Insight • September 12 ,2024
TOPIC • Yard Management System (YMS)
Yard Management is the backbone of an efficient supply chain, with significantly growing adoption rates in the US, to a global rise in adoption in the face of a pandemic that brought on a surge in customer expectation for online order fulfillment. It’s no well-kept secret that operators everywhere are embracing technology.
Challenges in the yard directly impact operational success when an hour spent idling at the gate can throw a wrench into vendor expectations of quick turnaround times. Most operators in the US have swapped out manual processes for yard management solutions that automate their vitals, but European yard managers have a few more challenges to contend with.
While European trade is formidable – even rivaling the US market – smaller yards face more constraints on an operational level and stricter regulations prevent short-term adoption models, resulting in slower implementation rates.
Europe must adhere to stricter regulatory compliance measures around safety, environmental impact, and labor standards that require meticulous management and documentation. With climate change concerns giving rise to measures that must tighten the reins and crack down on climate-unfriendly practices in the yard and on the dock, operation managers have more roadblocks to consider than ever.
Environmental impact must be evaluated before systems can be battle-tested, slowing the decision-making phase down to a crawl. This catch-22 lies at the helm of any European operation that wants to future-proof its yard.
The necessity of adopting a YMS remains uncontested, even in the face of cultural, social and economic contrasts. Let’s assume an average pair of Nike sneakers is worth €100. A standard 40-foot container can hold approximately 5,000 pairs of sneakers, and in the case of a client like Adidas or Nike–that’s a whopping €500,000 at stake.
Many European companies still rely on manual processes and basic tracking methods today due to environmental constraints, fewer drivers in the workforce, and tighter regulations. Despite a higher focus on quality and customer satisfaction than the average American yard overall, European yards fall short in terms of deliverability, threatening the reliability of entire operations.
The adoption of Yard Management Systems (YMS) in Europe has improved over the last five years but at a snail’s pace compared to the US. While automating their processes is equally key to making quicker moves in the yard, the European focus is on reducing their carbon footprint. In addition to this, European markets demand considerable regulations on the movement of goods such as EU Customs regulations or the EU Mobility Package, a set of regulations aimed at improving drivers’ working conditions and road safety.
The best yard management solution for European markets helps ensure compliance with rules on driving times, rest periods, and cabotage (the transport of goods within one country by a transport operator from another country). These regulations and standards ensure that yard management operations in Europe are safe, efficient, and compliant with legal requirements, making it crucial for YMS solutions to support these aspects comprehensively. This comes with an overall higher emphasis on employee welfare, quality of goods taking precedence over quicker turnaround times, and stringent data protection guidelines.
1. Data Security and Privacy:
Europe has stringent data protection regulations, such as the General Data Protection Regulation (GDPR). This adds a layer of concern for European customers regarding the security and privacy of their data, which might not be as prominent in other regions.
2. Regulatory Compliance:
European countries have diverse and strict regulations related to safety, environmental standards, and labor laws. Compliance with these regulations is a significant concern for European yard management customers, which might not be as complex in other regions. This results in hesitation from operators and slower rates of implementation.
3. Space Constraints:
European logistics operations often face physical space limitations due to dense urbanization and historical infrastructure. This issue is more pronounced in Europe compared to regions like the US, where larger, more expansive yard spaces are common.
4. Interoperability:
Concerns about how well a YMS will integrate with existing systems, such as Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) remain prevalent in the European market.
There is a prominent fear of potential data silos and operational disruptions if the systems do not work seamlessly together.
With fewer trucks stuck in the yard or left in limbo at the gate, your yard is responsible for burning fewer fuels. Burning less fuel allows operators to allocate more money towards essential resources.
When insufficient staffing leads to operational downturns, being equipped with a reliable YMS gives operators the ability to take the middleman out of the equation by automating their gates.
Real-time tracking gives operation managers visibility into truck conditions at any given time, reducing dwell times and diminishing worker safety concerns as per the EU Mobility guidelines.
This ABI Research study highlights what to look for when choosing the right YMS for your yard, accounting for number of yards and facility type, including an estimated look at distribution centers and storage warehouse yards in Europe in 2024 and 2025.
Our multilingual kiosks can be implemented in your yard in just 8-12 weeks, addressing the challenge of language barriers and communication turnaround constraints. This is ideal for European distribution centers, helping navigate many challenges in the yard with software that provides document management, SMS functionality, improving gate to bay velocity, speeding up processing times and keeping drivers safer in their vehicles.