When Penske set out to reimagine its yard operations, the goal was ambitious yet clear: eliminate inefficient yard management processes and reduce human error through intelligent automation. The company’s Shippensburg, Pennsylvania distribution center became the pilot launchpad for a transformation that would redefine its operational model.
The challenges Penske faced weren’t minor: gate congestion created traffic jams and delays, manual entries of trailer data led to errors and inefficiencies, and limited trailer visibility increased the risk of misplaced assets and missed schedules. These issues translated into lost time, higher labor costs, and difficulty scaling the yard operations model across its network.
Leadership at Penske envisioned a smarter, more connected yard—one driven by real-time visibility, automation, and AI-based technology. Success was defined by the elimination of gate bottlenecks, reduced human intervention, and standardized gate-to-dock and dock-to-gate processes. The goal wasn’t just to fix isolated problems—it was to lay the foundation for a yard model that could scale across dozens of distribution centers.
Transforming yard operations through computer vision and automation
Blue Yonder deployed its AI-powered yard management solution at its Shippensburg site to bring Penske’s vision for success to life. This pilot project was tightly integrated with Blue Yonder Warehouse Management (WMS) already in place.
The transformation was led by a cross-functional team including Blue Yonder product development and professional services groups, as well as Penske’s IT, logistics systems, and business operations teams. These teams collaborated to design gate workflows that would optimize throughput, install and configure Panasonic Edge devices and AI-driven cameras, integrate the yard management solution with existing systems, test rigorously for real-world conditions and user needs, and train staff on new workflows and systems.
Key milestones in the deployment included the proof-of-concept phase, detailed solution design, User Acceptance Testing (UAT), training, and final go-live in October 2024. Throughout the process, one major lesson stood out: early and deep involvement of subject matter experts and end-users was critical for setting expectations and ensuring smooth adoption.
From manual to automated: Measurable impacts
The impact of the transformation was immediately noticeable. With Blue Yonder, Penske successfully eliminated manual trailer entries. Panasonic Edge cameras and automated systems now capture entry and exit data in real-time, dramatically reducing quality issues and freeing staff from repetitive administrative tasks.
Storing vehicle images and timestamps has also fortified Penske’s compliance posture. These records are invaluable during audits or dispute resolution, giving the operations team confidence in the accuracy and traceability of every yard event.
The integration between Blue Yonder yard management and WMS systems have improved data synchronization and quality, enabling faster, more reliable processing. Gate throughput has improved, labor costs have been reduced, and the user experience received positive feedback from operations staff—many of whom previously dealt with time-consuming manual processes.
While qualitative results are already strong, Penske expects to see measurable improvements in detention charges and further increases in gate check-in and check-out efficiency. The Shippensburg deployment is now a blueprint for future rollouts, positioning Penske as a technology leader in yard and dock optimization.
Looking ahead
The successful transformation at Shippensburg represents more than just a pilot project—it is a scalable model for the future of Penske’s yard operations. With AI-driven automation now delivering measurable improvements in accuracy, efficiency, and scalability, Penske is poised to roll out similar deployments across its broader network.
By embracing cutting-edge technologies and fostering strong cross-functional collaboration, Penske has not only solved today’s problems but also set the stage for tomorrow’s innovation.
