Inbound Logistics | August 2024

SPOTLIGHT ON U.S. SEAPORTS

RETAILERS HANG ON: Supply Chain Strategies Tha t Work

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BITE SIZED SUPPLY CHAIN/LOGISTICS INFORMATION Info SNACKS

76% of logistics transformations never fully succeed, failing to meet critical budget, timeline, or key performance indicator metrics 81% of logistics leaders believe that transformation is critical YET ONLY 20% adopted the approach of using resistance as a resource to improve outcomes 62% Odds of transformation success

BIG POWER, SMALL PACKAGE Swiss company Micro has unleashed a tiny titan into the world: the Microlino. This pint-sized electric vehicle, with a curb weight of about 1,093 pounds, is categorized as a four-wheeled motorcycle. The Microlino measures about 8.2 feet long, five feet wide, and five feet tall. It also boasts an estimated range of nearly 142 miles, a maximum speed of 56 mph, can accelerate to 31 mph in five seconds, and takes only four hours to charge on a standard household socket. The car’s size can accommodate a driver and a passenger and features over eight cubic feet of space for cargo. Starting price: $25,900.

RANSOMWARE RAMPAGE • ThreatLabz tracked an 18% increase in ransomware attacks year-over-year. • Manufacturing, healthcare, and technology sectors were the top targets of ransomware attacks. • The United States remains the top target of ransomware, experiencing nearly 50% of overall attacks, followed by the United Kingdom, Germany, Canada, and France.

by effectively responding to team resistance and incorporating feedback

— Zscaler, Annual Ransomware Report

—Gartner survey

THE BIG STAY 77% of U.S. professionals are hesitant to change jobs due

“Humans are great thinkers, but machines have a better memory by a long shot, so we balance the strengths of one versus the other to weigh the options. A machine can tell you what’s available, but the human has to make the decisions.” — Bryn Heimbeck, Co-founder and President, Trade Tech IE&D PLANS PAY OFF • 73% of supply chain managers say their company outperforms competitors when inclusion, equity, and diversity (IE&D) plans are implemented and organized effectively. • More than three quarters of HR professionals at companies with effective IE&D plans say they experience low turnover and recommend their supply chain department as a “great place to work.” — SHRM and ASCM Research, The Power of IE&D in the Supply Chain: Unlocking Resilience and Growth

to job security. 77%

are not looking for a new role because of concerns around job security in a new firm. 80% put job security over pay when considering a new role. 65% state that the economy plays a ‘significant role’ in whether to change jobs.

–Robert Walters poll

August 2024 • Inbound Logistics 1

CONTENTS AUGUST 2024 | VOL. 44 | NO. 8

FEATURES 30

42 PORT PROFILES

28 PROCUREMENT Be prepared, post-pandemic 56 LAST MILE Ships get wind of traditional power source INFO 48 SUPPLY CHAIN INSIGHTS 54 CALENDAR 55 RESOURCE CENTER INPRACTICE 10 READER PROFILE LAUREN HARPER: THE ODDBALL IN AUTONOMOUS TRUCKING While her

BEYOND THE RACK: RETAIL SUPPLY CHAIN STRATEGIES THAT WORK In the challenging retail sector, supply chain efficiency can be the difference between succeeding and just barely hanging on. From weaving together disparate systems into a single information flow, to ensuring products appear effortlessly on shelves, to fulfilling online orders with lightning speed, here’s how retailers rack and roll. 36 ALTERNATIVE ROUTING: GO ANOTHER WAY In the face of constant supply chain disruptions and unexpected events, shippers must be ready to reroute at a moment’s notice. Finding the road—or waterway—less traveled can sometimes make all the difference for transportation success.

Leading U.S. gateways make gains in operational efficiency and offer infrastructure improvements to support increased cargo demands. INFOCUS 1 INFO SNACKS 12 VERTICAL FOCUS: HIGH-VALUE 14 NOTED 16 TAKEAWAYS 52 IN BRIEF INSIGHT 4 CHECKING IN The new retail equation: Better, not bigger? 6 GOOD QUESTION What song or lyric best describes your supply chain experience or approach? 8 10 TIPS Ensuring transportation sustainability 26 IT MATTERS Warehouses need ecosystem integration to ensure supply chain survival

finance degree classmates went into banking, Lauren Harper chose the trucking industry. She believes autonomous trucks can save lives on the road and U.S. soldiers on the ground.

CONTENT PARTNERS 20 4 STRATEGIES TO REDUCE RAIL DEMURRAGE COSTS Offered by WSI 22 BETTER SERVICE, LOWER COST–THE LTL ELECTRONIC BILL OF LADING Offered by SMC 3 24 APEX LOGISTICS STREAMLINES GLOBAL SHIPPING IN STYLE Offered by Apex Logistics

Inbound Logistics (ISSN 0888-8493, USPS 703990) is mailed monthly to approximately 60,000 business professionals who buy, specify, or recommend logistics technology, transportation, and related services, by Thomas, a Xometry company, 6116 Executive Blvd, Suite 800, North Bethesda, MD 20852. Periodicals postage paid at North Bethesda, MD, and additional mailing offices. All rights reserved. The publisher accepts no responsibility for the validity of claims of any products or services described. No part of this publication may be reproduced or transmitted in any form or by any electronic means, or stored in any information retrieval system, without permission from the publisher. Postmaster send address changes to: Inbound Logistics, P.O. Box 1167, Lowell, MA 01853-9900

2 Inbound Logistics • August 2024

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CHECKINGIN The New Retail Equation: Better, Not Bigger?

Vol. 44, No. 8 August 2024 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com

STAFF PUBLISHER Keith G. Biondo

publisher@inboundlogistics.com

R emember when the ultimate retail accomplishment was bigger stores—and more of them? The tide seems to be turning, with “big box” giving way to “out of the box” when it comes to retail thinking. Retailers are increasingly shifting their strategies to prioritize efficiency, adaptability, and customer experience over sheer scale. Here are a few high-profile examples reported by BDO in its recent retail update:

EDITOR Felecia J. Stratton

editor@inboundlogistics.com

SENIOR EDITOR Katrina C. Arabe

karabe@inboundlogistics.com Amy Roach amy.roach@thomasnet.com

DIRECTOR OF STRATEGIC CONTENT

CONTRIBUTING EDITORS Karen M. Kroll • Gary Wollenhaupt

CREATIVE DIRECTOR Jeof Vita

jvita@inboundlogistics.com

Keith Biondo, Publisher

DESIGNERS Nicole Estep Arlene So

• Macy’s opened 12 small-format stores that are 30,000 to 50,000 square feet (one-fifth the size of Macy’s mall locations) and plans to add 30 more locations by the end of 2025. • Nordstrom plans to open 23 Nordstrom Rack stores through spring 2025, in mostly suburban markets. Locations range between 23,000 and 36,000 square feet. • IKEA opened more than 70 new, mostly small-format stores in 2023. Store size is not the only thing retailers are experimenting with. They are also seeking new store approaches to help combat retail turmoil. Bath & Body Works, for example, plans to locate two-thirds of its stores outside of malls as part of its long-term strategy, while Walmart aims to convert 150 locations to new concept stores featuring improved layouts, expanded product selections, and new technology by 2029. SUPPORTING INNOVATION AND THE CUSTOMER EXPERIENCE Regardless of which direction retailers go, it will be imperative for them to focus on designing and managing their supply chains to support innovation and greater complexity. That will likely mean relying on advanced analytics and artificial intelligence tools, which will be pivotal in forecasting demand, optimizing inventory levels, and personalizing the customer experience. By boosting overall supply chain efficiencies, retailers can make the most of these paradigm shifts and deliver superior customer experiences across all channels. A demand-driven supply chain approach—which we’ve been championing for 40-plus years now—is still the best way to meet evolving needs while ensuring the adaptability and flexibility it takes to enact retail pivots like smaller store footprints or new concepts. In this new retail landscape, companies that innovate and adapt by refining their operational models to be more agile and responsive will be best positioned to thrive. That formula is likely to work regardless of the shape, size, or strategy that takes hold as the new norm.

Amy Palmisano apalmisano@inboundlogistics.com

DIGITAL DESIGN MANAGER

PUBLICATION MANAGER Sonia Casiano

sonia@inboundlogistics.com

CIRCULATION DIRECTOR Carolyn Smolin

SALES OFFICES PUBLISHER: Keith Biondo

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612-234-7436 • FAX: 847-305-5890 marshall@inboundlogistics.com DIRECTOR, NEW PRODUCT DEVELOPMENT & MARKETING, SOUTHEAST/MIDWEST/ECONOMIC DEVELOPMENT:

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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.

Inbound Logistics welcomes submissions and comments. Email us at editorial@inboundlogistics.com; call (212) 629-1560. For advertising or subscription information, email publisher@inboundlogistics.com. Inbound Logistics is distributed without cost to those qualified around the world. Interested readers may subscribe online at bit.ly/get_il. Subscription price to others: in North America $95 per year. Unqualified subscription prices: foreign $229. Single copy price: N. America $50, foreign $100, back issues $50.

4 Inbound Logistics • August 2024

Integrated Supply Chain Solutions Dedicated Contract Transportation I Managed Transportation I Value-Added Warehousing I Brokerage Support Services

Meet Jeremy, A Ruan operations leader who oversees Dedicated Contract Transportation and Brokerage Support Services for valued customer partner Big Lots. His team delivers optimized logistics solutions that remove excess cost from Big Lots’ network, utilizing a late model fleet that’s always prepared to tackle surges and seasonal needs.

Meet Kory, A Big Lots transportation leader who ensures efficient delivery of goods from vendors into distribution centers and to stores nationwide. He leverages Ruan’s expertise and collaborative approach to solve transportation challenges, ensuring that Big Lots remains a destination for consumers seeking savings and quality products.

Delivering BIG deals on everything for your home. Together.

From day one, we work as one. With you and your team. We learn your business. We recognize and adapt to unexpected transportation challenges that exist in a retail environment. Our logistics solutions team work to optimize supply chains and provide cost savings while ensuring reliability and transparency. Put Ruan’s Integrated Supply Chain Solutions to work like Kory and Big Lots, and let our team become yours. For more information on how our tailored solutions can enhance your retail business, visit Ruan.com/WeAreYou .

GOODQUESTION Readers Weigh In

What Song or Lyric Best Describes Your Supply Chain Experience or Approach?

“Under Pressure” by Queen and David Bowie

“BETTER THINGS” by The Kinks. Like the song’s promise of brighter times, supply chains are evolving. A digital transformation is the driving force, offering tools and data to navigate challenges. –Ori Anavim Co-founder and COO, Grasshopper “WHO RUNS THE WORLD, GIRLS!” as Beyonce says. Women are responsible for 80% of consumer spending so it makes sense for women to be leaders in the supply chain industry. –Maggie Barnett CEO, LVK “WHAT HAVE YOU DONE FOR ME LATELY” by Janet Jackson. It highlights the constant demand for immediate results and efficiency. Rapidly changing consumer demands and market changes dictate that supply chains must continuously prove their value and adaptability. –Stephen Dombroski Director of Consumer Markets, QAD “TURN THE PAGE” by Bob Seger. This perfectly encapsulates the dynamic nature of supply chain management. The lyrics convey a desire to move on from the past and embrace something new. In logistics, inefficiencies and rising costs are the pages we’re challenged to turn. –Doug Ladden Co-founder & CEO, Deliveright “SMOOTH OPERATOR” by Sade. In ecommerce fulfillment, a smooth operation is what we all strive for, but navigating unpredictable demand,

The pressure can be relentless with geopolitical issues, cyber attacks, natural disasters, supply and demand fluctuations, fuel prices, labor shortages, bottlenecks, lack of technology, lack of visibility and data… the list is daunting. –Mark McEntire CEO, Princeton TMX The pressure on manufacturers to innovate in the face of evolving consumer expectations is palpable. Supply chains are under relentless pressure to deliver with precision and reliability while navigating high complexity. –Ryan McMartin Product Marketing Manager, Parsec Automation The song speaks to the steady stream of new challenges supply chains face every day that call for agility and responsiveness to meet customer demands and stay competitive in a dynamic market. –Polly Mitchell-Guthrie VP, Industry Outreach and Thought Leadership, Kinaxis

“ON THE ROAD AGAIN” by Willie Nelson . Wheels are always turning in the transportation industry, We move America! –Tammie Dean Recruitment Manager, Lily Transportation “MONEY FOR NOTHING” by Dire Straits. Because the entire supply chain gets squeezed year after year while expectations remain to accomplish more with less. –Lynne Minto Strategic Sourcing Manager, Communisis

inconsistencies in labor availability, and poorly integrated automation can cause difficulties in creating consistent flow. Tech and software- enabled systems integrators can help get these operations back in rhythm. –Bart Cera CEO, VARGO® “STAND BY ME” by Ben E. King . This highlights the importance of reliability and reflects how we can support supply chains by providing companies with trustworthy data. –Miriam Molino Sánchez Head of Industry Practice, Stibo Systems

6 Inbound Logistics • August 2024

GOODQUESTION

“Roll With the Changes” by REO Speedwagon

“KEEP ON TRUCKIN’” by Eddie Kendricks focuses on perseverance; despite numerous challenges, the supply chain keeps moving

forward, adapting to new realities and continuously pushing through obstacles. The song captures the constant motion and effort required to keep goods flowing smoothly. –Richard Lomazzo Senior Director of Operations, DP World “CONNECTION” by Elastica. This song captures my supply chain experience. Our network links buyers and suppliers from around the globe. Like the song says, “it’s a connection, baby, it’s a connection.” –Tony Harris SVP & Head of Marketing & Solutions, SAP Business Network “INTO THE GREAT WIDE OPEN” by Tom Petty. Though literalism tempts me to say “The Chain” by Fleetwood Mac, Tom Petty’s song is my real answer. Multimodal logistics has so much potential to transform our supply chains. The industry is teeming with opportunities. –Steve Potter SVP, Metals Sales, Odyssey Logistics “CONDUCTIN’ THANGS” by Maestro Fresh Wes , a

We do anything to accommodate our customers’ wants and needs in the world of transportation. –David Anderson Quality Systems Engineer, TA Services Agility and adaptability, or the ability to roll with the changes, and a desire to never stop learning are the keys to staying ahead of the curve. –Ed Rusch Chief Marketing Officer, Magaya

“I’M STILL STANDING” by Elton John. Moving forward means navigating the tides, the ups and downs, and changes in technology and vision. Passion and a drive to move forward is a must. –Ann Marie Jonkman Vice President, Global Industry Strategy, Blue Yonder “I STILL HAVEN’T FOUND WHAT I’M LOOKING FOR” by U2. According to our research, 10% of inventory is misplaced in the warehouse. Just last year we found over $1M worth of lost inventory in a single warehouse for a customer. –Sankalp Arora CEO & Co-Founder, Gather AI “DON’T STOP THINKING ABOUT TOMORROW” by Fleetwood Mac. In today’s complex freight market, it’s crucial to have a stable operation that can handle

One growing method? Hacking third- party supply chain partners and slipping in through the backdoor. –Apu Pavithran CEO and Founder, Hexnode “UNCHAIN MY HEART” by Ray Charles. It’s about breaking free and unchaining the supply chain; I see an opportunity to set our customers free from many supply chain challenges through digitalization and dynamic solutions. –Chee Foong Wan CEO, PSA BDP “MMMBOP” by Hanson vividly captures the fleeting essence of time and relationships. Just as relationships swiftly evolve, supply chains constantly flux with demand, disruptions, and innovations, requiring continual adaptation. Its rhythm symbolizes the fast pace, urging swift responses in navigating this dynamic landscape. And that catchy chorus? My Friday sanity! –Lorena Camargo CEO, PearlTrans Logistics

hip hop trailblazer, who was arguably ahead of his time.

It’s no secret that supply chain orchestration is a big piece to the puzzle for enabling a responsive and optimized supply chain. –Jason Tham Co-Founder and CEO, Nulogy “IT’S A LIVING THING” by ELO. A supply chain management solution should be considered a living, evolving organism. –Anne van de Heetkamp Vice President, Product Management GTI, Descartes Systems Group “DEVIL IN DISGUISE” by Elvis Presley. Bad actors are always trying to find new ways behind your firewall.

supply chain fluctuations and anticipate future challenges.

–Condy Dixon Chief Operating Officer, RJW Logistics Group

Answer upcoming Good Questions at: www.inboundlogistics.com/good-question We’ll feature some responses.

August 2024 • Inbound Logistics 7

10 TIPS

Eight of 10 supply chain executives are investigating sustainable transportation practices, according to EY. This is an excellent focus area because transportation represents 24% of global greenhouse gas emissions. Here’s how to ensure sustainability. Ensuring Transportation Sustainability

8 ROUTE TRUCKS IN REAL TIME.

1 CREATE TARGETS FOR COST, CARBON, AND CUSTOMER SERVICE. You must track cost, carbon, and customer service because you can’t control what you don’t measure. For simplicity, calculate Scope 3 emissions—those by your carriers— using mileage. Targets should not be fixed but indexed against other metrics like sales. If the company doubles in size, adjust the targets similarly.

Real-time (dynamic) routing systems use algorithms and real-time data to determine the most efficient routes, reducing unnecessary travel delays. Think “Waze for trucks.” Efficient static routing minimizes the distance traveled but dynamic routing cuts the time spent on the road, directly reducing CO2 and other greenhouse gas emissions. 9 SMOOTH OUT SHIPMENTS. Deadhead miles (without cargo) represent about 15% of all miles driven. Violently fluctuating demands from shippers cause many of these wasteful miles, forcing them to reposition empty equipment over long distances. Consider the costs a carrier incurs to accommodate 24 shipments one day and three the next. Cutting this variability in replenishment using network capacity optimization generates savings for shippers and carriers.

2 USE ALTERNATIVE MODES. Shippers may have to move to more cost-effective and carbon-efficient modes to cut carbon emissions and reduce fuel usage. For example, move from air to truck, truck to intermodal, intermodal to boxcar, or boxcar to ocean. 3 CONSOLIDATE MORE SHIPMENTS. In addition to consolidating orders and creating multi- stop loads, shippers need to utilize vehicles as full as possible. Rather than shipping as soon as you receive an order, accumulate demand and send it out on a published “sailing schedule,” say, each Wednesday. This enables getting more on each vehicle and creates fuller trucks. For example, shippers may eliminate most parcel shipments, drastically cutting LTL volume. 4 AVOID ADDING INTERMEDIATE MOVES. Consider this scenario: A major food plant has a small on-site warehouse that couldn’t accommodate all the

volume. It could hold only a day or two of production. Their solution was to get a large warehouse 25 miles away and ship everything there to redistribute to their own DCs as well as perform customer shipments. With intelligent technology and the recognition that they could utilize space on empty trucks returning from the outside to bring back items needed for an order, they managed to ship 40% of the product directly from the plant warehouse. 5 SEEK OUT INEXPENSIVE ALTERNATE FUELS. No, we are not saying to switch to electric trucks, as 25% of U.S. electricity is generated by burning coal, a major source of CO2. Instead, biodiesel mixes are sustainable and don’t require special expensive equipment.

Existing diesel engines can use biodiesel fuel with little to no modification. 6 MANAGE CUSTOMER ORDERS TO FILL TRUCKS. Offer incentives such as better pricing if the customer orders more than, say, 44,000 units. Shippers can also use order-sizing technology that understands product stacking constraints and axle weight restrictions and flags loads if the truck needs to be utilized appropriately. 7 MAKE USE OF PALLET POOLING. Pallet pooling — where multiple companies share a common pallet pool to transport goods — helps avoid bringing in or removing non- managed packaging items over long distances. It also eliminates landfill for items such as odd-sized pallets.

10 FILL UP

YOUR TRUCKS. With 91% of trucks underloaded, using math optimization technology for load building saves 5-10% on costs and reduces the number of trucks on the road, which saves fuel and reduces carbon emissions.

SOURCE: TOM MOORE, CEO AND FOUNDER, PROVISIONAI

8 Inbound Logistics • August 2024

Only pay for the speed you need... Dynamic Routing!

On time and on budget. At Lynden, we understand that plans change but deadlines don’t. That’s why we proudly offer our exclusive Dynamic Routing system. Designed to work around your unique requirements, Dynamic Routing allows you to choose the mode of transportation – air, sea or land – to control the speed of your deliveries so they arrive just as they are needed. With Lynden you only pay for the speed you need.

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READERPROFILE The Oddball in Autonomous Trucking

as told to Karen Kroll

RESPONSIBILITIES: Support and add value to strategic and operational initiatives, such as developing autonomous solutions for the U.S. Army. EXPERIENCE: Senior strategist and business operations, Kodiak; corporate strategy and development associate, TuSimple; finance product summer associate, AgriDigital; vice president, production, Picture Movers Anonymous; chief executive officer and founder, LouLou Productions; business valuation associate, Deloitte. EDUCATION: MBA, Yale School of Management; B.B.A, Cox School of Business, Southern Methodist University. LAUREN HARPER is chief of staff at Kodiak Robotics, which builds solutions that can power autonomous movement for the long-haul trucking market.

I ’m a jack of all trades. I earned an undergraduate finance degree, specializing in alternative assets. Almost all my classmates are in investment banking or private equity. I’m the oddball in autonomous trucking, but I love it. After working in finance, I moved to the entertainment space. I worked primarily as a line producer, building the budgets and managing cash flow for music videos, TV shows, movies, and other projects. While this work was exciting—I applaud people who work in entertainment and love a good TV show as much as the next person—I felt I wasn’t impacting people’s day-to-day lives in a tangible way. When I pivoted from entertainment

and save our soldiers on the ground. It’s fulfilling to feel I’m part of something that can make such a positive impact. I worked in corporate strategy at TuSimple, an autonomous driving technology developer. I fell in love with it from day one. Partly it was my wonderful manager, but it’s also an exciting industry. I was impacting day-to- day lives. You could see our customers’ trucks on the road. It was tangible. When you pivot to a new industry, you have to work hard and prove you belong. I said ‘yes’ to everything. I managed our insurance and worked with the CFO to manage investor relations, even though those weren’t technically my job. I’m proud of my willingness to learn, get my hands dirty, and make a spot for myself in this industry.

to the trucking industry, I knew I’d need to immerse myself in a different world. I got into the Yale School of Management, where there are people from all over the world, with all sorts of backgrounds and perspectives. You can learn from everyone. Then I looked for a position in transportation. I grew up in a trucking family and witnessed how important safety is. I believe autonomous trucking has the potential to save lives on the road “Success means showing up and learning so you’re ready to take on a project when it comes up.”

10 Inbound Logistics • August 2024

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READERPROFILE

UNMATCHED

Then I was blessed to move to Kodiak and work with the leadership team. It has been a fantastic couple of years. As chief of staff, I can provide value and lead initiatives where I’m needed, as Kodiak strives to deploy driverless trucks in Texas in the second half of this year. I’m also working closely on our program with the U.S. Army. We’re developing autonomous solutions for one of their platforms. The Department of Defense has their own language and way of working. Once again, I had to say, ‘Okay, this isn’t something that I’m familiar with, but I’ve just got to get my hands dirty and learn how to execute on a program.’ Unless I have a conflict, I go to every meeting I’m invited to. It’s a way to learn about other parts of the company. Plus, it’s hard to volunteer for something if you don’t know what’s going on. Success means showing up and learning so you’re ready to take on a project when it comes up. I think about how exciting this industry is and the potential it has to positively transform ground transportation efficiency and reliability. I’m proud and excited to be a part of Kodiak. n

▪ RAIL INTERMODAL ▪ HIGHWAY CAPACITY ▪ TEMPERATURE CONTROL ▪ INTERNATIONAL ▪ CUSTOMS CLEARANCE

Lauren Harper Answers the Big Questions 1 What’s the best leadership advice you’ve received?

3 When you wake up in the morning, what are the first things you check? At Kodiak, we use Slack as an informal means of communication. So I check direct messages and see if there is anything immediate I need to address. Then I stay off my phone, have a cup of coffee, and usually read. I’m a nerd and read about 70 books every year.

That we are all created equal. We have our strengths and weaknesses, but we’re all people, and should be treated the same. It shouldn’t be hard to do this, but it’s something good to remember. 2 If you could have one superpower, what would it be? My superpower, which I’d use only for good, would be controlling emotions. I’d love to be able to help someone feel the confidence they need or help them grieve less.

www.alliance.com

2017+2019 EXCELLENCE AWARD WINNER CERTIFIED MEMBER SINCE 2006

August 2024 • Inbound Logistics 11

High-Value Shipments THE SECRETS TO SUCCESSFUL HIGH-VALUE DELIVERIES

sentimental value, and it can’t be other value that’s not related to the replacement of this item. When you accept the value of this kind of delivery, make sure you understand how it’s packaged. It should be packaging that’s as close to the original as possible, or that has been professionally done. “The next thing is the way that it’s handled. If you’re shipping a laptop or a server that has business-critical data on it, pick a vehicle that allows you to ship it in the safest possible way.

Getting a high-value delivery from point A to point B means mobilizing the right people, systems, and timing. Here are some tips for success in this high- stakes vertical from Customized Logistics & Delivery Association (CLDA) members. “Our specialty lies in high-cost, high-touch medication

delivery for complex diseases, often directly to patients’ homes. Success hinges on exceptional drivers and robust systems. Drivers need to be meticulous and caring, fully aware of the critical nature of their cargo. Our geofencing technology ensures deliveries only occur at the correct location.” –Ryan Schwalbach, CLDA Board Member & President NOW Courier “First, determine that it’s high value, which relies on the customer being able to explain why it should be treated that way. Is a $13-million check high value? No, because it’s only worth the paper that it’s written on. But if you’re delivering a statue to a museum that has a declared value (and is insured as such), that’s high value. It can’t be

“Make sure you do the delivery on your most urgent service. It’s all about protecting the chain of custody. When delivering that very valuable laptop with a declared value of $110,000, on-time and intact, you’d better collect the signature from the customer. That signature declares that the package has been delivered to them intact and in good condition. That completes the chain of custody.” –Ron Libman, CLDA Member and US Messenger Chief Customer and Business Development Officer 8 TIPS FOR HANDLING HIGH-VALUE DELIVERIES 1. Secure packaging. Use quality materials. 2. Insurance. Insure items fully. 3. Tracking. Use GPS tracking. 4. Secure transport. Consider armored vehicles. High-value deliveries require clear and constant communication between the carrier and the shipper. That means carriers must provide specific delivery windows, do driver pre-calls to notify when arriving, have drivers in uniform or wearing badges to clearly identify themselves and do real-time proof of delivery with pictures. –Ruth C Correa CLDA Board Member and Chief Executive Officer, Cheetah Final Mile 5. Proof of delivery. Require ID verification. 6. Communication. Keep all parties informed. 7. Training. Train staff on protocols. 8. Contingency plans. Prepare for emergencies. –Jessica Marino CLDA Member and 24/7 Enterprises Operations Manager

CALCULATING CARGO VALUE

Knowing the value of a commercial shipment helps determine shipping costs, insurance premiums, and customs duties. Here are some common ways to measure cargo value: For commercial shipments, invoice value is the most common method. The value is based on the commercial invoice, which includes the cost of goods, freight charges,

insurance, and other expenses. Sometimes, the retail value is used, especially for high-value goods or when the invoice value doesn't accurately reflect the item’s worth. Other factors to consider include: Currency. Declare the shipment’s value in the currency of the destination country. Customs duties. The declared value affects the amount of customs duties that are owed. Insurance. The value determines the insurance coverage required. Shipping costs. The cargo value can influence shipping costs, especially for high-value items. Under-declaration. Declaring a lower value than the actual value can lead to legal issues and difficulties in case of loss or damage. Over-declaration. While accurate declaration is important, overvaluing items can result in higher customs duties and insurance premiums. For more complex cargo valuations, consider consulting with a customs broker or freight forwarder.

12 Inbound Logistics • August 2024

THE PERSONAL TOUCH: OBC SERVICES With ongoing supply chain disruptions and market challenges, shippers must carefully consider the most effective ways to ship high-value products. On-board courier (OBC), a specialized airfreight service, is one option for safe, secure shipping of certain high-value products. What sets OBC apart is the hands-on approach. A courier accompanies the shipment from its origin, boards a plane, clears customs, and personally delivers the high-value product to the recipient at final destination. Constant, personal monitoring reduces the risk of theft, loss, and misrouting, and it offers the possibility of expediting processes, such as customs clearance. Moreover, this personalized service ensures the special attention and care high-value goods require. While there are many advantages to OBC, there are also some disadvantages including: • A higher cost due to the personal attention the shipment receives. specific destinations may add complexity to the OBC process. Several high-value cargo types are well suited to the advantages of OBC services. These include: • Pharmaceuticals and medical supplies • High price-tag items such as luxury watches and jewelry, which benefit from the added security and personal handling • Time-critical parts to keep a manufacturing line up and running • Valuable art and antiques that require careful handling and protection benefit from OBC personalized attention • Confidential documents, whether financial records or legal documents, are well served by OBC, which offers secure and timely delivery of these sensitive documents. • The OBC service does not accommodate large- volume shipments. • Regulatory restrictions for

ESSENTIAL TIPS FOR SHIPPING HIGH-VALUE ITEMS Shipping high-value items

requires special care and attention to ensure their safe arrival. By following these guidelines, shippers can significantly reduce the risk of damage or loss when transporting high-value items. 1. Use proper packaging.

• Invest in quality materials such as sturdy boxes, bubble wrap, and cushioning to protect the item from shock and vibration. For extremely valuable or fragile items, consider custom-built crates. • Mark the package as “Fragile” or “High Value” to alert handlers. 2. Get adequate insurance coverage. • Ensure the shipment is insured for its full value. • Get familiar with the insurance policy’s terms and conditions, including coverage limits and exclusions. • For extremely valuable items, explore additional coverage options such as all-risk insurance. 3. Choose the right carrier. • Choose a reputable carrier with a proven track record of handling high-value items safely. • Look for carriers that offer specialized services for high-value goods, such as white-glove delivery or secure transport. • Understand the carrier’s liability limits and any additional coverage options. 4. Implement tracking and security measures. • Use real-time tracking services to monitor the shipment’s progress. • Require a signature upon delivery to ensure the package is received by the intended recipient. • Inquire about the carrier’s security measures, such as GPS tracking and secure facilities. 5. Ensure accurate documentation. • Provide a detailed description of the item, including its value and contents. • Keep copies of purchase receipts, appraisals, or other documentation to support the declared value. • For international shipments, ensure all required customs paperwork is completed correctly. 6. Communicate clearly. • Provide the carrier with clear and detailed instructions for handling the shipment. • Include emergency contact information in case issues arise. • Stay in touch with the carrier throughout the shipping process.

–Andrew Rossell, VP Operations, ASF Global Logistics

August 2024 • Inbound Logistics 13

NOTED [ IN FOCUS ]

The Supply Chain in Brief

> SEALED DEALS

> SHOVEL READY

• Walgreens Boots Alliance Global Sourcing has selected TradeBeyond’s multi- enterprise platform to optimize and standardize operations across its retail brands and to leverage more innovative and agile sourcing practices. • Snack food manufacturer and distributor Snak-King partnered with Redwood Logistics to mitigate supply chain disruption. The 3PL introduced a comprehensive suite of services that enables Snak-King to streamline logistics operations, secure more favorable carrier rates, and significantly reduce risk exposure.

n MANA Nutrition broke ground on a new 320,000-square- foot warehouse in Pooler, Georgia, four miles from the Port of Savannah. The facility,

scheduled to open in the first quarter of 2025, will enable the company to double its current production while adding new storage capacity. > MILESTONE n Team Worldwide is celebrating its 45-year anniversary as a global full-scale logistics provider of innovative solutions and personalized shipping experiences across multiple industries.

• Outdoor retailer Orvis expanded its relationship with FourKites and now uses FourKites’ Order Insights to improve on-time delivery, inventory management, and customer satisfaction.

> UP THE CHAIN

• Blain’s Farm & Fleet partnered with Roadie, a UPS company and crowdsourced delivery platform, to offer same-day delivery for its products. Blain’s shoppers who place orders by 2 p.m. can now choose same-day delivery to their doorstep for more than 60,000 products, including select oversized items, qualifying for this service. • Apollo Tires (US) Inc. has implemented Corcentric’s Managed Accounts Receivable services to help focus on strategic initiatives that will contribute to business growth in the United States. • Harry Rosen, Canada’s premier luxury menswear retailer, renewed its agreement with Rhenus Logistics Warehousing Solutions. Under the renewed contract, Rhenus provides

Michele Grubbs, vice president of the Pacific Merchant Shipping Association (PMSA), was elected to the board of directors of the Containerization & Intermodal Institute, a not-for-profit organization that supports and promotes the business of international trade and the intermodal transportation community. She has been with PMSA since 2004, overseeing its Long Beach, California office.

> GREEN SEEDS

n As part of its sustainability and climate protection strategy, logistics service provider Dachser is cooperating with Renault Trucks on the gradual decarbonization of road freight transportation.

Dachser is expanding its fleet by 15 Renault Trucks all-electric vehicles, which complete local and long- distance transport tours at seven Dachser locations in Germany every weekday.

comprehensive warehousing and distribution solutions to support Harry Rosen’s extensive network of retail stores across Canada.

14 Inbound Logistics • August 2024

NOTED

> RECOGNITION

> M&A

• Landstar System presented its BCO Lifetime Achievement Award to Duane Vorst, a Landstar Three Million Mile Safe Driver and Roadstar recipient. To date, Vorst has

driven more than 3.23 million miles while leased on with a Landstar company without a preventable accident. He also has earned two Landstar Star of Quality awards, and a National Safety Council Driver Honor. • Schneider National was selected as the PepsiCo Asset Sustainability Carrier of the Year for the third consecutive year. Schneider works closely with PepsiCo to help achieve significant milestones in sustainable transportation. • Anacostia Rail Holdings’ Pacific Harbor Line was recognized for safety and industry leadership with the Presidents Award for safety in 2023 from the American Short Line and Regional Railroad Association.

n As a part of its strategic plan to continue building an established and strong presence in Saudi Arabia, CEVA Logistics signed a joint venture agreement with Almajdouie Logistics , a leading logistics provider in the Kingdom of Saudi Arabia (KSA). The signed agreement is pending approval by the necessary regulatory authorities. n Accenture will acquire Camelot Management Consultants , an international SAP-focused management and technology consulting firm from Germany, with specific strengths in supply chain, data and analytics. n Aptean acquired Principal Logistics Technologies , a provider of purpose-built warehouse management and supply chain optimization software solutions. With the acquisition, Aptean adds new capabilities to its warehouse management and supply chain management offerings for wholesalers, importers, manufacturers, retailers, and 3PLs.

• For the sixth straight year, The Disability Equality Index named CSX Corp. one of America’s best places to work by earning a top score of 100. The Index measures key performance indicators across culture and leadership,

enterprise-wide access, employment practices, community engagement, and supplier diversity.

n Advantive acquired Pepperi , an omnichannel B2B sales platform for wholesalers and distributors.

• Target Corporation honored Capital Logistics with the Best Overall Provider for First Mile Food & Beverage award, for the second time. The award recognizes exceptional performance in managing thousands of shipments for Target over the past year.

> IN MEMORIAM

• Dr. Spyros M Polemis, the former chairman of

• Ivca Kaiserova, senior manager EMEA security and loss prevention at Amazon, is the 2024 winner of the Young Supply Chain Resilience Professional of the Year Award , co-sponsored by the Europe, Middle East & Africa region of the Transported Asset Protection Association and TT Club.

INTERCARGO, passed away in July 2024. An influential representative of the global shipping community in Athens, London, and New York, Polemis was instrumental in consolidating INTERCARGO’s presence in the shipping industry during the 1980s and 1990s.

August 2024 • Inbound Logistics 15

TAKEAWAYS Shaping the Future of the Global Supply Chain

Global Business Supply Chain Continuity Index Optimism about supplier delivery time and supplier cost has remained steady, while optimism for supplier concentration ticked up.

3 STEPS FOR SUPPLY CHAIN VIABILITY Supply chain and procurement leaders worried about securing business viability and addressing long-term resource constraints would do well to heed this advice: Focus on urgent, tangible issues, rather than attempting to mitigate exposure to long-term constraints directly. This approach proves to be more effective in finding solutions to actually address long-term limitations, according to new research from Gartner. The research identifies top current resource constraints that threaten business viability and defines three key categories of action where supply chain leaders should shift their strategies: 1. Motivate action by de-prioritizing long-term constraints. Supply chain leaders should instead focus on generating action through addressing the short-term risks that stakeholders are most focused on. 2. Reprioritize long-term constraints to design solutions. By engaging with relevant internal and external stakeholders, supply chain leaders can ensure both current and future constraints are considered as part of the design process. 3. Leverage the marketplace to learn and innovate. Leading companies forge partnerships with innovators, startups, and solutions providers with a clear goal in mind. They also use pilots to identify and overcome any barriers to that goal.

Q2 2024

Q3 2024

Supplier Delivery Time

Supplier Delivery Cost

Supplier Concentration

Source: Dun & Bradstreet

OPTIMISM ALL AROUND Dun & Bradstreet’s Q3 2024 Global Business Optimism Insights report reveals a notable rise in optimism across all five indices for the first time since Q3 2023. Overall global business optimism and financial confidence have increased by more than 12% and 23%, respectively, despite ongoing geopolitical tensions and supply chain issues, the report shows. Central banks’ moves to ease interest rates have bolstered confidence, with businesses feeling optimistic about sales, new orders, and reduced borrowing costs. Here are the details behind the optimism: • The Global Business Optimism Index increased 12.3% on the back of expected growth in sales, new orders, and favorable input costs amid easing global inflation. Information tech, wholesale and retail, and textile are the most optimistic sectors. • The Global Supply Chain Continuity Index saw a marginal improvement of 1.2% stemming from businesses adjusting to the new supply chain environment, which continues to be disturbed by geopolitical tensions, longer shipping routes and climate- related disruptions. Large business optimism deteriorated significantly while smaller businesses are more optimistic. • The Global Business Financial Confidence Index improved 12.3% as businesses are optimistic about their operating conditions and liquidity risk. Smaller businesses are now more optimistic about cash flow management given growing expectations of falling borrowing costs. • The Global Business Investment Confidence Index increased 23.3%, signaling a meaningful uptick in optimism for capital spending, backed by an accommodative global monetary policy. Globally, small and mid-sized businesses were more confident about the environment for merger and acquisition activity than larger businesses. • The Global Business ESG Index increased 8% as businesses look to re-engage their sustainability initiatives. In the survey, more than one in two respondents indicated increased funding for ESG-related activities.

16 Inbound Logistics • August 2024

TAKEAWAYS

NEXT-GEN TECH BOOSTS PROFITABILITY Looking for a way to increase profitability? Technology may hold the key. Companies with advanced supply chain capabilities enjoy 23% greater profitability compared to their peers, finds new research from Accenture. These forward-thinking companies, which are six times more likely to utilize AI and generative AI throughout their supply chains, manage to generate significant additional business value. Accenture’s report, Next Stop, Next-Gen , identifies the top 10% of companies, referred to as “Leaders,” as achieving 23% higher profit margins and 15% better returns to shareholders between 2019 and 2023. Leaders invest heavily in sophisticated technologies, enabling them to develop and launch new products faster, create eco-friendly products, and significantly improve engineering efficiency. Despite this, the report paints a concerning picture of overall supply chain maturity, which remains low at an average score of 36%. Companies with low supply chain maturity scores, particularly below 25%, face significant risks if they fail to evolve and adapt. The research emphasizes that most companies still rely on outdated supply chain methods, which leaves them vulnerable in today’s dynamic economic landscape. “To remain competitive, companies must quickly adopt advanced capabilities such as real-time supplier monitoring, flexible production adjustments, and comprehensive lifecycle simulations,” says Melissa Twining-Davis, Accenture’s global operations lead for supply chains.

CROWDSTRIKE STRIKES THE SUPPLY CHAIN When a CrowdStrike update in July caused a massive IT outage, crashing millions of Windows systems and disrupting air travel and other sectors, logistics professionals waited to gauge the supply chain impact. While a fix to the CrowdStrike outage was deployed in just hours, the incident highlighted the cascading effects that technological disruptions can have on global logistics and business continuity. Two experts share their thoughts on lessons learned for the transportation and logistics sector: Transportation must implement multiple layers of redundancy for critical systems such as booking, scheduling, and communications platforms. Use multi-vendor solutions for clustered servers. Ensure that essential functions can continue offline or with minimal IT support, such as manual check-ins and reservations. Transportation personnel should be trained to switch to this mode if necessary. There is a need for DRP plans that include scenarios for large-scale IT failures.” —Mike Walters, President and Co-founder, Action1 Over-reliance on several key vendors in corporate IT highlights a broader need for supplier diversification. It goes beyond infrastructure technology into customized and high-performance components and services where single, sole, or dominant sources create consequential bottlenecks. Supplier diversification is much easier said than done, since it involves a risky and expensive process of developing a new product or service. These additional costs and risks are often dwarfed by a revenue, performance and reputational hit originating in a key supplier failure.” —Andrei Quinn-Barabanov, Supply Chain Industry Practice Lead, Moody’s “ “

“Leaders” invest more in advanced supply chain capabilities.

57%*

4.1x

4.0x

37%*

14%*

9%*

Others

Leaders

Others

Leaders

Share of companies that use more than 5% of annual revenue to invest in supply chain and manufacturing digitization

Share of companies that plan more than 5% of annual revenue to invest in industrial automation

*Note: The number represents the percentage of Leaders and Others from the overall group in the study Source: Accenture Supply Chain & Operations Capabilities Global Survey, 2023

August 2024 • Inbound Logistics 17

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