CAREER SKILLS YOU NEED MOVING FORWARD
The Future of the AUTOMATED SUPPLY CHAIN
REVERSE LOGISTICS: POINT OF NO RETURN HOW TO AUDIT YOUR WAREHOUSE PLUS
Where supply chain pros come together to find solutions Come get face-to-face with the people, technologies and ideas that are shaping this industry’s future at ProMat 2025, your unrivaled supply chain experience. From hands-on demonstrations from over 1,000 leading suppliers to 200 thought-provoking seminars and four inspiring keynote speeches, ProMat has everything you need to make your operations more resilient, transparent and sustainable. McCormick Place, Chicago | March 17-20, 2025
Learn more & register for free admission at promatshow.com
BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS
2B OR NOT 2B? 40% of B2B buyers cite lack of transparency around stock and delivery dates as their top frustration 29% say inaccurate delivery times prevent them from ordering online 28% are hindered by inaccurate stock levels 19% of buyers say their online buying experience meets expectations –2025 B2B Buyer Report, Sana Commerce
A BREEZE OF INNOVATION The Neoliner Origin , the world’s largest cargo ship powered primarily by wind, has hit the water and is gearing up for its first transatlantic voyage in June 2025. This 136-meter marvel aims to cut carbon emissions by 80% while hauling cargo for brands like Renault and Hennessy. And it accommodates up to 12 passengers and a crew that includes yacht-racing experts.
CAN AI PUT OUT THE FIRE? With the Los Angeles wildfires top of mind, eyes are on AI to revolutionize wildfire
A CRACK IN THE SUPPLY CHAIN
management by improving early detection, prediction, and response strategies. Companies such as Chooch AI are leveraging satellite imagery to identify wildfires faster, while Compta’s Bionic Eyes can detect ignition within five minutes and distinguish smoke from dust or insect clouds. CrowdAI’s FireNet analyzes videos at high speed to map wildfire perimeters in near real time, providing critical updates for first responders. State agencies including Cal Fire are also embracing AI to enhance resource allocation and support on-the-ground firefighting efforts.
A combination of factors are driving egg shortages across the United States, including the Avian Flu epidemic, which has killed 17+ million hens, and rising inflation affecting farmers’ costs. Seasonal demand during the holidays further tightened availability, while cage-free production regulations in states like California and Massachusetts have complicated supply chains. Major retailers including Costco report limited stock as the market struggles to adjust. The USDA expects a prolonged recovery, highlighting vulnerabilities in large-scale egg production systems.
BMW DIY BMW is taking the concept of “drive yourself to work” to a whole new level.
LEADERSHIP LESSONS “Always believe in yourself and your team, no matter how impossible something seems. If you need to move fast, don’t aim for perfect. If it works, it’s good enough for now. And when you see a once-in-a- lifetime opportunity, do everything you can to grab it.” –Pavlo Pikulin, CEO and Co-founder, Deus Robotics
At its factory in Southeast Germany, cars under production now navigate themselves from the assembly line to a test course and finishing area — no driver required. The factory uses external tech, such as Lidar sensors and movement planners, to guide them along their half-mile journey. After seeing a boost in efficiency–and probably fewer scuffed bumpers–BMW plans to roll out this innovation across Europe.
February 2025 • Inbound Logistics 1
CONTENTS FEBRUARY 2025 | VOL. 45 | NO. 2
GOOD QUESTION How would you explain supply chain management to a first-grader?
6
INSIGHT 4 CHECKING IN The logistics leader of the Southeast 6 GOOD QUESTION How would you explain supply chain management to a first grader? 8 10 TIPS Improving supply chain sustainability 22 WAREHOUSING How to thoroughly audit a warehouse 24 DISRUPTION Future-proof your supply chain: Why real- time monitoring matters
38 SUPPLY CHAIN SKILLS YOU NEED TO ADVANCE Here are the skills and moves that can help you puzzle out your career and get to the next level.
FEATURES 26 THE FUTURE OF THE AUTOMATED SUPPLY CHAIN Automation is revolutionizing warehouses and transforming the future of supply chain operations, while AI drives smarter forecasting, streamlined planning, and greater efficiency. 32 REVERSE LOGISTICS: MOVING AGAINST THE CURRENT Learn to swim against the typical supply chain flow with effective and efficient reverse logistics strategies. CONTENT PARTNERS 18 How 2025’s NMFC Changes Will Impact Shippers Offered by SMC 3 20 Automating Your Warehouse
48 LAST MILE Avoiding AI traps
INFO 42 SUPPLY CHAIN INSIGHTS 46 CALENDAR 47 RESOURCE CENTER INPRACTICE 10 LEADERSHIP Pavlo Pikulin, CEO of Deus Robotics, says lessons from the gaming industry can reshape robotics, transform warehouses, and unlock the full potential of AI- powered logistics.
INFOCUS 1 INFO SNACKS 12 NOTED 14 TAKEAWAYS 44 IN BRIEF
Inbound Logistics (ISSN 0888-8493, USPS 703990) is mailed monthly to approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related services, by Thomas, a Xometry company, 6116 Executive Blvd, Suite 800, North Bethesda, MD 20852. Periodicals postage paid at North Bethesda, MD, and additional mailing offices. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by any electronic means, or stored in any information retrieval system, without permission from the publisher. Postmaster send address changes to: Inbound Logistics, P.O. Box 1167, Lowell, MA 01853-9900
Without the Heavy Lifting Offered by HAI Robotics
2 Inbound Logistics • February 2025
Only Pay for the Speed You Need... Dynamic Routing! At Lynden, we understand that plans change but deadlines don’t. That’s why we proudly offer our exclusive Dynamic Routing system. Designed to work around your unique requirements, Dynamic Routing allows you to choose the mode of transportation – air, land, or sea – to control the speed of your deliveries so they arrive just as they are needed. With Lynden you only pay for the speed you need.
For more information, call us at 1-888-596-3361 or visit our website at lynden.com .
CHECKINGIN
The Logistics Leader of the Southeast
Vol. 45, No. 2 February 2025 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
I f your company is thinking about opening up or expanding operations in the Southeast, I’ve got interesting news. The demographic shift of consumers and businesses, particularly manufacturing, is driving an uptick in logistics and supply chain activity across the South. That uptick is reflected in the phenomenal increase in logistics infrastructure investment, with one state leading the way. Let’s look at some investments in Georgia that are
EDITOR
SENIOR EDITOR
DIRECTOR OF STRATEGIC CONTENT
Amy Roach amy.roach@thomasnet.com
CONTRIBUTING EDITORS
Tom Gresham Karen M. Kroll
Keith Biondo, Publisher
Jeof Vita jvita@inboundlogistics.com
CREATIVE DIRECTOR
already in play and others that you’ll benefit from soon. Governor Brian P. Kemp announced a historic $1.5 billion investment in transportation infrastructure as part of the FY 2024 budget. This money is to : • Double state funding to cities and counties for local transportation projects. • Increase funding for general aviation airports. • Resurface additional state highways—truckers will love this one. • Pedal down on transportation projects already underway. • Look to the future to try and envision projects to prepare for Georgia’s continuing anticipated growth. Of the $1.5 billion investment to benefit general transportation projects, $500 million is set aside for a renewed Freight Program, specifically 18 projects earmarked for building out and amping freight-related infrastructure. These projects aim to improve the anticipated freight volumes through the ports, roads, airways, and rails. Additionally, Georgia Ports Authority (GPA) completed $262 million in improvements at the Port of Brunswick in 2024. Enhancements include new warehousing, processing space, and 122 acres of ro/ro storage for 2025 shipment levels and anticipated future growth in 2026 and beyond. For example, in the first half of fiscal year 2025 (July 1-Dec. 31, 2024), the Port of Savannah handled more than 2.8 million twenty-foot equivalent units (TEUs), an uptick of 11.4% compared to the same period in the previous fiscal year. The GPA is investing $73.5 million to expand gate capacity at Savannah’s Ocean Terminal. The project includes constructing a new gate complex with 12 inbound and six outbound truck lanes, significantly improving the terminal’s efficiency. Upon completion, the terminal’s annual capacity is expected to increase from 250,000 TEUs to more than1.5 million TEUs. This growth is expected to continue throughout 2025 and into the future. Georgia aims to be the logistics leader of the Southeast. These, and other improvements, illustrate how the state, localities, and leading companies are investing the planning and money to make it happen.
DESIGNER Arlene So
DIGITAL DESIGN MANAGER PUBLICATION MANAGER CIRCULATION DIRECTOR
Amy Palmisano apalmisano@inboundlogistics.com
Sonia Casiano sonia@inboundlogistics.com
Carolyn Smolin
SALES STAFF PUBLISHER: Keith Biondo
212-629-1560 • FAX: 212-629-1565 publisher@inboundlogistics.com ADVERTISING SALES sales@inboundlogistics.com Joseph Biondo 516-578-8924 jbiondo@inboundlogistics.com Rachael Sprinz 212-629-1562 • FAX: 212-629-1565 rachael@inboundlogistics.com Guillermo Almazo 305-833-5372 mexico@inboundlogistics.com FREE SUBSCRIPTIONS bit.ly/get_il
Inbound Logistics supports sustainable best practices. Our mission is rooted in helping companies match demand to supply, eliminating waste from the supply chain. This magazine is printed on paper sourced from fast growth renewable timber.
Inbound Logistics welcomes submissions and comments. Email us at editorial@inboundlogistics.com; call (212) 629-1560. For advertising or subscription information, email publisher@inboundlogistics.com. Inbound Logistics is distributed without cost to those qualified around the world. Interested readers may subscribe online at bit.ly/get_il. Subscription price to others: in North America $95 per year. Unqualified subscription prices: foreign $229. Single copy price: N. America $50, foreign $100, back issues $50.
4 Inbound Logistics • February 2025
AUTHENTICITY CAN’T BE AUTOMATED. Experience personalized service in every interaction.
@sunsettransportation
sunset-transportation
@sunsettransportation
@SunsetTrans
GOODQUESTION Readers Weigh In
How Would You Explain Supply Chain Management to a First Grader?
YOU’RE TURNING 7 AND HAVING A BIRTHDAY PARTY. You need cake, balloons, and party hats. These are at different stores. Supply chain management makes sure the right people get the things you need from the different stores at the right time, so you’ll have everything you need for your party. –Scott Sangster General Manager, Global
Supply chain management = how your Pokemon cards go from pulp, to paper, to showing up in stores for your parents to buy. –Brian Malinowski SVP, Business Development, TA Services
Logistics Service Providers, Descartes Systems Group SUPPLY CHAIN MANAGEMENT IS LIKE MAKING A PEANUT BUTTER & JELLY
SANDWICH. Farmers grow nuts, berries, and grains; factories turn them into peanut butter, jam, and bread; and trucks deliver them to stores where families buy them. The supply chain helps make sure we have all the things we need to eat and enjoy every day. –Richard Howells Vice President, ERP, Finance and Supply Chain, SAP IT’S LIKE A BIG ADVENTURE. Supply chain management is the way things we need, like toys or food, are made and brought to us. –Nick Osbern President, Shipstore THINK ABOUT THAT TOY CAR you love playing with. There are a lot of people who help build that toy car. Someone builds the wheels, the body of the car, and someone even paints that toy car. Supply chain management is making sure all of those helpers work together so you can get a toy car when you want it. –Jeff Goins Director, Carrier Sales, Circle Logistics
PICTURE A CANDY FACTORY — supply chain managers help make sure the factory has all the sugar, chocolate, and boxes it needs, but no more than it needs. They also make sure the candy gets to you in time for Valentine’s Day. –Brian Dean President, Managed Transportation RXO IMAGINE MAKING A DELICIOUS PIZZA. The supply chain is like all the steps to get the ingredients to you: growing the wheat for the dough, raising the cows for the cheese, and bringing them all to the pizzeria. Logistics is how those ingredients get there—the trucks that carry the cheese, the boats that bring the tomatoes, and ensuring everything arrives on time. –Jason Minghini
IT’S LIKE RUNNING A RACE. Sometimes, you’re running with the wind, and sometimes you’re running against the wind, but the goal is to always keep moving no matter how difficult it is. –Bill Heaney Chief Commercial Officer, Odyssey Logistics SAY YOU WANT A • A farmer grows wheat for flour, gets eggs from chickens, and milk from cows. • A factory turns milk into butter and wheat into flour. Another makes sugar and chocolate chips. • Trucks bring the ingredients to the store. • You buy the ingredients and bring them home. • Now the cookies can be baked! –Josh Dunham CEO and Co-founder, Reveel COOKIE , but you don’t have all the stuff to make it. Here’s how it works:
Senior Vice President, Supply Chain Solutions Kenco
6 Inbound Logistics • February 2025
GOODQUESTION
Operation Santa Claus Santa
THINK OF PLANTING A GARDEN. You need seeds,
water, and soil. But you don’t have everything, so you ask a friend to bring the seeds, a friend to bring water, and another to bring soil. But, there is a specific order: soil, seeds, water. Supply chain management is being the person in charge of making sure everyone brings the right stuff at the right time so the garden can grow. –Jeffery Benore President and CEO Benore Logistic Systems, Inc. IMAGINE YOU’RE BUILDING A LEGO CASTLE , but you need help getting all the right pieces. You ask one friend to give you some bricks, another to deliver the doors, and another to get some knights. Supply chain management is like being the boss, making sure the right pieces arrive on time and fit together perfectly to build something awesome. –Ed Rusch Chief Marketing Officer, Magaya RILEY AND ALEX WANT TO MAKE THEIR FRIEND, ROBIN, HAPPY . Riley gets paper from the cupboard and crayons from the drawer, takes them to Alex at the table who gets creative, drawing a picture. Alex gives the artwork to Robin and they smile! Riley and Alex just managed a small supply chain (and they made their friend happy!). –Jim Heide Chief Operating Officer, Loadsure PRETEND YOUR drives you into town to buy a brand- new one, but the two stores you try don’t have what you need. When you get home, you ask your mom to order a new tube online. When the tube arrives, you finish fixing your bike. Supply chain management is making sure everything you need to fix your bike is available when you need it. –Eric Allais President & CEO, PathGuide Technologies BICYCLE HAS A FLAT TIRE. Your dad removes the leaky tube and then
Supply chain management is like Santa delivering gifts —every toy, every stop, perfectly planned and timed. Today, artificial intelligence is the elf that makes it all happen, knowing which sleigh to load, the fastest route, and who’s getting what before anyone asks. AI is the magic behind the scenes, ensuring every delivery feels like Christmas morning. –Rajesh Asher Associate Vice President - Business Development, Trigent Software First, Santa listens to what kids want at the mall (customer service). Then, the elves buy what they need (raw materials), the elves make the toys (manufacturing), and then Santa delivers the toys to the children (transportation). –Todd Bauman Senior Supply Chain Director, Ascential Medical & Life Sciences
YOU WANT CHOCOLATE MILK FOR LUNCH. First, a cow gives milk on a
and people who make it all happen— has to fit perfectly. My job is to make sure no pieces are missing, everything connects smoothly, and the puzzle is finished on time so stores have what you need, exactly when you need it. –Rodney Manzo Founder and CEO, Anvyl THINK OF ICE CREAM. Ice cream flavors are stored in a big building called a warehouse, ice cream truck drivers stop by the warehouse to get all of the flavors displayed on their truck, and they take the flavors to individual neighborhoods to be sold to people there. Supply chain management means getting the right flavors (products) from where they are made to you in a quick and organized way. –Sankalp Arora CEO & Co-Founder, Gather AI
farm. Then, the milk is mixed with chocolate, poured into cartons, and shipped to the store by trucks. Supply chain management makes sure there’s enough chocolate to mix with the milk, enough cartons for the milk, and then enough chocolate milk on the shelf so everyone who wants it can enjoy it. –Amanda Oren VP, Industry Strategy, Grocery, North America, RELEX Solutions YOU AND YOUR FRIENDS VISIT THE BIGGEST TOY STORE IN THE WORLD. You get to play with any toy and take your favorite home. Supply chain management is the magic that ensures all the toys are made, delivered, and ready for you and your friends to enjoy. –Stephen Dombroski Director, Consumer Markets, QAD, Inc.
SUPPLY CHAIN MANAGEMENT IS LIKE PUTTING TOGETHER A GIANT PUZZLE. Each piece—
Answer upcoming Good Questions at: www.inboundlogistics.com/ good-question
ingredients for snacks, parts and boxes for toys, trucks for delivery,
February 2025 • Inbound Logistics 7
10 TIPS 1 OPTIMIZE FREIGHT CONSOLIDATION.
Companies must rethink how they move goods to reduce their carbon footprint. Here’s how to achieve greener, more efficient transportation operations. Improving Supply Chain Sustainability
companies can identify high- emission routes, improve efficiency, and make data- driven decisions to lower their environmental impact. 8 UTILIZE AERODYNAMIC TECHNOLOGIES. Upgrading trucks with aerodynamic features— such as side skirts, wheel covers, and optimized trailer designs—can reduce fuel consumption by improving airflow. Low rolling resistance tires, automatic tire inflation systems, and fuel-efficient driving techniques further contribute to sustainability. 9 ENCOURAGE CARRIER SUSTAINABILITY. Shippers should partner with carriers that prioritize environmental responsibility. Many leading carriers now invest in green technology, use eco-friendly fuel alternatives, and follow strict emission reduction targets. Incorporating sustainability metrics into carrier selection criteria can drive industry- wide change.
One of the easiest ways to improve sustainability is to maximize truckload efficiency. Instead of shipping partial loads, consolidate freight to reduce the number of trips. Less-than-truckload (LTL) and shared truckload solutions help lower emissions by maximizing trailer space utilization and reducing overall mileage.
2 LEVERAGE OPTIMIZATION TECHNOLOGY. Using AI-powered routing software can significantly cut down unnecessary miles, reduce idling time, and lower fuel consumption. Dynamic routing ensures trucks take the most efficient paths based on traffic, weather, and delivery schedules, which minimizes environmental impact. 3 SHIFT TO INTERMODAL. Intermodal solutions— combining truck, rail, barge,
4 ADOPT ALTERNATIVE FUEL/ELECTRIC VEHICLES. Fleet electrification is gaining momentum as companies look to cut emissions. Investing in electric trucks, hydrogen-powered vehicles, or those running on renewable natural gas can drastically reduce carbon footprints. Many companies are also experimenting with hybrid fleets to transition more sustainably. 5 REDUCE EMPTY MILES. Empty miles—when trucks travel without cargo—waste fuel and increase emissions. Using backhaul optimization strategies and load-matching technology can help minimize deadhead miles by ensuring trucks carry cargo in both directions.
6 IMPROVE LAST-MILE DELIVERY EFFICIENCY. Last-mile logistics are one of the greatest contributors to transportation emissions. Companies can improve sustainability by using micro- fulfillment centers, deploying electric delivery vehicles, and offering customers eco- friendly delivery options like consolidated shipping or local pickup points. 7 MONITOR AND REDUCE CARBON EMISSIONS. Real-time tracking tools embedded within transportation management systems allow businesses to measure emissions at the shipment level and before execution. Shippers should explore opportunities to be proactive vs. measuring results after the fact. By analyzing CO2 data,
and ocean freight—are more fuel-efficient than
relying solely on long-haul trucking. Rail, for instance, produces up to 75% fewer greenhouse gas emissions per ton-mile compared to trucking. Businesses should explore multimodal strategies to optimize sustainability and cost-effectiveness.
10 INVEST IN
SUSTAINABLE INFRASTRUCTURE. Building a sustainable transportation network requires long-term investments. As the industry moves toward electric vehicles, shippers should consider setting up on-site renewable energy sources at DCs, investing in charging infrastructures, and supporting policies that promote sustainable freight practices at the governmental level.
SOURCE: KEVVON BURDETTE, CHIEF COMMERCIAL OFFICER, PRINCETON TMX
8 Inbound Logistics • February 2025
LEADERSHIP Conversations with the Captains of Industry
‘Impossible is Nothing’: Pavlo Pikulin Disrupts Logistics
The gaming industry and the logistics market may have more in common than first appears, according to Pavlo Pikulin, CEO and co-founder of Deus Robotics, and former head of a gaming company. Pikulin’s aptitude for technology was evident early on. At 13, he was winning gaming competitions. He wrote several computer programs, including an automatic number-plate recognition system, which uses optical character recognition on images to read vehicle registration plates and create vehicle location data. “It was the first AI system I created,” Pikulin says. With this accomplishment, he understood that he could teach a computer to understand and recognize its environment, and that it would be possible to create autonomous vehicles and robots that could handle manual tasks. At 19, Pikulin dreamed of creating a robotics company, but lacked resources. In addition, the robotics industry was in its infancy and few understood the value robots could offer. He launched WhaleApp, a gaming studio, to generate funding for his future robotics company. WhaleApp eventually attracted more than 60 million players and reached $50 million in annual revenue. In 2019, Pikulin started Deus Robotics, which is incorporated in the United States, with offices in Ukraine, Pikulin’s home country, and the UK. Deus Robotics offers a unified AI platform designed to connect, manage, and optimize any type of robot from any provider used in warehouse automation. “Robotics technologies will change our lives very unexpectedly, and for most people, in a good way,” he says. Pikulin shares his thoughts with Inbound Logistics . IL: What challenges did you face when you launched Deus Robotics, and how did you tackle them? We started by designing construction robots but quickly switched to logistics. In logistics, robots can make a huge difference across many processes immediately. One challenge we faced was our lack of logistics expertise. Our founding team had profound expertise in AI, robotics, and hardware, but robotics and AI engineers usually don’t have expertise in logistics. To address this, we needed to work with
Pavlo Pikulin, CEO and Co-founder, Deus Robotics
What do virtual worlds and warehouse automation have in common? More than you’d think. Pavlo Pikulin, CEO of Deus Robotics, says lessons from the gaming industry can reshape robotics, transform warehouses, and unlock the full potential of AI-powered logistics.
by Karen Kroll
10 Inbound Logistics • February 2025
LEADERSHIP
You Need a Plan The characteristics or attributes most important for leaders include believing in yourself, and good communication skills so you can share your vision with your team, says Pavlo Pikulin, CEO and co-founder of Deus Robotics. Good leaders also need empathy because they manage people, not robots. “All people are different; they understand differently,” he says. “You need to try and understand their different perspectives, and how they feel about what you’re saying. “Good leaders need to be strong mentally, because success passes,” Pikulin notes. “You’ll fail in one or another thing and then need to overcome it. When people on the team are upset when things don’t go well, but they see that you’re moving forward, their motivation increases. “You also should have a plan,” he adds. “It can change, but you need a plan.”
a big logistics company to get a chance to unite our skills in AI and robotics with their skills in logistics. We got this opportunity when Nova Post, Ukraine’s largest private delivery company, approached us about a project to automate their warehouse operations using robots. At the time, we only had construction robots, but Nova Post needed a logistics solution. My team had just one month to build a robot from scratch. They pulled it off, because they’re incredible. Since then, we’ve also automated Nova Post’s order fulfillment operations and helped boost efficiency three-fold. I walked away from this experience with three key lessons: First, always believe in yourself and your team, no matter how impossible something seems. Second, if you need to move fast, don’t aim for perfect. If it works, it’s good enough for now. Third, when you see a once-in-a-lifetime opportunity, do everything you can to grab it. This experience reinforced a quote from Muhammad Ali that I live by: “Impossible is nothing.” In another situation, a logistics company asked our team to automate a department that handles cargo of different sizes and weights that couldn’t be placed on a standard sorting conveyor line. Developing such a complex solution would usually take at least six months. We did it in 10 weeks. We managed to move this fast thanks to two things. First, our team includes 11 PhD students. We’re experts in boosting warehouse efficiency with robots. Robotic automation is what we live and breathe. And as a company of 36 people, we can make quick decisions and swiftly adapt to our client’s needs. A great deal of planning, hard work, and a bit of luck helped tremendously. IL: How do you handle pushback? When I launched my company and described my ideas and vision, some said they were impossible. Leaders need to believe in their goals and vision and not to surrender. At the same time, we need to understand where we can fail, where we need to pay attention, and where the critical problem points are. If something fails, it’s a lesson, not a hard stop. It’s a lesson that I need to change something and go forward.
IL: How do you get people to look at an issue from a different perspective?
When I see that someone needs to look at an issue from a different side, I never say they’re doing something wrong. Instead, I ask: ‘If you look at this problem from this side, what do you think?’ Even if I know the answer, I want to see them acknowledge the need to look from another direction. Next time, they may try to look at it from a different angle on their own. IL: What lessons that you learned earlier in your career remain relevant today? My experience in the gaming industry has been valuable in many key areas. For example, we are creating virtual worlds in robotics simulation systems. It’s a game-changer in robotics because experimenting in a virtual environment offers a quicker and more efficient way to test ideas without waiting months for physical prototypes. My experience in the gaming industry was very handy in this case. IL: What’s the new direction of your company? At the start, we built our own robots. But creating many types of robots would take more time than I expected. I now understand that it’d be faster to focus on the software side, which is also our strong suit. In 2024, we stopped manufacturing to focus on our AI platform, which can connect our robots and robots from other manufacturers and make them smarter. The dream is to automate everything, in logistics and elsewhere. A platform that helps robots communicate with businesses and each other becomes even more important.
February 2025 • Inbound Logistics 11
NOTED [ IN FOCUS ]
The Supply Chain in Brief
> UP THE CHAIN
> SEALED DEALS
Ann Begeman was appointed to the board of directors of CSX Corporation. Her career spans more than three decades in public service.
• Pulp supplier Suzano entered a long- term commercial agreement with AI-powered land use and supply chain management startup, Marvin. Suzano
will use Marvin’s land use geospatial intelligence products for yield prediction, water resource and risk management, carbon measurement, and supply chain optimization and traceability. • United Legwear & Apparel Co. will use TradeBeyond’s AI-powered traceability solutions to manage complex compliance requirements and ensure transparency from raw materials to finished products. • Mr Fothergill’s Seeds has entered a multi-year partnership with Metro Supply Chain , which will manage Fothergill’s warehousing and pick, pack, and dispatch operations across the seeds, tools, and accessories business. • Sincronia partnered with Dexory to integrate warehouse intelligence solution DexoryView into its warehouse operations. DexoryView enables Sincronia to conduct daily scans of its warehouse using autonomous robotics.
BlueGrace Logistics named Elisabeth Miller as director of parcel. She leads the company’s parcel services department, enhancing its capabilities and integration with existing LTL and truckload offerings.
The Goodyear Tire & Rubber Company named Don Metzelaar senior vice president, global manufacturing and supply chain. Metzelaar brings more than 30 years of experience leading complex, world-class manufacturing operations.
> GOOD WORKS
• Gebrüder Weiss transported a high- performance photovoltaic system to the Palorinya refugee settlement in
• Saia LTL Freight partnered with Joe Gibbs Racing for a multi-year sponsorship of Ty Gibbs and the No. 54 Toyota Camry XSE in the NASCAR Cup Series.
northern Uganda, as part of the Solar Power for Palorinya initiative that provides sustainable energy for training workshops that equip refugees with trade skills. • Carolina Handling donated proceeds from sales of its holiday pop-up book, Santa’s One-Stop Integration Shop , presenting a $5,000 check to Literacy Together in Asheville, North Carolina.
> INVESTMENTS
n Fincart.io, a platform that helps ecommerce SMBs improve shipping, successfully closed its pre-seed funding round for an undisclosed amount. The funds will help improve Fincart.io’s technology platform, grow its courier network, and support the ecommerce market in Africa and the Middle East. n Overhaul, a supply chain risk management and intelligence company, successfully completed $55 million in equity funding led by Springcoast Partners. The growth investment will fuel Overhaul’s continued advancements in AI and support its strategic acquisition roadmap.
12 Inbound Logistics • February 2025
NOTED
> RECOGNITION
>M&A
n LG Electronics secured a majority stake in Bear Robotics, a Silicon Valley- based startup
• Wabash National named Dayton Freight Lines its 2023 Platinum Award winner.
Wabash scored carriers on delivery, quality, cost and service, as well as key initiatives of logistics optimization.
specializing in AI-driven autonomous service robots.
• ADUSA Distribution and ADUSA Transportation, the supply chain operations companies of grocery retail group Ahold Delhaize USA, were named Top Employers in the United States by the Top Employers Institute, which recognizes organizations that are dedicated to cultivating great places to work through excellent human resources policies and people practices.
n DHL Supply Chain acquired Inmar Supply Chain Solutions, a division of Inmar Intelligence and a returns solutions provider for the retail ecommerce industry. n The U.S. Surface Transportation Board approved CN’s acquisition of Iowa Northern Railway Company. The decision allows CN to combine IANR’s 175 route miles with CN’s nearly 20,000-mile rail network to offer single- line service to better connect grain, fertilizer, renewable fuels, and industrial markets to CN’s North American network. n PITT OHIO Transportation Group plans to acquire LTL carrier Sutton Transport and merge the Midwest-focused company with its existing Dohrn Transfer LTL unit after an initial period of operating the two separately. The merged company will be known as Dohrn LLC. n YMX Logistics acquired Yard Commander, a yard management system deployed across facilities throughout North America. n Arvato plans to acquire ATC Computer Transport & Logistics, which provides specialized high-security transport, white glove delivery, and technical services for hyperscale data center operators, high-tech freight forwarders, co-location providers, and SaaS companies. n Steele Solutions Inc. purchased MiTek Mezzanine’s North American business to increase capacity and enhance service for industrial and warehouse customers across North America.
• Hyster Company’s hydrogen fuel cell- powered ReachStacker was named as “one to watch” in the Game Changing Innovation
of the Year category of the 2024 Global Good Awards. The award recognizes organizations and leaders who achieve practical, real-world impact for people and the planet that is both scalable and replicable. • A3 Freight Payment was designated a 2025 FedEx Certified FBAP Provider. The program identifies and honors freight bill, audit, and pay providers that consistently meet FedEx’s stringent internal benchmarks.
•Averitt was recognized with multiple awards at the 94th annual Tennessee Trucking Association Convention: 1st Place LTL Carrier Safety Award in the category of 15 million miles and greater, as well as the 2nd Place Truckload For
Hire Carrier Safety Award in the category of 7 million miles and greater. The company also was honored with the Clean Diesel Leadership Award for its continued efforts in reducing emissions and promoting environmental stewardship.
> MILESTONES
n PSA Singapore handled more than 40 million TEUs in 2024, a new record surpassing the company’s previous annual high of 38.8 million TEUs set in 2023.
February 2025 • Inbound Logistics 13
TAKEAWAYS Shaping the Future of the Global Supply Chain SNAPSHOT: SUPPLY CHAIN MOOD
In the midst of complex shifts occurring within the global trade sphere, supply chain executives feel torn between optimism and pessimism, shows the fifth annual Trade in Transition research program. Led by Economist Impact and supported by DP World, the survey of more than 3,500 supply chain leaders examines
how firms are adapting to forces shaping global supply chains. Among other findings, the research reveals the top five reasons for both pessimistic and optimistic outlooks—a quick microcosm of the many elements impacting shippers today. These are the most-cited mood factors:
Respondents rank their top two reasons for optimism Top Five Reasons for Optimism
Top Five Reasons for Pessimism Respondents rank their top two reasons for pessimism
41% 34% 24% 23% 20%
33% 29% 25% 21% 18%
New technologies that increase the efficiency and visibility of supply chains
Protracted period of high inflation and interest rates
Increased economic stability and growth
Economic downturn in key markets
Increased attention and support from national governments
Heightened geopolitical uncertainty
Rise of sustainable trade practices
Global warming and extreme weather patterns causing supply chain disruption
New trade arrangements lowering tariff and non-tariff barriers
Cybersecurity breaches
Source: Economist Impact Trade in Transition survey
GLOBALIZATION REMAINS STRONG DESPITE GEOPOLITICAL TENSIONS Amid ongoing geopolitical uncertainties and the Trump Administration’s push toward an America First foreign policy stance, globalization still holds steady at record levels, according to a recent report from DHL and New York University’s Stern School of Business. The DHL Global Connectedness Tracker, an extension of the DHL Global Connectedness Report , provides a comprehensive analysis of global trade, capital, information, and people flows. International trade remains a vital pillar of the world economy, according to the latest findings. These details, shared in the updated DHL Global Connectedness Tracker, make that case: • In 2023, 21% of the global economic output was traded internationally —just shy of the all-time high of 22%. • Contrary to expectations of regionalization, traded goods are traveling the longest average distance on record (3,088 miles), indicating that globalization remains robust.
• Geopolitically “unaligned” countries, such as India, Vietnam, Brazil, and the UAE, are taking on changing roles. These nations have expanded their share of global trade, serving as economic bridges between geopolitical rivals like the U.S. and China. From 2016 to 2024, trade involving these neutral economies grew from 42% to 47%. • Information flows continue to be the most globalized aspect of international activity, driven by rapid digitization. Migration and travel remain at lower globalization levels. The report also cautions against predictions of a globalization reversal due to potential new U.S. tariffs, emphasizing global trade’s proven resilience through Brexit, the U.S.-China trade war, and the pandemic.
14 Inbound Logistics • February 2025
TAKEAWAYS
SMALL MANUFACTURERS, BIG AI REWARDS One common misconception is that only large businesses can take advantage of artificial intelligence initiatives. A recent whitepaper from The National Center for Manufacturing Sciences, focusing on how AI can enhance supply chain resilience for small and mid-sized manufacturers (SMMs), helps to dispel that myth. 1. Data privacy preservation: Ensuring that AI implementation does not compromise sensitive information.
2. Secure data sharing:
Developing standardized methods for selective and secure data exchange among organizations.
The paper, Artificial Intelligence to Improve Supply Chain Resilience Throughout American Manufacturing, shares two case studies demonstrating straightforward, cost-effective AI solutions—including advanced sensing, blockchain, and machine learning tools—that SMMs can adapt to prevent supply chain disruptions. These solutions helped the two SMMs recognize the advantages of utilizing operational and product data to fuel AI models, leading to scalable solutions for common manufacturing challenges.
Underscoring the need for expanding public-private partnerships to accelerate AI adoption for supply chain resilience, the paper also highlights recent federal AI initiatives, including advancements from the Department of Commerce’s Supply Chain Center and AI standards developed by the National Institute of Standards and Technology.
The whitepaper also identifies two key challenges impeding AI adoption in manufacturing:
February 2025 • Inbound Logistics 15
TAKEAWAYS
CURBING CYBERSECURITY THREATS
FAST SHIPPING RESHAPES ECOMMERCE Consumer expectations for rapid delivery are reshaping merchant strategies. The past five years have seen a 47% increase in merchants offering two-day shipping, finds the 2024 Need for Speed report commissioned by UPS Capital. This surge is largely attributed to industry giants like Amazon setting high standards, compelling smaller • Next-day shipping has increased by 58% . • Same-day shipping has surged by 164% . • Over half of consumers are willing to pay extra for faster delivery, especially for health and wellness items, electronics, and apparel. RISING COSTS FOR MERCHANTS • 84% of merchants report increased operational expenses due to expedited shipping demands. • 37% of merchants spend more than $100,000 annually on faster delivery services. • Managing shipping claims for lost, stolen, or damaged packages remains a major challenge for 35% of merchants. NEW SOLUTIONS TO MEET DEMAND • 82% of consumers are open to alternative delivery locations. • Adopting AI-driven tools helps predict the likelihood of successful deliveries and mitigate risks. While this push for faster delivery presents challenges, it also offers opportunities for merchants to differentiate themselves in a competitive market. By adopting strategic approaches and innovative technologies, retailers can meet consumer demands for speed while managing costs and maintaining customer satisfaction. retailers to adapt to remain competitive. Here are some key findings from the report: DEMAND FOR FASTER SHIPPING CONTINUES TO GROW AI and machine learning in cyber threats: Cybercriminals will leverage AI-powered tools to automate attacks, craft convincing scams, and exploit vulnerabilities at unprecedented speeds. Zero-trust security adoption: More fleets will implement Zero-Trust Architecture, ensuring that no device or user is automatically trusted, reducing the risk of unauthorized access. Cyber-enabled cargo theft: Organized crime groups are increasingly using cyber tactics to hijack shipments and manipulate logistics networks, contributing to a 14% rise in cargo theft in 2024, totaling losses of more than $39 million. IoT and asset vulnerabilities: With growing reliance on connected devices in trucks and warehouses, securing IoT infrastructure is becoming a critical priority. “The industry is shifting in ways that demand immediate attention,” warns Joe Ohr, COO of NMFTA. “As cyber threats evolve, trucking companies must invest in stronger detection tools, employee cybersecurity training, and advanced risk mitigation strategies to safeguard their operations.”
As the trucking industry embraces digital transformation, cybersecurity is emerging as one of its most urgent challenges. The key risks fleets will face in the coming year are outlined in the 2025 Trucking Cybersecurity Trends Report , published by the National Motor Freight Traffic Association (NMFTA). With contributions from analysts at Forrester and Gartner, the report identifies phishing, AI-driven cyber threats, zero-trust security adoption, cyber-enabled cargo theft, and IoT vulnerabilities as the most pressing concerns. Key Cybersecurity Trends for 2025 Advanced phishing attacks: AI-enhanced phishing schemes will become more sophisticated, making traditional detection tools less effective. Techniques like delayed phishing will bypass security filters, requiring fleets to adopt advanced email security measures and employee training. THE RACE TO DIGITIZE Digital transformation is shaping the future of logistics, with companies prioritizing different areas to enhance efficiency and visibility across their supply chains. A recent Inbound Logistics online poll highlights where industry professionals are focusing their digitization efforts for 2025. Supply chain visibility emerged as the top priority , with 36% of respondents emphasizing the need for greater transparency and real-time tracking. This reflects a growing trend where businesses seek to mitigate disruptions, improve forecasting, and enhance customer satisfaction through digital tools. Warehouse operations (32%) and inventory control (19%) also ranked high , showcasing the increasing need for automation, AI-driven management, and IoT-enabled tracking to optimize efficiency. Transportation management (14%) remains an area of focus, as companies work to integrate digital freight solutions and route optimization technology.
Which area of logistics are you prioritizing for digital transformation in 2025? Supply chain visibility 36%
19% 32% 14%
Warehouse operations
Inventory control
Transportation management
Source: Inbound Logistics reader poll
16 Inbound Logistics • February 2025
TAKEAWAYS
WHAT’S HOLDING BACK AI ADOPTION? Though it seems you can’t go more than a few minutes without hearing about AI these days, the game-changing technology still faces critical barriers when it comes to widespread business adoption. Factors including lack of trust, lack of skills, and data governance challenges are hampering AI projects, finds a new survey from data analytics firm Qlik. Here are the highlights of the report, which surveyed 4,200 C-suite executives and AI decision makers: AI IS CRUCIAL BUT UNDERUTILIZED: • 88% of global decision-makers agree AI is essential for success, yet 61% of businesses are scaling back investment due to trust issues. • 11% have more than 50 AI projects stuck in planning; 20% have paused or canceled up to 50 projects. BARRIERS TO AI PROGRESS: • Skills gap: 23% cite a lack of development skills; 22% struggle with deployment.
• Data challenges: 23% face governance issues; 21% lack trusted data. • Budget limitations and internal/external trust issues also hinder progress. TRUST DEFICIT IMPACTS ADOPTION: • 37% say senior managers lack AI trust; 42% cite skepticism from other employees. • 21% believe customers distrust AI. The research also reveals some solutions to unlock AI potential, including prebuilt AI tools (74% see “ready-made” solutions as a practical starting point), workforce training (76% urge industries to upskill employees for AI roles), and building trust through knowledge-sharing across stakeholders.
Where Supply Chain Solutions Converge Come get face-to-face with the people, tech, and ideas that are shaping this industry’s future at ProMat 2025, your unrivaled supply chain experience. From hands-on demonstrations from over 1,000 leading suppliers to 200 thought-provoking seminars and four inspiring keynote speeches, ProMat has everything you need to make your operations more resilient, transparent and sustainable. McCormick Place, Chicago | March 17-20, 2025 Learn more & register today at promatshow.com
February 2025 • Inbound Logistics 17
KNOWLEDGE Base SPONSORED CONTENT
How 2025’s NMFC Changes Will Impact Shippers
More than 40% of commodities will have classes determined by a new, expanded density scale in July 2025. Here are some key impacts on less-than-truckload (LTL) shippers.
T he most prominent challenge in the LTL sector in 2025 is the expected simplification to the NMFC classification system as more than 40% of commodities will have classes determined by a new, expanded density scale in July 2025. The impact on freight rates will vary, with potential variances determined on a shipment- by-shipment basis by density. Those without established processes for accurately determining package density or those who don’t effectively manage their packaging processes may pay more for their LTL transportation. The impact of these classification changes will vary depending on the current classification methodology used for each commodity, as well as how efficiently each shipment is individually packaged. This is because density will determine the newly assigned class of affected shipments. The 2025 NMFC changes will have far-reaching implications for shippers and their business operations. Some key impacts include: 1. Freight class reclassification: Many commodities will likely experience changes in their freight classification due to the revised density scale and the transition of various items to the full density scale. Shippers must proactively review their commodity classifications to understand how
2. Rate volatility: The NMFC updates may lead to fluctuations in freight rates, with some commodities experiencing rate reductions while others face potential increases. Shippers need to carefully
Shippers must proactively adapt and optimize their operations to maintain a competitive advantage in light of these NMFC changes. This includes focusing on enhancing their data management capabilities to gain real-time visibility and enable more reliable scenario planning, while seeking out smarter carrier collaboration opportunities. It’s imperative shippers seek methods for collaborating with their carriers— who have access to data, information, and transit intelligence—to gain a deeper insight into how these changes in classification affect their operations. By working closely with their carrier partners, they can adjust to these changes in a manner that advantages both sides. SMC³’s BatchMark ® XL solution serves as a rapid batch rating tool, delivering comprehensive freight expenditure analytics to shippers, 3PLs, and carriers. This tool allows users to create various scenarios and simulate adjustments to their freight characteristics, including alterations in shipment classifications. The high-speed batch rating feature of BatchMark XL enables them to efficiently calculate the implications for their LTL expenses across numerous shipments in mere minutes.
analyze the potential impact on their transportation spend and develop strategies to mitigate any adverse effects.
3. Packaging optimization: The increased emphasis on density
highlights the importance of efficient packaging practices. Shippers should evaluate their current packaging methods and explore opportunities to optimize package design and materials to minimize density- related costs. 4. Data management: Accurate data management will be crucial for navigating the NMFC changes. Shippers must ensure they have the necessary systems and processes in place to capture and analyze relevant data, such as commodity dimensions, weight, and density.
–By Brian Thompson
these changes will impact their shipping costs and adjust their budgets accordingly.
Chief Commercial Officer SMC 3
www.smc3.com 800-845-8090
To learn more about how SMC³’s BatchMark XL solution can optimize your freight transportation spend, visit www.smc3.com.
18 Inbound Logistics • February 2025
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52Powered by FlippingBook