Information management: Beyond yard management
Yard management solutions not only track trailers in the yard, they are also being used to improve processes and complement other supply chain software systems.
By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 2/1/2009
When it comes to manufacturing, distribution and transportation, continuous improvement is the name of the game. Companies implement warehouse management (WMS), manufacturing execution (MES), and transportation management (TMS) systems to control inventory costs, get more from their workforce, and reduce transportation costs.
Once those systems are in place, where will the next round of savings and improvement come from? One application gaining traction is yard management systems (YMS). This solution tracks the movement and location of trailers from the time a truck arrives at the gate to drop off a load until that trailer is processed and ready to leave the facility.
But beyond just tracking trailers, a YMS acts as a link between the transportation and warehouse management systems. "Before a trailer even shows up, a yard management system will have an advance ship notification (ASN) that it's on the way," says Steve Raymond, vice president of product marketing for yard management at WhereNet, a Zebra Technologies company (408-845-8500, www.wherenet.com). "Once it's checked in at the gate, not only does the yard crew know it's there, but the WMS also knows the trailer is there."
In fact, at its best, a yard management system is an inventory management system with the ability to improve processes. "When you can track assets like trailers and containers of inventory in real time, your yard management system becomes more than just a yard management system," adds Bob Kenney, director of strategic initiatives for Savi Technology, a Lockheed Martin company, (650-316-4700, www.savi.com). "With greater visibility, you can manage the inventory and assets in the yard and the operators in the yard in a more dynamic manner."
For that reason, the return on investment for a yard management system is found in different areas than the return for a WMS or TMS. "While your yard operators may be more productive, you're not getting an ROI from labor savings," says Tom Kozenski, vice president of product strategy for RedPrairie (877-733-7724, www.redprairie.com). "The ROI comes from increasing the throughput of trailers in and out of the facility and by controlling or reducing your demurrage charges."
Who is a candidate for a YMS? Suppliers say there are no hard and fast rules, but typically YMS users have either more trailers or more dock doors than can be easily managed visually or on spreadsheets. "We've implemented systems in facilities that are managing 100 to 300 trailers a day," says Ron Lazo, a vice president at Manhattan Associates (770-955-7070, www.manh.com). "We've also had users trying to better manage the throughput at their dock doors. It's often a function of the size of the yard and how much visibility a company has into its yard and dock operations."
Early adopters include retail and wholesale grocery distribution centers and just-in-time manufacturing operations. The military is also adopting GPS-enabled YMS systems to track trailers, containers, assets and equipment across very large outdoor facilities (see box below).
YMS 101
In some respects, a YMS operates just like a WMS in the yard. "You can think of the yard as an outdoor warehouse," says Amir Ben-Assa, industry solutions marketing director for AeroScout (650-596-2994, www.aeroscout.com), a provider of WiFi-based yard management solutions. "You're extending your warehouse operations outside your four walls."
In fact, you can draw parallels between the four basic operations managed by a WMS inside a warehouse—receiving, putaway, pick and pack, and shipping—and the operations managed by a YMS in the yard.
Receiving: Prior to the arrival of a trailer, the YMS will receive an advance ship notification (ASN) that a shipment is on the way. When it arrives at the gate, it will be checked in—or received—into the system in one of three ways:
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Manual: Information, like the trailer number, the seal number on the trailer, the driver's identification, and a purchase order, may be keyed in by the operator at the gate;
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Semi-automated: An RFID tag is affixed to the trailer. When it arrives at the gate, a reader identifies the trailer and the system presents an electronic form for the check-in clerk to fill out.
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Automated: An RFID-enabled trailer passes through a portal at the gate without stopping. A reader in the portal time stamps when the trailer arrives and when it leaves.
Putaway: Once the trailer has been received, the system knows what's on the trailer and when it will be needed. Based on business rules created by the user, the driver is directed to a spot in the yard to park the trailer. If the driver puts the trailer in the wrong spot, the RFID tag will broadcast its location and the system will automatically update that information. If the inventory in the trailer is needed right away for a manufacturing process or to complete an order in a distribution center, the trailer can be directed right to a dock. Think of it as crossdocking for trailers.
Picking: When a dock door becomes available, the system will identify a trailer in the yard that matches the equipment at that door. It then sends an electronic move request to the mobile computer in a spotter's cab. Since the system can also track the location of all the operators in the yard, it will choose the spotter closest to the trailer that needs to be moved.
Shipping: When a trailer at a dock is ready to be moved, the system directs someone to pick up the trailer. When the trailer leaves the facility, the gate process is repeated.
Beyond the basics
Trailer check-in, tracking and movement are the basics. Users who have those down, are now using YMS to extend other applications, like a warehouse or transportation management system, or to track assets other than trailers in the yard. If the basics are YMS 101, these new approaches are YMS 2.0.
One approach is to use YMS functionality to extend the warehouse to the yard. "If the YMS forwards inventory information to a WMS, the system can automatically identify hot trailers—trailers that have inventory that's needed right away—and can accelerate or prioritize the work for the yard operators," says RedPrairie's Kozenski.
Another is to think of YMS as part of a broader transportation management solution, says Manhattan's Lazo. Yes, a YMS captures information that can flow to a WMS system, like the contents of the trailer, "but you're really managing inbound and outbound transportation as well as getting better visibility into the availability of trailers for the appointment scheduling for shipments."
If a carrier sends a detention charge, for instance, a shipper can validate whether a trailer was really tied up in the yard. Shippers can also use the system to track carrier performance, auditing how many shipments were delivered on time or late. "It can be an important tool for carrier compliance," says Lazo.
As a broader asset management tool, these systems can be used to keep track of the location of an asset, as well as how long that asset has been in the yard. "We use the system to manage assets, like pesticide cylinders and equipment, that require scheduled maintenance," says Savi's Kenney. "Based on business rules, the system can send an alert several days prior to a major overhaul to a maintenance system. The system can also send an alert when an asset is moved into an area where it should not be."
Finally, the next step in YMS functionality is to tie the RFID tag tracking the location of a trailer or asset into sensors that can track any changes in environmental conditions that might impact the product inside the trailer and to then send an alert to a decision maker. A change in the temperature inside a refrigerated trailer, is one example of a condition that sensors might monitor. "These applications are still at the pilot stage," says WhereNet's Raymond. "But they are emerging."
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