Inbound Logistics | January 2025

JANUARY 2025

Find cash in your supply chain.

Cutting costs tops everyone’s to-do list. Without clear insights, managing costs while still running an efficient supply chain can feel impossible. U.S. Bank Freight Payment can help enhance your supply chain resilience, improve operational efficiencies, and optimize cash flow with actionable intelligence and our consultative expertise. Let us show you possible. usbank.com/transportation-solutions/freight

BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS

TRADE, TARIFFS & TACTICS

MAKING GREEN A PRIORITY 95% of the world’s top 250 companies publish a carbon target/reduction report. 56% have at least one person leading their sustainability e orts. 41% consider sustainability accomplishments when determining leadership pay. – KPMG study on sustainability reporting

BILL GATES BETS BIG ON FREIGHT Bill Gates has invested $373 million in FedEx and Paccar, signaling confidence in a transportation rebound. His foundation purchased one million shares of each company, with a $273 million stake in FedEx and $100 million in Paccar. FedEx, despite a turbulent year and weaker-than-expected earnings, is undergoing a transformation through an initiative to cut $2.2 billion in costs. Paccar, a big player in the heavy-duty trucking market, saw early 2024 revenue decline but rebounded with a 21% rise in November orders. Analysts suggest Gates’ move is a calculated bet on a recovering manufacturing sector and increasing freight demand. NO DRIVER, NO PROBLEM Volvo Autonomous Solutions and DHL Supply Chain have launched autonomous freight delivery operations in Texas, with routes between With a new presidential administration and a wave of uncertainty heading into 2025, U.S. small and mid-sized enterprises (SMEs) are recalibrating their strategies to adapt. How are they tackling challenges, seizing opportunities, and preparing for what’s next? Cautious optimism. 67% of SMEs anticipate better performance in 2025 than in 2024, though regulatory and policy shifts have them on edge. Regulatory uncertainty. While 40% of businesses are still evaluating the potential impact of policy shifts, 24% expect negative eects, and 20% foresee a positive outcome. Tari watch. Trade regulations are the #1 focus for SMEs, 67% call them the most important area of change to watch. Strategic adjustments. In response to regulatory shifts, 30% of SMEs anticipate making minor adjustments to their strategies, while 13% are ready to significantly adjust their approach. –DHL Express, SME U.S. survey

AMERICA ON THE MOVE Americans are moving from

western states to the Southeast, finds the 48th annual United Van Lines 2024 National Movers Study. Six of the top 10 inbound states include West Virginia, South Carolina, Washington, D.C., North Carolina, Alabama, and Arkansas. For the seventh year in a row, New Jersey remains the least popular moving destination. West Virginia tops the list as the most popular destination in 2024. For the first time in decades, the primary reason for moving interstate was to be closer to family (28%).

JOB LISTINGS vs REALITY

ONLY 6.5% ONLY 1.6% ONLY 4.9% ONLY 54.3%

of supply chain job openings include the term “automation”

of job openings include the term “articial intelligence” or “AI”

Dallas and Houston and Fort Worth and El Paso. The initial deliveries, using Volvo VNL Autonomous trucks with safety drivers, aim to validate the technology at scale. Powered by the Aurora Driver, the system features advanced radar, lidar, and camera technology to ensure safety at highway speeds.

of job openings include broad data management responsibilities (data management, data mining)

of job openings include some form of software knowledge

– Cleo Supply Chain Jobs Report

January 2025 • Inbound Logistics 1

CONTENTS JANUARY 2025 | VOL. 45 | NO. 1

110 SHIP IT SAFE With instances of cargo crime rising dramatically, shippers and carriers alike are facing steep losses and seeking new ways to steer clear of cargo theft and fraud. 118 14 MOVES TO MASTER DEMAND SURGES Eectively managing increases in demand requires a strategic series of moves—each one calculated to advance your position and ultimately put surges in checkmate.

126 METRO MOVES: URBAN LOGISTICS SHIPPERS GET CREATIVE From parking scarcity to unpredictable trac patterns, delivering goods in dense cities presents unique logistical challenges. Innovation is helping shippers ease the pain.

FEATURES 90 WHAT’S YOUR SUPPLY CHAIN VISION FOR 2025? Supply chain experts share their predictions for the coming year. What to expect? AI, risk mitigation, taris, and nearshoring will be front and center. See what else is on the supply chain vision board for 2025.

102 HYPE VS. REALITY: THE PROMISE OF AI IN SUPPLY CHAINS

The hype around AI promises faster operations, cost savings, reduced risk, and streamlined customer service. We look at the tangible impacts AI is having on supply chains—and where expectations may need a reality check.

2 Inbound Logistics • January 2025

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CONTENTS JANUARY 2025 | VOL. 45 | NO. 1

132 GREEN & RED FLAGS: HOW TO SELECT THE RIGHT 3PL Choosing the right 3PL doesn’t have to be an uphill climb. Here are the green flag signals that can lead to a winning partnership and the red flags to leave behind.

172 PROJECT LOGISTICS: HEAVY LIFTING, SENSITIVE CARGO From ensuring safe delivery of rare or injured animals to transporting oversized machinery, transportation providers tackle unique, high-value shipments with precision, care, and eciency during every leg of the journey.

148 9 REGULATIONS RESHAPING GLOBAL LOGISTICS With increased scrutiny on

138 SMALL BUSINESSES, BIG SUPPLY CHAINS Small businesses need to streamline operations and scale their supply chains to compete with larger companies. With the right strategies, partnerships, and tools, SMBs can overcome logistics challenges, improve eciency, and deliver big results.

environmental, labor, and consumer impacts, global supply chains must stay ahead of the puzzle of shifting regulations. Here’s how to decode nine of the most impactful ones—from the EU’s Carbon Border Adjustment Mechanism to the U.S. Uyghur Forced Labor Prevention Act, and others. 158 WAREHOUSE ROBOTICS UNLOCK EFFICIENCIES From AI-powered AMRs to cobots working safely alongside humans, cutting-edge robotics are transforming supply chain operations. Here are

182 2025 WINTER READING GUIDE 12 must-read supply chain and logistics books to cozy up with.

some of the latest innovations changing the game and driving eciency.

4 Inbound Logistics • January 2025

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CONTENTS JANUARY 2025 | VOL. 45 | NO. 1

210 PODCAST ROUNDUP: HEAR & NOW

INPRACTICE 28 READER PROFILE From a start in financial crime investigations to a focus on inventory and strategic sourcing, Christina Nemeyer values her varied career. Today, she guides strategic sourcing for foodservice distributor Performance Food Group (PFG). 36 LEADERSHIP How does Marlon Taylor navigate challenges, sustainability, and innovation at New York & Atlantic Railway? By emphasizing adaptability, resilience, teamwork, and communication—and leading with empathy.

Listen to our top podcasts of 2024 for insights on everything from dedicated transportation solutions to managing supply chain disruptions.

202 TRADE SHOW ROUNDUP Build your connections in 2025 at these 19 must-attend industry events. 208 MOST READ ARTICLES OF 2024 From understanding global trade regulations to optimizing warehouses and turbocharging last-mile delivery, these are the articles that resonated most with our audience last year.

191

191 INVENTORY MANAGEMENT Specialty Bolt & Screw, Inc. (SBS), a leading provider of fastening solutions, oers more than 15,000 SKUs across 12 locations. To improve its inventory management and forecasting, SBS partnered with RELEX Solutions for a modern, unified platform. 195 CASEBOOK Member-owned hardware cooperative Do It Best partnered with Redwood Logistics to enhance its transportation management system, replacing its outdated manual process with a streamlined, automated solution. 199 IT TOOLKIT With NetSuite ERP at the hub of its multichannel business, Blue Sky Distribution, a distributor of grocery and tobacco products, integrated Descartes’ cloud-based WMS software and gained the functionality of mobile barcode- based picking and packing, ecommerce shipping, and delivery management.

SPECIAL SUPPLEMENT

January 2025 • Inbound Logistics 229

231 SPOTLIGHT: LEADERS IN LOGISTICS

6 Inbound Logistics • January 2025

Maximizing customer value through continuous improvement and innovation, CJ Logistics provides customers visibility to supply chain data to help them improve, optimize and make informed decisions. Data is transformed into intelligence.

CONTENTS JANUARY 2025 | VOL. 45 | NO. 1

70 VISIBILITY RFID drives visibility, sustainability 72 WAREHOUSING Time to sweat your warehouse assets? 74 SMART MOVES Are more women in critical logistics roles? 76 RETAIL RETHINK Big and bulky needs an overhaul beyond logistics 78 INVENTORY Simple math, big impact: common sense inventory strategies 80 FREIGHT OUTLOOK 8 trends influencing freight rail in 2025 82 SC SECURITY How to combat cargo theft with ID verification 84 NEARSHORING How to prepare for nearshoring 86 LEAN SUPPLY CHAIN Tari(ic) counterwinds ahead: are you ready? 88 VIEWPOINT The high cost of hidden workarounds INFO 214 SUPPLY CHAIN INSIGHTS 220 CALENDAR 222 RESOURCE CENTER

47 CONTENT PARTNER PERSPECTIVES 48 Global Logistics Leader Rallies Support in Rebuilding Ukraine Oered by Logistics Plus 50 Saia’s Customer-First Philosophy at 100 Years and Counting Oered by Saia 52 Ready to Grow in 2025? How the Right 3PL Drives Customer Wins Oered by WSI Freight Solutions 53 4 Ways a 3PL Can Improve Your Post-Peak Returns Rush Oered by Phoenix Logistics 54 The Strategic Benets of Implementing a Routing Guide: Hard and Soft Savings Unveiled Oered by TransportGistics 55 Navigating the 2025 GRIs: What Shippers Need to Know Oered by Reveel 56 Powering Up a Better Supply Chain Oered by RedStone Logistics 57 ProTrans Provides an Integrated Solution 58 Razr Logistics: Transforming On-Demand Warehousing With Innovative Technology Oered by Razr Logistics 59 Providing cGMP Services and Retail Compliance to the Consumer Healthcare Products Industry Oered by MD Logistics 60 Holman Logistics Uses Articial Intelligence to Increase Forklift Safety Oered by Holman Logistics 62 Makeup Magic: How We Helped e.l.f. Cosmetics Conquer Demanding CVS Store Deliveries Oered by LynnCo 64 Future-Proof Your Warehouse With the Right WMS Oered by Made4net 65 Streamlining Returns for Smarter Operations Oered by Hai Robotics With Synergistic Collaboration Oered by ProTrans International 66 Fraud in the Trucking Industry: Leveraging Technology, Knowledge and Relationships Oered by S-2international 67 3PL vs. 4PL: Understanding the Differences and Choosing the Right Logistics Solutions Oered by Mantis

INSIGHT 10 CHECKING IN Supply chain trump cards? 12 GOOD QUESTION What would you put in a supply chain time capsule to be opened in 2050? 16 DIALOG 18 10 TIPS Achieving eective logistics visibility 20 WHAT’S THE WORD? 68 3PL LINE The power of single-source partnerships INFOCUS 1 INFO SNACKS 24 FOCUS ON: NEARSHORING 30 NOTED 38 TAKEAWAYS 216 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 oces. 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

8 Inbound Logistics • January 2025

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CHECKINGIN

Vol. 45, No. 1 January 2025 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com

Supply Chain Trump Cards?

STAFF

Keith G. Biondo publisher@inboundlogistics.com Felecia J. Stratton editor@inboundlogistics.com Katrina C. Arabe karabe@inboundlogistics.com

PUBLISHER

O ver the summer, I wrote that 2025 would be a growth year. Those of you who read those same tea leaves and prepared to maximize growth got a head start over those who leaned into the gloom. But we have more work to do. Enterprise planning recently has been wrapped around supply chain disruption, with good reason, and many are well along the mitigation continuum. But a strong growth curve in your business portends a different,

EDITOR

SENIOR EDITOR

DIRECTOR OF STRATEGIC CONTENT

Amy Roach amy.roach@thomasnet.com

June Allan Corrigan Merrill Douglas • Tom Gresham Karen M. Kroll • David Levine

CONTRIBUTING EDITORS

Keith Biondo, Publisher

slower form of disruption—access to the workers you need to better match demand to supply and avail your enterprise of all that growth potential. Father Time is not your friend here. Many skilled operational and strategy co-workers are aging out. Competition for replacements needed to keep operations owing and to leverage growth—sans disruption—is erce. Some readers are using a few supply chain trump cards to jiu-jitsu that challenge into opportunity: Don’t tread water. Dive all the way into the labor pool with apprenticeships, align with two-year schools, give business briengs in local high schools and make your case in the media your target consumes. Use AI. Become AI-literate to optimize your labor pool, from front-line team members to top management. Why? Top management needs to understand what AI may or may not be able to accomplish from a strategic perspective. Operational team members need to be conversant in basic AI awareness. An AI-literate workforce is a competitive advantage. Use drones. Your customers want speed, accuracy, and lower costs. Automation—robotics, whether stationery, mobile, or humanoid—will help you manage the workforce skills and growth you need to deliver. But unless you have the deep pockets of Amazon or Walmart, prohibitive automation costs put that option out of reach for many. Warehouse/DC drones are a cheaper choice and can be implemented more quickly. Here’s data from one implementation: • Labor optimized as automated inventory scanning and bin checks free workers for other tasks. • Increased SKU visibility for better inventory control and strategic planning. • On-time, in-full deliveries performance increased, consistently hitting 95%. • Inventory accuracy moved to 99.8%, minimizing stock-outs and write-offs. Whatever 2025 brings, these actions better match demand to supply and will get you the mojo to leverage every growth opportunity.

Jeof Vita jvita@inboundlogistics.com

CREATIVE DIRECTOR

Arlene So Piper Lyman

DESIGNERS

DIGITAL DESIGN MANAGER PUBLICATION MANAGER CIRCULATION DIRECTOR

Amy Palmisano apalmisano@inboundlogistics.com

Sonia Casiano sonia@inboundlogistics.com

Carolyn Smolin

SALES STAFF PUBLISHER: Keith Biondo

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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.

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10 Inbound Logistics • January 2025

R2 Logistics is the #1 Single Source 3PL Provider

Our award-winning team manages your supply chain from network analysis to freight delivery.

GOODQUESTION Readers Weigh In

What Would You Put in a Supply Chain Time Capsule to be Opened in 2050?

A DRIVER’S LICENSE to symbolize the human element in delivery. While technology and automation continue to advance, it’s a reminder drivers have been at the heart of supply chain success. –Dennis Moon COO, Roadie A TOY FORKLIFT with a little warehouse person action figure driving it, a desktop computer, a keyboard and mouse, and RF scan gun. It would be fun to see how much of it is being used in 2050. –Bradley Mousa Operations Manager, TA Services A DIGITAL TWIN OF OUR SUPPLY CHAIN NETWORK, a container tracking device, a photograph of manual inventory ledgers, current AI in logistics, and a handwritten letter reflecting on the transition from carbon-intensive to sustainable logistics. –Sam Agyemang VP, Business Development and Sales, ITF Group A 200-FOOT-LONG

By 2050, I hope we can say, ‘We figured it out.’ –Bob Boyle President, Managed Services Division, Odyssey Logistics A 3-MINUTE VIDEO OF OUR WAREHOUSE OPERATIONS and predictions for 2050 from 50 of our employees to educate, amuse, and provide valuable insights into today’s supply chain practices. –Troy Strawhecker Chief Strategy Ocer & Partner, JT Logistics

risk management. Hurricanes caused $50 billion in damages, Hezbollah device attacks reshaped modern warfare, and new ethical labor and sustainability regulations transformed corporate compliance.

–Ted Krantz CEO, Interos

LOOP OF BELT-DRIVEN CONVEYOR, a tunnel of line scanners, a push-arm divert,

PAPER SHIPPING AND RETURN LABELS. With artificial intelligence

a human-driven fork truck, and a stand-alone warehouse management system. Put another way, what will the people of 2050 look back at and laugh? –Sandy Stephens

and machine learning, ecommerce will grow more advanced. By 2050, automation could eliminate the need for paper labels and manual parcel sorting. –Kapil Kalokhe VP, Corporate Development and Strategy, ePost Global OUR ROADMAP TO NET ZERO. Decarbonizing the supply chain will be a huge issue to future generations.

GLOVES. Often worn to protect workers from the strain and physical wear caused by manual repetitive

Chief Strategy Ocer, HyTek Intralogistics LLC

tasks in warehouses, they may no longer be necessary in 2050.

THE 2024 MAP OF MAJOR RISK EVENTS and their blast radius to remind future generations that 2024 marked an inflection point for

–Joseph Ruck VP, Marketing & Communications, Ambi Robotics

12 Inbound Logistics • January 2025

GOODQUESTION

What Would You Put in a Supply Chain Time Capsule to be Opened in 2050?

A DESKTOP COMPUTER, like the ones many CEOs still keep under their desks. Managing supply chains with on-premise software

Burying Spreadsheets Spreadsheets

Today’s spreadsheets, emails, and manual processes. By 2050, supply chains will be fully intelligent, automated, and collaborative, powered by AI and real-time data. Today’s tools will seem as outdated as the fax machine. –Rodney Manzo Founder and CEO, Anvyl I would put emails and spreadsheets in the time capsule, representing symbols of the inecient, manual tools we once relied on to manage supply chains. By 2050, we’ll see them as relics of a past where data flow and collaboration were more challenging. –Mark Buman Chief Revenue Ocer, Magaya I would include an early 2020s spreadsheet-based sourcing plan. It will showcase our transition from siloed tools to interconnected, AI-powered platforms that ensure transparency, sustainability, and agility across global supply chains. –Lilian Bories CMO, TradeBeyond

is becoming impossible in the age of AI, where connectivity and access to data are everything. –Riika Söderlund

Chief Operating Ocer, Katana Cloud Inventory

AN INTERNAL COMBUSTION ENGINE as they power much of our supply chain, and it will be electric in the future; barcode scanners, which will be replaced by cameras and transform supply chain visibility; and a photo of the Panama Canal, which is drying up due to climate change. –Sankalp Arora CEO & Co-Founder, Gather AI

A DELIVERY TRUCK filled with a hefty amount of spreadsheets. Between drones and autonomous vehicles, it’s hard to imagine trucks would still be existing

DATA THAT HIGHLIGHTS THE PERCENTAGE OF LOADS created or covered digitally today. Comparing this to where we’ll be in 2050 will illustrate the continued digitization of the industry. –Jared Weisfeld Chief Strategy Ocer, RXO COPIES OF OUR CURRENT CARGO THEFT LAWS and penalties, by state and federally, in the hopes that in 25 years when it is opened, we can see how far we have come. –Danny Ramon Intelligence & Response Manager, Overhaul

supply chain challenges—and a glimpse into how far we’ve come.

–Christopher Clemmensen EVP, Marketing, Echo Global Logistics

BIODEGRADABLE PACKAGING, lifecycle maps, and upcycled goods to show circularity eorts. Blockchain ledgers, IoT sensors, and QR tools would highlight traceability, while certifications, sustainability reports, and policies reflect compliance.

in their current form.

–Josh Dunham CEO and Co-Founder, Reveel

A DIGITAL THREAD BLUEPRINT capturing how product lifecycle data integrates across systems—a snapshot of today’s advancements toward end-to-end traceability.

–Wesley Ekman VP EMEA, CGS BlueCherry A SCREENSHOT OF A LOGISTICS COORDINATOR’S INBOX, overflowing with “where’s my

–Jason Kasper Senior Director, Product Marketing, Aras

A GPS TRACKING DEVICE to represent real- time visibility and a paper bill of lading, symbolizing digital

truck?” emails. Future generations will be amazed that putting a load on a truck meant losing sight of it until (hopefully) it arrived, and that we operated global supply chains with such limited real-time information, just as we now can’t imagine how businesses once managed without telephones.

transformation. These items would serve as benchmarks for how far we advance by 2050. –Vlad Kadurin Chief Product and Operations Ocer, Ship.Cars A FLASH DRIVE WITH AI CODE would be proof of how we used data and algorithms to solve today’s

Answer upcoming Good Questions at: www.inboundlogistics.com/ good-question

–Nick Rakovsky Founder & CEO, DataDocks

14 Inbound Logistics • January 2025

DIALOG @ILMagazine [ INSIGHT ]

Want to join the conversation? FOLLOW US: linkedin.com/company/inbound-logistics facebook.com/InboundLogistics twitter.com/ILMagazine youtube.com/user/InboundLogistics inboundlogistics.com/podcast DROP US A LINE: editorial@inboundlogistics.com 2025 in a Nutshell Geopolitical events and de-globalization policies will dene the year ahead: 1. Rising tensions between the United States, China, Russia, and the Middle East 2. Cyber attacks 3. Export restrictions 4. Tariff increases and retaliation by the impacted countries 5. Moves toward reshoring and nearshoring 6. Increase in ination 7. Birth of new economic blocks and trade agreements 8. Supply chain coordination in the West –Omar Kazzaz Founder and CEO, Kazzaz Advisory Group Re: October 2024 Good Question: What supply chain term will be top of mind in 2025? (bit.ly/IL_GQ_1024) Recommerce. More retailers and brands will embrace the secondary resale market and a more circular economy. With record return rates, warehouses full of excess inventory, and pressure to ofoad items sustainably while recouping value, companies should incorporate tech-driven recommerce solutions as part of their reverse supply chain operations. –Marcus Shen CEO, B-Stock Route optimization. When done correctly it lowers cost—both fuel and labor—and improves delivery speed, increases volume, and lowers CO2e.

Re: POLL: What’s your top supply chain goal for 2025? (LinkedIn 12/31/24)

Re: Happy National Truck Driver Appreciation Week! (LinkedIn 9/17/24)

@TransAudit: Thank you to all of the hard-working truck drivers who deliver our food, birthday presents and medicine! @Miracle Tech Logistics and Supply Chain: Thank you to all the truck drivers for your hard work and dedication. You keep the world moving! Re: Linear vs. circular supply chains: Who wins in 2024? (LinkedIn 7/8/24) @Ashu Kashyap: In 2024, the debate between linear and circular supply chains continues to evolve, with increasing emphasis on circularity across various industries, particularly in apparel. Re: 10 tips for developing long-term 3PL partnerships (X 1/1/25) @Phoenix Logistics: These tips can help you establish a long-term, mutually benecial relationship with your 3PL. @Hiram Hartnett: Collaboration is table stakes for sure, but often overlooked by key stakeholders. Great read. Re: Does your WMS pass the test? (X 12/23/24) @TimDishes: WMS testing is crucial for successful implementation; great insight from this newsletter. Re: 2024 Top 100 Logistics IT Providers list is live now! (Instagram 3/28/24) @4qlsolutions: Congratulations to all of these providers!

51%

Cut costs & improve efciency

29%

Leverage technology & AI

18%

Boost supply chain resilience

Push supplier diversication

Re: What can we expect to happen as a result of the historic ILA port strike? (LinkedIn 10/2/24) @Jacqueline Diaz: Even with advance notice of the strike, we’re seeing signicant disruptions across the supply chain… This shows how critical it is to be prepared. Supply chains need to be proactive and not reactive . Good thing we live in a modern world where platforms can inject a contextual intelligence layer into the visibility control tower.

@PAXAFE: Some tough decisions

ahead, not just shippers but for every part of the supply chain feeling the cascading impact.

–Raj Ramanan CEO, Jitsu

16 Inbound Logistics • January 2025

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10 TIPS

Achieving Effective Logistics Visibility

Funneling tracking data from multiple sources into core business processes to provide reliable arrival times reduces safety stock, bolsters resilience, and drives fulfillment.

1 CONNECT ONCE BUT COLLABORATE WITH MANY. Collect and standardize real-time data feeds from multiple providers to avoid developing custom integrations for each partner’s data. This helps harmonize tracking across carriers, modes, and geographies.

6 KEEP TECHNOLOGY LANDSCAPES SIMPLE. Procurement, manufacturing, and transportation solutions can grow in different directions, only to be strung back together through complex integrations. Look rst to add real-time shipment tracking that ts with your core systems before adding complexity, risk, and cost to your IT infrastructure to display real-time ETAs in your ERP and core systems. 7 BENEFIT FROM FLEXIBLE INTEGRATION. Modern document and data standards can help ensure shipment tracking is fully integrated with your core processes. With variability in data sources, exible integration capabilities are needed to bring information into a standard platform, making collaboration easier. Flexible integration is key to delivering insights and more predictable delivery times.

8 LEVERAGE AUTOMATION FOR NOTIFICATIONS. Procurement teams have to juggle unpredictable moments with repetitive, behind-the-scenes work. Automation of impact analyses, alerts and notications can offer much- needed relief during times of supply chain disruption. This enhances situational

2 BRIDGE BUSINESS INFORMATION GAPS. Organizational or system integration gaps can separate

tracking and execution statuses, event types, ows and viewing options. Building tailored tracking scenarios allows quick responses aligned with a company’s competitive advantage. 5 ACHIEVE INSIGHT TO ACTION. The faster procurement and production teams can act on new information, the more successful they can be. Avoid multiple external portals and instead funnel tracking information into your core systems. This helps speed responses by keeping necessary business documents available to manage business operations.

awareness to improve assurance of supply. 9 MAINTAIN ACCESS CONTROLS. The push and pull of

shipment tracking data from the related order management processes.

Connect external shipment tracking with your core order management systems to gain visibility into business processes and keep operations moving when disruptions occur. 3 HANDLE DISPARATE DATA SOURCES. Stay connected with multiple carriers, freight forwarders, and logistics providers through API or EDI. Companies can also collate that data in a single platform to handle parallel updates from different sources and mitigate the risk of disintegrated updates from multiple partners. 4 TAILOR THE TRACKING PROCESS. Procurement teams must apply exible and extensible congurations to custom elds, dening specic

managing user access and exporting data is not only a headache but also a security risk. Ensure that your shipment tracking capability maintains consistent user access and safeguards core business data, making available relevant and reliable information in a data-secure environment.

10 ENABLE A CONSISTENT AND

PERSONALIZED USER EXPERIENCE Even as AI continues to augment the user experience, people are still the key to driving informed procurement and production decisions. Ensure simple configuration of dashboards with a personalized view of shipments, deliveries and order fulfillment. Not only will this enable proactive exception management from a single source of truth, but your team can then also assess key performance indicators and set data- driven strategies.

SOURCE: DOUG DELUCA, BUSINESS NETWORK PRODUCT MARKETING MANAGER, SAP

18 Inbound Logistics • January 2025

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WHAT’S THE WORD

The Language of Logistics

AI Infrastructure. This will play a key role in driving supply chain trends as power grid constraints highlight the need for scalable solutions such as nuclear energy. The focus will shift from research breakthroughs to practical innovation, with AI enhancing productivity, resource management, and automation. –Kevin Novak, Managing Partner & Founder, Rackhouse Ventures

RETURNLESS REFUNDS Also known as: Keep It Return Policies To avoid the high cost of reverse logistics, retailers such as Amazon, Walmart, and Target are refunding customers and letting them keep the unwanted items. Pet products retailer Chewy issues refunds on returns and encourages customers to donate the items to charity. The companies oering returnless refunds do it sporadically, typically using the option for low-cost items or ones with limited resale value. The upside: convenience and customer loyalty.

Returnuary The frenzied period after the holidays when consumers return unwanted gifts, one-time outts, and assorted merchandise—and retailers grapple with a surge of returns. Ecommerce has compounded this phenomenon. Total returns for the retail industry are projected to reach $890 billion in 2024, according to the National Retail Federation and Happy Returns, a UPS company.

vs. Agentic AI GenAI

Agentic AI: the use of intelligent agents to help process and simplify complex data sources. Capable of adaptation and autonomous problem solving. “Intelligent agents are AI systems designed to perceive, reason, and act independently to achieve specific goals. Unlike Generative AI ( GenAI ), which focuses on creating content like text or images, intelligent agents are action-oriented, capable of planning and executing complex tasks across systems and environments. The user interface may include chat, a common GenAI capability. In addition, the agent interacts with other data sources, systems, and models to execute supply chain activities. In supply chain management, intelligent agents hold transformative potential to further automate routine decisions, optimize logistics, and improve real-time responsiveness to disruptions. This enables supply chains to become more adaptive, resilient, and ecient, helping organizations navigate uncertainties like fluctuating taris or inflation. In the next few years, we expect intelligent agents to play a more central role in streamlining supply chain operations and driving innovation. The power of this technology is that it creates an opportunity to take actions and inform decisions in supply chain, across disconnected legacy systems and data sources, without necessarily doing large systems transformations.” –Dustin Burke, Managing Director and Senior Partner, Global Leader, Supply Chain AI, BCG

2025 TERM TO WATCH

Shipper of Choice

will trend again as the market tightens and carriers can be more selective about who they work with and the loads they want to accept.

–Chad Kennedy, Senior Manager, iQ Product, Benchmark Analytics, DAT Freight & Analytics

20 Inbound Logistics • January 2025

WHAT’S THE WORD

The Language of Logistics

Coming to Terms with Tech Overload

Platform Glut Some teams grapple with a supply chain communications divide as members have different platform preferences and levels of feedback urgency. How do you and your team communicate with your supply chain partners and colleagues? Email us (yes, we like email) at: editorial@inboundlogistics.com (subject: What’s the Word). PHONE SLACK EMAIL WHAT’S APP TEXT

HYPERLOCALIZED SUPPLY CHAINS With advancements in technology like 3D printing, AI-driven logistics, and increased emphasis on sustainability, I foresee a significant shift toward producing goods closer to the point of consumption. This trend could reduce dependency on global supply chains, minimize transportation costs, and lower carbon footprints. Imagine more products being manufactured in local micro-factories, tailored to regional demands, and delivered faster than ever before. Hyper-localized supply chains could revolutionize the way we think about production and distribution.

DATA IMPURITY From AI hallucinations to out-of-context conclusions, supply chain stakeholders report they often can’t trust the data they’re getting from AI, even though it is based on their own data.

VIDEO CONFERENCING

–Harold Boyett, CEO, Blue Streak, CLDA Board Member

MICROSOFT TEAMS

SATCOM

NOTIFICATION FATIGUE Growing risk categories, monitored daily, times thousands and thousands of suppliers mean it can be impossible for supply chain decision-makers in large companies to act on notications from risk monitoring solutions. To combat “notication fatigue” from technology solutions about risks in their supply chain, enterprise buyers will seek solutions and partners that can monitor, notify, and carry through on resolving the risk efciently, including incident and prot recovery. –Steve Yurko, CEO, apexanalytix

2025 GOAL “Sulier diversity strengthens suly chain resilience while driving

value, efficiency, and innovation. By partnering with sma, local,

Split-shoring The past decade in sourcing has been a series of object lessons in the danger of putting all eggs in one basket. We have seen supply chains move from China is king to China +1, then China +many. Geopolitical tensions drive friend-shoring . The need for shorter supply chains drives nearshoring . Finally, split-shoring involves a balance between overseas suppliers and sourcing closer to home, emphasizing the importance of diversification to supply chain resilience. –Sébastien Breateu, Founder and CEO, QIMA

and diverse suliers, businesses mitigate risks, control costs, and create sustainable growth. 65% of organizations report improved suly chain competitiveness, and nearly 50% see it as a driver for winning new business through RFPs and enhancing their brand.” –Aylin Basom, CEO, Supplier.io

22 Inbound Logistics • January 2025

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FOCUS ON: NEARSHORING NEARSHORING: HYPE OR HAPPENING? While businesses of all types are exploring the idea of reorganizing supply chains so manufacturing and production occurs closer to the United States —with the focus largely on Mexico—it’s still unclear exactly how much traction nearshoring has gained. Some experts say nearshoring is definitely here to stay, while others claim the buzzworthy practice won’t truly change the supply chain landscape:  HAPPENING “Major supply chain trend in 2025: Reshoring and nearshoring. As geopolitical tensions and compliance regulations mount, companies will continue to shift sourcing and manufacturing away from China to other Asian countries as well as Mexico.” –Donald Hicks , CEO & Founder, Optilogic “Nearshoring will continue in 2025, with increasing trade restrictions focusing on domestic manufacturing and supply chains in the United States and aecting global trade partners. Transparency and supply chain assurance will be critical as new restrictions on domestic content and product origin are considered. Companies will need enhanced visibility through all supply chain tiers and mechanisms to validate component origins.” –Michael Aller , Director, Supplier Development, FloridaMakes, part of the MEP National Network

 HYPE “While nearshoring is often touted as the next big thing, its impact is likely overstated. We won’t see a seismic shift in 2025. Transitioning from global dependencies requires massive investment, time, and coordination that many businesses can’t quickly absorb. Even with rising taris and shipping-related costs, global networks still oer unmatched cost advantages and access to specialized suppliers. Companies may adopt a hybrid approach, balancing localized sourcing for some items while retaining global partnerships for scalability and economic eciency.” –Ed Rusch , Chief Marketing Ocer, Magaya “No tari will bring mass production of consumer goods back to the United States in the near future. Brands oering aordable apparel and fast-moving consumer goods remain dependent on low-cost overseas production, while consumers expect cheap, abundant products. The United States currently lacks the manufacturing capacity and labor force needed to support such large-scale domestic production.” –Sébastien Breateu , Founder and CEO, QIMA “It is unclear what will unfold in 2025 between China and the United States. During previous geopolitical tensions between the two nations, some American companies moved their operations and inventory to other sites, such as Vietnam. However, this time, companies may be required to shift operations to the United States. This has the potential to cause some chaos in the electronic manufacturing landscape, as I am unsure how well set up the U.S. is to take on all of this production. Time will tell.” –Kenny McGee , CEO and Founder, Component Sense

FROM MEXICO TO THE U.S. FASTER

OVERHEARD

Growing interest in nearshoring has prompted logistics providers to introduce new services. For one, Schneider’s new cross-border intermodal oering provides continuous rail service connecting Mexico and Texas with Florida and Georgia, as a result of a new partnership between rail providers CSX and Canadian Pacific Kansas City (CPKC).

“There’s a global sense of insecurity that is driving people closer to regional markets and less to global markets. For example, if there is a problem in Taiwan [given the current tensions between Taiwan and China] and you’re a U.S. manufacturer that is tied 100% to imports from China, what would happen to your company? Companies are starting to build in these contingency plans. The most logical location right now for U.S. markets has been Mexico.” —Troy Ryley, President, Echo Mexico, on the Inbound Logistics podcast

This service aims to provide shippers with an alternative to traditional truck transportation, oering secure cross-border transit and reduced delays. Leveraging CPKC’s border-crossing infrastructure, Schneider’s intermodal solution eliminates intermediate stops, which provides quicker customs clearance and minimized exposure to theft—two key concerns for companies that have moved production to Mexico and ship goods cross- border to the United States. In addition, Schneider’s lightweight equipment and heavy-haul permits promise added savings and increased payloads for shippers.

24 Inbound Logistics • January 2025

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FOCUS ON: NEARSHORING

REALITY CHECK To nearshore or not to nearshore is a question a lot of companies are asking these days. SAP recently released a best practice guide to help companies that are evaluating this question. The decision, SAP notes, should factor in switching costs, available resources, data-sharing with partners, and more. Here are five critical realities businesses should consider when adopting nearshoring or reshoring strategies: 1 Cost savings aren’t guaranteed. While nearshoring can reduce transportation costs, factors like higher labor rates and infrastructure investment may oset savings. Companies must weigh upfront expenses against long-term operational benefits to determine true cost-eectiveness. 2 Supply chain complexity doesn’t disappear. Moving production closer doesn’t eliminate supply chain challenges like managing diverse suppliers or ensuring raw material availability. Companies must build robust local supply networks to avoid new disruptions. 3 Reshoring requires significant investment. Shifting operations back to domestic markets often demands capital for facilities, technology, and workforce training. Businesses need a clear plan for addressing these financial and operational hurdles. 4 Skilled labor shortages may persist. Finding a qualified workforce can remain an obstacle, even with reshoring. Investing in automation and employee training programs is essential to mitigate labor shortages. 5 Global risks still influence local decisions. Despite nearshoring, businesses remain aected by global market fluctuations, geopolitical tensions, and trade regulations. Maintaining a diversified strategy can help balance these risks.

MEXICO BEEFS UP INDUSTRIAL DEVELOPMENT Mexico is doubling down on its moves to position itself as a nearshoring hub with an ambitious plan led by the Mexican Association of Private Industrial Parks (AMPIP). Over the next six years, AMPIP aims to develop 128 new industrial parks across the country, significantly increasing Mexico’s current total of 435 parks . These parks will be strategically located in key regions such as the Bajío, northern Mexico, and along the Pacific corridor, areas already known for their robust manufacturing and logistics sectors ( see map above ). This initiative seeks to attract foreign investment, strengthen supply chain resilience, and meet the growing demand for manufacturing spaces driven by companies relocating operations closer to North America, according to AMPIP. The new industrial parks will enhance Mexico’s infrastructure and aim to solidify the country’s position as a critical link in global supply chains. With companies looking to avoid disruptions and reduce costs, these parks are poised to become a cornerstone of Mexico’s nearshoring strategy, oering state-of-the-art facilities and proximity to the U.S. market. AMPIP’s vision aligns with Mexico’s broader economic goals, making the country a key player in the shifting dynamics of global trade and manufacturing.

As nearshoring gains momentum in reshaping supply chains and revitalizing domestic manufacturing, Hyster-Yale Materials Handling is stepping up to meet the moment. The company, HYSTERYALE COMMITS TO BUILDING AMERICAN

maker of Hyster and Yale brand industrial trucks, has announced a strategic commitment to align with the Build America, Buy America (BABA) Act requirements. This initiative aims to bolster American manufacturing by meeting domestic production standards for electric container handling and forklift equipment used in federally funded infrastructure projects. The company plans to expand its U.S. manufacturing operations with a focus on high-capacity electric models that cater to BABA-compliant infrastructure needs. Eorts include identifying optimal production locations, fostering domestic supplier partnerships, and enhancing the development of electric power options for its equipment lineup. In addition, the company is strengthening its partnerships with domestic suppliers and identifying optimal U.S. production sites. Tony Salgado, chief operating o cer, Hyster-Yale, emphasizes the company’s commitment to delivering innovative and durable material handling solutions: “Beyond compliance, we are evolving to better support our customers with industry-leading design, durability, and performance standards synonymous with our brands worldwide.”

26 Inbound Logistics • January 2025

READERPROFILE Christina Nemeyer’s Unexpected Path to Procurement Success as told to Karen Kroll

CHRISTINA NEMEYER is director of corporate strategic sourcing with Performance Food Group (PFG), one of the largest foodservice distribution companies in North America. RESPONSIBILITIES: Oversee the team responsible for establishing national account programs for indirect spend, leveraging PFG’s scale to generate value. EXPERIENCE: Senior manager, corporate strategic sourcing, and corporate sourcing manager, PFG. Fuel supervisor, Estes Express Lines. Inventory control and loss prevention supervisor, S&K Menswear. Market loss prevention manager, Shoe Carnival, Inc. Regional loss prevention analyst and EBR analyst, LP Innovations, Inc. Investigative technician, Capital One Financial Corporation. EDUCATION: MBA, James Madison University. BS, Economic Crime Investigation, Utica College of Syracuse University. In any negotiation, I like to create relationships. I try to understand where both sides are coming from and how we can partner and compromise to come up with a solution that benefits both of us.

W here I initially thought my career would go is not where I’m at now. At Utica College (now Utica University) I studied economic crime investigation with a concentration in nancial crimes. I also interned at Capital One’s internal fraud department, using data analysis to help identify employees who were stealing information. That was so exciting. Then I held several roles in auditing, loss prevention, and fraud analysis for retail organizations. When one went out of business, my career path changed. I moved to Estes Express Lines, where my team managed the procurement of truck fuel and related products. Since I had inventoried suits and ties, I gured I could inventory gallons of fuel. Then I moved to Performance Food Group (PFG). It has been great. I

In any negotiation, I like to create relationships. I try to understand where both sides are coming from and how we can partner and compromise to come up with a solution that benets both of us. A COLLABORATIVE EFFORT At PFG, our drivers are everything. I launched a collaborative effort to come up with the company’s rst driver uniform program. I assembled colleagues from across the organization to develop branding ideas and identify the characteristics of the uniform we

oversee a small team that handles strategic sourcing for indirect categories. It’s a large budget amount and affects the bottom line, so we try to put into place national programs that leverage our size and can help PFG’s operating companies run more efciently and cost effectively. For example, we help procure diesel fuel for the entire organization, negotiating prices and making sure that we have the supply we need. I love helping PFG and I love working with suppliers and handling negotiations.

28 Inbound Logistics • January 2024

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