Inbound Logistics | May 2025

TMS ROUNDUP: THE BIG REVEAL PALLETS UNWRAP PRODUCTIVITY

SPEED + AUTOMATION + AI = PRODUCTIVITY GIFT YOUR WAREHOUSE

BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS

HONDA FUELS LUNAR LIVING Honda plans to test its hydrogen fuel cell technology aboard the International Space Station , aiming to create breathable oxygen and uninterrupted power using only water and solar energy. In partnership with Sierra Space and Tec-Masters, Honda is developing a “circulative renewable energy system” that continuously produces oxygen, hydrogen, and electricity in a closed-loop cycle. The system is designed to store oxygen for astronauts during the dark Lunar Night while using hydrogen and oxygen to generate electricity. Honda envisions this compact, lightweight technology as essential infrastructure for sustained human habitation on the Moon.

RETAIL TRAFFIC: SOMETHING’S AFOOT Shoppers are heading to stores in increasing numbers, a trend that suggests tariff concerns continue to influence consumer behavior in real time. A pass_by survey for the week ending April 20, 2025, finds: • Total retail foot traffic: rose from 3.2% to 6.1% YoY • Specialty food stores: up 36.8% YoY, after jumping 22.9% the week prior • Clothing stores: up 7.2%, building on the prior week’s +4.8%. • Jewelry stores: up 14.9%, indicating that even non-essentials are being pulled forward. Many supply chains are perfectly suited to the needs that the business had 20 years ago. ― Jonathan Byrnes, MIT professor

CARGO CROOKS CHANGE COURSE Criminal tactics and emerging targets of cargo theft continue to shift rapidly. According to incidents analyzed in the BSI Consulting and TT Club 2024 Cargo Theft Report : • Food and beverages were most frequently stolen: 22% • 76% involved trucks, including highjackings & vehicle theft • Nearly half occurred when cargo was in transit • Theft from facilities was down from 25% in 2023 to 18% • Hotspots include Brazil, Mexico, India, U.S., Germany, Chile and South Africa • ‘Strategic’ theft is the standout growth trend • Internet-enabled crime continues as a significant facilitator computer vision, and a robotic arm to map the lips and apply color with precision. Users rest their chin on the device, and within two minutes, lipstick is smoothly and evenly applied. OUR LIPS ARE AI-SEALED Brazilian cosmetics company Grupo Boticário has introduced Smart Lipstick, an AI-powered robotic applicator designed to help individuals with motor disabilities and visual impairments apply lipstick independently. Developed with CESAR Innovation Hub, the device uses AI,

DIY CO2 The Clipper Eris , a new vessel from oil and gas transporter Solvang, features an onboard carbon capture system that can trap 70% of the CO2 from its main engine’s exhaust. Captured carbon is stored in deck tanks until it can be offloaded for permanent sequestration or industrial use.

This system, called Onboard Carbon Capture & Storage & Storage (OCCS), was developed with technology partners to help decarbonize deep-sea shipping. The Clipper Eris will Eris test the technology over a two-year mission, with seven more vessels designed for OCCS installation under construction. Solvang sees this project as a major step toward making carbon capture a standard practice across the shipping industry.

May 2025 • Inbound Logistics 1

CONTENTS FEATURES MAY 2025 | VOL. 45 | NO. 5 32

WAREHOUSE SUCCESS: SPEED UP, SPEND LESS

When managing today’s warehouses, velocity and value are non- negotiable. From predictive AI to flexible robotics, warehouses are cutting costs and accelerating fulfillment without breaking the bank—or the back. Here’s how smart strategies and lean tech help companies gain ground by moving faster and spending smarter.

38 SPONSORED TMS: TIME TO DITCH THE SPREADSHEETS Outdated tools can’t keep up with today’s global supply chain demands. A modern transportation management system (TMS) turns complexity into clarity, cuts costs, improves service, and transforms shipping from a manual chore into a strategic advantage.

50 SPONSORED SMART STACK: PALLETS LOAD UP INNOVATION The seemingly simple pallet is growing more sophisticated as new innovations strengthen an already critical asset.

64

2 Inbound Logistics • May 2025

INPRACTICE

6

10 READER PROFILE: ALLISON BENNETT IRION BRINGING SUPPLY CHAINS TO BREAKTHROUGH RESEARCH AND SCIENCE

GOOD QUESTION Can we ever fully trust AI in supply chain management?

From rebuilding a 1962 Dodge Power Wagon with her dad to leading national supply chain strategy at Argonne, this engineer’s journey has been anything but typical. A pivotal moment at sea on Sept. 11 shifted her career toward national security and critical material supply chains. Now, Allison Bennett Irion drives efforts to build a secure, domestic supply chain for the nation’s energy and economic future.

INFOCUS 1 INFO SNACKS 12 NOTED 14 TAKEAWAYS 64 PRODUCT SPOTLIGHT: DRONES 66 IN BRIEF 88 LAST MILE A warehouse robot with finesse

59 CASEBOOK: RURAL RETAILER REROUTES THE FINAL MILE Blain’s Farm & Fleet, a family-owned Midwest retailer, has always prioritized customer service. After same-day delivery for holiday shopping exceeded expectations, the company made it a year-round offering through a partnership with crowdsourced delivery platform Roadie.

68 ANNUAL WEB GUIDE WEB_CITE CITY

This categorized guide to leading transportation, logistics, supply chain, real estate and technology websites can help streamline your search for new partners.

INSIGHT 4 CHECKING IN AI generates supply chain pocket change 6 GOOD QUESTION Can we ever fully trust AI in supply chain management? 8 10 TIPS

CONTENT PARTNERS 18 How to Make Floor Loading an Efficient Shipping Option Offered by Gorbel 20 Four Ways a 3PL Can Help Shippers Navigate Tariff Volatility Offered by Phoenix Logistics 22 Scaling Smarter with Robotics, Goods to Person, and Agile Fulfillment Offered by VARGO 23 Create Efficiencies for B2B and D2C Fulfillment with Unified Warehousing Offered by Hub Group 24 Smart Load Planning for Smarter Warehousing: Optimizing Warehouse Operations in an Era of Ecommerce Growth Offered by EasyPost 25 How to Modernize Your Warehouse Without Starting Over Offered by Hai Robotics 26 How Shippers Can Prepare for NMFC Changes Offered by SMC 3

Reducing transportation costs 28 ARTIFICIAL INTELLIGENCE How to manage lead time with machine learning 30 SUPPLY CHAIN RESILIENCE Beyond reshoring to regionalization

INFO 62 SUPPLY CHAIN INSIGHTS 86 RESOURCE CENTER

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May 2025 • Inbound Logistics 3

CHECKINGIN

Vol. 45, No. 5 May 2025 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com

Supply Chain Pocket Change?

STAFF

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

PUBLISHER

A s a company’s supply chain network evolves over time, information needed for adaptive efficiency becomes isolated in hard-to-find data pockets. In those instances, data required to drive modern efficient operations is isolated and not instantly accessible— usually housed on old world siloed spreadsheets. Do you have supply chain data points in hidden pockets? Modernized business operations require that fragmented data be unified and presented in a cohesive

EDITOR

SENIOR EDITOR

DIRECTOR OF STRATEGIC CONTENT

Amy Roach amy.roach@thomasnet.com

Tom Gresham Karen M. Kroll Gary Wollenhaupt

CONTRIBUTING EDITORS

Keith Biondo, Publisher

and relational format, on demand. AI can help connect these sources and light up decision-making needed to reduce operational inventory and better match supply to quickly changing sources, prices, and demand. This exact challenge recently faced 6,000+ Wendy’s restaurants. Before implementing AI and combining that with a digital twin of its complex network, Wendy’s reportedly had a piecemeal and disconnected spreadsheet- based logistics network, which led to many manual processes that slowed response time and created higher transport and inventory costs. That legacy management process resulted in higher inventory levels as a hedge against customer service risk, but also repeatedly resulted in unsustainable inventory bloat given high storage and labor costs. In February 2025, Wendy’s launched a new Thin Mints Frosty flavor, and its popularity took off thanks to consumers who bought Thin Mints cookies from the Girl Scouts for decades. It wasn’t long before a demand imbalance was made evident: Wendy’s had sufficient inventory but not where customer demand spiked. A digital twin of the network, coupled with AI inventory, prompted Wendy’s to immediately move enough product to prevent a customer service fail. The Thin Mints Frosty example brings the benefits of a modern AI supply chain regime into focus. Specifically: • Fragmented, spreadsheet-based logistics systems and manual processes led to slow response, costing money in stock outs, unbalanced inventory, and lost sales. • Wendy’s held $370 million in inventory across its network—a strategy driven by risk aversion but unsustainable due to rising labor and storage costs. AI offered the same low risk without the cost. • Slow reaction times to disruptions and unexpected demand shifts. Data was available for Wendy’s to resolve its inventory challenge in a few minutes. But spreadsheet data hidden in distributed pockets? That would have taken a team one day to achieve the same result. AI can help you find pocket change in your supply chain.

Jeof Vita jvita@inboundlogistics.com

CREATIVE DIRECTOR

DESIGNER Arlene So

DIGITAL DESIGN MANAGER PUBLICATION MANAGER CIRCULATION DIRECTOR

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SALES STAFF PUBLISHER: Keith Biondo

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4 Inbound Logistics • May 2025

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GOODQUESTION Readers Weigh In

Can We Ever Fully Trust AI in Supply Chain Management?

YES

Don’t Hand Over the Keys

ARTIFICIAL INTELLIGENCE CAN ABSOLUTELY BE TRUSTED, especially for tasks like inventory, sorting, and forecasting. However, it will always need guardrails. “Human in the loop” oversight ensures decisions align with company goals and mitigates risks, while manual overrides help handle complex or nuanced situations. –Guy Yehiav President, SmartSense by Digi YES, WE CAN TRUST AI—BUT NOT BLINDLY. In supply chain management, common AI tasks include forecasting and planning. Like humans, AI can express varying levels of confidence in its outputs. It’s up to humans to judge whether the reported confidence level is sufficient. That threshold varies by context—95% confidence might be acceptable for route optimization, but not for prescribing medication.

AI in supply chain management isn’t about blind trust —it’s about smart integration. AI enhances human decision-making, but it requires quality data and expertise. The key isn’t trusting AI alone, but combining it with human insight for smarter, faster decisions. –Jeff Metersky VP, Solutions Strategy, GAINSystems Trusting AI in supply chains isn’t about handing over the keys —it’s about building a smarter set of co-pilots or agents. Blind faith? No. Informed reliance? Yes. The winners won’t be those who fear AI, but those who train it to drive with guardrails. In supply chain, it’s not “man vs. machine”—it’s “man and machine” that together win the race.

–Darpan Seth CEO, Nextuple

expertise. This hybrid approach ensures that while AI drives efficiency and innovation, human judgment is always present to manage nuances and unforeseen challenges. Ultimately, trust in AI will grow with transparency, accountability, and continuous improvement. –Brian Weiss CTO, Hyperscience AI IS ALREADY HELPING to make better decisions across inventory and supply chains, but trust comes from results. When AI helps you avoid overstocking or missing a delivery window, you trust it a little more. It’s not about blind trust. It’s about earned confidence, built with every smart decision. –Ben Hussey Co-CEO, Katana Cloud Inventory

EVENTUALLY

AI HAS ALREADY PROVEN HELPFUL in tasks such as supply planning, transportation optimization, and factory scheduling. But we haven’t even scratched the surface of how AI can be used in SCM, and we will have to explore and test many new AI use cases before we can fully trust and rely on AI as the sole solution to SCM. –Ashton Roberts Manager of Supply Chain and Analytics, Bragg Live Food Products FULL TRUST IN AI IS A GRADUAL JOURNEY. AI models are only as good as the data they are trained on, and they require constant refinement and oversight. The power of AI must be combined with human

–Milan Luketic Chief Technology Officer, Birdseye Security Solutions

YES, AI CAN AND SHOULD BE A TRUSTED TOOL for managing supply chains by offering improved visibility. Gartner predicts that by 2028 AI agents will power 25% of supply chain KPI reporting. While AI provides visibility, when coupled with process intelligence (PI), companies gain even more trustworthy data-driven capabilities for better decision-making. –Kerry Brown Transformation Evangelist, Celonis

6 Inbound Logistics • May 2025

GOODQUESTION

Always Proceed With Caution

TRUST BUT VERIFY

A “TRUST BUT VERIFY” APPROACH is recommended. Treat AI as a co-pilot rather than an autopilot. Use AI to enhance human decision-making rather than replacing humans entirely. Prioritizing explainable and auditable AI models is crucial to ensure transparency and accountability. Most importantly, humans must remain in the loop, especially for strategic or ethical decisions. –Ravi Bommakanti Chief Technology Officer, App Orchid IT WOULD BE EXTREMELY DIFFICULT to ever fully trust AI in supply chain management, but that can also be true of any source of information or transaction. You should continue to know and understand your space and make sure you have verification methods in place. –Felix Vicknair Vice President of Supply Chain Solutions, Kenco FULL TRUST REMAINS ELUSIVE due to inherent risks like data bias and system errors. Human oversight and continual evaluation are vital to mitigate these risks, ensuring AI complements human expertise effectively rather than replacing it entirely.

We can’t fully trust human intelligence—so why should we fully trust AI? In all seriousness though, AI is only as good as the data it’s working from and the humans who are teaching and training it how to operate. Garbage in, garbage out is an old adage, but it still applies in the AI era. You need strong data sources and experienced team members to make an AI application worthwhile. –Josh Dunham CEO and Co-founder, Reveel Can you fully trust the internet? There is good info on there, but there’s also a ton of misinformation. The same goes for AI—it’s a tool, not necessarily the truth. AI can supercharge supply chain management, but it can also amplify errors and bias. We need to question, audit, and push for transparency. Real leadership is harnessing AI’s power while keeping human judgment in the driver’s seat. –Tara Milburn President and CEO, Ethical Swag

supply chain tasks, it depends on skilled support for complex issues. It can spot patterns, reference past solutions, and suggest actions. But it also flags problems, empowering experts to step in and resolve them. –Peter Anderson Global Supply Chain Lead, Genpact

are always holes in an algorithm. AI lacks human critical thinking and experience that cannot be replaced. Customers need to trust they are working with account executives who care about their shipments— something an algorithm cannot do.

–Ryan Kean CIO, Total Quality Logistics

NO

WE MAY NEVER FULLY TRUST AI to completely manage the supply chain, but that’s a good thing. Human oversight ensures we apply judgment, context, and creativity where AI can’t. –Jennifer Chew VP of Solutions and Consulting, Bristlecone

NEVER EVER, as long as the word “artificial” applies to the intelligence. Trust is kept whenever mistakes made (which is inevitable) are owned up to and compensated for. Will an AI system do that? Never ever. AI is not a person in law or fact. Trust along the supply chain is necessary; but it is a mutual understanding maintained between humans. If I trust a machine, will it trust me? –Dr. Darren Prokop Professor Emeritus of Logistics, University of Alaska Anchorage AI BASES DECISIONS OFF ALGORITHMS. While this can be a powerful tool and create efficiencies while eliminating human error, there

–Mat Witte CEO, ORTEC Americas

ONLY AS SUPPORT

AI CAN BE INVALUABLE in areas like demand forecasting and inventory optimization. But it isn’t perfect and can misinterpret trends and results. It doesn’t serve as a substitute for human-decision making, but a powerful tool to assist the process. –Art Van Der Stuyf Director of Supply Chain Strategy, iGPS Logistics AI IS THE STUDENT ; workers are the teachers. While AI handles most

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

May 2025 • Inbound Logistics 7

10 TIPS 1 LEVERAGE REAL-TIME SHIPMENT VISIBILITY.

Leveraging the right transportation strategies, tools, and insights can help optimize operations and deliver outstanding service at a reduced cost. Reducing Transportation Costs

and spot carriers for more reliable coverage, especially during peak seasons. 8 CONSOLIDATE SHIPMENTS. Consolidating multiple smaller shipments into full truckloads rather than relying on LTL shipments reduces overall costs and improves on-time performance. Advanced TMS solutions can identify opportunities to aggregate shipments across facilities for more streamlined operations. Cross-docking or transloading also reduces the number of touches on your freight, lowering the chance of errors or damage. 9 USE MULTIMODAL TRANSPORTATION. Shifting between modes can unlock savings. A multimodal TMS can identify opportunities to use rail, barge, or intermodal combinations while ensuring

Real-time shipment visibility allows you to track freight movements across all modes. Armed with accurate ETAs, your team can proactively manage exceptions, minimize disruptions, and avoid costly expedited shipments. A transportation management system (TMS) makes this seamless, providing end-to-end tracking on a centralized platform.

2 OPTIMIZE LOAD PLANNING.

6 LEVERAGE DATA ANALYTICS.

add up if not managed. Proactive alerts within a TMS warn teams about potential accessorial charges, such as delayed dock appointments or extended railcar dwell times, allowing you to act before fees are incurred. 5 AUTOMATE FREIGHT AUDITING. Integrating freight audit tools can automatically flag discrepancies, validate costs against contracts, and prevent duplicate payments. This leads to precise and accurate payment processes every time. With automated freight bill auditing, companies avoid overpaying carriers by catching billing inconsistencies and save valuable time spent on manual data reconciliation.

Underutilized truck space or poorly planned routes lead to inflated costs. Automating load planning with a TMS ensures you efficiently consolidate shipments, maximize capacity, and significantly reduce the cost per unit shipped. Many advanced systems offer dynamic routing, which factors in real-time data to suggest the optimal paths. 3 USE RATE OPTIMIZATION TOOLS. Comparing contracted and spot rates manually can be time-consuming and error- prone. Rate optimization tools built into TMS platforms automatically match your shipments to the lowest-cost carrier or mode, eliminating guesswork. These tools help avoid overpaying during high-demand periods with automated spot markets. 4 PREVENT COSTLY ACCESSORIAL CHARGES. Accessorial fees, like detention, demurrage, and missed appointments, quickly

Understanding which carriers underperform and identifying costly lanes empowers better decisions grounded in data. Modern TMS platforms incorporate predictive analytics to uncover trends and cost-saving opportunities that might go unnoticed. 7 DIVERSIFY YOUR CARRIER NETWORK. Over-reliance on a small group of carriers can create vulnerabilities, especially when capacity tightens. Expanding your pool of carriers ensures greater flexibility and bargaining power. An expansive tendering algorithm built into a TMS helps shippers reach more carriers without sacrificing lead time. Create a mix of dedicated, contract,

customer requirements are upheld. Multimodal

transportation helps to reduce fuel costs for long distances and lower emissions to meet sustainability goals.

10 PROACTIVELY COLLABORATE WITH CARRIERS.

Use TMS-integrated scorecards to evaluate carrier performance, tracking metrics like on-time delivery, rate accuracy, and response times. Proactively communicating with carriers on where they can improve ensures smoother future operations.

SOURCE: MATT EVERSON, SVP OF SALES & MARKETING, INTELLITRANS

8 Inbound Logistics • May 2025

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READERPROFILE Bringing Supply Chains to Breakthrough Research and Science as told to Karen Kroll

ALLISON BENNETT IRION is director, supply chain research for Argonne National Laboratory (ANL). RESPONSIBILITIES: Bring together cross-disciplinary analytical and experimental capabilities to support reliable, secure, and competitive domestic supply chains. Develop and execute a strategy to enhance ANL’s impact in supply chain research. EXPERIENCE: Group leader and principal systems engineer, ANL; Officer in the U.S. Merchant Marine and Navy; Strategic Sealift Commander, Europe, Middle East and Africa; technical advisor for the U.S. Department of Energy’s National Nuclear Security Administration; senior systems engineer, Sandia National Laboratories. EDUCATION: M.S., systems engineering, Massachusetts Institute of Technology; B.S. logistics and intermodal transportation, United States Merchant Marine Academy.

W hen I was growing up, my dad and I would go to the junkyard every weekend and get car parts. We built a 1962 Dodge Power Wagon from the panel up. We were doing engineering, but I never thought about it as that. In high school, I had a cool internship through my public school district and the Texas Rangers baseball organization called the Richard Greene Scholarship Program. I’d do rotations of six weeks at, say, a soup kitchen and then at the mayor’s office. It taught me about connecting to a cause bigger than myself. These experiences led me to the U.S. Merchant Marine Academy. I thought I would go into admiralty law. Then I was out at sea on September 11, which changed my mind. I went to Sandia National Labs as an

breakthrough research and science. Now, we have seat at the table. We’re asking questions about supply chain relative to advancements in, for instance, microelectronics. That’s new and exciting. I’m currently leading an initiative to develop the strategy for a domestic critical material supply chain that can support the United States’ energy, economic, and national security needs. Our goal is to accelerate the building of secure and reliable sources of critical minerals and material. We’re evaluating technology and the actions we can take

engineer. One of my first jobs was to use my knowledge of intermodal networks to identify how somebody could use one for a nefarious purpose. Another project was analyzing an Olympics game to determine where to put radiation detectors. There were many smart nuclear physicists and other experts who knew about detectors, but not about seaports and terminal operations. Understanding both as a supply chain practitioner in a government space is rare. Historically, people haven’t thought about supply chains in

“Historically, people haven’t thought about supply chains in breakthrough research and science. Now, we have a seat at the table.”

10 Inbound Logistics • May 2025

READERPROFILE

regarding sourcing, recycling, and supply chain dependability. The Minerals to Materials Critical Material Supply Chain Research Facility is another exciting opportunity. I am leading a team at Argonne in partnership with nine other national laboratories for the Department of Energy’s Office of Fossil Energy and Carbon Management to accelerate the development of a domestic critical material supply chain. We want to validate nascent technologies, and bring together government, industry, and academia to address questions such as, ‘How can we de-risk domestic technologies at relevant scales by optimizing extraction and separation methods?’ When doors open, sometimes you have to say ‘Yes’ and walk through, even if there could be challenges. I’ve worked across many countries, experienced many interesting opportunities, and worked for causes that are bigger than myself. n

Allison Bennett Irion Answers the Big Questions 1 If you could travel anywhere, and time and money weren’t constraints, where would you like to go? I would visit a friend who lives in

dreams for the post-war paradigm and to hear his take on modern geopolitics. 3 You have $1 million to start a new venture; what would you do? I would focus on a philanthropic effort that dovetails with programs like the Department of Defense’s SkillBridge, which helps former members of the military transition to new fields. Many vets have a strong work ethic and know how to focus on doing hard things, often with grit, ingenuity and no complaints. These programs exist to a certain extent, but I would love to see more military vets transition to the supply chain profession.

Antarctica. In this time, seeing all the happy penguins and having a little levity would be nice. 2 If you could throw a dinner party with anyone, who would top your invitation list? Theodore Roosevelt tops the list. I’d talk with him about his Rough Riders and starting the National Park Service and get his views on conservation today. Next, I’d invite Winston Churchill to reflect on his visions and

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May 2025 • Inbound Logistics 11

NOTED [ IN FOCUS ]

The Supply Chain in Brief

> INVESTMENTS

> GOOD WORKS

n Silicon Valley venture studio NEC X made a strategic investment in SeafoodAI, a startup enabling sustainable seafood with real-time biometric data and AI-powered traceability.

n 1Logtech, a no-code integration platform purpose-built for transportation and logistics, closed a $1.5-million seed funding round led by North Coast Ventures, with additional participation from Queen City Angels and other investors. n Optilogic closed its Series B funding round, led by NewRoad Capital Partners, with participation from MK Capital and Moore Strategic Ventures. Optilogic’s cloud-native platform empowers businesses to model and optimize complex supply chain scenarios. n Atomic, an AI-powered platform, closed a $3-million seed round that included DVx Ventures, the company creation platform run by former Tesla president Jon McNeill, and Madrona Ventures, a venture capital firm known for backing Amazon, Snowflake, and Smartsheet. n Vallor, an AI-agent platform that puts procurement contracts on autopilot, completed a $4-million seed round led by Dynamo Ventures with Bloomberg Beta as a co-lead, with participation from Liquid 2 Ventures, El Cap Ventures, and Rock Yard Ventures.

• DHL Global Forwarding successfully transported the world’s first mobile heart clinic for children to Burundi. The mobile clinic provides life-saving cardiovascular surgeries for children with congenital heart diseases.

> UP THE CHAIN

4flow appointed Greg Toornman , AGCO

Corporation’s former global vice president of materials management, logistics and demand planning, as strategic advisor.

MGX Beverage Group, a supply chain and logistics company specializing in the alcohol beverage industry, expanded its executive team with two new appointments. Strategic financial advisor Randy Leeder (top) joined the team as chief financial officer and Rob Bradshaw

> RECOGNITION

• Hyster’s hydrogen fuel cell-powered ReachStacker was named a transformative product in the 2025 BIG Innovation Awards. The lift truck uses a hydrogen fuel cell engine to convert hydrogen into electricity.

was tapped as chief commercial officer.

12 Inbound Logistics • May 2025

NOTED

> SEALED DEALS

> M&A

• Furniture manufacturer Uttermost improved billing accuracy and operational efficiency by integrating with Shiplify, an accessorial revenue identifier.

• Through a partnership with ITS Logistics, Ghent, a manufacturer of visual communication display products, replaced traditional LTL shipping with a streamlined distribution model to minimize handling, decrease transit times, and elevate the overall customer experience. • Roche selected Tecsys’ Elite for laboratory inventory management. The solution will move Roche toward automated demand capture, real-time visibility, and smarter supply chain management.

n DHL Group acquired CRYOPDP, a specialty courier focused on clinical trials, biopharma, and cell and gene therapies. The partnership strengthens supply chain service offerings for the global life sciences and healthcare sector. n The Kenan Advantage Group acquired MC Tank, a diversified transportation company specializing in the delivery of liquid bulk chemicals in tankers and ISO containers. n NTG Ebrex UK Ltd acquired EDS Worldwide Limited and Rolls Freight Limited to elevate its services in the British and Irish markets. n FitzMark , a transportation management solutions provider, purchased High Point Logistics and PENTONIX Freight Corporation , adding to its capabilities in refrigerated, LTL, and managed transportation.

• Riceland Foods , a U.S. rice miller and marketer, partnered with ODW Logistics to optimize supply chain operations and expand into the Memphis market.

• Flat River Group , an end-to-end ecommerce distributor, implemented John Galt Solutions’ Atlas Planning Platform to incorporate Amazon point-of-sale data into the planning process, and leverage advanced analytics and automation to enhance demand planning, visibility, and inventory alignment.

• Magid Glove & Safety Manufacturing Company , a personal protection equipment manufacturer and distributor, selected FORTNA to retrofit its Romeoville, Illinois, distribution center with a warehouse- ready, high-density AutoStore solution.

• De’Longhi , which manufactures home appliances, designated Encompass Supply Chain Solutions as its main parts supply manager and authorized reseller in North America.

• Instinct Pet Food , a provider of raw, natural pet nutrition for dogs and cats, entered a strategic partnership with Demand Chain AI to enhance its sales and operations planning capabilities.

• The CMA CGM Group and Mistral AI , a generative artificial intelligence company, entered a five-year strategic partnership. Working in collaboration with CMA CGM’s in-house team, Mistral AI will deploy and scale AI solutions across shipping and logistics operations.

> MILESTONES

n C.H. Robinson performed more than 3 million shipping tasks with its fleet of generative AI agents— proprietary tech tools the global logistics provider has built to automate steps across the lifecycle of a shipment and reduce customers’ speed-to-market from hours to seconds.

• Schlüter-Systems KG, a tile and natural stone installation company based in Iserlohn, Germany, is streamlining shipping processes with the International Shipping System from EPG (Ehrhardt Partner Group). The multi-carrier management solution processes approximately 800 orders daily, ensuring scalable and cost-efficient shipping operations.

May 2025 • Inbound Logistics 13

TAKEAWAYS Shaping the Future of the Global Supply Chain AVOIDING PEAK-SEASON PAIN

As retailers prepare for the 2025 peak season, a recent post-season fulfillment analysis from Deposco serves up a sobering reality check: Expectations are outpacing execution. According to Deposco’s report, 93% of supply chain leaders felt confident heading into the 2024 holiday rush—but when the dust settled, only 58% reported success in meeting customer expectations for delivery timing and order accuracy. That’s a 28-point gap between anticipated and actual performance—something retailers do not wish to repeat. Data from the report helps explain what’s behind this disparity: • Technology shortfalls: While 70% of executives believed their fulfillment systems were up to the task, just 42% report that those systems actually delivered. • Labor pains: Despite 51% planning to offset workforce demands with automation and seasonal hires, 65% still faced major staffing challenges. • Misaligned systems: The study exposed a widespread overestimation of system capabilities across order and warehouse management.

The report also outlines three key investment areas for peak- season readiness: 1 Unified supply chain platforms that integrate warehouse and order management systems 2 Artificial intelligence-

powered workforce optimization tools to mitigate labor volatility 3 Customer experience enhancements that build brand loyalty even during fulfillment crunches

ANN DRAKE BUILDS LEADERSHIP LEGACY Former supply chain luminary Ann Drake has a new mission: empowering the next generation of women leaders to shape the future. And she will soon have a new place to further that goal—a forthcoming Women’s Leadership Center being built in Williams Bay,

Wisconsin. The 24,000-square-foot retreat, situated above Geneva Lake, is set to become a nexus for women leaders to engage in innovation, collaboration, and leadership development. The center is a partnership between Lincoln Road Enterprises, an organization Drake founded to elevate women’s leadership, and Studio Gang, an international architecture and urban design firm led by Jeanne Gang.

Drake—who had a trailblazing career as CEO of DSC Logistics before founding Lincoln Road and AWESOME (Achieving Women’s Excellence in Supply Chain Operations, Management, and Education), a community of more than 1,500 women in senior supply chain roles, views the new center as “a place where conversations happen that will change the world.” The new center features gently curved spaces and expansive windows ( see rendering above ). Situated on 8.6 acres, it will comprise three main structures—the Lodge for large gatherings and dining, the Council for meetings and conferences, and the Cabin for intimate retreats. The Center broke ground in July 2024 and is expected to open in 2026.

14 Inbound Logistics • May 2025

TAKEAWAYS

Often overlooked as merely an extension of transportation and warehousing, dock and yard operations are critical components of supply chain efficiency—and the sector is currently undergoing significant transformation. Companies that focus on these elements as distinct functions from their transportation and warehouse networks can gain a leg up in competition, finds the 2025 State of Yard and Dock Management Report from C3 Solutions. Many supply chain organizations still rely on manual processes for managing dock and yard operations, the report indicates. But as their importance gains favor, companies now seek real-time visibility for these areas. Here are some top findings on the state of the dock and yard management sector: • Manual inefficiencies remain a top challenge: 39.1% of respondents identify manual processes as a significant barrier to efficiency. • Yard congestion disrupts operations: 36.3% of businesses struggle with congestion, leading to bottlenecks and delays. • Labor shortages persist: 35% report difficulties in maintaining adequate staffing levels, exacerbated by rising labor costs. • Lack of real-time visibility: 31% of respondents state that the absence of real-time data slows reaction time and exception management. • Limited automation increases costs: 27.5% indicate that their yards rely heavily on manual processes, leading to higher operational expenses. • Late carrier arrivals require flexible response: 60% reschedule appointments and notify stakeholders, while 48.5% build buffer times into schedules. DOCK AND YARD OPS LEVEL UP

3 STRATEGIES FOR MANAGING DISRUPTIONS

Chief supply chain officers (CSCOs) have plenty of things keeping them up at night right now as supply chains face major simultaneous disruptions. Instead of counting sheep, Ken Chadwick, vice president, advisory, in Gartner’s Supply Chain practice, offers three high-impact strategic actions that CSCOs can implement to help prepare for a period of prolonged uncertainty. Shared at the recent Gartner Supply Chain Symposium/Xpo in Orlando, this trifecta, according to Chadwick, can help leaders prioritize in order to deliver value. They are: 1 Navigate risk and uncertainty by investing aggressively in advanced visibility and building an iterative scenario-planning capability. Chadwick emphasizes that while CSCOs recognize the value of advanced visibility and scenario planning, many fall short of fully executing these capabilities due to obstacles such as data challenges and incomplete tech stacks. 2 Orchestrate dynamic supply chain outcomes through diversifying networks and taking ownership of commercial outcomes. Scenario planning enables CSCOs to drive growth through flexible network design and analytics-driven insights, while also taking ownership of commercial outcomes beyond short-term cost and portfolio concerns. 3 Accelerate innovation by matching ambitions with capabilities, while enabling and inspiring teams to lead the transition. To accelerate innovation and extract value from technologies like AI, Chadwick advises aligning investments with an organization’s risk profile and culture, making both tactical and transformative bets, and supporting adoption through dedicated change leadership.

May 2025 • Inbound Logistics 15

TAKEAWAYS

TEMP CHECK: TARIFFS In a recent LinkedIn poll conducted by Inbound Logistics , nearly 90% of respondents express concern about the impact of tariffs on supply chain costs and long- term business success. While 42% call tariffs a “major challenge,” the largest group—47%—say the issue is “manageable.” Only 12% report no impact at all, signaling that tariffs remain a key pressure point for most logistics and supply chain professionals. How concerned are you about the impact of tariffs on your supply chain costs and long-term business success?

Does it seem like you’re working longer hours than most people you know? You may be right. The logistics sector has earned the dubious distinction of having the longest workday at 9 hours and 10 minutes—26 minutes longer than the cross- industry average, according to ActivTrak Productivity Lab, which based its findings on three years of workplace data spanning 23 industries, including 774 companies and 218,900 employees. In addition, the research shows logistics leads all industries with 20% of workers overutilized and 15% at risk of burnout. ActivTrak defines “overutilization” as an employee who exceeds their daily productive hours goal by more than 30%, based on thresholds set by their employer. Burnout risk applies to employees who spend more than 75% of their time overutilized annually. The news isn’t all bad, however. It turns out logistics workers are also highly productive and collaborative. Additional findings include: • Logistics workers log the most daily productive time at 7 hrs, 3 minutes—46 minutes longer than the overall average. • Logistics workers rank second in daily collaboration time at 56 minutes—18 minutes longer than the overall average. • 72% of logistics workers adopted AI tools in 2024, the most across industries studied. • Logistics employees have the highest daily AI usage, nearly three minutes longer than the overall average. WORKING 9:00 TO 6:10

47%

42%

12%

Not concerned: No impact on us

Very: It’s a major challenge

Concerned, but it’s manageable

MANUFACTURERS TOP CYBER ATTACK HIT LIST

The manufacturing sector has become the foremost target for cyber adversaries, surpassing more than 20 other industries in alerts generated, confirmed threats detected, and incident response engagements, according to Arctic Wolf’s 2025 Threat Report .

The report also shows a rise in ransomware attacks and indicates that 96% of ransomware attacks involve data theft, indicating that double extortion, where attackers steal and threaten to leak data before encrypting systems, is now the norm.

16 Inbound Logistics • May 2025

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How to Make Floor Loading An Efficient Shipping Option

FLOOR LOADING BY INDUSTRY

Few things are more costly than having empty space in your shipments. Floor-loading can help make each load more efficient compared to pallet loads, deflating the amount of air in each trailer.

The majority of container imports are floor- loaded to maximize each expensive shipment. While palletized loads are more common in domestic shipments, floor loading is the favored option for ocean moves with suitable cargo and packaging. Many shippers are attracted to the advantages of floor-loading compared to palletized loads, or if they already floor-load, are looking for automated systems to make it more labor efficient and reduce product damage. Palletized loads are naturally less space efficient. A standard 53-ft. trailer can hold 26 to 30 standard-sized pallets. If the pallets are loaded to 8 ft. high or double stacked, they will, at best, use only about 80% of the trailer volume. Floor-loaded trailer pallets can get closer to 100% utilization, with multiple SKUs in one load. Given the 20% difference in loading capacity, every fifth floor-loaded trailer is essentially free compared to a pallet configuration. That reduces shipping costs and greenhouse gas emissions for the supply chain. Palletized loads have the advantage when it comes to the ease of unloading. A single fork truck can offload 26 pallets in about 30 minutes. A floor-loaded trailer that is unloaded manually can take considerably longer, with more resources required. However, a portable ergonomic conveyor system changes the equation for floor-loaded cargo. A portable conveyor places a platform and a conveyor at the box wall. Rather than lifting each box, workers slide it onto the conveyor without lifting, twisting, or carrying it. There’s less chance of product damage from the box wall collapsing, workers dropping packages to a conveyor belt, or manually carrying them off the truck. With an assist from a portable conveyor, a dock door may handle four trucks per shift instead of one. A warehouse with 40 doors could be downsized to 10, with improved ergonomics for employees limiting injuries and fatigue. Among the key benefits of using an ergonomic conveyor for floor- loads are worker retention, productivity, and safety, especially in competitive labor markets. Any shipper using floor-loading can dramatically improve efficiency with a portable economic conveyor. While shifting from palletized loads could be a significant undertaking, there are benefits with lower transportation and packaging costs and improved sustainability.

Portable ergonomic conveyors offer benefits for users across industries. Implementing floor loading starts with mapping the flow of products through the entire network from receiving to customer delivery. Identify bottlenecks and inefficiencies where a portable ergonomic conveyor could add value through improved efficiency and lower labor requirements. O ● Retail. Floor-loading improves speed and efficiency, but receiving locations could benefit from portable ergonomic conveyors. More product delivered to store floors more quickly improves cash flow. O ● Ecommerce. Portable conveyors allow multiple package types to be handled efficiently. O ● Third-party logistics (3PL). 3PLs focus on optimizing inventory with floor-loading, whether a facility serves one client or multiple shippers. O ● Cross docking. Cross docks typically don’t have palletizing capabilities, so portable conveyors to unload and load trailers dramatically improve efficiency for floor-loads. O ● Parcels. Complex services with different divisions handle express, freight, and non- conveyable items, and portable conveyors can be configured to help handlers manage multiple packaging types. O ● Manufacturing. Companies that ship internationally can take advantage of portable conveyors to floor-load to serve their global customer base. O ● Tires. Entirely floor-loaded distribution with predominantly manual unloading. Portable conveyors address the ergonomic and safety challenges of heavy, oddly shaped products.

18 Inbound Logistics • May 2025

Protecting Workers and Maximizing Efficiency THE ULTIMATE SYSTEM FOR LOADING AND UNLOADING SHIPPING CONTAINERS SYSTEM FOR LOADING AND SHIPPING CONTAINERS

Destuff-it™ machines are designed to aid workers who load and unload floor-loaded product in containers and trailers. From small boxes weighing 3 pounds to large furniture boxes weighing 165 pounds, the Destuff-it™ helps your dock personnel move a variety of product. Operators experience more throughput and greater handling capacity with less fatigue and muscle strain because of optimal positioning to the box wall. Call 800-263-9823 or email us at sales@destuffit.com to determine which product is perfect for your application.

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© 2025

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4 Ways a 3PL Can Help Shippers Navigate Tariff Volatility

Relying on a good third-party logistics (3PL) partner can help you manage tariff volatility. Here’s how:

A fter years of trade instability between the United States and trade partners like China, shippers have become accustomed to fluctuations in supplier pricing and logistics needs. Still, recent tariff policies have introduced new levels of instability into the market, with changes often happening so rapidly that businesses have struggled to keep up. As supply chain professionals have learned from previous trade wars and the COVID-19 pandemic, riding out unexpected, unpredictable market fluctuations requires building resilience into the supply chain. One aspect of building a more resilient infrastructure involves engaging with partners that can help you bolster your capabilities and respond quickly to disruptive elements. In uncertain times, one of the best things you can do for your supply chain is lean on a good third-party logistics (3PL) partner. Here are four ways that a 3PL can help you manage tariff volatility. 1. Scaling Logistics Infrastructure Many companies—and especially retailers—react to disruptive elements in the supply chain by buying large volumes of inventory, buying time to think as leaders evaluate new market conditions and consider new strategies and solutions. The challenge here is that when an organization suddenly orders a large, unplanned volume of safety stock from its suppliers, that extra inventory needs somewhere to go. A 3PL can help these businesses quickly scale up their storage capabilities by adding more facility locations, cross-docking inventory, or implementing other strategies to

relationships with customs brokers that can help ensure that shipper customers stay compliant even as rules change rapidly. 4. Supporting Demand Planning With tariff proposals in flux, shippers may find themselves asking what they need to order today and what can wait

until rules become more final. A logistics partner can help a

business sort through critical historical data on which goods consumers are likely to order, which inventory moves slowly and won’t need immediate replenishment, what buyer trends looked like during previous trade disputes, and more. This information can help organizations avoid overspending on inventory replenishment as they try to place accurate orders in an unstable trade environment. Trade disputes might happen on the global stage, but the impact of these policies can be felt at home if a company doesn’t take steps to mitigate cost impacts and build resilience to disruption. Support from a strategic 3PL partner can help business leaders make the best of an unpredictable situation.

help avoid bottlenecks and prevent unnecessary disruptions and delays.

2. Establishing New Suppliers One of the stated goals of the current tariff policy is to bring sourcing and manufacturing back to the United States. This action requires more from a business than simply shifting to a U.S. supplier, however. New supplier contracts also mean evaluating and hiring carriers in new lanes and figuring out how to integrate this new inbound inventory flow into existing processes. A logistics partner can help companies seamlessly weave new suppliers into existing infrastructure or make any necessary adjustments to accommodate new supplier locations. 3. Navigating New Rules When tariffs are implemented and paused with little or no notice, it can be confusing for shippers as they try to figure out which tariffs apply on any given day. Expert support can be critical in this type of environment to avoid unnecessary fines for non-compliance. Even if the 3PL itself is not a customs brokerage, it will have established

—By Robert Kriewaldt

Vice President Phoenix Logistics Robert@Phoenix3PL.com phoenix3pl.com 920-915-9746

20 Inbound Logistics • January 2025

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