CAREER MOVES: FIND YOUR SWEET SPOT
COLD CHAIN INNOVATIONS: GET THE SCOOP
Logistics for the Seafood Industry Lynden manages your seafood supply chain from start to nish. Fresh or frozen seafood is transported at just the right speed and temperature to meet your particular needs and to maintain quality. With the ability to deliver via air, land, or sea, or to use our temperature-controlled storage facilities, Lynden has the solution for your seafood supply chain challenges.
For more information, call us at 1-888-596-3361 or visit our website at lynden.com .
BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS MOVE OVER, ROVER Think Boston Dynamics has the robot dog market cornered? Think again—China’s Deep Robotics just unveiled Lynx, a four-legged wonder that’s part dog, part cat, and apparently part stunt performer. Lynx can jump, climb, backflip, and even lock its wheeled feet to tackle rugged terrain like a pro. It’s like Spot’s edgy cousin who also does parkour. Deep Robotics isn’t stopping there—it is already rolling out dozens more humanoid robots, so it’s only a matter of time before Lynx gets a whole squad.
UNWRAPPING RETURNS SEASON
A GLASS ACT MIT researchers are turning recycled glass into durable bricks to revolutionize circular construction. Using a method developed by spinoff Evenline, glass bottles are melted and 3D-printed into interlocking figure-eight bricks, much like LEGOs. Tests show these bricks rival concrete in strength and can be reused or reprinted indefinitely. A protective material between layers prevents cracks, and the unique design allows for curved structures. While currently suited for facades and internal walls, researchers aim to scale up to larger, self-supporting glass structures. This innovation could transform waste glass into the building blocks of a sustainable future.
• 80% of shoppers stopped shopping at a retailer that changed its return policy—a 34% increase YoY. • Returns abuse is on the rise. 69% of shoppers admit to wardrobing (buying an item, using it for a short time, and then returning it for a refund). 64% of shoppers who wardrobe do so at least once a month, a 40% increase from 2023. • Sustainability is top of mind, with returns amounting to 8.4 billion pounds of landfill waste. • 86% of retailers say they have meaningful strategies in place to minimize the environmental impact of returns. Among them: box-less, label-less returns (56%); diverting like-new goods to recommerce channels (54%); and consolidated shipping (50%). – Optoro survey
REFRESHING CHANGE In a collaborative toast to a greener, net-zero future, Coca- Cola, Heineken, and eight other beverage powerhouses have teamed up under the REfresh Alliance to drive renewable energy adoption in their supply chains. Managed by energy solutions provider Enel X, the alliance focuses on cutting Scope 3
XPO’s TOUR DE FORCE XPO Logistics and the Tour de France have renewed their partnership for another six years, continuing a collaboration that began in 1980. As the official carrier, XPO orchestrates the complex logistics behind the legendary race, transporting everything from barriers to podiums across city centers and mountain passes under tight deadlines. A dedicated team of elite drivers ensures the show goes on, no matter the conditions. Both XPO and the Tour are ramping up eco-friendly efforts, with XPO introducing greener transport solutions to support the race’s commitment to sustainability.
emissions by simplifying access to clean energy for suppliers. Members including Bacardi, Carlsberg, and Diageo are pooling resources to break down barriers to renewable energy adoption. The initiative offers suppliers tools like advisory support, educational resources, and connections to renewable energy providers.
December 2024 • Inbound Logistics 1
CONTENTS DECEMBER 2024 | VOL. 44 | NO. 12
FEATURES 28
INFO 42 SUPPLY CHAIN INSIGHTS 46 CALENDAR 47 RESOURCE CENTER
A COLD TREAT A wave of innovative solutions—smart packaging, cutting-edge telematics, and advanced freezing technologies—are transforming the way temperature-sensitive goods journey from producers to doorsteps.
INPRACTICE 10 READER PROFILE: LIZ MINNE MAKES A BUSINESS CASE FOR SUSTAINABILITY
INSIGHT 4 CHECKING IN Can Uber help truck drivers and shippers? 6 GOOD QUESTION What’s your supply chain resolution for 2025? 8 10 TIPS Developing long-term 3PL partnerships 22 IT MATTERS Smart supply chains start with the warehouse 24 SMART MOVES How to nurture company culture 26 GREEN LANDSCAPE Universal scorecards critical to supply chain sustainability ADVICE: HITS AND MISSES From the always do’s to the absolute dont’s, here’s supply chain career advice that’s on target. 34 SUPPLY CHAIN CAREER
By collaborating with stakeholders and fostering key
partnerships, Liz Minne ensures that Interface,
Inc. stays at the forefront of data- and strategy-led supply chain sustainability.
6
GOOD QUESTION What’s your supply chain resolution for 2025?
INFOCUS 1 INFO SNACKS 12 NOTED 14 TAKEAWAYS 44 IN BRIEF 48 LAST MILE Unwrapping the 2024 holiday season
CONTENT PARTNERS 18 4 LOGISTICS CHALLENGES FOR SOLAR PANELS AND HOW TO OVERCOME THEM Offered by Phoenix Logistics 20 BRINGING ADDITIONAL CAPACITY TO THE LIFE SCIENCES & PHARMACEUTICALS MARKET Offered by MD Logistics 40 ADDRESSING CUSTOMER NEEDS THROUGH STRATEGIC DIVERSIFICATION Offered by Engineering Innovation
14
1
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2 Inbound Logistics • December 2024
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CHECKINGIN Can Uber Help Truck Drivers and Shippers?
Vol. 44, No. 12 December 2024 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com
STAFF
Keith G. Biondo publisher@inboundlogistics.com Felecia J. Stratton editor@inboundlogistics.com Katrina C. Arabe karabe@inboundlogistics.com
PUBLISHER
T he convergence of three groundbreaking technologies—AI, Starlink, and robotics—will revolutionize the practice of transportation, logistics, and supply chain management, as I wrote last month. Another convergent trend that benefits logistics management is on the rise: The mashup of consumer technology woven into business operations.
EDITOR
SENIOR EDITOR
DIRECTOR OF STRATEGIC CONTENT
Amy Roach amy.roach@thomasnet.com
CONTRIBUTING EDITORS
Merrill Douglas Karen M. Kroll
Just about anyone who drives uses Google Maps and Waze. There’s no doubt those apps optimize personal efficiency. But when converging with enterprise operations, business transformation begins. Uber ridesharing is an example of that convergence and underpins Uber Freight’s success in the transportation sector. Uber Freight provides “a relational logistics” solution to move shipments, the company says. Now Uber has a new offering impacting transportation: Uber for Business. You might think of Uber for Business as a line extension of Uber Freight, but it is not directly about moving boxes. It’s a company-wide way to move the people who move the boxes. Why Uber for Business? “We’re continuously looking for new ways that our people, technology, and capacity can be leveraged,” says Brandon Stanley, senior director of procurement for J.B. Hunt, the first carrier to utilize the solution. Drivers move tractors, but a team of operations managers monitors and arranges driver movements. This includes transportation to get drivers to and from customers and terminal facilities, or when a breakdown happens. That’s a lot to manage in near real time if you have 20,000+ drivers across the United States. Today, J.B. Hunt uses Uber for Business to provide transportation to drivers and to provide corporate ground transportation. Among the benefits: • Ease of use, as most drivers use Uber in their real lives. • Drivers spend more time in truck cabs instead of taxi cabs. • Faster driver deployment to where they need to be, easing driver shortages. • Cost control with easy and thorough management oversight. • Fewer driver complaints about unavailable rides.
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Best of all, the app was adaptive. The J.B. Hunt team provided feedback to implement changes in the Uber management dashboard. “They’re willing to take our feedback to the developers and push for platform improvements,” Stanley says. “That’s a real game changer.” More consumer tech mashed up with business logistics management? Anyone using U.S. trucking services will benefit.
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4 Inbound Logistics • December 2024
OUTSOURCE YOUR PRIVATE FLEET IN 2025 TOP THREE REASONS TO
Eliminate Driver Hiring Reduce Your Liability Free Up Capital
Learn more about eliminating these challenges.
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GOODQUESTION Readers Weigh In What’s Your Supply Chain Resolution for 2025?
Leverage Artificial Intelligence
ADVANCE CLAIMS COMPLIANCE to further supply chain visibility. Using standardized data sharing and RFID enables swift product identification and streamlines claims-related exchanges, helping stakeholders reduce manual effort. –Jonathan Gregory Director of Global Standards, GS1 US BOOST SUPPLY CHAIN AGILITY with enhanced demand forecasting and automated replenishment as 2025 will come with global trade uncertainty and disruption. Solutions combining real- time data and AI-driven forecasting can optimize inventory levels and help businesses respond to market shifts. –Mike Gross Chief Technology Officer, TrueCommerce DRIVE AWARENESS OF NEW AND EMERGING CRIMINAL TACTICS within the supply chain in an effort to push the industry into coordinated action that is needed to combat the growing surge of strategic theft in the United States. –Danny Ramon Intelligence & Response Manager, Overhaul INTEGRATE RISK MANAGEMENT into every part of the supply chain. With a rapidly changing domestic political and international geopolitical environment, companies can no longer afford to be reactive regarding risk management. –Tony Pelli Practice Director, Security and Resilience, BSI Consulting
My 2025 supply chain resolution is to close visibility gaps within my end-to-end product flow by leveraging new AI tools or advanced analytic data feeds. By ensuring there are redundancy options for sourcing and supply, I can keep my customers and team happy. –Felix Vicknair VP, Supply Chain Solutions, Kenco The fastest cliché to ever develop —meaningful application of AI—is the resolution of much of our industry. The race to AI is reminiscent of the race to ecommerce in 2001. The bubble may burst but the mission will be accomplished. Let’s resolve to do it right. –Sandy Stephens Chief Strategy Officer, HyTek Intralogistics LLC Organizations will turn their attention to data readiness for AI in 2025. Successful AI transformation hinges on a strong data foundation, so if they aren’t already, supply chain organizations must prioritize robust data strategies now. –Jennifer Chew VP, Solutions and Consulting, Bristlecone
U.S. Maritime Alliance worker strikes highlight the urgency for both sides to avoid disagreements to ensure a more resilient supply chain and protect the well-being of suppliers, customers, businesses, and workers. –Eric Allais President & CEO, PathGuide Technologies, Inc. HELP BUSINESSES SHIFT FROM REACTIVE TO PREDICTIVE PROCUREMENT. In 2025, shifting trade policies will make supply chain agility vital. –Edmund Zagorin Founder & Chief Strategy Officer, Arkestro
BUILD RELATIONSHIPS WITH SUPPLIERS CLOSER TO HOME. Nearshoring brings the potential for lowered supply chain risks as well as reduced labor and transportation costs. Helping clients build more reliable logistics networks south of the border will accelerate the nearshoring trend in 2025. –Troy Ryley President, Echo Mexico, Echo Global Logistics BE MORE MINDFUL OF THE ADVERSE IMPACT LABOR DISPUTES have on the supply chain, based on the sheer number of labor strikes in 2024. The recent Boeing and
6 Inbound Logistics • December 2024
GOODQUESTION
Build Flexibility
MITIGATE DELIVERY RISK through AI-powered technology and predictive analytics. This technology will help merchants proactively adjust their shipping approach, which will improve customer experience and build brand loyalty. –Dan Spitale VP, UPS Capital STOP TRYING TO PREDICT THE FUTURE. It’s tempting to forecast what will happen to global supply chains when clients ask. But nobody can predict the future. I can, however, talk about how the relevant uncertainties change (e.g., tariffs, inflation, new tech, etc.). The path to flexible and adaptive supply chains is clear. Leaders should focus on these factors to handle continuous change. –Dustin Burke Managing Director & Senior Partner, Global Co-Leader, Manufacturing and Supply Chain; Global Leader, Supply Chain AI, Boston Consulting Group LOOK BEYOND THE TRADITIONAL SUPPLY CHAIN LANDSCAPE for inspiration, especially in the second half of the year. I’ll draw from diverse external influences to broaden my thinking on reducing inefficiencies, fostering adaptability, driving sustainability, and sparking innovation. From January to May, I’ll cycle from Cairo to Cape Town, with plans to integrate these insights into my work. –Sarah Clewlow Director of Commercial Networks, Asendia RID THE INDUSTRY OF SPREADSHEETS AND MANUAL PROCESSES. Shippers need to leverage AI, automation, and real-time data, and replace outdated methods with smarter, more efficient tools for optimized freight management. If they don’t, they will be left behind.
Our supply chain resolution is to prioritize flexibility and resilience. With continued global disruptions, 3PLs must diversify suppliers, invest in predictive analytics, and enhance last-mile options to keep clients’ fulfillment efficient and adaptable. By building a more agile supply chain, we can respond faster to market changes and maintain top-level service. –Alan Silberstein Co-Founder, ShipLab As we continue to grow, our resolution is to remain nimble and flexible. The needs of customers and the end consumer will only increase, and it’s vital that players in the supply chain are well-positioned to do business quickly and avoid being too bureaucratic to ensure industry demand is met. –Jeff Pepperworth President and CEO, iGPS Logistics
PRIORITIZE TRANSPARENCY AND RESILIENCE , especially in marine logistics. We see the future in leveraging real-time tracking— integrating data points to provide insights like ETA predictions and cost estimates. This digital central source of truth for barge operations will play a critical role in creating adaptive, reliable, and innovative supply chains. –Jason Aristides CEO, OpenTug
HELP MORE COMPANIES
ACCELERATE their shift to sustainable packaging. When companies leverage digitized specification data to optimize
packaging and product materials and design, they can reduce waste, lower costs, and meet sustainability goals. –Matthew Wright CEO and Founder, Specright EMPOWER CLIENTS TO BUILD FUTURE-READY SUPPLY CHAINS that are resilient, agile, and sustainable. This can be achieved by integrating Generative AI, advanced analytics, and sustainability. –Abhishek Joshi Director, Supply Chain Capability and Solutions, WNS Procurement ENHANCE SUPPLIER COLLABORATION EFFORTS using a digital thread approach to amplify collaboration, boost performance tracking, and improve communication. –Jason Kasper Senior Director of Product Marketing, Aras
DELIVER PRODUCTS FASTER , targeting two-day
delivery in the United States and key international markets. We’re dedicated to providing in-demand products tailored to local needs while expanding global free shipping. –Miriee Chang COO, iHerb
Answer upcoming Good Questions at: www.inboundlogistics.com/ good-question
–Kevvon Burdette Chief Commercial Officer, Princeton TMX
December 2024 • Inbound Logistics 7
10 TIPS
A long-term collaborative partnership with your 3PL is table stakes in modern retail. It lays the foundation for operational efficiency, business growth, and success. Developing Long-Term 3PL Partnerships
1 RESEARCH COMPATIBILITY
collaboration, the two companies discuss long-term capacity planning up front. 8 ALIGN ON CUSTOMER EXPERIENCE STANDARDS. Customer expectations are high for the post-purchase experience. Consumers want fast and free shipping, communication, and a memorable unboxing. A partnership should deliver a consistent customer experience that supports brand values with well- defined service-level expectations. 9 STAY ADAPTABLE TO CHANGE. It’s crucial to evolve the relationship to meet market conditions and business needs. Both parties should be open and willing to renegotiate terms or upgrade services as required. Staying adaptable keeps you agile and able to adjust quickly to navigate supply chain disruptions and shifting customer demand while maintaining operational efficiency.
BETWEEN THE TWO COMPANIES. Compatibility paves the way to a lasting relationship. Although aligning long-term logistics and growth objectives is crucial, forging a partnership starts by ensuring that capabilities and services are a match between a 3PL provider and brand. Look into reviews, references and case studies to evaluate expertise and capabilities.
2 DEFINE GOALS AND SUCCESS CRITERIA. Ask one thing: What are we looking to accomplish with this partnership? It’s critical to align on measurable goals and define success criteria. Both parties should have realistic expectations and be willing to communicate openly and adapt as the partnership evolves. 3 SET MEASURABLE KPIs. Measure what matters. Each operational goal should tie into key performance metrics, such as order accuracy, delivery speed, cost efficiency, and customer satisfaction. Review and adapt as needs change. These KPIs also set the stage for the future—giving you the ability to compare past and present, identify areas for improvement, and track the effectiveness of strategies. 4 COLLABORATE ON PLANNING. A brand and its fulfillment partner should work together on strategic planning and
visibility and real-time data. This facilitates informed decisions. A successful partnership requires seamless integrations, allowing you to leverage omnichannel data optimally. A retailer’s platforms and software must integrate with the 3PL provider’s systems effortlessly. It enables the 3PL and the brand to optimize operations and meet shared goals. 7 PLAN HOW TO SCALE. Fulfillment operations often need to contract and expand. In the retail industry, peak season drives sales surges, while outside factors influence peaks and valleys. With the right 3PL partnership, brands can grow with access to expertise, expanded facilities and technology. In an ideal
problem-solving. Think of the 3PL as an extension of the team. Working together to streamline operations results in mutual growth, efficiency and optimized customer experiences. 5 IDENTIFY OPTIMAL WAYS TO COMMUNICATE. Choosing key stakeholders, points of contact, and tools for effective communication efforts is essential. Establish regular check-ins where you can address concerns, evaluate performance, refine strategy, and discuss any upcoming events or promotions that might affect your operations. 6 OPTIMIZE TECHNOLOGY INTEGRATIONS. Today’s successful logistics and fulfillment operations depend on operational
10 RECOGNIZE SUCCESS
AND ADDRESS CHALLENGES. A partnership strengthens as you work through problems and experience success together. When you approach the partnership constructively and foster goodwill, you’re better equipped to maintain trust, resolve conflicts, and achieve great things.
SOURCE: ILIAS SIMPSON, PRESIDENT, CART.COM
8 Inbound Logistics • December 2024
READERPROFILE Liz Minne: A Business Case for Sustainability as told to Karen Kroll
RESPONSIBILITIES: Shaping Interface’s global commitment to sustainable practices and environmental stewardship, as well as its mission of working to reverse global warming. This includes collaborating with stakeholders, fostering partnerships that drive positive change and impact sustainability, and remaining at the forefront of emerging sustainability trends to ensure Interface remains a pioneer in environmental responsibility. EXPERIENCE: Director, global sustainability, Interface; environmental program manager, Thyssenkrupp Elevator; project manager, EPD team leader and LEED senior reviewer, Epsten Group; sustainability analyst, Georgia Institute of Technology; computational chemistry intern, NIST. EDUCATION: PhD and M.S., environmental engineering; B.S., polymer and fiber engineering, all earned at Georgia Institute of Technology. LIZ MINNE heads global sustainability strategy for Interface Inc., a flooring solutions company.
A t the start of my career, I was very focused on science and engineering. I’ve since shifted to
We’ve set aggressive, science- based targets to reduce our overall environmental impact by 50% for Scopes 1, 2 and 3 emissions by 2030. Scope 3 emissions, or those from purchased goods and services, comprise our largest single category and is linked closely to our suppliers. This is a hugely ambitious goal and will take everybody on the team to get there. I’m excited about the direction that Interface is moving. Over the past 30 years, we have transformed our products, factories, and supply chain to lower our carbon impact. We even developed the first-ever carpet tile styles that are carbon negative. That is, throughout its lifecycle, it removes more carbon dioxide from the atmosphere than it emits.
language and provide direction on the information we needed. We’d come prepared with research on their goals and explore greater alignment to help open up the conversations. Depending on how advanced the supplier is with carbon and greenhouse gas inventories, lifecycle assessment, the circular economy, and other environmental measures, my team and I offer expertise that can help them advance their journey or look for areas of collaboration. A lot of our initial work has been to get better data. That means engaging with our suppliers, so they can get real measurements on the materials they’re providing. It’s also engaging with them about the ways they can affect their own environmental impact.
become more focused on management and strategy. Yet I think it’s important and useful to be able to speak the language and understand the data and technical details. I lead Interface’s department focused on the technical data and strategy sides of our sustainability mission. We set targets and figure out the strategy that will get us there. Then, we work with the procurement teams to identify areas where we can make an impact. When we started working with our suppliers, most weren’t familiar with the words ‘lifecycle assessment.’ We had to figure out the resources that would help them understand the data and
10 Inbound Logistics • December 2024
Recently, Interface announced a big strategic change. We had been investing in carbon offsets to bring down our footprint. Now, we’re focused on direct carbon reductions and storage—not offsets—to meet the urgency of the climate crisis. HARNESSING AN INTEREST IN THE ENVIRONMENT In high school, I was interested in the environment, but didn’t know how to harness my interest in what was still a developing field. I knew I wanted to do something with science and math, so I started studying polymer and fiber engineering at Georgia Tech. During a study abroad program in Europe, I experienced what Interface’s founder calls ‘a spear in the chest’ moment when taking a course on sustainable engineering. I realized this could be a profession. Eventually, I earned a PhD in environmental engineering. I’m proud of the work I did to complete my doctorate. It was my dream to end up at Interface, a business- case example of how you can do sustainability. It’s an inspiring place to work. n
Liz Minne Answers the Big Questions 1 How would you describe your job to a five-year-old?
Especially with colleagues, I think it’s great to have the opportunity to meet in person. But my teleportation superpower couldn’t use resources poorly. I’d think about the environment, too. 3 What’s your hidden talent? It’s less hidden since the pandemic, but mixology. I started home bartending and have made hundreds of unique alcoholic and non- alcoholic cocktail recipes. I’ve had a lot of fun making cocktails for friends and family.
We’re on a ship, we have a destination, and we need to figure out how to get there. My job is to ask for and accept the insight of everyone who’s figuring out how we navigate the course while also watching for obstacles and opportunities. 2 If you could have one superpower, what would it be? Teleportation. Both professionally and personally, I love to explore the world and experience other cultures.
asi_halfpgIL_1224_final_• 11/14/24 9:31 AM Page 1
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December 2024 • Inbound Logistics 11
NOTED [ IN FOCUS ]
The Supply Chain in Brief
> RECOGNITION
> GREEN SEEDS
n Anacostia Rail Holdings’ Pacific Harbor Line received partial funding—together with the California Air Resources
• Southeastern Freight Lines was recognized as a
2024 Top Company for Women to Work in Transportation by Redefining the Road , the official magazine of the Women in Trucking Association.
Board—for five ZE locomotives. The funding will be provided through a U.S. Department of Transportation Consolidated Rail Infrastructure & Safety Improvements Program grant. n By conducting its logistics through DHL’ s GoGreen Plus service, Swiss chocolate manufacturer Lindt & Sprüngli is reducing greenhouse gas emissions from its ocean freight transportation. Since beginning the partnership with DHL Global Forwarding, Lindt & Sprüngli has removed approximately 514.86 metric tons of CO2e emissions within three months.
• Carrier Logistics Inc. (CLI) received the SaaS Growth Award from Progress, a
provider of AI-powered infrastructure software, for the second year in a row. The recognition reflects CLI’s product innovation, financial growth, and SaaS sales success and market expansion. • Vector Global Logistics was named a winner of the U.S. Chamber of Commerce Foundation’s 25th Annual Citizen Awards. Vector was recognized in the Best Corporate Steward— Small and Middle Market Business category.
n Maersk has entered into a long- term bio-methanol offtake agreement with LONGi Green Energy Technology Co. The agreement will contribute to lowering greenhouse gas emissions from Maersk’s growing fleet of dual- fuel methanol container vessels.
> GOOD WORKS
• SC Ports, the International Longshoreman’s Association, Coalition 18, and the Maritime Association of South Carolina encouraged its partners, businesses, and area residents to donate
> SHOVEL READY
n Savage Tooele Railroad began construction on Utah’s first new railroad in decades. The new short-line railroad will serve tenants of the Lakeview Business Park.
to the Maritime Toy Drive with the goal of filling a 40-foot ONE shipping container with toys. The S.C. Department of Social Services distributes the donations to foster children in South Carolina. • At the grand opening of its new Komar Distribution Services facility in Ellabell, Georgia, the Komar Family Foundation donated $50,000 in scholarships to the Frank Callen Boys and Girls Club in Savannah, and $50,000 to United Way of the Coastal Empire to assist Hurricane Helene flooding victims.
12 Inbound Logistics • December 2024
NOTED
> M&A
> SEALED DEALS
• Generac, a manufacturer of home backup generators, expanded its partnership with John Galt Solutions to power global end-to-end supply chain planning across all of its business units.
n PS Logistics subsidiary Blair Logistics acquired Fluker Transportation, a founder-owned trucking company that specializes in flatbed and heavy- haul shipping. n Aptean acquired Indigo Software Limited, a provider of purpose-built warehouse management and logistics software solutions. n Cold Chain Technologies purchased Tower Cold Chain, a global provider of advanced passive reusable cold chain solutions.
• Aroma Retail, an environmental scenting
company, is using Descartes Systems Group’s cloud-based, multi-carrier parcel shipping solution to scale ecommerce order fulfillment in support of escalating sales growth.
n ORBIS Corporation acquired substantially all the assets of Creative Techniques, Inc. (CTI),
• Royal Mail is the first delivery company to use Wiliot’s tracking solution to modernize its network. The company has tagged its 850,000 wheeled
which designs and manufactures custom packaging. ORBIS also acquired CTI’s facilities, including 60,000 square feet of manufacturing space and 22,000 square feet of warehousing space.
containers with Wiliot’s tiny computers that look like stickers, which allow them to transmit live data on location, as well as humidity and temperature, as they are transported around the country.
> UP THE CHAIN
Logistics automation company Cimcorp named Veli-Matti Hakala as its new CEO, effective Jan. 1, 2025. He replaces current CEO Tero Peltomäki, who will retire and continue as a member of Cimcorp’s board of directors. Michelle Shi-Verdaasdonk joins Electrolux Group as chief procurement officer, responsible for the procurement strategy for direct and indirect materials, logistics services, and product sourcing.
> MILESTONES
n WARP, a technology driven middle-mile logistics company, marks its third anniversary. The company provides leading brands with innovative, cost-saving solutions that redefine the middle mile.
n From humble beginnings in Louisiana in 1924, Saia LTL Freight is now celebrating its
Tony Barnes was appointed to the newly created position of global chief commercial and growth officer at freight forwarding and logistics company Accelerated Global Solutions.
100th anniversary. This milestone is a testament to the company's legacy of innovation, resilience, and commitment to excellence.
Automaker Stellantis appointed Xavier Duchemin as its vice president of global supply chain, replacing Yves Caracatzanis.
December 2024 • Inbound Logistics 13
TAKEAWAYS Shaping the Future of the Global Supply Chain
TARIFF TROUBLES? In the wake of Donald Trump’s U.S. Presidential election victory, companies around the globe are preparing for likely changes to relevant policies on everything from global trade to manufacturing to environmental regulations. In the supply chain and logistics sphere, talk centers largely around an expected increase in tariffs. Here’s what some experts predict—and how they advise businesses to react. “President-elect Trump promised to start a global trade war by imposing tariffs across the board and targeting some nations with higher tariffs. If he goes through with this initiative, domestic inflation will rebound. The U.S. manufacturing sector will need to attract capital and workforce talent to build new and restore old domestic supply chains for goods that are now imported.” —Ed Hirs, Energy Fellow, University of Houston “Different manufacturing subsectors will experience wildly different outcomes [as a result of proposed tariffs]—electronics makers face potentially painful component shortages while chemical companies may benefit from reshoring. Small manufacturers will struggle with the transition costs while larger players can use this as a catalyst to rebuild their supply networks. The biggest winners will be those who use this moment to fundamentally redesign their operations with more flexibility and redundancy built in.” —Dan Abramson, SVP of Growth Markets, FourKites “Trump has signaled a more aggressive tariff strategy, which could significantly disrupt supply chains and impact company margins. Industries with complex cross-border logistics, such as chemicals and automotive, may face increased costs, particularly if tariffs are imposed on Mexico. This approach could reshape global supply chains and force companies to reevaluate their sourcing strategies, potentially accelerating the trend of nearshoring or reshoring production.” —Bindiya Vakil, CEO, Resilinc “The knee-jerk reaction from U.S. shippers will be to frontload imports before Trump is able to impose new tariffs. If you have warehouse space and the goods to ship, frontloading imports is the simplest way to manage this risk in the short term, but it will bring its own problems. A sudden increase in demand on major trade lanes into the U.S. when ocean supply chains are already under pressure due to disruption in the Red Sea will place upward pressure on freight rates.” —Peter Sand, Chief Analyst, Xeneta
CONNECTING THROUGH THE CLOUD Though cloud-driven collaboration within the supply chain is not new, it’s fast becoming a must-have for global supply chain visibility and resilience. That’s the key takeaway from new research by Loftware, a digital platform for enterprise labeling, which shows 90% of survey respondents call for greater connection across global supply chains. Respondents cite cloud technology as one key to improve efficiency, ensure compliance, and reduce overall costs. Here are some additional insights from the global survey: Demand for Connection • 84% of companies say it would be beneficial to join an ecosystem where supply chain partners share access, data, and standards to improve efficiency, ensure compliance, and reduce overall costs. • 74% of respondents say the cloud offers a flexible and agile framework for streamlining access for trading partners. Compliance and Labeling Challenges • 70% of companies with $1 billion+ in revenue report being forced to re-label inbound goods due to compliance issues, leading to high costs. • 77% agree that controlled access to labeling networks could resolve labeling errors and streamline inbound goods handling. Security and Transparency Technology • 78% see AI as a valuable tool for detecting counterfeit goods by analyzing supply chain data. • 59% use serialization technology to address challenges such as tracking and counterfeiting. • 68% recognize the role of cloud technology in improving traceability, supporting on-time delivery, and enhancing sustainability.
14 Inbound Logistics • December 2024
TAKEAWAYS
GETTING TO NET ZERO
that AI data centers are projected to generate 718 million tons of CO2 emissions by 2030—comparable to the current emissions in the aviation or shipping industries. The report also includes the following takeaways: • 55% of G2000 companies have reduced their operational emissions (Scope 1 and 2) since 2016. • 77% have reduced emissions intensity (emissions per unit of revenue). • 30% are deploying 15 or more decarbonization levers, which represents a crucial threshold on the path to net zero. • 64% of European companies have full Scope 1-3 targets, compared to only 26% of North American companies.
While many companies say sustainability is on the top of their agendas, how many are actually making measurable progress toward sustainability goals? Not enough, according to Accenture’s latest Destination Net Zero report, an analysis of net zero commitments, carbon reduction activities, and emissions data for the 2,000 biggest companies (G2000) worldwide. The 2024 report shows only one in six (16%) of the world’s largest companies are currently on track to reach net zero emissions in their operations by 2050—down from 18% last year—while close to half (45%) continue to increase carbon emissions. Interestingly, the report shows AI is emerging as a key accelerant of decarbonization, but only 14% of companies are using it to tackle emissions. Conversely, AI could also have a negative impact given
More Progress Needed to Reach Net Zero Only 16% of G2000 companies are on track to reach net zero in their operations by 2050. (Based on 2016 to latest available data.)
Overall
16%
38%
45%
Europe Rest of World North America Asia Pacific
21%
47%
33%
17% 17%
41% 41%
42% 42%
11%
33%
56%
On track
Off track, but decreasing emissions
Off track and still growing emissions
Source: Accenture
TRUCK DRIVER PAY DOWN; OPTIMISM UP America’s truck drivers are earning less than before, but feeling better about the market’s future. This somewhat contradictory viewpoint emerges in new research from Conversion Interactive Agency, a truck driver recruitment firm, and survey company PDA. Their Fall 2024 Driver Survey provides insights into the evolving priorities, challenges, and sentiments of professional truck drivers in today’s market.
Truck drivers also indicate the following: • 59.3% are currently looking for a trucking job—the highest percentage of drivers since Conversion and PDA began tracking this number—while 53.3% of truckers say they feel valued and appreciated at their current job. • “Predictable pay” (81.9%) is the number-one reason cited by those seeking jobs, followed by “better home time” (65.7%), and “consistent miles” (49.1%). • More home time does not trump pay; 40.8% say they would be “very unlikely” to accept a pay reduction for more home time. • When job hunting, 14.7% of truckers apply to one company, 39.9% apply to two or three companies, 17.1% four to five, and 28.3% more than five.
While 59.4% of drivers surveyed say they are not earning more now than they were a year ago, 51.1% say 2025 will be a better year for truckers than 2024. Many drivers remain optimistic as economists are indicating a return for most freight sectors.
How likely would you consider applying for a driving job with reduced pay if it offered improved home time?
Are you earning more now as a truck driver than you were one year ago?
8.9% 19.2%
18.9% 12.2% 40.8%
Source: Conversion Interactive Agency/PDA
December 2024 • Inbound Logistics 15
TAKEAWAYS
INDUSTRIAL LEASING TICKS UP
Here are five key takeaways from the report: 1 Post-election boost expected for leasing. After a sluggish first half, Q3 2024 leasing improved to 4.3% below Q3 2019 levels. Tenant activity is expected to pick up in the coming quarters post-election. 2 Port volumes rise as shippers pull forward. TEU volumes are up 14.8% year-to-date as shippers pulled freight forward ahead of the ILA strike, a trend likely to continue amid potential tariff escalations. 3 Demand surges from China-focused 3PLs. Logistics providers are leasing large spaces in port markets, fueled by tariff concerns and ecommerce growth, including Temu’s 455 million app downloads in 12 months. 4 Construction has finally normalized. The construction pipeline is down 56% from its 2022 peak, now near 2019 levels, with California’s AB-98 bill to limit supply in key markets like the Inland Empire. 5 Existing leases still below market rates. A large mark-to-market looms on leases signed in recent years, thanks to 70% rent growth in the past five years. Some 2023 leases may now be above market.
The consensus is in: The industrial leasing market for logistics centers, warehouses, and distribution centers is on an upswing. As vacancies stabilize, industrial leasing is poised for a rebound amid opportunities and uncertainties from a new administration, finds the State of the U.S. Industrial Market–Q3 2024 report from global real estate firm Savills. The report provides key metrics on supply, demand, and pricing of industrial real estate along with analysis of related economic drivers at both national and market-level geographies.
Syfan_Publisher_NewDesign.pdf 1 8/14/24 12:16 PM
16 Inbound Logistics • December 2024
TAKEAWAYS
HEALTHCARE RX: A PATIENT-CENTERED SUPPLY CHAIN The leading healthcare supply chains of 2024 share common priorities including a renewed commitment to improve processes, invest in technology, and integrate systems to enhance service delivery in clinical areas—all in the quest of a patient-centered supply chain. That’s the main conclusion from Gartner Inc.’s release of its 2024 Healthcare Supply Chain Top 25 , the firm’s 16th annual ranking recognizing health systems that exemplify leadership and innovation.
Even more concerning is that health systems with net patient revenue less than $5 billion have unmanaged spend reaching 38% on average. Leading health systems are addressing this gap by broadening the influence of the supply chain through greater organizational collaboration. 3. Accelerating the Digital Supply Chain Health systems are significantly increasing their adoption of digital solutions, automation tools, and analytics solutions to enhance their supply chain operations. Initiatives include implementing warehouse automation systems and utilizing robotics and AI-driven solutions for inventory management. “Leading health systems are navigating risks while prioritizing clinical alignment, expanding their influence, and accelerating digital transformations to build more resilient supply chains,” says Eric O’Daffer, a Gartner analyst. These advancements, O’Daffer notes, ensure a more efficient, cost-effective, and patient-centered healthcare system.
AdventHealth claimed the top spot for the first time this year, moving up two positions from last year. Stanford Health Care, Bon Secours Mercy Health, Corewell Health, and Banner Health round out the top five. According to Gartner, these companies, along with the rest of the leaders on the list, are focused on these top three trends: 1. Resurgence of Clinical Alignment Leading health systems demonstrate a focus on enhancing service delivery in clinical areas. This includes a growing emphasis on providing clinicians with better decision-making tools to identify areas of unnecessary supply variation between facilities or individual practitioners. This focus aims to minimize the impact on patient outcomes while controlling costs. 2. Improving Span of Control The health system supply chain is involved in only 72% of the organization’s spending, indicating that on average 28% remains unmanaged centrally, according to Gartner research.
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December 2024 • Inbound Logistics 17
KNOWLEDGE Base SPONSORED CONTENT
To keep pace with demand, solar panel manufacturers, solar installers, and other businesses must find ways to overcome the unique logistical challenges presented by these products. 4 Logistics Challenges for Solar Panels and How to Overcome Them
T he United States has experienced steady growth in solar demand, driven both by the Inflation Reduction Act’s extension of the Residential Clean Energy Credit and by utility providers’ efforts to invest in renewable energy. To keep pace with demand, solar panel (module) manufacturers, solar installers, and other businesses that hope to remain relevant in the expanding U.S. solar panel market must find ways to overcome the unique logistical challenges associated with their products. Here are four top challenges of solar panel logistics and how to address them.
Challenge #4: Finding the Right Logistics Partner An experienced third-
For the end users, storage of modules only adds cost to the overall project, so inexpensive storage space and handling is crucial. Product is generally “bulk stored” to minimize costs with as little as 8% aisle factor being the industry norm. The logistics provider must have the skill set to safely store product at this density and at the same time track inventory accurately.
party logistics (3PL) provider can prove
invaluable for solar companies, but finding one with appropriate experience in solar panel logistics requires proper vetting. Despite this challenge, however, the right partner is worth the effort. By working with a 3PL, solar companies can benefit from a more flexible logistics network, increased scalability, and access to specialized equipment. This collaboration enables companies to focus on core business functions while ensuring that their logistics and warehousing needs are met. Effective storage and logistics are essential for solar companies looking to stay competitive in an industry driven by sustainability and efficiency. The right warehousing setup, inventory management systems, transportation strategies, and partners ensure that solar stakeholders can meet demand while keeping costs under control. As the industry grows, these logistics strategies will become even more critical in supporting a sustainable energy future.
Challenge #3: Making Transportation Cost-Effective Solar panel transport carries significant risk because of the panels’
Challenge #1: Solar Panels Are Big, Heavy, and Fragile Solar panels are built to weather long-term outdoor installation but are highly prone to damage in storage.
size and delicate nature. Minimizing movement and vibrations is essential during transit, as rough roads could result in internal damage, reducing the panel’s efficiency and lifespan. Companies should use route-planning software to ensure transport is efficient. By utilizing technology to manage carriers and routes, businesses can shorten delivery times, lower fuel costs, and reduce emissions—a key metric for companies invested in sustainable energy. A thorough inspection process is crucial at time of delivery to ensure any damaged modules are identified. This allows for sufficient lead time to replace damaged panels from the manufacturer, reducing potential project delays. Additionally, most solar panel manufacturers pay the freight cost to get the panels to the purchaser, so moving and storing the panels as close to the final installation site as possible helps to reduce overall project cost. Having the panels close to the final job site also reduces potential delays during construction.
Since photovoltaic panels are as heavy as they are delicate, they also hold an elevated risk of shocks and drops when handled poorly. Here are some tips for storing solar panels: • Don’t expose solar panels to sunlight while in storage. • Store panels in temperature- controlled environments. • Stack and store panels using techniques that distribute weight and prevent scratches. • Adapt forklifts with soft padding to prevent breakage.
—By Robert Kriewaldt
Challenge #2: Efficient Storage Methods are Key End users of solar panels purchase the modules either for a specific project or in speculation of future projects.
Senior Vice President Phoenix Logistics Robert@Phoenix3PL.com phoenix3pl.com 920-915-9746
18 Inbound Logistics • December 2024
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