responsible for strategy development, new capability acquisition, and execution. Suresh is an expert in the field of supply chain and engineering design.

Advait Rahalkar is assistant vice president with the supply chain practice at Genpact, where he builds solutions for supply chain management. He is serving as project manager of business process re-engineering and transformation services and has been operations leader for the engineering design and analysis services for energy, oil, and gas clients.

NOTE: The following information is excerpted from Smart Strategies for Logistics Cost Optimization via Industry Week.

In a world where logistical expenses typically comprise up to four to five percent of total costs for a manufacturing firm, the increasing complexity of the global supply chain applies increased pressure on margins…

Most organizations try to tame complex supply chains by deploying expensive technology tools, hiring consultants for business process re-engineering, or, more recently, deploying exotic analytics frameworks.

Alone, none of these solutions can produce the type of savings needed to outcompete in this new, more complex and more competitive economy. What is required is a smart mix of process, analytics and technology to simplify the logistics networks, mitigate logistics risk and optimize the associated costs. We call this a three-pronged holistic approach:

1. Process Design and Development
2. Analytics
3. Enabling Technology

Rob O’Byrne

@LogisticsBureau

Rob O’Byrne is owner and group managing director of specialist management consulting firm Logistics Bureau, based in Australia and southeast Asia. Rob has a passion for helping people and businesses improve performance, and he has a reputation as a no-nonsense consultant who delivers results. Rob oversees the operations of Logistics Bureau Group including Logistics Bureau, Dawson Consulting, Benchmarking Services, Supply Chain Leaders Academy, and a social enterprise called Virtual Well Done. Rob has overseen more than 1,400 projects across a wide range of industries.

NOTE: The following information is excerpted from Logistics and Distribution Cost Reduction Techniques via Logistics Bureau.

Cost reduction is a challenging subject in logistics and distribution and too often we’ve seen companies just try to cut headcount in order to achieve quick cost reductions. This is often completely the wrong strategy…

Cost reduction starts with fully understanding all costs and separating them into variable and fixed costs.

Variable costs fluctuate with volume (truck fuel, direct labour, packaging, etc.) while fixed costs don’t (rent).

Some costs, such as electricity and management overhead may be mostly fixed, but with a variable component if volume changes significantly (e.g. adding an additional shift).

As we have seen in previous classes, it is critical to measure the right parameters and processes and ensure that measurements are meaningful and pegged against appropriate volume indicators.

Start with the big picture and then gradually work down to more detail.  The major cost components we will review in this class include:

• labor (direct, indirect and temporary staff vs. permanent staff)
• stock loss
• distribution
• packaging
• the cost of low productivity
• the cost of poor quality
• utilities (electricity, heat, water)

Alex Stark

@kaneisableinc

Alex Stark is a Modern Marketing Expert and Supply Chain Collaboration Evangelist for ‎Kane Is Able, Inc.

NOTE: The following information is excerpted from 5 ways to reduce logistics costs in consumer goods distribution via Kane is Able, Inc. 

One of the best ways to reduce logistics costs is to…

Integrate data from sales and fulfillment systems.

Allocating available inventory against current orders creates problems. There’s no algorithm to automate this subjective decision process. The allocation decision also invites personal bias, as customer service and sales representatives may steer available inventory to their own customers.

One solution is better integration of sales and inventory data. While this could be a barrier for smaller companies with limited systems resources, many 3PLs have the experience and resources to integrate data from multiple systems to facilitate decisions. When combined with the company’s unique knowledge of the retail customer, decisions can made based on customer priority, not a “first-in, first-out” model that risks disappointing key customers.

Asset Tracking Solutions from Camcode:

• UID Label
• Mil Std 130
• Security Labels
• Magnetic Labels
• Warehouse Aisle Signs
• Stainless Steel Tags
• Floor Labels
• Inventory Control
• Inventory Management Methods

The post How to Reduce Logistics Costs: 19 Experts Reveal Ways Organizations Can Cut Their Logistics Transportation and Carry Costs appeared first on Asset Tag & UID Label Blog.

Automated data collection systems are often a substantial investment, particularly for enterprises first implementing company-wide initiatives involving thousands of assets. Automated data collection champions within organizations are often eager to prove ROI in order to justify both the effort and the cost. Fortunately, justifying investments in automated data collection is feasible, and often within reasonable time frames.

Keeping Pace with Innovation Has Rewards

Early adopters in various industries have the burden of proving the value of embracing advancements in technology. It’s at this early juncture that most technology investments are most expensive, with prices typically dropping as efficiencies are gained and advancements evolve from new and innovative to standard and expected.

Automated data capture (ADC) has been proven cost-effective and even profitable across a multitude of industries. While some industries are just beginning to adopt regulatory standards requiring companies to use efficient asset tracking and data collection methods, others are first discovering the value of automated data collection in improving business processes.

The fact that ADC isn’t a new innovation yet also isn’t quite saturated across industries creates a unique opportunity for companies in many verticals. In other words, you get the advantage of lower costs coupled with the confidence of adopting a proven technology. Look for success stories from companies not only in your industry but in other verticals with comparable business processes and systems benefiting from automation in various forms.

Convincing business leaders to adopt automatic data collection is the first step, but you’ll be expected to justify the investment that you’ve championed following implementation. Fortunately, justifying ADC investments is relatively simple when you look to the right data.

Identify Easily Quantifiable Metrics

Justifying investments in automatic data collection should encompass both direct savings and ROI and the more-specific but sometimes harder-to-measure soft benefits, or tangible vs. intangible benefits.

Concrete, quantifiable benefits are easiest to measure and thus are the easiest path to justification. These easily quantifiable metrics include:

• Labor Costs – ADC reduces demands on staff, enabling companies to realize savings in overtime costs, taxes, and other benefits.
• Operating Costs – By reducing labor demands and optimizing processes, companies are able to achieve more with less both in terms of time (greater output from the same or fewer resources boosts profits) and space (inventory storage, shared assets, etc.).
• Fixed Asset Investments – One of the biggest areas for potential gain is in the area of fixed asset investments. ADC makes it possible to better monitor and maintain expensive equipment, machinery, and other assets, which in turn extends the usable lifespan of many assets. Thus, businesses are able to get more from investments and extend the time between repairs and replacements.

As these costs are typically already measured in some form or another by most organizations, determining the ROI of a newly implemented ADC initiative is as simple as comparing before-and-after figures, provided no other variables were present that could skew the data.

Establish Baselines

When implementing an ADC initiative, identify quantifiable, measurable metrics at the start of the project focused on areas in which you hope to realize gains. For instance, automatic data collection can speed documentation time and reduce errors. Both of these objectives can be quantified.

Determine how much time it takes to perform data collection tasks without ADC systems in place – either for a particular task or over a specified duration of time. Likewise, calculate errors identified and/or corrected during a pre-determined time frame or on a given data collection task before introducing ADC. Before and after comparisons are simple when you take the time to establish a baseline before implementation.

Don’t Ignore Other Measurable Benefits

Many of the benefits of automated data collection are soft, or not as easily quantifiable or easily tied back to ADC as the cause. Alone, these benefits are sometimes insufficient to convince data-oriented, bottom line-focused leaders that the investment is justified. But tapping into today’s vast data sources to offer measurable progress in these areas is particularly powerful when combined with other data illustrating clear cost savings across other areas such as labor, overhead, and fixed asset costs. Don’t ignore soft benefits such as:

• Increased Sales – Sales may increase due to better data accessibility for sales staff, such as field sales representatives, on factors such as current inventory levels and detailed product information.
• Employee Satisfaction – Employees armed with the tools to do their jobs effectively are generally happier, and as a result, they work harder, produce better outcomes, and are loyal to their employers.
• Efficiency – Efficiency gains in one area tend to have a domino effect that is realized throughout the organization (much like the ripple effect in the supply chain). Thus, ADC often results in improved efficiency in departments directly impacted by ADC as well as others.
• Customer Experience and Satisfaction – Happy employees have better, more positive interactions with customers. ADC can contribute to better service delivery, faster shipment and product delivery, accurate product information and communication, and fewer inventory and shipment errors, a group of effects that together have substantial impacts on customer satisfaction.

A comprehensive analysis and review that encompasses both tangible and intangible benefits is the most effective way to prove the ROI of ADC investments – even to the most critical executives. When you prove the gains realized across practically every facet of the organization, the value of an ADC system is impossible to deny.

The post Are Automated Data Collection Systems Cost-Effective? How to Justify Your Investment appeared first on Asset Tag & UID Label Blog.

Big Data is the holy grail of analytics today. With it, organizations can gain predictive analytics and user behavior analytics, and discover patterns, trends, and associations that were once impossible to gather. Big Data leads to better decision making, which leads to improved operational efficiency, reduced risk, and bottom-line cost savings. But Big Data can be difficult to attain. A lot of work must be done before organizations can realize the benefits of Big Data. Before you can get Big Data, you need clean data.

Issues such as duplicate data, incorrect numbers, missing characters, missing data fields, data associated with assets no longer in service, and multiple numbers associated with one asset can corrupt data, making it inconsistent and inaccurate. Data cleansing, reconciliation and Master Data Management (MDM) are critical to achieving clean data, but can be seen as time consuming and costly endeavors with little short term results.

Review your Data

So how do organizations begin gathering and cleaning data along the path to Big Data? In an article about clean data, Patrick Gray, a leading technology expert and consultant, suggests to, “Start with the problems you expect Big Data to solve, the benefits of gaining the rapid responses and refinements characteristic of Big Data, and then compare the costs of repeatedly performing cleaning versus biting the bullet and doing it right the first time.”

As Gray suggests, the first step is to identify what data you have and what you need to achieve your Big Data goals. This includes MDM activities such as data reconciliation or a complete audit of inventory. It typically involves examining current records within a database and confirming the information held in the legacy database is correct.

This may be a lengthy process, but one that will reap benefits in the end. But don’t bite off more than you can chew. Gray states that, “some early, small successes are far better than getting caught in the weeds of trying to solve all your data problems at once and never actually delivering any value.”

Keeping Data Clean

Once your legacy data is clean, how do you ensure it stays clean, and that new data is clean going forward? Again, it goes back to understanding your overall goals for Big Data analytics.

Simplify Data

Make sure the data you’re collecting is what you need for analysis and you aren’t capturing irrelevant data based on past practices. This could mean simplifying the data you’re gathering, such as removing unnecessary fields. More isn’t always better. Adding fields and functions into software can reduce the timely analysis you’re looking to achieve.

Develop Data Gathering Policies

From what data to gather to the proper method of collecting data, consistency is key to data quality. Agree on the MDM data fields that are most important to your data analysis. This includes part numbers, model numbers, serial numbers, etc. Then use consistent tools or methods to collect that data. Automatic data capture systems, such as bar code labels and scanners, are the most reliable methods to capture data. These methods leave little room for error like manual data collection where it’s easy to miss fields or transpose numbers.

Identify Errors

Reviewing data allows you to identify common errors or pinpoint the areas where errors typically occur. Investigate and correct all data errors before they are entered into the system and develop your own policies and best practices to ensure the errors do not continue.

While many organizations have gotten by with messy, incomplete or incorrect data in the past, the push toward Big Data highlights the prerequisite for clean data first. If your organization is shifting toward the need for instantaneous data analysis, clean data is the fundamental first step. For assistance getting or maintaining clean data, contact Camcode.

The post You Can’t Have Big Data Without Clean Data appeared first on Asset Tag & UID Label Blog.

ScanSKU’s Android Barcode Scanner – Rugged M Series (1D & 2D) is the company’s flagship barcode scanner, offering rugged durability for holding up to the tough environments found in warehousing, retail floors, and even on-the-road use. It comes with an unlocked Android 5.1, meaning you can use it with nearly all Android-compatible apps and platforms. Because it runs on the widely-used Android operating system, it provides near-seamless adoption for users familiar with Android mobile devices.

ScanSKU also offers other barcode scanning options including the Android Barcode Scanner – Rugged M Series (1D) and the Wearable Ring Android Barcode Scanner- R Series. In this review, we’ll focus primarily on the Android Barcode Scanner – Rugged M Series (1D & 2D).

Applications and Typical Uses

The ScanSKU Android Barcode Scanner – Rugged M Series (1D & 2D) is designed for use in warehouse and retail environments, but it’s rugged and durable enough to be put to use on the road, as well. It’s used for standard functions such as pick/packing, POS, and invoicing and can also be used on the shop floor and off-site, providing the functionality and accessibility your team needs to provide accurate, real-time information across departments and to customers.

Scanning Capabilities

The ScanSKU Android Barcode Scanner – Rugged M Series (1D & 2D) is compatible with all 1D and 2D barcode technologies. It’s Wi-Fi-enabled so you can transmit data in an instant, and for extra storage needs, you can make use of the MicroSD card slot. It offers multiple scan settings, such as the ability to add prefixes and suffixes or to perform a particular keystroke after scanning (e.g. TAB or Enter).

Operating Systems and Software

The ScanSKU Android Barcode Scanner – Rugged M Series (1D & 2D) runs on the popular Android operating system, making onboarding users a breeze and offering a variety of integrations and compatibility with a variety of eCommerce, WMS and Asset Management software solutions, such as:

• WooCommerce
• Bigcommerce
• SKU Vault
• Invoice2go
• Top Shelf Scout
• And many others

All scanners come with the ScanSKU app, designed for stocktaking, already installed. Because this scanner operates on an open, unlocked Android, it works with virtually any Android-compatible app or service, and it comes equipped with popular Android apps including Google Play, Gmail, Facebook, and more, providing seamless access and easy integration with the tools and apps you already use and love. Click here for a full list of integrations.

Durability

ScanSKU scanners have a tough and rugged exterior to protect against damage from typical wear-and-tear as well as the common environmental conditions found in warehouses and on retail floors. It’s built tough to handle being knocked about on the shop floor or on the road, and it also comes equipped with an adjustable strap to attach the unit to the user’s hand, making users less likely to drop the device. A four-inch backlit screen is also built to last.

Additional Features and Functionality

The ScanSKU Android Barcode Scanner – Rugged M Series (1D & 2D) is the ideal size, offering the perfect balance of usability, functionality, and portability with dimensions of 52mm long, 77mm high and 29mm wide (20 x 15 x 10 cm; 7.9 x 5.9 x 3.9 in), and it weighs just 1.5 pounds (1.7 kg). In addition to its 1D and 2D scanning capabilities, the ScanSKU offers a number of other features and functions that make the device useful for much more than barcode scanning.

Key Features:

• Backlit LED touchscreen
• Ergonomic, hard-key keyboard, plus soft keys on the touchscreen
• Multiple scan buttons to suit individual user preferences
• Rear-facing, auto-focusing 5-megapixel camera to photograph damaged stock
• Removable battery
• Adjustable hand strap
• Sim and MicroSD slot for extra storage
• ARM Cortex-A53 64bit Quad-Core 1.3G. 2G RAM
• Storage temperature: —25C to 70C

Scanning Capabilities:

1D Supported Symbologies: All standard 1D barcodes.

2D Supported Symbologies: All standard 2D barcodes.

Built-In Software: The ScanSKU Android Barcode Scanner – Rugged M Series (1D & 2D) comes equipped with several standard Android apps plus the ScanSKU app already installed. It runs on the Android OS.

Software Compatibility: This barcode scanner is compatible with nearly any app or service compatible with the Android operating system, with integrations with many popular e-commerce and inventory apps.

Optional Accessories: Dock/Cradle for M Series Android Barcode Scanner (*Est. $60)

Cost: *Est. $605 (1D-only model: *Est. $555)

See more here: https://www.scansku.com/product/android-barcode-scanner-m-series-1d-2d/

Additional options from ScanSKU: https://www.scansku.com/product-category/android-mobile-computer-barcode-scanner/

The post ScanSKU Android Barcode Scanner- Rugged M Series (1D & 2D) Review appeared first on Asset Tag & UID Label Blog.

Technology is an ever-evolving and ever-influential part of our everyday lives – and it’s advancing so quickly that it can be difficult to predict what is coming next. This sentiment is particularly true regarding the fields of warehousing, distribution, and logistics. If you purchase, or influence purchases, within your operation, you’ve been well aware of the emergence of the “smart warehouse.” Once regarded as a buzzword, or even a far-fetched pipe dream, the smart warehouse is becoming a reality, backed by ready-to-purchase technologies that are changing the way warehouses do business.

Ostensibly, the world of smart warehousing can be a difficult one to navigate, especially once you take the time to consider the rate with which new products are being introduced to the market. That’s why we’ve dug through the most popular products and processes to bring to you the 7 must-have smart warehouse technologies:

1. Automated Picking Tools
2. Automatic Guided Vehicles (AGVs)
3. Automated Inventory Control Platforms
4. Warehouse Management Systems
5. Internet of Things (IoT) Implementation
6. Collaborative Robots (Cobots)
7. Automated Storage and Retrieval Systems (AS/RS)

Some of these you may have heard of, some you may have not. Read on to discover the value these new technologies can bring to your warehouse.

1.     Automated Picking Tools

Long gone are the days of error-riddled picking; now, warehouses can benefit from near-perfect picking rates when picking automation elements are integrated into the flow. There are a variety of different tools that can be used to boost picking procedures, such as voice automated order picking, robotic order picking, and pick-to-light. These technologies also make use of cutting-edge barcoding options that integrate seamlessly with your chosen management software for the fastest, most accurate automated reporting experiences.

2.     Automatic Guided Vehicles (AGVs)

There’s no better way to ramp up your storage and retrieval processes than to integrate automatic guided vehicles, otherwise known as AGVs, into your warehouse. The structural integrity of AGVs are evolving as technology moves forward, but even the models that have been on the market for some time have proven to be safer and yield a quicker ROI than manual labor. Some of their most important functions include pallet, rack, and other container storage, and even functions that control and automate the entire receiving process.

3. Automated Inventory Control Platforms

When used in conjunction with a handful of other technological mainstays, such as asset and inventory tags, automated inventory control platforms are implemented to take the labor, guesswork, and extraneous time out of traditional inventory control. To sweeten the deal, most of these platforms are built to automatically count the inventory and synthesize the data for fast, real-time, and ultra-accurate reporting that can be accessed remotely.

4. Warehouse Management Systems

Warehouse Management Systems, otherwise known as WMSs, are comprehensive software systems that wrangle all of your important data into one platform that can be easily accessed by internal players as well as any chosen members of your supply chain. This compartmentalizing of data makes for lightning-fast reporting which, when used tactfully, can mean uber-efficient planning, even for the scenarios that you didn’t see coming. All in all, the use of warehouse management – or warehouse execution – systems perfectly complements other automated elements.

5. Internet of Things (IoT) Implementation

The Internet of Things, or IoT, is more of an overarching concept than an individual technology, but it is regularly put into place in the world’s most effective smart warehouses. When IoT is utilized to control a plethora of moving parts, both automated and manual, it can optimize all of your processes so that their data lives in one, easy-to-access network. This helps to optimize a warehouse’s inventory control procedures, labor planning, and, of course, its overall customer experience through more rapid fulfillment rates.

6. Collaborative Robots (Cobots) 

We’ve spoken briefly about the benefits of fully autonomous and robotic technologies, but it’s not always feasible for every warehouse to immediately embrace such technology, especially considering that this implementation requires sizable funds and infrastructure changes. That’s why more and more warehouses are embracing collaborative robots, or cobots, autonomous elements that are built to work with your existing associates, not without them. Cobots allow warehouses to keep many of their processes and infrastructure design choices intact while still benefiting from the optimized workflow that fully autonomous elements provide.

7. Automated Storage and Retrieval Systems (AS/RS)

Automated storage and retrieval systems have been around for years, and though they have done their job of improving throughput and accuracy, they have often been regarded as being expensive, clunky, and generally inflexible. Having said that, today’s AS/RS’s are only getting sleeker and still tout all of their original benefits–reduced labor costs/restraints, modular possibilities, and, of course, increased accuracy.

You don’t need to complete a comprehensive overhaul of your warehouse to make it smarter and more efficient; instead, introduce the technologies that make sense for your business and all of its processes first. Then, you will see that any warehouse can become a “smart” warehouse.

The post 7 Smart Warehouse Technologies to Implement Today appeared first on Asset Tag & UID Label Blog.

Over the past decade, smart meter usage has sky-rocketed worldwide – and for good, reason, these handy, high-tech devices provide highly-accurate readings, automatically. The innovation serves as a valuable time and money-saving solution for utility companies, and with the elimination of estimated billing, smart meters also help to put customers’ minds at ease.

But, just because the popularity of these gas and energy measurement devices have been officially cemented as an ‘industry standard,’ doesn’t mean that one size – or model, rather – fits all. Let’s see why.

A Brief Overview of Today’s Smart Meter Trends

According to data published by Bloomberg New Energy Finance, smart meter usage is projected to quadruple worldwide by 2020, with China currently being the most prominent national user. In other regions of the world, most notably in Europe, smart meters are being utilized by regulatory bodies to monitor energy savings mandates. North America is trailing just behind but is also considered to be one of the more sophisticated markets as the technology has been used there, most notably in the United States, for longer.

These days, some investor-owned utility companies and small and/or underfunded municipalities are unable to take advantage of the technology as it does require large upfront investment. But, for the utility companies that are able to make the investment, smart meters and the benefits that come with them (i.e., automated data collection, reporting, network operation, and archiving), help to save plenty of money in the long run.

What You Should be Looking for in a Smart Meter

As with most cutting-edge tech, the magic of the smart meter lies less in the physical device itself and more in its connectivity capabilities. Because sensitive information will be delivered automatically, using the meter as a display vessel, of sorts, it’s important that it is capable of maintaining both consistencies, as well as iron-clad privacy. Due to these requirements, utility companies should first ensure that all smart meters include physical and communicative features like these:

• Low power usage: Smart meters that are equipped with low power usage technology are the way to go. Not only does the feature help the environment, it also asks less of the utility company as it usually lengthens the device’s battery life and also decreases maintenance requirements.
• Life cycle: Generally speaking, most smart meters last the user about a decade or so. Depending upon the part of the world in which the meter is purchased and installed, an official guarantee of longevity is required by governing bodies. Take the steps necessary to ensure that your smart meter purchase comes with all of the necessary paperwork to meet your municipal’s guidelines.
• Size and form factor of supporting technology: Investing in a specific model of smart meter isn’t a ‘one and done’ process; you must also ensure that its technology is supported by a size and form factor that can be used across all of your systems and markets.
• Security: Once you implement adjoining software for the smart meter data, also take the necessary steps to ensure that the device’s hardware components are also secure. As models differ, this is a fitting inquiry to make to the smart meter manufacturer.
• Easy-to-update software: And, speaking of software, if the smart meter comes with built-in software, ask the manufacturer about the labor required for updates and upgrades, especially if you have future plans for complex expansion.
• Support: Your chosen smart meter provider should provide a support package option that fits your ongoing needs. This is particularly important as in-home technology continues to innovate into the future.

Different Models of Smart Meters

Currently, there are three different types of smart meters available, each of which is designed to support different levels of energy consumption and usage. Here are the different models, according to Enemalta:

• GISM (230v): This model is known as a ‘single-phase’ smart meter.
• GIST (3*230/400v): This model is known as a ‘three-phase’ smart meter.
• GISS: This is a specialized meter that is installed only for heavy-usage customers.

Ostensibly, the model of meter selected should be suggested by your supplier based on your customer base. In most cases, utility companies will require a mixture of all three types – GISM, GIST, and GISS – depending on the demographics of their specific service area.

While there may not be a notable amount of diversity when it comes to smart meter types, with the similar global longevity policies in place, it’s the adjoining technologies that support them that should be paid the most attention. Make sure that your smart meter supplier is one that is security and support-focused, and always keep in them in the loop about any and all of your expansion-related goals. The key to selecting the right smart meter is to ensure that you give it the chance to stay reliable well into the future.

The post How to Choose the Right Smart Meter appeared first on Asset Tag & UID Label Blog.

One of the hottest political and social topics shaping American culture today is none other than gun safety, particularly it’s adjoining refuge or threat (depending on which side you are on), gun control. Obviously, the debate wasn’t created in a vacuum, the often-vitriolic discussion has emerged in response to the frequent acts of violence and terror, made possible by the wide legal — and illegal — availability of firearms in the United States.

Though statistics on acts of violence committed by individuals who illegally possess firearms remains sketchy (federal data hasn’t been compiled on the topic since 2004), we do know that the United States, along with Guatemala, Venezuela, Colombia, Mexico, and Brazil, make for more than half of gun-related deaths worldwide. Of that statistic, the United States accounts for 14.8% of the world’s gun deaths, the most heavily-reported being school shootings and other acts of terrorism on civilians. Tack that onto the roughly 500 accidental shooting deaths per year, the need for action is a critical one.

While gun safety and, even more so, gun control, inspires arguments that often don’t bring about solutions, there is a group of forward-thinking firms that, through the use of innovative technology, are presenting both sides with a useful middle ground. This resolution is coming to life in what are known as smart guns or smart gun securities, including tech-equipped weapons and/or weapons accessories that help guarantee that firearms can only be used by their rightful, legal owners.

Still, there’s a heated debate about the usefulness and safety of such technologies. On one side of the argument are those who believe these innovations could both safe lives and reinvigorate an industry that has been so mired by political unknowns and negative press. On the other, opponents point out flaws in technologies and argue that addressing the availability of firearms should be prioritized over introducing new technologies. In this guide, we’ll examine smart guns and smart gun security technologies, their potential benefits, the progression of tracking technologies and tracking initiatives, and current regulations.

In this guide, we’ll discuss:

• A Definition of Smart Guns and Smart Gun Security
• Benefits of Smart Guns and Smart Gun Security
• How Smart Gun Security is Being Used in 2019 — and How it Will Be Used in the Future
• Current Leaders in Smart Gun Security Innovation
• The Progression of Security and Tracking Technologies
• U.S. Department of Defense Tracking Initiatives
• Legislation and Political Buzz Surrounding Smart Gun Security
• Additional Resources on Smart Gun Security

A Definition of Smart Guns and Smart Gun Security

Screenshot via Yardarm Technologies

According to smart guns legal advocate Giffords Law Center to Prevent Gun Violence, smart guns are “personalized firearms [that] offer essential, lifesaving protections against the unauthorized use of firearms.” For the sake of inclusivity, smart gun technology, in addition to physical firearms, also include devices like locks and safes that employ high-tech, tracking methods with RFID and barcoding elements. This technology is put into place to keep weapons away from those who haven’t been authorized to use them.

The way smart guns and smart gun security technology works, in a nutshell, is by providing three commands, via The Engineering Projects:

1. Identification of authorized shooters
2. Authenticating the credentials of the person handling the gun and/or its attached accessories
3. Once, cleared, the subsequent release of the ‘locked’ firearm

In order to achieve these three steps, smart gun designers and manufacturers are making use of wireless RFID readers which are built into the gun or the gun’s accessories. Once the gun is handled, an embedded code signals, searching for a predetermined match via biometrics (like fingerprints), a code, a token, etc. If a match is recognized, the gun’s electromechanical parts are released, thus granting it access to its rightful owner and operator.

As of today, many smart guns are assembled with an RFID chip that communicates with a ‘token’ that the owner wears, such as a ring or bracelet. Typically, the gun will be locked and unable to access unless the token, communicating with the embedded code, is within several inches or feet of it.

You can think of this RFID technology as an invisible ‘lock’ or ‘safety net’ atop of the weapon. For all intents and purposes, if the rightful owner of the weapon is not holding it or within close range of it, the likelihood that it will be fired is greatly diminished.

Benefits of Smart Guns and Smart Gun Security

Screenshot via Statista

The benefits of smart guns and smart gun security are numerous, particularly when it comes to the topics of general safety and anti-theft protection. Giffords Law Center lists its key reasons as:

• Protecting children from unintentional shootings (as a deterrent for children who accidentally get their hands on dangerous firearms)
• Stopping teen suicides
• Preventing assaults with stolen guns (roughly 500,000 guns are stolen each year and 10-15% of those are later used in a crime)

In terms of anti-theft benefits, the sturdiest examples of RFIDs can also employ GPS to track the firearm at all times. Similar to the ‘Find My iPhone’ feature built into iPhones, some smart guns, like GunGuardian’s Hybrid Trigger Shield (HTS), can also do the same.

Taking a more off-beat approach to the issue, some experts think that availability of smart guns might actually rev up the firearm industry as a whole, thus stimulating the entire economy. In 2018, the United States firearm industry saw a 6.1% slump in revenue, what industry insiders refer to as the ‘Trump Slump’ due to President Trump’s pro-firearm agenda and very public backing by the NRA.

Over the past decade, gun sales have experienced powerful highs and lows that are mostly attributed by economists to leadership interests. As we move into 2020, we face a world of political unknowns. If Americans decide to make a change to a candidate whose platform focuses on stauncher firearm regulations, RFID-powered smart guns could be the middle ground that appeases both sides.

How Smart Gun Security is Being Used in 2019 — and How it Will Be Used in the Future

Screenshot via Smart Tech Challenges Foundation

Smart gun technology has been on the public’s radar for more than two decades, but, due to a long list of political, financial, and technical factors, its evolution has gone slower than once projected. That’s not to say that there’s not support for it, particularly among gun owners. The Smart Tech Challenges Foundation reports that, in a 2019 national market survey of gun owners, 85% of respondents said they feel the decision to purchase a gun equipped with smart technology should be the consumer’s choice. More than half (54%) of those familiar with smart gun technology said they’d probably or definitely purchase it; that figure rises to 65% among households with children. More than two-thirds of respondents (67%) said that safely securing and storing their firearms is extremely important, while nearly all said it’s at least somewhat important.

Despite the support for smart gun safety technology among gun owners, the Smart Tech Challenges Foundation says that innovation in this area has been stagnant for several decades. It’s safe to say that the smart gun market is still in its ‘Wild West’ phase, in a sense, specifically due to the fact that some of the nation’s largest gun manufacturers have pulled their support from the crusade. Most notably Sturm, Ruger & Co, and American Outdoor Brands (AOBC), the parent company of Smith & Wesson, have ceased to invest in integrating smart guns into their brands. Though their reasons behind the decision haven’t been spoken about at length, many experts feel that the lack of involvement is politically-motivated.

Whatever their reasons for pulling out may be, that hasn’t stopped lesser-known firms from innovating and providing the latest gun safety technologies to the public. Presently, consumers can purchase smart guns that are powered with some (or all) of the following features:

• GPS tracking capabilities
• Motion-activated tampering alerts
• Long-lasting CR2 batteries
• Bluetooth connectivity
• Built-in RFID chip
• Customized locking units
• Smart guns boxes powered by Bluetooth, RFID, and biometric scanners

These smart guns are marketed to a range of groups and individuals, including the hobbyist gun owner, all the way up to police departments and military entities. Depending upon the gun’s use and buyer, the features might be customized based upon their specific security needs.

Looking into the future, biometric technology is one of the most anticipated features. Currently, this technology has yet to make a widespread mark on the industry, but it is being made possible and available by several smart gun pioneers, including SGTi, Sentinl, and Biofire.

In addition to biometrics, smart guns, just like any other device equipped with Bluetooth, RFID, and biometric scanning capabilities, will evolve along with the rest of technology. Though access methods and lines may vary, speed, efficiency, privacy, safety, and new features in smart guns will keep up to follow emerging trends.

Current Leaders in Smart Gun Security Innovation

Screenshot via Biofire

As mentioned, most of the major players in the firearms industry dropped their support and investments in the technology in 2016, when then-President Obama made an official smart gun push, introducing them into the gun reform discussion. Right around this time, the prominent Silicon Valley smart gun technology innovators who were, at one time skittish about taking part in the gun industry, experienced a seismic stall. This is often attributed to the aforementioned “smart gun push,” which is reported to have scared the larger gun manufacturers into believing that gun ownership laws would shift solely to require the adoption of smart gun technologies.

Whatever the case may be, through this controversy emerged a small yet mighty group of smart gun innovators. Here are some of the most influential:

• Biofire
• SAAR Corp
• LodeStar
• Yardarm Technologies
• Zore Gun Locks
• Simtek Sensors
• Sentinl (Identilock)
• The Gun Box
• iGun Technology
• GunGuardian

The Progression of Security and Tracking Technologies

As highlighted, RFID, Bluetooth, and a range of biometric technologies have served as the most practical features of the first smart guns. Currently, the scanning capabilities allow for the guns to fulfill their missions of providing safety and security, as well as tracking.

With RFID-powered smart guns, the user is able to control who gets their hands on the firearm by a token system made possible with passive RFID chips. Passive RFID chips, otherwise known as short-range RFID chips, are powered by electromagnetic induction, eliminating the need for batteries.

As with most high-tech equipment, there exists a similar fear about privacy when it comes to smart gun tracking, specifically whether the user might be tracked via its built-in Bluetooth and GPS capabilities. Facing this issue, some have identified the implementation of blockchain technology.

Blockchain could help facilitate background checks using serial numbers by keeping a current roster of the purchase lists. In theory, if someone were to be added or removed to the list, the powers that be would be able to easily track the individuals, as well as their firearms.

U.S. Department of Defense Tracking Initiatives

Screenshot via Vision of Humanity

The U.S. Department of Defense (DoD) also faces challenges regarding the safety and accessibility of guns and other weapons, but on a much larger scale. The DoD and other world leaders are fighting a continued battle against terror. With the global terrorism threat expected to remain high over the next decade, preventing terrorists from gaining access to military assets and technologies, including weapons and ammunition, remains a priority. Theft and diversion of these assets remains a challenge due to the complexity of the threat landscape and the various theft and diversion means terrorist groups and individuals employ.

Many nations have laws that govern the control of firearms and ammunition, including trade and export regulations to control the export of goods based on the nature and destination of the materials. One example is the United Kingdom’s Firearms Act 1968. Nations also use sanctions, which block assets held by terrorists. In the United States, the DoD requires UID marking for all military equipment and parts, but other nations have their own traceability requirements.

On a global scale, the Arms Trade Treaty (ATT) is the first international trade treaty that aims to regulate the international trade of conventional arms. The ATT addresses tracking measures, and other current marking standards exist for firearms, ammunition, and other materials, but there is no single, internationally recognized regulatory framework for consistent marking standards.

An international framework, using barcodes, would support effective tracking of weapons, ammunition, and other assets often sought by terrorist groups. A barcode tracking framework enables the use of check-in/check-out procedures, providing a clear, auditable chain of custody to increase accountability. Weapons and other supplies can be traced back to the last known point of possession, allowing for the identification of possible corruption or weak points in the security chain. Barcodes also deter theft and diversion, warning potential perpetrators that the items are traceable. Even if clearly marked and labeled supplies don’t deter a theft, items labeled with barcodes later seized from weapons caches or during arrests or raids can be easily traced back to the point of origin and the last known point of legitimate custody, also allowing authorities to identify weak security points and corruption.

U.S. Legislation and Political Buzz Surrounding Smart Gun Security

Screenshot via Giffords Law Center

Currently, the Consumer Product Safety Commission (CPSC) excludes firearms and ammunitions. Background checks are required to purchase firearms in the United States, and firearm sales are subject to other regulations, as well. Exports are regulated by the U.S. Department of State (DOS), Directorate of Defense Trade Controls (DDTC). Specifically, “The export of shotguns and buckshot is controlled under the Bureau of Industry and Security’s (BIS), Export Administration Regulations (EAR). The exportation of firearms are controlled under the International Traffic in Arms Regulations (ITAR) and the EAR,” explains U.S. Customs and Border Protection.

However, no legislation exists on a federal level that addresses smart gun technologies. Firearm legislation is an ongoing hot-button debate in the political landscape, with many supporting stricter regulations related to the types of weapons accessible to the general public as well as the requirements for purchasing firearms. In this landscape, trends in firearms can easily be sparked by public interest groups upon the mere mention of possible legislation.

Considering smart gun technology on a more micro-level, there is a bit more diversity seen within state politics. Giffords Law Center says that, as of today, there are three states that address personalized gun technology — Maryland, New Jersey, and Massachusetts.

• Maryland – In this state, there are measures in place to ensure that a personalized hand gun (i.e., smart gun) doesn’t end up in any hands other than the owner’s and that all of its standard safety features must remain intact. Maryland’s Handgun Roster Board is required to review the technology and report findings back to the governor’s office.
• New Jersey – New Jersey was the very first state to lead the smart gun crusade back in 2002, when it adopted a law which would eventually require all smart handguns sold in the state to have smart technology. Once enough smart guns are available to purchase in New Jersey (the process is not necessarily a concrete one), it will be a few short years until standard handguns are considered unlawful.
• Massachusetts – In its handgun bylaws, Massachusetts makes mention of smart guns being proper alternatives to locking devices. (Currently, every handgun sold in the state must be purchased with a complementary locking device.)

Since politicians working at both the state and federal level are slow to agree upon smart gun legislation, it is up to the consumer to invest in — and reap the rewards of — this cutting-edge safety technology.

Additional Resources on Smart Gun Security

For more information on the smart gun security industry and its technologies, visit the following resources:

• Why Don’t We Have Live-Saving Smart Guns Yet
• Personalized Firearms and Electronic Safety Devices: Perspectives
• New Report Details the Opportunity for Gun Safety Technology to Save Lives and Make Deadly Weapons Far More Secure
• Smart-Gun Advocates: Don’t Worry About Hacked Firearms
• Triggered with A Fingerprint: Will Smart Guns Finally Get Their Shot?
• Gun Tech: Startups Working to Make Firearms Smarter and Safer
• What Makes a Smart Gun ‘Smart’?
• Smart Guns: How Close Are We Really?
• This is How We Save Lives from Gun Violence?
• Innovators Pitch Law Enforcement on the Latest Smart Guns

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When it comes to advancements in gun technology, many have been tied into an endless string of arguments from all sides of the gun control debate, especially in recent years. If and how new technology can be applied to make guns safer and more reliable is a constant part of the discussion. One of the most visible applications for smart gun technology is the very firearms carried by law enforcement. As body cameras become increasingly standard, the visibility into police procedures is under constant review by professionals, as well as the general public.

But even with this amount of attention, the path toward federal smart gun regulations for law enforcement has been a series of steps forward and backwards. That said, there are some underlying trends that show several potential areas of movement in the legislation of smart guns for police officers.

What are Smart Guns?

Smart guns are defined as any firearm that uses technology to prevent anyone but the authorized user from firing the weapon. They can also be referred to as “personalized” or “owner-authorized” guns. There are two primary types of technology applied to smart guns at this time: token-based, typically using passive RFID, and biometric technology. The token-based systems use an external device, such as a ring, to trigger the gun to fire. These devices typically use magnetic or radio frequency waves for communication or, in some cases, a mechanical key-like device can be used. Biometric technologies use sensors to detect the fingerprints or the grip of the owner and authorize the gun to fire. In some cases, smart guns can be set to authorize multiple users to access a single weapon.

Smart Gun Trends and Debate

Using any type of technology as a security check for a weapon can be a challenge. Gloves or dirty fingers can interfere with biometrics, and magnets could be used to crack some token-based devices. There have also been some concerns about the lack of firepower available for models equipped with smart gun technology. The main issue here is not that these challenges exist, but that they could interfere with law enforcement’s ability to act in an urgent situation.

Before any new technology is implemented in the field, it would need to be thoroughly tested and proven reliable. This is where the real challenge lies to date. The gun rights debate has stalled attempts to develop partnerships and perform testing and development of smart gun technologies. With the National Rifle Association (NRA) being openly skeptical of smart gun technology and with so much influence over the industry, a lack of meaningful direction has left the industry without a clear roadmap.

Smart Gun Use in Law Enforcement

With some of the challenges mentioned above regarding the capability of smart gun technology and the ongoing debate over regulations and rights, exactly how they could be implemented by law enforcement remains an open question.

Politics aside, one very clear potential subset of law enforcement that smart gun manufacturers are targeting is plain-clothed officers. These officers typically do not have the usual safety holsters typical of standard police gear, which could leave them more vulnerable to unauthorized access. The implementation could offer a discreet and practical mechanism for protection. Some gun control groups have advocated for law enforcement agencies to take the lead in pushing for smart gun technology, while others have pushed back citing the lack of proven technology at the front line.

Regulations & the Future of Smart Gun Technology

There have been several laws enacted over time aimed to protect law enforcement officers, such as the 2004 federal Law Enforcement Officers Safety Act (LEOSA). The LEOSA grants the right to carry concealed firearms at all times to both current and retired officers. While there are long-standing regulations related to the export of firearms and other defense-related materials, such as ITAR, there has been a lack of formal smart gun legislation, despite plenty of debate and proposals. In recent years, there has been a push at the federal level to standardize smart gun technology. The National Institute of Justice (NIJ), a division of the Department of Justice, released a report in 2016 with specifications for smart gun technology with guidance for manufacturers, government offices, and firearm users to reference.

There is no doubt that the gun control debate will continue well on into the future, but there are some signs that technology is catching up with expectations. With growing awareness about smart gun technology from the public, government officials, and law enforcement agencies, there now exist more and more opportunities for smart gun technology to flourish. Over time, smart guns could someday become a standard in the firearm manufacturing industry.

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The standardization of labeling and identification requirements for shipments is becoming increasingly important across all industries as warehouse automation and software integrations continue to connect critical aspects of the supply chain. Particularly for the military industry, there has been a recent, aggressive push to adopt the latest in technology while, at the same time, provide guidance and additional requirements for its use in the logistics loop. 

With the growing adoption of Radio Frequency Identification (RFID) tags, the U.S. Department of Defense (DoD) has released specific requirements for their use within the defense sector. One particularly important regulation that military subcontractors and suppliers need to be aware of is DFARS 252.211-7006, a clause which impacts the practice of passive RFID tagging. This post will explain what these requirements are and how they fit into the overall labeling procedures for certain types of material military shipments.

A Definition of DFARS 252.211 7006

The Defense Acquisition Regulations Supplement (DFARS) is a series of requirements maintained by the U.S. Department of Defense that government acquisition officers and third-party contractors must follow in procuring military goods and services. One of these requirements is DFAR 252.211-7006, which pertains to passive radio frequency identification. 

Who Must Follow This Requirement?

Suppliers who have a contract with the DoD are the ones who most often deal with this requirement. In particular, the suppliers who have a written agreement or contract which contains the DFARS 252.211-7006 clause or which specifically requires RFID tags must affix them to the bulk package (case and palletized units). DFARS stipulations apply when the following requirements are met:

• The shipped item falls into one of the following categories:
  • Subclass of Class I – Packaged operational rations.
  • Class II – Clothing, individual equipment, tentage, organizational tool kits, hand tools, and administrative and housekeeping supplies and equipment.
  • Class IIIP – Packaged petroleum, lubricants, oils, preservatives, chemicals, and additives.
  •  Class IV – Construction and barrier materials.
  • Class VI – Personal demand items (non-military sales items).
  • Subclass of Class VIII – Medical materials (excluding pharmaceuticals, biologicals, and reagents – suppliers should limit the mixing of excluded and non-excluded materials).
  • Class IX – Repair parts and components including kits, assemblies and subassemblies, reparable and consumable items required for maintenance support of all equipment, excluding medical-peculiar repair parts.
• The item is being shipped to an RFID-enabled location, a location outside the U.S which is assigned Transportation Priority 1, or to a location deemed necessary for RFID in your contract.  
• There are exceptions made for bulk commodities and for certain shipment locations that include the clause at FAR 52.213-1 for fast payment procedures. 

Although the above requirements have been carefully set by the DoD, it should be noted that they may shift in unique situations, such as uncommon or potentially dangerous goods. If a supplier finds itself in this situation, special stipulations must be agreed upon and included in the contract.

Passive RFID Tag Placement

For required shipments, contractors must affix a readable passive RFID tag on each specific level of package at the appropriate location. The specifications for tag placement are defined in Section 4.9.2 of MIL-STD-129. Data encoded on each tag must be globally unique (meaning never repeated on two or more tags) and be programmed in accordance with the EPC Tag Data Standards. 

Special Tag Programming Identifiers

There are two tag identifiers that are accepted for shipments. If the contract subscribes to EPCglobal and has a unique EPC company prefix, they may use any identifiers described in the EPC Tag Data Standards and follow those instructions. Contractors who use the DoD identifier must use its previously assigned Commercial and Government Entity (CAGE) code and follow the instructions in the DoD Suppliers’ Passive RFID Information Guide. If contractors utilize a third party to encode their RFID tags, the CAGE code of that supplier is acceptable. 

Advance Shipment Notices

Contractors must use Wide Area WorkFlow (WAWF), as required by DFARS 252.232-7003, to electronically submit an advance shipment notice (ASN) with the associated RFID tag ID(s) listed or other item unique identification (IUID) information, including information such as a product description, the physical characteristics of the product, the type of packaging and markings used, carrier information, and other details. 

For additional details about the specific procedures to be used, you can consult the WAWF website. It is very important to ensure that this ASN is submitted before the shipment arrives at the depot for processing. Otherwise, the RFID tag(s) cannot be read and will be flagged as non-compliant. 

Complying with the many regulations for unique item identification and item tracking requires implementing clear, comprehensive processes and procedures. Camcode offers customized UID compliance services, including data management for your Unique Item Identifiers (UIIs), IUID registration with WAWF, and other services to help you meet the requirements of MIL-STD-130 and other military standards. With more than 60 years of experience in defense labeling and automatic identification technology, our experienced staff can guide you through your UID project to ensure accurate and unique identification for every item.

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In the ever-evolving world of inventory management, there’s a constant focus on improving efficiency. Companies of all sizes are regularly evaluating their current capabilities and finding ways to squeeze as much efficiency as possible out of their existing infrastructure while preparing to adopt new technologies that can take their performance to new levels. It is as important as ever for operations management to do the due diligence of thorough research and a proper ROI analysis to fully understand the impact that any change could have on their entire operation.

One emerging technology that has received a lot of attention with the potential to revolutionize the inventory management industry is radio-frequency identification (RFID). This article will explore the current state of RFID tag usage, including pros and cons, and some insights on their utility versus the leading solution for asset tracking and inventory management: barcode labels.

A Definition of RFID Tags

The use of RFID for inventory management requires a scanner which uses radio waves to communicate with an RFID tag. The tag itself contains a microchip which allows the reader to read data and also write data to the tag for real-time updating in place. Each tag is wrapped in a material like plastic or paper for protection and can be affixed to a variety of surfaces for tracking. Most tags used for inventory tracking are passive RFID tags, meaning they contain no battery and are powered by the waves from the readers.  Active tags are powered, come at a higher cost, and are used for long-range tracking of machinery such as trucks and railway cars.

Pros in Using RFID Tags for Inventory Management

Using RFID tags for inventory management offers several benefits, such as reduced labor costs and faster scanning. Here’s a look at how RFID tags can be a benefit in the inventory management process.

• Improved visibility and faster scanning. Since RFID tags do not require a “line-of-sight” scan like barcodes, it is possible to read them at a distance for fast inventory processing. They can also be read in any orientation and give you improved visibility into your inventory with the potential for more frequent updates and scanning locations.
• Reduced labor costs. With labor costs accounting for as much as 50-80% of distribution center costs, RFID offers potential benefits in this area. Inventory check-in, counting, and shipment verification can be done very quickly and automatically in a few scans without the need for multiple employees to process them. These savings must be weighed against the cost of investing in an RFID inventory solution, which we’ll discuss in more detail below.
• Tracking of returnable assets. For those companies that utilize a returnable fleet of assets such as containers and pallets, there is often a significant capital investment to protect. Utilizing RFID allows you to track these assets through the entire supply chain loop and provide increased visibility on inventory locations. This has the added benefit of improving returns and reducing theft or neglect.

Cons in Using RFID Tags for Inventory Management

While there are some benefits of using RFID tags for inventory management, the technology also comes with several disadvantages that hinder usability and introduce other concerns, such as security. Here’s a look at the distinct disadvantages of using RFID tags for inventory management.

• Inability to use cell phones as scanners. Even though there are fixed and remote RFID readers available, it is not possible to use a phone to scan them, as can be done with barcodes. This is especially limiting as it requires drivers or employees in the field to carry specific RFID readers to do any scans, and phones cannot be used as a backup if the provided readers fail.
• Prohibitive costs when scaling. RFID tags cost significantly more than barcode labels. In addition, they utilize specific readers that must be purchased from the limited number of RFID equipment manufacturers. This can add significant costs when scaling these solutions with the requirement for additional specialized scanners and RFID tags.
• Demanding infrastructure needs. Setup for these systems requires integration of the readers, tags, inventory management system, network, and building wiring that can take a significant amount of time and resources to set up.  In some cases, companies may need to update their inventory management system entirely, as some software platforms do not support RFID. Also, if real-time asset tracking is required, the RFID-enabled system will need to utilize GPS and cellular data to communicate, which can put a significant burden on your system.
• Security concerns. While RFID systems continue to update and improve their data security, they can still be vulnerable to hacking. Remote devices, including cell phones, can sometimes be used to scan tags at close range and copy tag data.  This could later be used to create a cloned tag or copy the information to another tag, a risk of particular concern in the retail industry.

While the use of RFID tags in inventory management offers some compelling and tangible benefits, there are is a great deal of work to be done to streamline these systems. Much of the challenge involves scaling this solution in a cost-effective way while updating infrastructure enough to be able to capitalize on its greatest benefits.

RFID Tags vs. Barcode Labels for Inventory Management

RFID can be useful for some applications, but for most companies looking for an accurate, user-friendly, and cost-effective solution for inventory management, barcode labels are a proven and trusted solution. Some barcode labels, such as Camcode’s Metalphoto® inventory tags, are durable enough to withstand harsh environments in both indoor and outdoor applications and offer excellent resistance to chemicals, solvents, and abrasion.

Compared to RFID tags, barcodes are just as accurate – if not better, and they can be affixed to any surface material without impacting accuracy. In contrast, materials like metal can interfere with an RFID tag’s ability to transmit data, and liquid can hinder an RFID tag’s signal. While it’s possible to use RFID tags on metal surfaces or items, it requires the use of a special type of tag with an RFID block to prevent interference, adding to the overall cost.

For companies looking to adopt an inventory tracking solution, it’s important to conduct a thorough analysis of the differences between established technologies such as barcode labels and tags designed for inventory control and newer solutions like RFID to ensure that you will achieve a desirable ROI for your investment. For most companies, barcode labels are the smart and practical choice for inventory management.

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Technology is an ever-evolving and ever-influential part of our everyday lives – and it’s advancing so quickly that it can be difficult to predict what is coming next. This sentiment is particularly true regarding the fields of warehousing, distribution, and logistics. If you purchase, or influence purchases, within your operation, you’ve been well aware of …

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The standardization of labeling and identification requirements for shipments is becoming increasingly important across all industries as warehouse automation and software integrations continue to connect critical aspects of the supply chain. Particularly for the military industry, there has been a recent, aggressive push to adopt the latest in technology while, at the same time, provide …

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The post What is DFARS 252.211 7006? appeared first on Camcode.

In the ever-evolving world of inventory management, there’s a constant focus on improving efficiency. Companies of all sizes are regularly evaluating their current capabilities and finding ways to squeeze as much efficiency as possible out of their existing infrastructure while preparing to adopt new technologies that can take their performance to new levels. It is …

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The post Using RFID for Inventory Management: Pros and Cons appeared first on Camcode.

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When it comes to advancements in gun technology, many have been tied into an endless string of arguments from all sides of the gun control debate, especially in recent years. If and how new technology can be applied to make guns safer and more reliable is a constant part of the discussion. One of the …

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