Supply chain visibility is universally agreed upon to be a must-have in the modern enterprise. From tracking when a product leaves a warehouse to final delivery at the customer’s doorstep, real-time updates through the supply chain add value to the customer, as well as ecosystem partners. However, another aspect of the supply chain that needs real-time tracking software services is yard management. Yard Management Systems (YMSs) are the answer, as they provide real-time or near real-time visibility into various trailer activities within a warehouse, dock, or other logistical stop points. From there, the system can automatically schedule pickups/deliveries and allocate assets, such as trailers, trucks, and equipment. The end result is more efficient workflows and data-driven decision-making.
ABI Research recently released its Yard Management Systems competitive ranking to assess the top companies providing YMS hardware solutions and software services. In the report, we identified several key trends shaping this growing industry, as well as the product features that should be prioritized in a YMS solution. Finally, this blog post will list the top four most innovative suppliers of YMSs to help you gauge the current market.
Yard Management Trends
Historically, logistics operators have relied on manual gatekeeping, documentation, inventory management, and asset tracking for yard management. This approach is outdated, and as a result, roughly 80% of transportation delays are borne out of inefficiencies in yard management. As supply chain networks become more complex and global e-commerce demand continues to soar, shipping delays will only become more frequent and longer without automated technologies.
Yard management systems have taken a back seat for some time now, with enterprises prioritizing other software like Warehouse Management Systems (WMSs), Transport Management Systems (TMSs), and Enterprise Resource Planning (ERP) solutions. A 2021 survey from FourKites found that only 1 in 4 supply chain professionals say their company has adopted a YMS. However, this trend is beginning to change, with ABI Research forecasting YMS revenue to eclipse the US$3 billion mark by the end of the decade. We assess that manufacturers, retailers, and food & beverage companies will be the biggest adopters of automated yard management systems. Adopters of YMSs are motivated to combat various supply chain challenges, such as the growing complexity of distribution center networks, industry worker shortages, lack of asset visibility on-site, and the need for system foundations to support further technology adoption.
Right now, Application Programmable Interfaces (APIs) and interoperability are the key focus for YMS vendors. This is due to the fact that enterprises do not want to invest in technology that will create yet another data silo within their operations. APIs and interoperability ensure smooth compatibility between yard management data and other industrial software/applications. It’s paramount that YMS solutions leverage asset tracking hardware that generates real-time data feeds to a user interface for informative insights into yard processes. This is in tandem with data collection from other technologies automating manual yard processes, such as outdoor mobile robots or Automated Guided Vehicles (AGVs).
Yard Management Challenges
Some of the biggest challenges in yard management are lack of asset visibility, lengthy dwell times, yard jockey inefficiency, yard congestion, and yard safety. This section brushes upon these challenges, including causes and the effects on logistics.
Lack of Asset Visibility
The inability to locate and manage inventory is a widespread problem throughout the yard management industry, especially in larger warehouse yards. Time is money, so when yard jockeys are spending time locating the right trailer, inventory, or equipment, this takes time away from more important tasks. A lack of asset visibility can also cause tension with customers/clients because it can lead to unsatisfactory yard service for carriers, as well as potential loss or spoilage of products.
Lengthy Dwell Times at Ports/Warehouses
If cargo containers are stored at a holding place (terminal or gate) longer than the agreed-upon time frame, this results in detention and demurrage fees. Often, this delay is caused by poor yard management at seaports, warehouses, distribution centers, etc.
Given recent global supply chain disruptions, the average detention and demurrage fees have increased globally, with shipping delays at U.S. ports being the most expensive. When enterprises are faced with this yard management challenge, the costs get passed down to the consumer.
Yard Jockey Inefficiency
Yard jockeys are key employees in logistics, responsible for a variety of tasks, such as moving trailers within yards using terminal tractors, inspecting containers, managing equipment, assisting with docking operations, and performing preventative maintenance. When facing demand fluctuation, labor shortages, and poor weather, yard jockey efficiency can suddenly be adversely impacted. As supply chains become more complex, this yard management problem will only become more severe. This makes digitalization technologies, such as a YMS, more relevant than ever.
Yard Congestion
Another challenge in yard management is congestion, which means transport vehicles are not being processed on time. A seamless flow of vehicle check-in/checkout is crucial to ensuring delivery windows are met, not to mention minimizing the carbon emissions from trailers/trucks sitting idle.
It’s reported that 4 out of 5 transportation delays occur when trailers and containers are at distribution centers and manufacturing plants. This translates to millions in lost revenue due to a lack of operational efficiency and unhappy supply chain partners and end customers.
Overcoming this challenge is even more important when a yard is already operating at full capacity. Any logistics delay will make it difficult to scale during peak times.
Yard Safety
Accidents can easily occur in yards, given all the trucks, jockeys, trailers, and heavy equipment constantly moving around in a cramped area. Adding to this, there are blind spots and obstacles that can make the safe maneuvering of vehicles all the more challenging. Accidents can be mitigated through training yard workers on safety best practices, but what do you do about outside drivers entering and leaving your yard? A key focus for yard managers now is to find ways to educate external drivers on safety procedures.
What to Look for in a YMS
This section pinpoints the product features of a YMS that supply chain and logistics managers should seek.
However, you can watch the YouTube video below for a quicker summary.
System Compatibility
As a logistics operator, it’s important to have a yard management system that functions well with your yard size and type (rail, multi-modal yards, etc.). System compatibility also means the YMS can be deployed across multiple sites you are operating and functions with existing or newly leveraged technologies.
Körber is a good example of a YMS supplier that accounts for yard sizes/types and supports multi-modal operations.
Table 1: Number of Yards by Type of Facility
World Markets: 2022 to 2030
(Source: ABI Research)
|
Distribution Center & Storage Warehouse Yards |
Units |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
CAGR 22-30 |
|
Europe |
(Actual) |
24,126 |
25,134 |
26,238 |
27,219 |
28,213 |
29,212 |
30,226 |
31,276 |
32,362 |
3.7% |
|
Latin America |
(Actual) |
12,395 |
13,035 |
13,676 |
14,282 |
14,889 |
15,496 |
16,134 |
16,799 |
17,490 |
4.4% |
|
Middle East & Africa |
(Actual) |
11,796 |
12,483 |
13,223 |
13,865 |
14,518 |
15,173 |
15,873 |
16,605 |
17,371 |
5.0% |
|
North America |
(Actual) |
25,468 |
26,503 |
27,566 |
28,574 |
29,587 |
30,601 |
31,629 |
32,692 |
33,790 |
3.6% |
|
Asia-Pacific |
(Actual) |
79,284 |
85,227 |
91,593 |
97,210 |
102,903 |
108,623 |
115,086 |
121,934 |
129,189 |
6.3% |
|
Manufacturing Facility Yards |
Units |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
CAGR 22-30 |
|
Europe |
(Actual) |
2,189,382 |
2,213,465 |
2,237,813 |
2,262,429 |
2,287,316 |
2,312,476 |
2,337,971 |
2,363,748 |
2,389,808 |
1.1% |
|
Latin America |
(Actual) |
400,585 |
404,510 |
408,474 |
412,478 |
416,520 |
420,602 |
424,734 |
428,907 |
433,121 |
1.0% |
|
Middle East & Africa |
(Actual) |
247,155 |
252,766 |
258,504 |
264,372 |
270,373 |
276,510 |
282,773 |
289,178 |
295,728 |
2.3% |
|
North America |
(Actual) |
669,022 |
675,579 |
682,200 |
688,885 |
695,636 |
702,453 |
709,355 |
716,324 |
723,362 |
1.0% |
|
Asia-Pacific |
(Actual) |
2,011,223 |
2,056,475 |
2,102,746 |
2,150,058 |
2,198,434 |
2,247,899 |
2,298,477 |
2,350,192 |
2,403,072 |
2.3% |
|
Rail Hubs |
Units |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
CAGR 22-30 |
|
Europe |
(Actual) |
3,044 |
3,315 |
3,610 |
3,931 |
4,280 |
4,661 |
5,075 |
5,526 |
6,017 |
8.9% |
|
Latin America |
(Actual) |
2,139 |
2,176 |
2,213 |
2,250 |
2,288 |
2,327 |
2,367 |
2,407 |
2,448 |
1.7% |
|
Middle East & Africa |
(Actual) |
713 |
725 |
738 |
750 |
763 |
776 |
786 |
796 |
806 |
1.5% |
|
North America |
(Actual) |
5,806 |
6,468 |
7,206 |
8,027 |
8,942 |
9,962 |
11,097 |
12,362 |
13,772 |
11.4% |
|
Asia-Pacific |
(Actual) |
17,358 |
17,723 |
18,095 |
18,475 |
18,863 |
19,259 |
19,664 |
20,077 |
20,498 |
2.1% |
|
Total |
(Actual) |
5,699,497 |
5,795,585 |
5,893,894 |
5,992,804 |
6,093,526 |
6,196,030 |
6,301,248 |
6,408,823 |
6,518,836 |
User Experience
If you’re going to invest in a YMS, it’s ideal to purchase one that allows you to gain insights as soon as possible. Inexperienced users will appreciate low-code/no-code platforms that can cater to their unique logistical needs. It’s also a good idea to shop for a yard management system that offers templates that can be used to achieve Key Performance Indicators (KPIs). For example, through its Enterprise Visibility Suite, Kaleris’ users can consolidate data from all sites into one place and use a single-pane view of operational KPIs.
Digitalized Workflows
Logistics operators should evaluate how well a YMS can simplify reporting processes, such as vehicles entering and leaving a yard, with digitalized workflows. This criterion goes hand-in-hand with the overall goal of automating as many manual tasks as possible through process optimization.
For this, a prime example comes from FourKites. The Chicago-based company has focused on both process automation and workflow digitalization, developing a system that remains reactive and orchestrates yard driver assignments based on live status. FourKites’ partnership with Zebra delivers a comprehensive hardware portfolio to augment the YMS, and the system can deliver granular visibility down to Stock Keeping Unit (SKU)-level data for in-yard trailers, as well as reefer and equipment monitoring to support prioritization and avoid downtime.
Visibility & Asset Tracking
When evaluating a YMS, it’s also critical to ask yourself how accurate it is in locating goods/assets, as well as how up-to-date the feed is. Delays of seconds seem small, but compounded, you’re losing productivity in the yard. The YMS should be refined enough to provide End-to-End (E2E) visibility into your logistics operations within the freight yard.
Blue Yonder, for example, is a company using Machine Vision (MV) in its YMS offering. MV adds next-level gate automation and asset tracking capabilities as the system is trained with Artificial Intelligence (AI).
Quality of Reporting & Analytics
Data are king when it comes to digital transformation, and yard management systems are no different. Logistics managers/operators are best suited to a wide scale of reporting options and a clear visualization of the data. It should also be easy for users to build and run custom reports on a YMS based on what they prioritize at the time.
This means the system offers an extensive range of reporting and data analytics capabilities covering gate, spotter, carrier, and equipment metrics, with the ability to customize and automate reporting for both internal and external views.
To demonstrate with Kaleris again, the company lets users create/schedule custom reports and dashboards using the data sent to the system, which are subsequently emailed to key stakeholders automatically.
Automation of Processes
The whole point of a yard management system is to automate logistics processes and boost productivity. If the YMS is incapable of automating the planning and execution of yard workflows, then it isn’t the product for you. Moreover, the system must add versatility by being able to allocate resources or enforce operational pivots based on fluctuating circumstances.
To illustrate, C3 Solutions’ YMS will assign shunter tasks automatically based on critical data generated by drivers’ and shunters’ mobile devices. These mobile devices notify the company’s Progressive Web App (PWA) of where trailers/tractors are located, how many empty trailers are available, and what drivers are doing—then the system plans accordingly.
Most Innovative YMS Companies
In ABI Research’s Yard Management Systems competitive ranking, Kaleris came out on top as the most innovative YMS vendor. The company’s YMS solution has a solid track record for digitalizing and automating a wide array of yard operations while letting users scale to their needs. Moreover, Kaleris’ YMS offering comes with additional tasking, Real-Time Location System (RTLS) modules, a strong lineup of partnerships, and robust reporting and analytics capabilities (gate, spotter, carrier, and equipment metrics). Finally, Kaleris’ Enterprise Visibility Suite provides centralized visibility on yard operations, while automated task assignments and real-time operational planning are achieved via live signaling from adjacent Transport Management System (TMS) and WMS solutions.
A few more innovative companies ABI Research evaluated include:
- Körber: Our second-most innovative yard management system vendor is German-based Körber. This is due to the firm’s advanced functionalities like diverse compatibility, multi-modal operations support, and customized solutions based on enterprise requirements.
- FourKites: Catapulted by its E2E supply chain tools, FourKites offers a YMS solution that adapts to real-time updates (e.g., diver status). This has helped land the company third in our competitive ranking. FourKites’ hardware asset tracking capabilities greatly benefit from its collaboration with Zebra, which makes for a perfect complement to the YMS software.
- Blue Yonder: The fourth most innovative YMS vendor from our recent assessment is Blue Yonder. As a well-established provider of supply chain planning and execution systems, Blue Yonder is known as a leader in machine vision implementation for yard automation. As alluded to earlier in this post, the use of MV and AI gives Blue Yonder a leg up in automation and tracking accuracy, and opens new ways to use the technologies in logistics management.
For more on how YMSs can help logistics operators, download the whitepaper The Technologies Revolutionizing Yard Management and Logistics.
