Technology Trends and Selection Considerations For Yard Management Systems

gartner yard management

Top Gartner analysts say there’s no time like the present to invest in a YMS that can help you offset COVID-19 challenges and future-proof your yard.  

A valuable supply chain asset, the physical area “outside of the four walls” of the typical warehouse or distribution center (DC) is becoming a focal point for companies that are realizing the value of their yards. As part of this trend, more of those organizations are turning to technology to help them run their yards efficiently and safely.

In Yard Management Technology Trends and Selection Considerations, Gartner’s Bart De Muynck and Simon Tunstall discuss how the lack of focus and uncoordinated activities among the yard, transportation, and warehouses—all exacerbated by disruptions like COVID-19—is pushing more companies to adopt yard management technology.

Historically, the need to improve yard operations was overlooked, even where there were well-identified improvement opportunities. De Muynck and Tunstall blame this on an “overfocus” on warehouse and transportation management processes, priorities, and systems.

“Due to this overfocus on warehouse management and transportation management in isolation, there was a frequently missed opportunity to coordinate an efficient flow across all three areas,” they add. “As the impacts of COVID-19 continue to unfold and constrain warehouse and distribution center operations, supply chain leaders are renewing focus on this area.”

Who Should be Using a YMS?

The pandemic is creating longer dwell times for carriers, more congested yards and DC operations, and other inefficiencies. It effectively exposed major interruptions in today’s supply chains and the workflows that they support.

“Yards remain notoriously inefficient as companies waste time and resources searching for trailers and inventory poorly located in the yard,” the authors point out. “Lack of timely location of assets can lead to misaligned inbound processes, incomplete assembly, missed deliveries, and spoiled goods.”

Regardless of their current challenges—or how their WMS and TMS solutions are set up— Gartner says these companies should be considering a YMS:

  • Users with large fleets
  • Users with a high volume of supplier and customer shipments
  • Users who suffer yard, dock door, and throughput congestion
  • Users operating a campus of yards or who need to manage networks of “yards of yards” holistically, to effectively deploy their resources across their network

The authors say DCs and warehouses operating in a high Level 3, Level 4, or Level 5 complexity environment also have a greater need for extended components, such as YMS and advanced dock scheduling to better coordinate their workflow.

“These needs may exceed their WMS capabilities,” De Muynck and Tunstall add. “Additionally, users with significant yard operations and no WMS (i.e., manufacturing sites) should also consider [using] a YMS.”

Steps to Take Now

To prepare their warehouses, DCs, and yards for the future, Gartner says supply chain technology leaders should be taking these steps now:

  • Model yard operations across the network and review the performance of yard activities to determine opportunities for process improvements.
  • Assess the benefits of yard solutions, and the capabilities within and across warehouse management systems (WMS), transportation management systems (TMS), and YMS solutions that best address the operation’s complexity, logistics priorities, and the firm’s current portfolio of logistics solutions.
  • Review technology and market trends and use those insights to determine how you want to bridge the gap between warehouse and transportation management (and, how you can adapt to the external pressures changing these environments).

Selecting a YMS isn’t a decision that should be taken lightly. Supply chain leaders should grasp trends, existing capabilities, and selection criteria to support their needs, they add.

“Organizations typically understand and prioritize investment in, and use of warehouse management and transportation management solutions,” De Muynck and Tunstall continue, “while neglecting the sometimes more impactful benefits that yard management solutions offer.”

Gartner’s “Yard Management Technology Trends and Selection Considerations”, Bart de Muynck, Simon Tunstall, November 2020.

Gartner Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Transportation Innovation For a Future-Proof Supply Chain

Supply chain experts and software leaders converge to discuss the current transportation environment and provide valuable tips on what companies should be doing now to get ready for what’s coming next. 

Transportation and logistics.
What happens when you bring supply chain software leaders, a Berkeley professor, and a top Gartner researcher together in one “virtual” room to talk about the current and future state of the world’s supply chains? You get a full view of what’s going on right now and engaging insights into what companies should be doing currently to reevaluate and future-proof their supply chains.

In a new Berkeley Innovation X webinar, Bart De Muynck of Gartner, Berkeley Professor Robert Leachman, PINC’s Matt Yearling, ORBCOMM’s Ashish Chona, and Christian Piller, VP of Project44 discuss the current market realities, the role that automation is playing in today’s logistics networks, and the rapid changes currently happening in the supply chain.

According to De Munyck, Gartner research shows that the current pandemic is the top supply risk for 2020. “This disruption is the biggest challenge that anyone has seen for most generations,” he says. “It has hit us like nothing we’ve ever seen before in supply chain and it has affected all countries, all industries, and all companies worldwide.”

However, besides the pandemic, logistics and transportation in general are ongoing challenges and still present a lot of other risks, including:

  • Consumers are behaving differently
  • Increasing demand for transportation
  • Increasing demand for last-mile
  • Increasing truckload rates
  • Increasing parcel rates
  • Carrier bankruptcies affecting capacity
  • Increasing carrier cost and verdicts
  • Increased use of digitized freight networks
  • Increased use of technology

“The pandemic has certainly accelerated the digitization strategies of all corporations,” Yearling says, adding that the event also accelerated the shift to online commerce and pushed the need to align inventory to demand.

“There’s been a lot of consolidation and investment in the industry, because it is still highly fragmented and has room for technology enablement,” Yearling continues. “It’s inherent upon us to make sure we come together in the industry for the benefit of the joint customer.”

Unlocking Operational Efficiency

According to Piller, this is the first time in history that the supply chain has had a place in the boardroom and is now part of mainstream conversations. The consumer has driven at least some of this increased awareness of supply chain in the broader scheme of things. “More people are working from home and wondering why packages are taking a little longer to arrive,” Piller says.

Once the threat of COVID passes, companies need to be thinking about how they can create data-driven supply chain planning and management processes. Transportation management will pay a key role in this evolution. “Companies need an integrated view of the inbound and outbound networks across all modes,” Piller explains.

“Just planning all of the shipments you have in one unified central planner versus having a few different ways to plan transportation,” he continues, “will unlock a lot of operational efficiency, cost efficiency, and performance improvements.”

Piller also tells companies to put their customers at the center of the conversation when making these shifts. In fact, he advocates for starting from the customer and then working backward to find the best solutions. Focus on solving your customers’ problems and “doing something that redefines an experience, provides a new experience, or makes the customer feel better about interacting with you,” Piller adds.

Strengthening Supply Chains

Chona says the pandemic has highlighted the weakness in the supply chain and it’s made people aware that they are dependent on other parts of the world for products that they use today. Now, supply chain managers and executives are looking to retool their supply chains in the wake of COVID.

One potential area of improvement can be found in “lean,” or the pre-COVID approach of only keeping enough inventory on hand to fulfill orders during a specific period of time. As we all learned by the great toilet paper shortage of 2020, this strategy doesn’t always play out well during times of crisis.

“Maybe we should start thinking that it’s okay to have some excess inventory during a pandemic when you’re trying to serve the community,” says Chona, “even though in the past we tried to cut down inventory to be leaner.”

The key is to find the right balance between resiliency, efficiency, and agility. That’s where technology steps in to help, with digitization, automation, the Internet of Things (IoT), mobility, and robotics coming together to help solidify and strengthen the world’s supply chains. Information-sharing is equally as critical, says Chona, who points out that an equal system of partners sharing information ultimately benefits the end customer. “Information sharing in transportation is very critical.”

The Four Stages of Recovery

Wrapping up the webinar, De Muynck shared his thoughts on how the industry is innovating and highlighted Gartner’s four stages of recovery (and the technology that corresponds with each). Here’s a snapshot:

1st – React and respond

  • Transportation visibility
  • Digitized freight platforms

2nd – Redirect to new realities

  • Transportation management
  • Multi-carrier parcel management

3rd – Rebound to the future

  • Driver management
  • Yard management

4th – Accelerate opportunities

  • Network design and modeling solutions
  • Advanced analytics

“Once this crisis is out of the way, we still won’t be able to go back to our old ways,” De Muynck concludes. “Things are going to come at us much faster, and we’ll need agility and flexibility to be able to react accordingly.”

Digital Yard Management Proves Essential During COVID-19 Disruptive Times

New Gartner Market Guide for Yard Management shows the role that YMS plays in helping companies automate processes and offset the impacts of the global pandemic and other supply chain disruptions. 

Gartner Yard Management Market Guide

It didn’t take long for global supply chains to take center stage during the worldwide pandemic, what with the many shipping delays, supply disruptions, and related issues that made the world’s headlines. A critical juncture that sits between the warehouses where goods are stored and the end destination for those supplies, the yard quickly became a focal point for companies that scrambled to develop more streamlined, frictionless supply chain strategies.

Some of the world’s largest brands would agree that yards are the most significant opportunities for digitization and optimization in the supply chain. As inventory often goes through multiple yards during their shipment lifecycle, any inefficiencies or errors in the yard are propagated through the entire supply chain. Additionally, 80% of transportation delays happen when trailers and containers are at distribution centers and manufacturing plants, costing organizations millions of dollars in inefficient operations and excessive accessorial charges and transportation contracts.

Driving Greater Yard Efficiency

To drive greater efficiency for the yard and better collaboration with carriers, vendors are focusing more on yard orchestrated automation capabilities as part of their offerings. “Companies have put considerable effort into optimizing their processes in the warehouse and transportation,” Gartner analysts Bart De Muynck and Simon Tunstall point out in the new Gartner Market Guide for Yard Management (subscription required.)

“However, operations in the yard that connect transportation and, specifically, the truck to the warehouse, for both inbound and outbound operations, have in many cases been left behind or ignored,” they continue. “Often, the yard operations operate in a very manual and non-technology-driven way. The need for more automation and digitization caused by the recent disruptions and concerns around social distancing has created more visibility of the gaps that exist in many yard operations.”

The 2020 Market Guide for Yard Management, which identifies PINC as a Representative Vendor, says  “shorter transportation lead times and increasing transportation costs push companies to increase their efficiencies in the yard, as time spent on a yard can be unproductive and costly. More regulated hours of service and an increasing driver shortage have a negative impact on the total number of hours trucks are on the road at any given point. Consequently, it becomes even more critical for shippers to find time savings elsewhere in their supply chains. Boosting throughput by using a YMS means trucks spend more minutes with their wheels turning.

More Enterprise YMS Wanted 

The report further states, “in 2020, Gartner saw an increase in inquiries from clients in this area and has seen additional developments from both WMS vendors and niche providers” and “companies are looking into YMS solutions to help close the supply chain gaps that exist in their own backyards such as long trailer wait times, unproductive personnel numbers, poorly synchronized movement of goods and ineffective dock planning.”

Based on PINC customer data, here’s how shippers can close those gaps and deliver value across the network:

  • Finding and assigning trailer assets and associated loads automatically through their life cycle, and optimizing their movement between gates, yard, and docks.
  • Minimizing the operational footprint (people & assets) required to operate the facility effectively.
  • Improving sustainability by reducing truck idling time, eliminating excessive reefer trailer and yard spotters fuel consumption, and reducing empty miles.
  • Supporting the management of transportation contracts and accessorial charges from a site and enterprise level.
  • Optimizing driver turnaround times while becoming a Shipper-of-Choice.
  • Taking advantage of all available data exchanges between the TMS, YMS, and other transportation system data sources.
  • Enhancing operational capabilities by promoting social distancing during the COVID-19 pandemic.

Gartner, Market Guide For Yard Management, Simon Tunstall, Bart De Muynck, 25 June 2020.

Gartner Disclaimer

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s Research & Advisory organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.